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BLAW 301 Exam 2: Contract Law Questions and Answers, Exams of Law

Widener University - DelawareLaw

A comprehensive set of questions and answers covering key concepts in contract law, including breach of contract, damages, contract interpretation, the statute of frauds, the parol evidence rule, performance, and more. it's a valuable resource for students studying contract law, offering detailed explanations and real-world examples to solidify understanding. The questions are designed to test comprehension of core principles and legal applications.

Typology: Exams

2024/2025

Available from 04/20/2025

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BLAW 301 Exam 2 Castle – KU
What is a breach of contract? - CORRECT ANSWER-A breach occurs when a party
fails to perform an agreed-upon act.
What are compensatory damages? - CORRECT ANSWER-Damages that put the
person in the same place as if the contract had been performed
What are consequential damages? - CORRECT ANSWER-Damages incurred as a
consequence of the other side's breach
What is an example of a consequential breach? - CORRECT ANSWER-You want to
open up a restaurant and you order your appliances from Sears (RIP), like a
dishwasher, stove, refridgerator, etc. However, on opening day, you still don't have a
refridgerator so you cannot open. Sears is in breach of our agreement. I cannot open
the store, so I've lost profits, had to pay my staff for no work, etc. The lost profits and
what I had to pay the staff are considered consequential damages.
How are contracts interpreted? - CORRECT ANSWER-Words are given their common
meaning
What happens if there are ambiguous terms in the contract? - CORRECT ANSWER-
Courts interpret these terms according to common trade usage and business practices.
What is the purpose of the judge in contract interpretation? - CORRECT ANSWER-To
try and determine what the parties meant and what they intended when they drafted the
language
What controls the contract -- handwritten or typed terms? - CORRECT ANSWER-
Handwritten terms control typed terms meaning that if presented with a contract that
had stuff crossed out and replaced with writing in the margins, the writing would be the
terms of the contract not what was crossed out
How are ambiguous terms interpreted? - CORRECT ANSWER-Ambiguous terms are
interpreted against the drafter
What is the statute of frauds? - CORRECT ANSWER-A law requiring contracts involving
real property to be in writing and to contain essential elements
What contracts must have statute of frauds? - CORRECT ANSWER-- sale of a certain
interest in land
- guaranty of debt
- contracts that cannot be performed within one year
- contracts for the sale of goods over $500
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Download BLAW 301 Exam 2: Contract Law Questions and Answers and more Exams Law in PDF only on Docsity!

BLAW 301 Exam 2 Castle – KU

What is a breach of contract? - CORRECT ANSWER-A breach occurs when a party fails to perform an agreed-upon act. What are compensatory damages? - CORRECT ANSWER-Damages that put the person in the same place as if the contract had been performed What are consequential damages? - CORRECT ANSWER-Damages incurred as a consequence of the other side's breach What is an example of a consequential breach? - CORRECT ANSWER-You want to open up a restaurant and you order your appliances from Sears (RIP), like a dishwasher, stove, refridgerator, etc. However, on opening day, you still don't have a refridgerator so you cannot open. Sears is in breach of our agreement. I cannot open the store, so I've lost profits, had to pay my staff for no work, etc. The lost profits and what I had to pay the staff are considered consequential damages. How are contracts interpreted? - CORRECT ANSWER-Words are given their common meaning What happens if there are ambiguous terms in the contract? - CORRECT ANSWER- Courts interpret these terms according to common trade usage and business practices. What is the purpose of the judge in contract interpretation? - CORRECT ANSWER-To try and determine what the parties meant and what they intended when they drafted the language What controls the contract -- handwritten or typed terms? - CORRECT ANSWER- Handwritten terms control typed terms meaning that if presented with a contract that had stuff crossed out and replaced with writing in the margins, the writing would be the terms of the contract not what was crossed out How are ambiguous terms interpreted? - CORRECT ANSWER-Ambiguous terms are interpreted against the drafter What is the statute of frauds? - CORRECT ANSWER-A law requiring contracts involving real property to be in writing and to contain essential elements What contracts must have statute of frauds? - CORRECT ANSWER-- sale of a certain interest in land

  • guaranty of debt
  • contracts that cannot be performed within one year
  • contracts for the sale of goods over $

Do email transactions satisfy the statute of frauds? - CORRECT ANSWER-Yes. What is the Parol Evidence Rule? - CORRECT ANSWER-Parties may not introduce evidence of prior oral agreement that would change the written agreement What is an example of the Parol Evidence Rule. - CORRECT ANSWER-Buying a washer from Lowe's. The salesman says that they can deliver the washer on Monday or Tuesday. The contract that you sign says it won't be delivered until Thursday. After you contest, the court would find that that is ok, because that date wasn't in the contract but rather the conversation you had with the salesman. What is performance? - CORRECT ANSWER-The act of doing what is in the contract Why do parties enter in to contracts? - CORRECT ANSWER-To ensure the performance of a promise that is made When is a party discharged from a contract? - CORRECT ANSWER-When that party has fulfilled all obligations under the contract and is relieved of further performance What is substantial performance? - CORRECT ANSWER-When a party honestly attempts to perform but has fallen short What is an example of substantial performance? - CORRECT ANSWER-You want to build a custom house. You and the builder walk through every aspect of the house -- # of bedrooms, type of carpet, landscaping, etc. However, when the builder finishes the house, they didn't put in the sprinkler system for the landscaping, despite you wanting it. Everything else you wanted is there. The court would find that the builder did substantial performance. They would get the benefits of the contract less any damages of the breach. So if your grass died because the sprinklers weren't there, they would have to pay for that. What are liquidated damages? - CORRECT ANSWER-Damages that parties agree from the beginning of what a breach is going to cost Why are liquidated damages used? - CORRECT ANSWER-So people can make business decisions based on how much it would cost them to breach the contract What is specific performance? - CORRECT ANSWER-Plaintiff asks the court to force the defendant to specifically perform the promise they made When is specific performance used? - CORRECT ANSWER-When a contract involves something really unique (land!) or when money damages cannot compensate (land!).

What is the termination of an offer? - CORRECT ANSWER-Before the offer has been accept, the original offer can walk away What is revocation - CORRECT ANSWER-The person making the offer (offeror) has the power to revoke or retract the offer at any time before the offer is accepted What is rejection? - CORRECT ANSWER-When an offeree says "No" then the original goes off the table and is terminated What is a counter-offer? - CORRECT ANSWER-The offeree offers different terms and makes a new offer the first offeror can accept. What is expiration? - CORRECT ANSWER-When the offer expires after a certain amount of time. Or, you don't have to go through with the contract after a certain amount of time. Does the court have guidelines on timelines? - CORRECT ANSWER-Yes, of course. The offeree must accept offer "within a reasonable time" When is an offer terminated by operation of law? - CORRECT ANSWER-- when the original subject matter (gumball machine) is destroyed through no fault of the party

  • when the offeror dies or goes insane
  • when the subject matter becomes illegal What is acceptance? - CORRECT ANSWER-The assent or agreement by the person to whom the offer was made that the offer is accepted. What does acceptance create? - CORRECT ANSWER-A binding and enforceable contract What happens after the offer is accepted? - CORRECT ANSWER-Must perform requested act. What is a unilateral contract? - CORRECT ANSWER-results from an offer that expressly requires performance as the only possible method of acceptance What is the mirror image rule? - CORRECT ANSWER-the terms of the acceptance must exactly mirror the terms of the offer and terms of acceptance cannot change the offer Is silence acceptance? - CORRECT ANSWER-No "You didn't say no..." is not acceptance.

What is the mailbox rule? - CORRECT ANSWER-The contract created at the moment the offeree sends acceptance. Offeror cannot revoke offer once offeree places acceptance in mailbox or sends electronically What is consideration? - CORRECT ANSWER-Something of value must be given by either party that induces them to enter into the contract. When does consideration exist? - CORRECT ANSWER-When parties promise to:

  • do something that the party is not already obligated to do
  • refrain from doing something that the party has a legal right to do What is an example where consideration doesn't exist? - CORRECT ANSWER-I tell my child that if they get straight A's, I will feed them. However, parents are obligated to feed children until they're 18, so asking them to do work in order to receive food is unbalanced. My child isn't receiving anything extra from the contract, but I am. Does consideration exist when a party promises to make a gift? - CORRECT ANSWER- No What happens if you promise to give a gift? - CORRECT ANSWER-- can change your mind
  • court cannot enforce this contract What is an option contract? - CORRECT ANSWER-A promise to keep an offer open for a certain period of time What is an option contract supported by? - CORRECT ANSWER-Consideration --> the offeree must give value to the offeror to enforce the promise to keep the offer open What is capacity? - CORRECT ANSWER-The ability to enter into a contract What are some categories of people that lack the capacity to enter into a contract? - CORRECT ANSWER-- minors
  • intoxicated
  • mentally incompetent What is duress? - CORRECT ANSWER-using threat or threat of force to make someone enter into a contract What is undue influence? - CORRECT ANSWER-when a party is persuaded into entering a contract Where is undue influence common? - CORRECT ANSWER-Elderly, sick, or compromised and subject to high pressure sales techniques Are oral contracts as enforceable as written contracts? - CORRECT ANSWER-Yes!
  1. easements
  2. security interests What is fee simple? - CORRECT ANSWER-fullest legal rights, forever
  • can make money off property, destroy property, whatever
  • cannot have a mortgage on it What is a life estate? - CORRECT ANSWER-when the land reverts back to the original grantor at the death of life owner when the grantor can grant to another at the death of life owner What is revisionary interest? - CORRECT ANSWER-reverts back to grantor What is remainder interest? - CORRECT ANSWER-grantor has no interest --> who gets the land when the person dies (next in line) What is a leasehold estate? - CORRECT ANSWER-some (but not all) property rights granted to tenants by a landlord
  • give property back to landlord
  • can't destroy property
  • can exclude people from property but cannot exclude landlord What are easements? - CORRECT ANSWER-a landowner grants a property right to another to access a portion of landowner's land How are easements created? - CORRECT ANSWER-They can be bought/sold and once purchased, an easement can be reserved in a deed of land used a lot for utilities What are security interests? - CORRECT ANSWER-when a party obtains an interest in property in exchange for extending credit What is an example of the use of a security interest? - CORRECT ANSWER-When you're getting a loan and you put up your land as collateral. Now, the bank has an interest in the land. You cannot sell the property without the bank's approval and you cannot destroy it. How do security interests work? - CORRECT ANSWER-if the borrower defaults on a debt, the creditor can seize/sell the object of the security interest to satisfy the debt What is a mortgage? - CORRECT ANSWER-property owner grants security interest in land in exchange for loan to purchase the property

What is a deed of trust? - CORRECT ANSWER-property owner grants security interest in land in exchange for a loan What is foreclosure? - CORRECT ANSWER-Bank can seize your property, sell it, and apply the proceeds to your debts What is deficiency? - CORRECT ANSWER-Proceeds from foreclosure sale not enough to get rid of all the debt What is the right of redemption? - CORRECT ANSWER-when a person gets behind on their mortgage, banks cannot swoop in and seize the property. States have a period of time where the bank cannot mess with the homeowner and gives the homeowner the chance to redeem themselves and try to get current on their payments or pay off their loan. What is an artisan's lien? - CORRECT ANSWER-property interest arising when someone contributes parts and/or services to personal property if you don't pay the artisan, they can seize it, sell it, and apply it to what you owe them. What is a mechanic's lien? - CORRECT ANSWER-property interest arising when someone contributes materials and/or services to real estate What is an example of a mechanic's lien? - CORRECT ANSWER-Call a plumper to fix sink, plumber comes and fixes sink, hands you a bill and you don't pay it then the plumber now has a lien on your house --> can seize house and sell it and apply proceeds to bill What are zoning ordinances? - CORRECT ANSWER-laws that divide counties or municipalities into designated districts What is exchanging resources? - CORRECT ANSWER-the most common form of acquiring resources in a property system. ex. cash for cars What is exchanging resources governed by? - CORRECT ANSWER-rules of contract --

promise to exchange resources What is possession (acquiring through possession)? - CORRECT ANSWER-May become the owner of a resource by physically holding and controlling the land or item of person property What is the rule of first possession? - CORRECT ANSWER-first person to reduce previously un-owned things to possession becomes the owner. ex. meteriote falls out of sky. Found by you. Not owned by anyone, so now you own it.

breach of duty causation in fact proximate cause injury Do you need all five elements for negligence? - CORRECT ANSWER-Yes, missing one and it's game over for the plaintiff. What is duty of care? - CORRECT ANSWER-A person engaging in conduct has a duty to use reasonable care and skill to avoid injuring others Where does duty usually arise? - CORRECT ANSWER-A person's conduct Do I have a duty to keep strangers safe? - CORRECT ANSWER-No Ex. shark and surfers What is unreasonable behavior? - CORRECT ANSWER-A breach of duty to use ordinary care ex. If a customer spills a liquid on the ground, then an employee has a duty to clean that up in order to keep you safe. If they don't clean it up then that's a breach of that duty What is willful and wanton negligence? - CORRECT ANSWER-Conduct that is more than just unreasonable "aggravated negligence" What are the effects of willful and wanton behavior? - CORRECT ANSWER-A plaintiff may recover punitive damages Example of willful and wanton behavior? - CORRECT ANSWER-Exxon Valdez oil spill What is cause in fact? - CORRECT ANSWER-Failure to use reasonable care must actually cause the injury. But for defendant's conduct, plaintiff would not be injured. What is proximate cause? - CORRECT ANSWER-Legal cause; conduct must be sufficiently related to an injury to be the cause of that injury; conduct may not be cause in fact but not the proximate cause of an injury Proximate cause in easy terms? - CORRECT ANSWER-Defendant should only be responsible for injuries it can foresee. At some point, even though a defendant's conduct might cause an injury, at some point we must cut off liability. What is an example of proximate cause? - CORRECT ANSWER-A hotel walkway in KC collapses.

People underneath the walkway are injured --> causation in fact and proximate cause Person a block away hears crashing sound and trips and injures themself --> causation in fact but no proximate causation What is comparative negligence? - CORRECT ANSWER-Plaintiff's unreasonableness contributes to the injury and a percentage of fault attributed to plaintiff When is comparative negligence used? - CORRECT ANSWER-When a plaintiff is injured but they were kind of at fault too Ex. texting and walking in front of a bus How are damages affected by comparative negligence? - CORRECT ANSWER- Whatever the percentage of fault is, damages are reduced by that amount What is assumption of risk? - CORRECT ANSWER-When plaintiff knowingly and willingly undertakes a dangerous activity What are compensatory damages? - CORRECT ANSWER-- damages that will make the person whole

  • medical expenses
  • economic losses (if I have to take time off work)
  • pain and suffering (a number the judge or jury assigns for all the crap that you had to go through) What are punitive damages? - CORRECT ANSWER-damages meant to punish or deter the defendant
  • intentional
  • (sometimes) willful and wanton What is a tort? - CORRECT ANSWER-A civil wrong other than a breach of contract What is the difference between a tort and a contract? - CORRECT ANSWER-A tort is a duty imposed by common law or legislation. A contract is a duty imposed by agreement between two parties. What is tortious? - CORRECT ANSWER-Behavior that constitutes a tort What is a tortfeasor? - CORRECT ANSWER-person who commits the tort What are damages? - CORRECT ANSWER-the injury or monetary loss caused by tortious behavior What is assault? - CORRECT ANSWER-Placing another in fear for his or her personal safety
  • exercise control over personal property that belongs to another What is defamation? - CORRECT ANSWER-Publicizing statements about another in an attempt to ridicule or contempt the person's character or reputation What is slander? - CORRECT ANSWER-Spoken defamatory statements What is libel? - CORRECT ANSWER-Written defamatory statements What is an example of defamation? - CORRECT ANSWER-If I go around telling people that you're a deadbeat, then you'll have trouble getting a loan from a bank (that harms the person) What must be met in order to be considered defamation? - CORRECT ANSWER-the person who says the bad stuff has to tell at least one other person What is protection against defamation? - CORRECT ANSWER-Truth -- if I publicize a statement that is harmful but true, I cannot be sued Can the press print information that is not true about a person and not be liable? - CORRECT ANSWER-Yes When is the press liable for lies published? - CORRECT ANSWER-When it was published with malice or reckless disregard for the truth (knew statement untrue when published) Do public figures have the same constitutional protection as private citizens? - CORRECT ANSWER-No What is essential to our first amendment right to a free press? - CORRECT ANSWER- laws protecting the press What is fraud? - CORRECT ANSWER-misrepresentation or omission of a material fact What are the elements of fraud? - CORRECT ANSWER-- a false statement or omission of a material fact
  • knowledge the statement is untrue
  • intent to deceive
  • justifiable reliance on the statement or omission