Test #$4$

True$/$False

Indicate whether the sentence or statement is true or false.

$1$

$$A prenuptial agreement does not have to be in writing to be enforceable.

$$To be enforceable, a contract for a sale of goods priced at $$500$ or more must be in writing.

$$An oral contract that must be in writing to be enforceable is enforceable if the party against whom enforcement is sought admits, in court, to its existence.

$$Privity of contract refers to the fact that only the actual parties to a contract should have rights and liabilities under the contract.

$$A third party beneficiary contract is formed when the parties to a contract intend to confer a benefit on a third party.

$$Businesses can assign their rights to receive payments to financing companies in exchange for cash to finance future purchases of inventory.

$$Contracts for works of art, medical or dental work, and tailoring are considered to be personal service contracts in which performance must personally satisfy the party to which performance is owed.

$$Anticipatory repudiation often occurs when price fluctuations render performance of a contract extremely unfavorable to one of the parties.

$$Subjective impossibility discharges a contract.

$$The four broad types of damages in contract law are compensatory, consequential, punitive, and actual damages.

$$Consequential damages are awarded for whatever injury a nonbreaching party suffers, whether or not the breaching party could have foreseen the injury.

$$In Case $18\mathrm{.}1,$ Hadley v$.$ Baxendale, the court held that the plaintiffs, the Hadleys, failed to communicate adequately to the defendant, Baxendale, that the crankshaft they were sending to the foundry for repair was the only one they had, so that they were not entitled to the profits lost during the time the mill was shut down.$$Liquidated damage clauses typically require that the party who breaches a contract must pay a fixed amount of money damages to the nonbreaching party.

$14.$ The doctrine of election of remedies requires an innocent party to choose the remedy he or she wants.

Multiple Choice

Identify the letter of the choice that best completes the statement or answers the question.

$15.$ Delta Computers Corporation and Gamma Engineering, Inc., want to enter into several different contracts.$$The Statute of Frauds requires that to be enforceable

a$.$ all Delta$-$Gamma contracts must be in writing. b$.$certain Delta$-$Gamma contracts must be in writing.

C$.$

no Delta$-$Gamma contract needs to be in writing.

d$.$ only the first Delta$-$Gamma contract needs to be in writing