Business Law Question Paper

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Name: (" _ Class: . ------------ Date: ----- ID: A HOME WORK 3 True/False Indicate whether the statement is true or false. 1. Only one party can make a mistake of fact. 2. Overestimating the value of an object is a mistake for which a court will normally provide relief. 3. To rescind a contract is to cancel it. 4. To cancel a contract on the basis of a mistake, the mistake must be about a material fact. 5. If a price quotation contains a mistake in the adding of a number of figures, the contract may not be enforceable. 6. A unilateral mistake of fact has no effect on the enforceability of a contract. 7. A mutual mistake of fact has no effect on the enforceability of a contract. 8. Misrepresentation of a material fact is an…show more content…
To be enforceable, a writing evidencing an oral contract that would otherwise be unenforceable must include essential terms. 21. Oral evidence of otherwise clear terms in a contract can be introduced at a trial to contradict those terms. 22. Parol evidence includes oral evidence that is outside a written contract and not incorporated into the contract expressly or by reference. 23. Oral evidence of the meaning of a contract with incomplete terms can be introduced at a trial. 24. Oral evidence of the modification of a contract after its making can be introduced at a trial. 25. An integrated contract is the final embodiment of the terms of an agreement. Multiple Choice Identify the choice that best completes the statement or answers the question. 26. Lew believes his old baseball bat has little value, but Murray is convinced it is a valuable collector's item. Lew sells it to Murray for $10 before learning it is worth $1,000. Lew's sale of the bat to Murray may a. be rescinded because a mutual mistake was made. b. be rescinded because Murray had superior knowledge about the bat. c. not be rescinded because a deal is a deal. d. not be rescinded because Lew's mistake concerns the value of the bat. 27. Business Investment Company and Chic Properties, Inc., contract for the sale of a retail mall. A mutual mistake of fact will make it possible for either party to rescind the contract a. if the mistake of fact is immaterial. b. if the mistake of fact is material. c. under any…show more content…
Cody and Debora enter into an oral contract under which Cody agrees to work on Debora's ranch for not less than ten days. This contract is enforceable by a. Cody only. b. Debora only. c. either party. d. neither party. 44. Lem buys a used MP3 player for $50 and a new laptop for $1,500, and signs a one-year employment contract for a $4,000 monthly salary to start at the beginning of the next month. The Statute of Frauds covers a. the employment contract, and the laptop and MP3 purchases. b. the employment contract and the laptop purchase only. c. the employment contract only. d. the laptop and MP3 purchases only. 45. Mia orally promises Nick that she will buy his fishing trawler for $10,000. Before either party acts in reliance on this promise, under the doctrine of promissory estoppel, the transaction is enforceable by a. either party. b. Mia only. c. neither party. d. Nick only. 46. Vern's Roofing Company and Weatherall Tiles, Inc., sign a written contract for a sale of goods. To be enforceable, this written contract must include a. a correct title, such as "Purchase Order" or "Sales Invoice." b. a date, such "September 9, 2009" or "09/09/09." c. a quantity term, such as "50 pallets" or "100 cartloads." d. the parties' cell phone numbers or e-mail addresses. Fact Pattern 10-4 Jeff and Kris sign a written contract for the sale of Jeff's Koffee Kiosk to Kris. The parties intend their written contract to be a final statement of the terms of their agreement, including all

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