11. Paul enters into a contract with Harry. Paul agrees to put a new roof on Harry’s house,and Harry agrees to pay Paul $5,000. Paul is late on the payment to Sam’s Supply House and tells Sam’s Supply House that he will pay when he receives money from Harry. Sam’s supply house has heard this from Paul before and didn’t receive money. To ensure Paul pays his payment from the money Harry pays him, Sam’s supply house can

A.require an accord and satisfaction be entered into

B. have Harry bassign interests under the contract with Paul to Sam’s supply house

C. tell harry that paul is indebted to sam’s supply house, which automatically makes them a creditor beneficiary entitled to the payment

D. have Paul assign his interests under the contract with Harry to Sam’s Supply House.

12. Which of the following is an example of discharge by operation of law?

A. Xavier agrees to pain Rita’s house for $1,000. Xavier paints ,but before Rita pays him,she files bankruptcy. As a result,Xavier doesn’t get paid

B. Xavier agrees to paint Rita’shouse for $1,000 before Xavier can paint,Rita’s house burns down

C. Xavier agrees to paint Rita’s house for $1,000 Rita changes her mind and asks Xavier not to paint,Xavier agrees

D. Xavier agrees to paint Rita’;shouse for $1,000 Rita later tells Xavier that she won’t pay him. As a result Xavier decides not to paint

13. Denise orally authorizes Shaun to sell her house. Shaun enters into a written agreement with Eric to sell him the house for $140,000. Both Shaun and Eric sign the contract. Denise learns of the agreement after the fact and decides she doesn’t want to sell. If the contract is ruled unenforceable, the mostly likely reason is the ——- rule

A. parol evidence

B. fariness

C.equal dignities

D. best evidence

14. Jessica orally agrees that she will sell 400 pairs of flip-flops to a customer for $600. This agreement is

A.unenforceable because of the statue of frauds

B. unenforceable because of the parol evidence rule

C. enforceable because all necessary elements are met

D. unenforceable because all necessary elements aren’t met

15.Jack and Jane formed a contract in which Jack agreed to sell Jane a large amount of apples. Jack knew that Jane planned to resell the apples at the farmers’ market the following weekend. Jack failed to deliver the apples as promised. Jane will most likely be able to recover

A.both compensatory and consequential damages

B.punitive damages only

C.both nominal and punitive damages

D. compensatory damages only

16. Under tenant Lester’s lease contract with landlord Mary,Lester must pay an extra $25 if his rent is more than five days late. This is an example of—– damages.

A. punitive




17.Kevin, world-renowned violinist,agrees to play at the reception for Jay’s wedding. Something comes up at the last minute, and Kevin delegates his duty to perform to Susan,a mediocre but professional violinist. This delegation is

A. permissible

B. permissible if Susan performs well

C. permissible if Kevin also assigns to Susan the right to be paid for playing

D. impermissible

18.Elmer borrows money from Big Bank, who then assigns the promissory note and mortgage to Financial Institution for valuable consideration. Elmer isn’t given notice of the assignment and continues to pay Big Bank. Financial Institution files suit, claiming Elmer is in default because Elmer failed to pay monthly payments to Financial Institution. Which of the following statements is true?

A.financial institution was obligated to give notice to Elmer of the assignment

B.Big Bank must forgive Elmer’s loan because they failed to notify him

C. Financial institution must pay Big Bank for the payments Elmer made

D. Elmer is in default to financial institution because he didn’t pay them

19. Samantha is employed by Creative Card Company. After five years of terrific employee reviews. Samantha is terminated with no notice. She feels it’s because of her advancing age,as she just turned 50. Samantha sues Creative Card Company for wrongful termination. The lawsuit takes four years before it’s finally litigated. Di=urning this time,Samantha sits at home,turning down job offers from several employers. Samantha wins her lawsuit,but she receives substantially less in damages than she was seeking. What is the likely reason for this?

A. lack of punitive damages

B. the unavailability of equitable remedies

C. the establishment of a quasi contract

D. the failure to mitigate damages

20.Bella and Connie are struggling to find jobs. They decide they want to open a child daycare center together.They se a house in the perfect neighborhood with a “For Sale by Owner.”They talk to the owner,reach an agreement,and shake hands. Just before the closing on the house, the owner decides not to sell to Bella and Connie. They tell the owner they’re going to sue him for breach of contract. Bella and Connie most likely

A. won’t will because they can find another house that will work just as well

B. will win because the owner breached his agreement to sell them the house

C.won’t win because they shouldn’t have entered into an oral contract to buy the house

D. will win because the owner shouldn’t have entered into a contract with them if he wasn’t sure he wanted to sell the house