PRACTICE QUESTIONS FOR EXAM 3

Multiple ChoiceIdentify the letter of the choice that best completes the statement or answers the question. 

 1. Which of the following promises does not have to be evidenced by writing in order to be enforceable?a. Jones' agreement with Smith to sell his condominium for

$100,000.b. Stewart's promise to work for Austin for a two-year

period.c. Dad's promise to the credit union that he will make

payments on his son's truck if his son does not pay.d. Mindy's agreement with Susan to buy her bike for $400. 

 2. Chris receives a printed form in the mail from Sears indicating that he has placed a telephone order for a $600 furnace. He doesn't recall placing the order. Which of the following is correct?a. Sears can hold Chris to the order.b. Chris can hold Sears to the order.c. Neither party is bound, because there is no signed writing.d. Chris is bound if he makes no objection within 10 days. 

 3. In which of the following cases would an oral contract be enforceable without a written memorandum?a. Ron orders three custom-made suits for which the seller

has made a substantial beginning of their manufacture.b. Michelle calls an employment agency in Paris to arrange

for maid service for her three -month Parisian vacation starting in ten months.

c. Anna orders a top-of-the-line computer over the phone.d. Catherine calls Lucky Dude Ranch to purchase the

championship race horse they have advertised in the paper. 

 4. Which of the following is an exception to the suretyship provision requirement under the statute of frauds?a. A collateral promise made to the creditor.b. A promise, the leading object of which is to obtain an

economic benefit for oneself.c. A collateral promise where there are three parties and two

contracts involved.d. A promise by an executor to pay the debts of the decedent

from the executor's own funds. 

 5. Which of the following is a collateral promise?a. A mother tells a merchant to extend $1,000 worth of credit

to her son and says, "If he doesn't pay, I will."b. Andrew promises Donald that if Donald cannot pay his

bills, Andrew will.c. A father tells a merchant to deliver a computer to his

daughter and says, "Send me the bill. I'll pay for it."d. All of the above are collateral. 

 6. Under the parol evidence rule, which of the following types of evidence may be used to vary or contradict the written agreement?a. Prior oral or written agreements.b. Contemporaneous oral or written agreements.c. Subsequent oral or written agreements modifying the

original agreement.d. Both (a) and (b). 

 7. Which of the following would NOT require a writing under the statute of frauds?a. Where the buyer pays the $40,000 purchase price, thus

fully performing his obligation.b. Where a renter agrees to rent a building for a 5-year

period.c. Where a contractor enters into an agreement for an

easement across adjoining land to run cables.d. Where a landscaper agrees to landscape the lot

surrounding an office building. 

 8. Which of the following would not be subject to the writing requirements of Article 2 of the UCC?a. An unborn puppy whose mother is an AKC champion.b. Trees that will be cut from a ten-acre tree farm.c. Food served in the banquet room of a Florida resort.d. Medical care received in a hospital. 

 9. Would a letter written after the execution of a contract and which contained agreements different from those in the written contract be admissible under the parol evidence rule?a. No, because it contradicts the terms of the contract.b. No, because it changes the agreement.c. No, because it explains the agreement.d. Yes, it would be admissible, because it is subsequent to

the written agreement. 

 10. On March 1, Sara, a student, received a telephone call from ComputerChip, Inc. offering her a job for one year beginning on June 15, after completion of the school year. According to the personnel manager, she will have to move to California and be ready to start work at 8:00 a.m.

on June 15. Should Sara ask for a letter confirming the telephone conversation if she accepts the offer immediately?a. Yes, because the job offer is a collateral promise.b. Yes, because the job offer is covered by the parol evidence

rule.c. Yes, because the job offer is for longer than one year from

March 1.d. No, because the job offer is for one year from June 15. 

 11. Which of the following would be admissible under the parol evidence rule? Assume the written contract was made on June 1, 1999, and that it is an integrated document.a. A letter dated July 9, 1999, reciting agreement to new

delivery terms.b. A chart showing the dates for delivery written on August

16, 1996.c. A copy of two letters while the parties were in the

negotiation stage of their contract which showed agreement to a term not included in the June 1, 1999 contract.

d. A copy of common carrier rules on the duty of delivery persons for uncrating merchandise, which is dated December 1, 1998.

 

 12. Barry's Sport Shop calls Champion Tee Shirt Company to order 200 designer tee shirts at $2 per shirt. The next day, Barry decides he can easily sell 100 more. Before the order is filled, he calls to change the order to 300 tee shirts. Champion sends 200. Can Barry force Champion to send the additional 100?a. No, because there is no consideration for the extra 100

shirts.b. No, because Barry does not have a writing signed by

Champion Tee Shirts.c. Yes, because this is a subsequent modification of the

original contract.d. Yes, because Champion Tee Shirts is a merchant within

the meaning of Article 2 of the UCC. 

 13. Sam, a shopkeeper, dies unexpectedly at the age of 46. His lifelong business associate, Paul, is appointed the administrator of the estate. Sam had a personal debt of $8,000 which he owed to Art's Appliance Store. Paul says to Art, "If there isn't enough money in the estate, I'll personally see that the bill is paid." Which of the following is correct?a. The oral statement is enforceable because Paul is the

administrator.b. An oral statement such as this is not enforceable because it

is outside the statute of frauds.c. An oral statement such as this is not enforceable because it

is within the statute of frauds.d. The oral statement is enforceable because it is a collateral

promise. 

 14. Which of the following promises in consideration of marriage would be outside the statute of frauds?a. In consideration of Joan's promising to marry him, a man

promises to pay her an allowance and to give her all of his property upon his death.

b. John and Mary mutually agree that their marriage shall not affect the existing property rights of the other.

c. John and Joan mutually promise to marry each other in a formal ceremony on June 23.

d. Joan promises to release a money judgment against Steven in consideration of his marrying her.

 

 15. Blevins, Inc. calls the Widget Corporation of America to order 400 widgets at $2 a widget. Widget accepts the oral order and then sends out an order confirmation form, with the pre-printed name Widget Corporation of America on the top of the form. The form states that an order has been received for "300" widgets and that it will be filled promptly.a. The order acceptance form fails to meet the writing

requirement in the UCC, because it isn't signed.b. Blevins can enforce the contract for 300 widgets, but not

for 400 widgets.c. If Blevins signs and returns the form, it will be able to sue

for the extra 100 widgets later.d. The contract is enforceable for 400 widgets, because it has

been partially performed. 

 16. A contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims that a "year" is obviously 12 months. The defendant claims that the contract meant a 10-month school year.a. Parol evidence cannot be used to explain the term, because

the plain meaning of a "year" is 12 months.b. Parol evidence cannot be used to explain the term, because

it is an integrated document.c. The term "year" in the contract is ambiguous, and the

parties can bring in parol evidence to clarify their intent.d. Parol evidence cannot be used, because the contract

contains an express term that could have been changed by the parties prior to the contract's execution.

 

 17. Anita owes Brad $75,000. Brad signs a written statement granting Glen a gratuitous assignment of his rights from Anita. Brad delivers the signed statement to Glen before Brad dies.a. The delivery of the statement makes the assignment

irrevocable.b. The assignment is terminated upon Brad's death.c. The signing of the statement makes the assignment

irrevocable.d. The assignment is invalid, because it is revocable. 

 18. Theresa has a contract to teach eighth grade at Washington Middle School. She decided she could make more money writing a book, so she assigns her teaching contract to her friend, Stephanie, who is also a licensed teacher.a. The duties under the teaching contract are nondelegable.b. The duties which Theresa has attempted to delegate are

personal in nature.c. If the school district agrees to accept Stephanie's services,

a novation would occur, which would relieve Theresa of her obligation to the school district.

d. All of the above are correct. 

 19. Annette entered into a contract with a local truck dealer to have a new truck delivered to her daughter, Sue, as a graduation present. In this contract, Sue is:a. an incidental beneficiary.b. a donee beneficiary.c. a creditor beneficiary.d. an assignor. 

 20. Professor Doright has a life insurance policy on his own life that provides that in the event of his death, his mother will receive the proceeds. Professor Doright's mother is a(n):a. incidental beneficiary.b. creditor beneficiary.c. donee beneficiary.d. assignee. 

 21. Bill wants to buy a new car. He goes to the bank to get a loan for the purchase, and signs an agreement to pay $10.00 per month in premiums on a term life insurance policy which names the bank as the recipient of the policy proceeds in the event of his death before the loan is repaid. The bank is a(n):a. incidental beneficiary.b. creditor beneficiary.c. donee beneficiary.

d. assignee. 

 22. Betty owes Agatha $1,000. On March 1 Agatha, for value, assigned the debt to Clara. Thereafter, on March 30 Agatha assigned the same right to Diane.a. Under the American rule, Clara will prevail over Diane.b. Under the English rule, the first assignee to notify Betty

will prevail.c. Under the Restatement rule, the first assignee to notify

Betty will prevail.d. Both (a) and (b) are correct. 

 23. Stark enters into a contract with a contractor to build a large shopping mall in River City. Donner will greatly benefit from this contract since his convenience store is adjacent to the mall. Donner in this instance is a(n):a. implied beneficiary.b. partial beneficiary.c. donee beneficiary.d. incidental beneficiary. 

 24. Eric, an engineer, assigns his rights under a contract with Xerox Corporation to his son, Tim. The contract calls for Eric to design microchips in return for stock in the corporation. Tim decides he would rather have Swiss francs than Xerox stock, so he demands that the stock be converted to Swiss francs and deposited in his numbered account in Zurich.a. Xerox has no choice but to honor Tim's request.b. Xerox can refuse, because it increases their burden.c. Xerox can revoke the assignment.d. Such an assignment of future income is invalid. 

 25. Mr. Homayer hired Blake Painters to paint his house. Blake decides it has too many jobs and delegates the duties to the Andrews Company. Andrews does a poor job, and drips paint on the Homayers' flowers and windows.a. Mr. Homayer can sue both Blake and Andrews.b. Mr. Homayer can sue Blake, but he cannot sue Andrews.c. Mr. Homayer can sue Andrews, but he cannot sue Blake.d. Mr. Homayer cannot sue, because he has accepted the

benefits of the assignment. 

 26. Mary goes to Merrill Lynch, purchases 500 shares of IBM Stock, and instructs Merrill Lynch to register the stock in her husband Warren's name. If this stock is intended as a Valentine gift, Warren becomes a(n):a. donee beneficiary.b. transferee.

c. delegatee.d. assignee. 

 27. Alvin did repair work for Bea for a fee of $100. Alvin tells Bea, "Do not pay me the money. I purchased some lumber from Carl and I want you to pay the $100 to Carl." If Carl does not get paid for the lumber, Carl may sue:a. Bea, but not Alvin.b. Alvin, but not Bea.c. Either Alvin or Bea for the $100.d. Alvin for $100 and Bea for $100. 

 28. Which of the following involves a creditor beneficiary relationship?a. A contract where the insured names a bank with which he

has a loan as the beneficiary of a life insurance policy.b. A contract between an employer and a union representing

the employees, which contract is made for the benefit of the employees.

c. A contract between the owner of a building and the contractor stating that the contractor will pay his employees at a stated rate.

d. A contract between a governmental unit and business for services to be rendered to area citizens.

 

 29. In which of the following situations is there a third party incidental beneficiary who would be unable to enforce the agreement?a. The buyer of a business promises the seller that he will

pay outstanding debts to wholesalers who have supplied inventory for the business.

b. A contractor agrees to post a performance bond to assure payment of workers and material suppliers.

c. A new partner enters an accounting firm and agrees to pay a share of debts incurred prior to his admission to the firm.

d. An automobile accident policy states that the insurance company will reimburse the insured for medical expenses incurred as a result of an automobile accident.

 

 30. Which of the following involves an invalid assignment that a court would not enforce?a. An assignment of a savings account accompanied by the

delivery of the passbook.b. An assignment lacking consideration.c. An assignment of an automobile liability insurance policy

accompanied by the delivery of the policy.d. An assignment in writing signed by the assignor and

delivered to the assignee.

 

 31. Noel and Lyle have a contract whereby Noel is to perform routine construction services according to the blueprints that Lyle has provided. Noel assigns the contract to David. As a result of this assignment:a. Lyle can bring suit based upon detrimental reliance.b. Noel has no more rights or responsibilities with regard to

the contract.c. Noel no longer has any rights under the contract, but he

remains responsible for the duties he agreed to perform.d. Noel has all of his rights under the contract, but he has no

responsibility for the performance of the duties. 

 32. Brice owns a parcel of land that is encumbered by a mortgage held by the First National Bank. Brice agrees to sell the land to Paul for $50,000. Brice and Paul together go to the First National Bank to discuss the sale and purchase with the banker. Brice, Paul, and the banker sign an agreement stating that Paul will assume the mortgage and that Brice will be discharged from all further liability on the mortgage.a. The bank is a third party donee beneficiary.b. The bank can collect from Brice if Paul defaults.c. Brice is a third party beneficiary of the agreement between

Paul and the bank.d. The agreement among the three is a novation. 

 33. Anita owes Brad $75,000. Brad signs a written statement granting Carla a gratuitous assignment of his rights from Anita. Brad dies prior to delivering the statement to Carla.a. Brad's death has no effect on the assignment.b. The assignment is terminated upon Brad's death.c. The signing of the statement makes the assignment

irrevocable.d. The assignment is invalid because it is gratuitous. 

 34. Odessa owes Kevin $2,000. On July 1, Kevin assigns the right to the $2,000 to Troy. Thereafter, on July 15, Kevin assigns the same right to Donna, who in good faith gives value for it and knows nothing about the first assignee.a. Troy has the right to the payment of $2,000.b. Donna has the right to the $2,000.c. Neither Troy nor Donna can claim the $2,000.d. The rule differs in different states. Depending on which

rule a state follows, the answer will vary. 

 35. Barbara owes Arturo $2,000. On July 1, Arturo assigns the debt to Charles. Thereafter on July 15, Arturo assigns the same right to Dennis, who in good faith gives value for it and knows nothing about the first

assignee. Dennis immediately notifies Barbara of the assignment.a. Under the American Rule, Dennis has the right to the

$2,000.b. Under the majority rule, Dennis has priority.c. Under the English Rule, Dennis has priority.d. Under the English Rule, Charles has priority. 

 36. William has a contract to build a new office building for Angela. The contract contains a provision requiring William to furnish a certificate of occupancy from the building inspector before Angela is required to pay. This provision is:a. an express condition.b. an implied-in-fact condition.c. an implied-in-law condition.d. a condition subsequent. 

 37. Which of the following is a contract with a condition subsequent?a. Rhonda enters into a contract to buy a new car conditional

upon her getting a loan from her bank.b. Roger bought a VCR, but he may return the VCR within

ten days and get all of his money back.c. Both (a) and (b) are examples of a condition subsequent.d. Neither (a) nor (b) is an example of a condition

subsequent. 

 38. A(n) ____________ is a substituted contract that involves an agreement among three parties to substitute a new promisee in place of an existing promisee, or to replace an existing promisor with a new one.a. accordb. satisfactionc. novationd. mutual rescission 

 39. Bill recently borrowed $50 from Ricardo for a couple of weeks. Bill, still short of cash, tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you." Ricardo tells Bill, "OK, that's great!" Ricardo's performance of his new duty will be a(n):a. accord.b. novation.c. rescission.d. satisfaction. 

 40. On November 1, Paula and Roberta enter into a contract where both parties are obligated to perform on December 31. On December 1, Paula tells Roberta, "I can, in no way, perform my duties in our contract." This statement is a(n):

a. material alteration.b. anticipatory repudiation.c. nonmaterial breach since the statement is made before

December 31.d. accord. 

 41. A and B enter into a contract on January 1 of this year. A's friend C tells A, "The law generally restricts the time within which an action can be brought by either party to a contract." C's statement is:a. false.b. true, because of statutes of limitation.c. true, because of the law of repudiation.d. true, because of covenants not to sue. 

 42. Rebecca sees a pair of beautiful silver shoes in a store window. She goes in and tells the shopkeeper, "As soon as I get my paycheck, I will buy those shoes. Please hold them for me." If the shopkeeper says, "Okay," will he have to honor that promise?a. Yes, there is a contract with a condition precedent.b. Yes, there is a contract with a condition subsequent.c. No, there is no contract but simply an illusory promise.d. No, a contract is formed after Rebecca receives her

paycheck. 

 43. Which of the following is true with respect to substantial performance?a. It has particular importance in the construction industry.b. Substantial performance does not defeat the purpose of the

contract.c. When one party to a contract has substantially performed,

the other party cannot recover damages for the imperfect performance.

d. All of the above.e. Both (a) and (b) are correct. 

 44. Steven owes Teresa $100 for a used computer which he bought last year at Teresa's garage sale. The two agree that the debt can be paid by Steven's shoveling Teresa's driveway from January through March. The new contract is a(n):a. accord.b. satisfaction.c. novation.d. rescission. 

 45. Which of the following would be considered a material breach of a contract?a. Partial performance that omits some essential part of the

contract.b. Delivery of 50 chairs in a contract that calls for 100 chairs.c. An intentional breach of the contract.d. All of the above would be material breaches.e. Only (a) and (b) above would be material breaches. 

 46. Russell promises Marty $1,500 if he will completely landscape Russell's yard. Which of the following would discharge Russell's obligations to pay under this contract?a. Marty leaves a one-foot strip of land barren.b. Marty doesn't begin work on the landscaping until after he

finishes two other jobs.c. Marty doesn't plant any flowers or grasses.d. Russell isn't satisfied with Marty's design. 

 47. Fred contracts to sell a certain tract of land to Maria for $20,000, but the contract is silent as to the time of delivery of the deed and payment of the price.a. The payment of the $20,000 and the delivery of the deed

are independent of each other.b. The delivery of the deed is a condition subsequent to the

payment of the $20,000.c. The payment of the $20,000 and the delivery of the deed

are mutually dependent and, in the absence of an agreement to the contrary, are concurrent conditions.

d. The payment of the $20,000 is a condition precedent to the delivery of the deed.

 

 48. Phil, the tax accountant, promises to do Marge's individual federal, state, local, and gift taxes for the year. He completes all but the gift taxes. Under the substantial performance doctrine:a. Marge will not have to pay Phil.b. Marge will not have to accept the work.c. Marge will have to pay Phil for all but the gift taxes.d. Marge will have to pay Phil the contract price. 

 49. Henry hires Ace Roofing to put a new roof on his house. When Ace comes, Henry refuses to let them on the roof, saying that he has a headache and doesn't want to listen to pounding. The next day, Henry still has a headache and he refuses to allow them on the roof. The day after, the baby is sleeping and Henry refuses to allow them to work. After four weeks of this, Ace:a. may be discharged, but Henry is not.b. may be discharged, and so would Henry.c. can sue for damages, but must perform when Henry is

ready.

d. has no choice but to keep coming back each day until Henry is ready.

 

 50. Anita, who is a tailor, agrees to sew a suit for Bryan, who promises in return to pay Anita $500 for the suit if he is satisfied with it. Anita completes the suit, which fits Bryan perfectly. Nevertheless, he says that he is not satisfied and refuses to accept or pay for it. Bryan is honest in his dissatisfaction, but he is unreasonable.a. Bryan must pay for the suit even if he is dissatisfied.b. This is an illusory contract, because only Anita is bound.c. Bryan's approval is an objective standard.d. Anita has no recourse against Bryan, because she agreed

to the subjective standard. 

 51. Matt is a master tailor, with a renowned reputation for expert work. Ross, a local professional in his own right, agrees to pay Matt $500 for a suit to be custom-sewed by Matt. The amount to be paid is contingent on Ross's being satisfied with the completed work, to which Matt agrees. Matt finishes the suit; it fits Ross. Nevertheless, Ross says that he is not satisfied and refuses to accept or pay for it. Ross is honest in his dissatisfaction, but he is unreasonable.a. Ross must pay for the suit even if he is dissatisfied.b. Matt has no recourse against Ross because Matt agreed to

the subjective standard.c. Ross's approval is an objective standard.d. This is an illusory contract because only Matt is bound. 

 52. Lynn, who is a tailor, agrees to sew a pair of drapes for Bryan's living room. Bryan promises to pay Lynn $300. Lynn completes the drapes using material selected by Bryan, but Bryan is not satisfied and refuses to pay for them.a. Whether Bryan will have to pay for the drapes depends

upon whether as a reasonable man he ought to be satisfied.b. The standard applied here is a subjective standard of

satisfaction.c. The condition of satisfaction is an implied-in-law

condition.d. The condition of satisfaction is an express condition. 

 53. Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip to Canada. The contract was made on April 1 with the trip to begin on June 1. On May 1, Kevin notified Jim that he had changed his mind and would be unable to make the trip. He also refused to pay Jim any compensation.a. Because the contract is executory, Jim has suffered no

damages, and Kevin has no obligation to pay any

compensation.b. Kevin has anticipatorily repudiated the contract and is

liable to Jim for damages.c. Jim is discharged from his duty to serve as guide, and he

may bring suit immediately against Kevin.d. Both (b) and (c) above are correct. 

 54. Miller has a contract to sell 1,000 bushels of wheat to Wonder Bakery. The wheat is stored in a grain elevator and has become infested with insects. What is the consequence?a. Miller is discharged from performance because of

impossibility.b. Miller is discharged because of frustration.c. Miller is not discharged, but must substitute wheat or pay

damages to Wonder for breach of contract.d. Miller is discharged if he can prove that he did not cause

the damages to his wheat. 

 55. Arnold and Doug make a contract for Arnold to manufacture five leather chairs of a specified design. Prior to their manufacture, the factory is destroyed in an accidental fire that is no one's fault. The chairs are available from other sources.a. Arnold must supply the chairs, even if he must buy them

elsewhere.b. Arnold's duty to deliver the chairs is discharged by the

destruction of the factory.c. Arnold has materially breached the contract if he fails to

deliver the chairs.d. Both (a) and (c). 

 56. Louis agreed to provide all the apples that Cindy's Cider Mill will need at $3 per bushel unless weather conditions require additional labor to be hired. The rate would then be $3.50 per bushel. A freeze warning required Louis to hire 100 additional overtime workers, raising the cost per bushel to $44.75. Louis wants to get out of his contract. Can he?a. No, the parties expected the hardship.b. No, there is no hardship.c. Yes, the contract is impracticable.d. Yes, the freeze is a supervening event. 

 57. James owes B.J. $500, due June 1. James, B.J., and Ted mutually agree that Ted will pay B.J. instead of paying James the money Ted owes James. Such an agreement is an example of a(n):a. accord.b. novation.c. satisfaction.

d. rescission. 

 58. Miller made a contract to sell his condominium to Jefferson for $80,000. Two days later Miller changes his mind after discovering that he could have sold the property to another buyer for an additional $20,000. Jefferson sues and asks the court to have the property conveyed to him at the price of $80,000. Jefferson is seeking:a. restitution.b. punitive damages.c. specific performance.d. valid tender. 

 59. Earl and Buckingham, Inc. have a contract, which calls for Earl to build a building with the completion of it by June 15. If the building is not completed by that date, the contract calls for Earl to pay $100 per day in damages. The $100 per day is:a. punitive damages.b. nominal damages.c. liquidated damages.d. an illegal penalty. 

 60. Garrett ordered 100 pieces of 2 x 6 lumber from his supplier and paid $125 upon delivery. Later, when he unpacked the lumber, he discovered that the supplier had delivered 2 x 4 lumber. After being notified, the supplier picked up the lumber, apologized, and gave Garrett his money back. The response the supplier made to rectify the breach is:a. an injunction.b. mitigation.c. liquidation of damages.d. None of the above 

 61. David enters into a contract to give Edward the right of first refusal on a tract of land owned by David. David subsequently offers the land to Fred without first offering it to Edward. An appropriate remedy for Edward to seek would be:a. injunction.b. liquidated damages.c. reformation.d. punitive damages. 

 62. Barbara, an antique dealer, intentionally represents the value of an antique chest of drawers, as $6,000 when she has reason to know the value is considerably less. Margaret agrees to buy it for $5,500. It is worth $2,500. In a state that uses the "benefit-of-the-bargain" rule, Margaret's damage award would be:a. $3,500.

b. $3,000.c. $500.d. $2,500. 

 63. Robert rented an apartment to Sally for 12 months, based upon her executive job with Drefus. Sally then took a position with Vanguard and now must leave the apartment after only three months. Robert can:a. collect for the additional 9 months' rent from Sally.b. collect for the additional 9 months' rent from Sally only if

he cannot find another tenant.c. collect for the additional 9 months' rent from Sally only if

he cannot find another tenant with similar credentials.d. not collect for more than 3 months' rent from Sally. 

 64. Carolyn agrees to sell Marianne an antique handmade lace tablecloth for $1,500. When Carolyn discovers that her cousin wants it too, she breaks the contract with Marianne. Marianne can ask the court to order:a. nominal damages.b. specific performance.c. restitution.d. equitable rescission. 

 65. Bartow signed a contract to coach baseball for Washington High for a period of three years. After two years he is offered and accepts an assistant coach position at State University. Contract law will not allow Washington High to ask for:a. specific performance.b. payment of compensatory damages.c. an injunction.d. liquidated damages. 

 66. Vladimir entered into a contract to buy Daniel's collection of rare stamps. Vladimir mailed payment of $10,000 for the stamps to Daniel, but now Daniel tells Vladimir, "I'll never part with these stamps." Are the following remedies available to Vladimir?a. Restitution: Yes; Specific Performance: Yesb. Restitution: Yes; Specific Performance: Noc. Restitution: No; Specific Performance: Yesd. Restitution: No; Specific Performance: No 

 67. Lynne agrees to buy Harriette's farm for $100,000 and puts $20,000 down. Then Lynne learns she is allergic to hay and repudiates the contract. If Harriette can sell it for $90,000 a month later, she may:a. keep Lynne's $20,000.b. keep $10,000 of Lynne's down payment.c. not keep any of the down payment money.

d. sue for specific performance. 

 68. Howard needs a truck to pull a 2,000-pound trailer. Gordon tells Howard, "My truck will pull a 2,000-pound trailer with ease." Relying on Gordon's statement, Howard buys the truck, but it will not pull a 2,000-pound trailer. If Gordon did not intend to deceive and Howard sues for nonfraudulent misrepresentation, he can recover:a. punitive damages, but not out-of-pocket damages.b. out-of-pocket damages, but not punitive damages.c. out-of-pocket damages plus punitive damages.d. nominal damages, because Howard should have known

the capacity of the truck. 

 69. Harry said to Marge, "I have a ring once owned by Marilyn Monroe. Would you like to buy it for $500?" Marge pays for the ring, but the next day a friend tells her that Harry had recently purchased the ring at Sears. Marge enjoys wearing the ring and wears it constantly for twelve months. Finally, she goes to Harry and says, "Here is the ring you lied about. Give me my $500." Most likely:a. Marge will get her money back since Harry's

representation was fraudulent.b. Marge will not get her money back since she should have

investigated the facts about the ring more carefully.c. Marge will get her money back since she is a good faith

purchaser of merchandise.d. Marge will not get her money back since she has affirmed

the contract by taking an unduly long time to disaffirm. 

 70. W. L. Busby contracts to build a house for Mary Ann Connell. Busby finishes approximately half of the house and quits. Mary Ann Connell files suit against Busby. Which remedy is not available to her?a. Compensatory damagesb. Specific performancec. Special damagesd. Nominal damages