QUESTION 31

1. If the law changes and makes a binding contract illegal, how does that contract become discharged?

		Illegality
		Agreement
		Breach
		Frustration

1 points

QUESTION 32

1. What is one way in which a contract can be discharged?

		By the parties orally agreeing to terminate the contract.
		By the contract's own dissolution.
		By one party giving at least 90 days notice to the other.
		By a third party mediator declaring a contract to be void.

1 points

QUESTION 33

1. What is a tendering process?

		A non-threatening approach to identifying and selecting contractors for large projects.
		A transparent and systematic way for organizations to reach an agreement with a contractor for the completion of work.
		A clear and efficient way for an organization to identify possible contractors to approach for work that needs to be completed.
		A process used by government agencies to determine which contractor will obtain a certain job.

1 points

QUESTION 34

1. A contract which is printed or typed, sealed and delivered is a :

		Formal contract
		Express contract
		Bilateral contract
		Voidable contract

1 points

QUESTION 35

1. Under the "Parol Evidence Rule", the following would NOT be allowed to prove the terms of a contract:

		Evidence of conditions precedent.
		Evidence of an omission to the contract in error.
		Evidence of duress.
		Evidence of a term agreed to during preliminary discussion of the contract.

1 points

QUESTION 36

1. Mitigation of loss implies that:

		A plaintiff must take reasonable steps to reduce the damages suffered
		LIquidated damages should be ordered
		Criminal charges should be laid
		Minors are responsible for contracts involving necessities of life

1 points

QUESTION 37

1. Consideration in contract law means:

		something of value will be exchanged by the parties in the future
		all of the choices
		equivalent value has been exchanged by the parties
		something of value was exchanged by the parties in the past

1 points

QUESTION 38

1. Alex persuaded his grandmother, Clara, to sell him her car for $1,000. They both knew the car was worth much more than that. However, Clara did not need the car anymore and loved her grandson, so she agreed to sell him the car. The next day Clara found out that Alex was planning to sell the car to a friend for $6,000. Clara can avoid the contract because of:

		Duress
		Fraud
		Undue Influence
		Mistake

1 points

QUESTION 39

1. Which one of the following statements about an offer is NOT correct?

		When an offer is accepted by the other party it becomes a contract.
		An offer is binding on the offeree, if the offer says so in writing.
		An offer may be revoked at any time before it is accepted.
		An acceptance of an offer by the offeree must be without exception, otherwise it becomes a counter offer.

1 points

QUESTION 40

1. What does privity of contract mean?

		Everyone has the right to enter into a contract.
		A contract is between the contracting parties and cannot protect a non-party to the contract
		A contract is between one party and the whole world.
		Nobody should know what a contract contains other than the parties.