QUESTION 1

1. Capacity to contract means that a party has

   	a.	the money to enter into the contract
   	b.	the patience to enter into the contract
   	c.	the ability to understand the terms
   	d.	the ability to understand the terms and is voluntarily participating

1 points

QUESTION 2

1. Jim was going to purchase a rookie card of Austin Matthews, who is now playing for the Toronto Maple Buds. There were only 5 of these rookie cards printed. The purchase price is $5,000. Even though he provided a deposit the seller refused to sell him the card as someone offered twice the price. Jim can sue for

   	a.	for specific performance
   	b.	for damages
   	c.	for an injunction
   	d.	an option

1 points

QUESTION 3

1. A condition precedent can be added to a contract

   		to avoid the contract if a specific situation does not occur
   		to limit damages that would need to be paid
   		to determine what court would settle a contractual issue
   		to limit liability if a contractual term is breached

1 points

QUESTION 4

1. What type of clause is this? This coat check will not be liable for any loss of your property or any damage to the property stored with us?

   	a.	conditional precedent clause
   	b.	limitation of liability clause
   	c.	force majeure clause
   	d.	liquidated damages clause

1 points

QUESTION 5

1. Frooty Tooty -delivers fruits and vegetables to local restraurants. In the written contracts they will likely have a clause that says they are not responsible to pay any damages if the fruits/vegetables can not be delivered due to weather, or accident. This clause is called a ________________ clause.

   		condition subsequent
   		force majeure
   		option
   		condition precedent

1 points

QUESTION 6

1. Sheldon offers to selll all of his computer equipment for $7500 cash on Cashlist. He asks for a reply by email.

   Harold offers to buy the equipment. He says I will pay you with a certified cheque for $5000 tomorrow. Harold's reply is a

   	a.	An option
   	b.	A counteroffer
   	c.	Conditional offer
   	d.	an offer

1 points

QUESTION 7

1. Mitigating damages means that the party who believes there has been a breach of the contract should

   		wait until a court decides the damages
   		Call the police
   		To walk away from the contract entirely
   		Try to limit damages by going into the marketplace and try to lessen their losses

1 points

QUESTION 8

1. A Court prefers a written contract because it provides a record of

   	a.	the terms of the contract
   	b.	the parties' intention to be legally bound
   	c.	because the parties may not tell the truth based on their memories
   	d.	all the above

1 points

QUESTION 9

1. This insurance does not cover losses or damages to your vehicle if caused by being present or participating in a protest, or demonstration, whether legal or illegal is an example of a ___________________clause

   	a.	entire agreement
   	b.	deposit
   	c.	automatic renewal
   	d.	exclusion

1 points

QUESTION 10

1. A valid contract in addition to being in writing include

   	a.	parties to the contract
   	b.	the subject of the contract
   	c.	clear terms of each party's responsibilities
   	d.	All olf the above