Writings & Contract – Business Law Final Exam

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Writings & Contract - Business Law Final Exam
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Gordon, Contract, Writings, Law, Written Contract, incorporated, Business Law Final Exam

The key terms in this Business Law course include Business, Gordon, Contract, Writings, Law, Written Contract, incorporated, Aggrieved Party, legal Obligation, Rights, Business Law Final Exam


____ 1. Writings that are incorporated by reference into a written contract include:

a. only writings that are physically attached to the written contract.

b. writings that the written contract identifies and declares to be part of the written contract.

c. writings that are excluded from the written contract by the parol evidence rule.

d. only writings that are made after the written contract has been executed.


____ 2. If a mistake in the transcription of a contract occurs, the aggrieved party may:

a. sue for damages.

b. sue to reform the contract.

c. both rescind the contract and sue for damages.

d. obtain an injunction.


____ 3. The rights of an employee to be compensated are governed primarily by the same principles that apply to

a. the compensation of a partner.

b. the compensation of a stockholder.

c. the compensation of an agent.

d. the compensation of a court-appointed trustee.


____ 4. Ordinarily, a promise to perform an existing legal obligation is:

a. not consideration.

b. binding if the promisor promises to perform with extra care.

c. binding if the promisor promises to perform to suit the personal satisfaction of the promisee.

d. binding if substantial loss would be caused the promisee by a breach of the promise.


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When Gordon told Hanson that he was considering selling his house, Hanson offered to buy it. Gordon and Hanson entered a contract in which Hanson paid Gordon $1,000 in cash for the right to buy Gordon’s house for $150,000, in the event Gordon decided to sell it. Two weeks later, Jones offered Gordon $200,000 for his house, and Gordon agreed to sell it to her for that amount. Hanson sued Gordon to force Gordon to sell the house to him for $150,000 rather than to Jones for $200,000. Based on what you have learned, tell the probable result of the action. What type of contract, if any, was entered into between Gordon and Hanson?

Joe Swartz, an employee of Acme Company, worked for months during company time and used Acme’s equipment to develop an idea that he had been nurturing. Finally, the idea came to fruition. Swartz’s employer laid claim to the invention on the grounds that the firm’s equipment had been utilized on company time. Swartz had obtained a patent on the invention and claimed that his employer had no rights to the invention at all. Who is right? How could an employer guard against such arguments in the future? 

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