Parol Evidence, Law, Provision, Contract, Freedom of Action, Business Law Final Exam
The key terms in this Business Law course include Parol evidence, Business, Law, Provision, Contract, Freedom of Action, Business Law, contractual obligations, interpreting a contract, bilateral contract, final exam
____ 1. Parol evidence may be admitted to show that a provision was omitted as the result of:
a. fraud.
b. accident.
c. mistake.
d. all of the above.
____ 2. The parol evidence rule may not apply if:
a. the contract is materially incomplete.
b. the parties disagree on the meaning of the contract.
c. there is no ambiguity regarding the terms of the contract.
d. one party is unable to perform the contractual obligations.
____ 3. In interpreting a contract, a court may substitute may for shall:
a. when it is clear from the entire contract that such was the intention of the parties.
b. to advance the social force of furthering freedom of action.
c. because the permissive may will provide greater flexibility.
d. because it is difficult to foresee every contingency that may arise.
____ 4. In the case of a bilateral contract concerning a promise to deliver goods for a promise to pay money, legally
each party may:
a. assign rights only.
b. delegate duties only.
c. assign rights and delegate duties.
d. assign rights that then will relieve them from the duties.
____ 5. When a buyer assigns the right to goods under a contract, the buyer’s liability to make payment to the seller is:
a. transferred to the third party.
b. terminated.
c. still in effect.
d. split with the third party.
____ 6. If the parties to a contract agree to undo the agreement and return any consideration involved, the contract is
discharged by:
a. waiver.
c. breach.
d. cancellation.
____ 7. A landscape company guaranteed that trees would remain alive for one year, but a hurricane killed several
trees. The landscape company:
a. must replace the trees if there is no “Act of God” contractual provision.
b. is not responsible because there is no “Act of God” contractual provision.
c. is not responsible if they acted in good faith and fair dealing.
d. is not responsible because the owners assumed the risk of loss.