A third party beneficiary is someone who is not - answer✔a party to the original contract
The parties to a contract may include_____________ a clause that specifies the amount of
money to be paid if one of them should later breach the agreement. - answer✔C. liquidated
damages
Specific performance may be ordered when the - answer✔D. all of the above: goods are
unique, subject of the contract is real property, amount of the loss is so uncertain that there is
no fair way to calculate damages.
IF an agent breaches his fiduciary duty to the principal, - answer✔B. the agent will be liable to
the principal for any resulting losses
The relevant factors in deciding whether an agent is an employee or an independent contractor
is: - answer✔D. both a and b:
a. who controls when the work is to be performed
b. who selects the manner in which the work is to be performed
An agent may lawfully conceal the _____________ of the principal - answer✔D. Both a and b:
a. existence
b. identity
Which of the following is NOT usually considered an independent contractor? - answer✔A. a
delivery driver working for a delivery service
Terry Terp owns a professional football team in Baltimore. He enters into a $180M contract
with Jarbay Construction Company to build a stadium in Camden Yards, Baltimore. As part of
their bargain, Jarbay agrees to pay $20K for each day of construction beyond the stated date of
completion. This daily payment requirement constitutes: - answer✔D. liquidated damages
John makes the following oral promise to Nancy: "Go ahead and sell these materials to my
friend George. I will pay for them." This is a: - answer✔A. primary promise enforceable even
though oral
Potter orally engaged Arthur as a salesman on April 5th, 2003 for exactly one year commencing
on May 1st, 2003. Which of the following is correct insofar as the parties are concerned? -
answer✔A. If Arthur refuses to perform and takes another job on April 14th, 2003, he will not
be liable if he pleads the Statute of Frauds
Harry buys a used car from Slick Willy who is a used car dealer. Harry signs a NEGOTIABLE
INSTRUMENT on July 2003, agreeing to pay Slick Willy $5K one year from the date of the signing
of the instrument. Willy immediately negotiates the note to Friendly Finance Company for
$4,500. One year later, when Finance Company tries to collect, Harry refuses to pay contending
the he was defrauded in buying the car bc Slick Willy lied about the mileage. - answer✔C. Harry
cannot successfully raise the defense of fraud against Friendly Finance
Turgeon and Durkin, impoverished employees of the University of Maryland, decide to make
some money on the side. They want to purchase a dilapidated former fraternity house in
College Park, repair and improve it, and then sell it for what they hope is a quick profit. They
want their individual spouses to get title to the house, that is become part owner, if one of
them should die during the time they own the house. When they purchase the house, they
should title it as: - answer✔A. Tenants in common
The UCC regulates the sale of goods by - answer✔B. Merchants and Non-merchants
Section 2-201 of the UCC provides that, in a majority of states, a contract for the sale of goods
over__________ must be in writing - answer✔C. 500
Which of the following is governed by Article 2, Sales, of the UCC? - answer✔C. a contract for
sale of office supplies
Carl Contractor build a house for harry Homeowner according to specification. The tile in the
bathroom is green. Pink was specified. Since Harry hates green he may: - answer✔B. pay the
contractor and collect the cost of installing the proper color title
Jones and Smith enter into a contract providing that Jones is to paint Smith's garage and then
Smith is to pay Jones' landlord , Ross, $900 in back rent. Ross would be a - answer✔B. creditor
beneficiary
Johnson takes out a life insurance policy on his employee, making himself beneficiary. In order
to collect at the time of the employee's death Johnson must have: - answer✔A. an insurable
interest in the employee
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