contract

If a person discharges his or her duty by making an offer to perform and being ready, willing, and able to perform, the offer of performance is
known as a(n):

assignment.

tender.

illusory promise.

delegation.

20.
award:
2.22 out of
2.22 points

Which of the following occurs when a party to a contract unjustifiably fails to substantially perform his obligations under the contract?

Anticipatory repudiation

Objective impossibility

Substantial performance

Material breach

21.
award:
2.22 out of
2.22 points

Which of the following statements accurately brings out the difference between the common law and the Uniform Commercial
Code (UCC)?

The mirror image rule that applies under common law does not apply under the UCC.

Under the common law, a contract may be formed even though some terms of the contract are left open, whereas
under the UCC, such contracts will be deemed as void.

Under the UCC, if a buyer has ordered for specifically manufactured goods, the buyer has to assert the statute of
frauds, which is not required under the common law.

While the common law focuses on contracts for the sale of goods, the UCC focuses on land and service
contracts.

22.
award:
2.22 out of
2.22 points

A party transferring her or his duties under a contract to a third party is referred to as the _____.

beneficiary

creditor

assignor

delegator

23.
award:
2.22 out of
2.22 points

Jason contracts with Kylie to paint her house. In exchange, the small amount of money that Jason owes to a local bank will be
paid off by Kylie. In this scenario, the bank is referred to as the:

incidental beneficiary.

promisee.

intended beneficiary.

promisor.

25.
award:
2.32 out of
2.32 points

Which of the following statements is true of the Contracts for the International Sale of Goods (CISG)?

The CISG provides guidance when a party to an international sales contract initiates litigation.

The CISG does not cover the general topics covered under the UCC, like offers, acceptances, and other contract
topics.

The CISG requirements related to the statute of frauds are more restrictive than those under the UCC.

The CISG requires that all contracts for international sales be in writing.

26.
award:
2.22 out of
2.22 points

Paul pays a premium of $20,000 every year on a life insurance plan. The insurance company will have to pay his wife an
annual pension of $30,000 on Paul’s death. Thus, Paul’s wife will be referred to as a _____.

promisor

donee beneficiary

promise

creditor beneficiary

27.
award:
2.22 out of
2.22 points

Which of the following statements is true of a consumer lease?

It is a lease that is complicated by the addition of a third person, a supplier or vendor, who plays a separate role
from that of the lessor.

It is a lease in which the lessor does not select, manufacture, or supply the goods, but simply acquires the right to
their use in connection with the terms of the lease.

It is a lease that has a value of $50,000 or more, and primarily exists between a lessor and lessee who are both
merchants.

It is a lease that exists between a lessor regularly engaged in the business of leasing or selling and a lessee who leases the goods primarily for personal purpose.

28.
award:
2.22 out of
2.22 points

For contracts involving a sale of automobiles, which of the following individuals will be held to a higher standard of behavior
under the Uniform Commercial Code (UCC)?

A dealer of pre-owned cars

A baker who sells his old van

A publishing firm that buys a new car for office use

A college student who buys a new car for personal use

29.
award:
2.22 out of
2.22 points

In discharge of a contract by novation, the:

parties to the contract agree that one party will perform her or his duty differently from the performance specified in the original
agreement.

original parties to the contract and a third party all agree that the third party will replace one of the original parties and that the
original party will then be discharged.

parties to the contract mutually agree to discharge each other from the contract.

original parties to the contract mutually agree to discharge each other from the contract by substituting a new agreement.

30.
award:
2.22 out of
2.22 points

A(n) _____ is best described as a third party that benefits from a contract in which the promisor agrees to pay the promisee’s
debt.

trust beneficiary

donee beneficiary

creditor beneficiary

incidental beneficiary

31.
award:
2.22 out of
2.22 points