Contract Performance practice questions

Question: Failure to perform obligations under a contract results in:

Answer Choices: A. Tender of performance
B. Substantial performance
C. Breach
D. Unilateral mistake
E. Rescission

Answer: C. Breach

Question: What does jurisdiction refer to?

Answer Choices: A. Defendant’s right to impartial jury
B. Plaintiff’s right to file in district court
C. Court’s power to bind parties
D. Plaintiff’s right to choose any court
E. Defendant’s right to request unbiased court

Answer: C. Court’s power to bind parties

Question: Which is the third element of a legally binding contract?

Answer Choices: A. A promise
B. Acceptance
C. Capacity
D. Intent
E. An affirmation

Answer: C. Capacity

Question: In a ___ contract, consideration is a return promise.

Answer Choices: A. Unilateral
B. Bilateral
C. Accord and satisfaction
D. Preexisting duty
E. Liquidated

Answer: B. Bilateral

Question: Which helps meet the minimal standard for ethical business?

Answer Choices: A. Deontology
B. Public disclosure test
C. Utilitarianism
D. Board satisfaction
E. Legal compliance

Answer: E. Legal compliance

Question: Both parties are mistaken about the value of an item. This is a ___ mistake.

Answer Choices: A. Dual
B. Unilateral
C. Mutual
D. Consensual
E. Between parties

Answer: C. Mutual

Question: How does ADR compare to litigation?

Answer Choices: A. Faster and less expensive
B. Faster but more expensive
C. Slower and more expensive
D. Slower but less expensive
E. No data available

Answer: A. Faster and less expensive

Question: A problem with no clear right answer is a(n):

Answer Choices: A. Ethics
B. Business ethics
C. Social responsibility
D. Ethical dilemma
E. Ethical conversation

Answer: D. Ethical dilemma

Question: Which of the following is not a form of ADR?

Answer Choices: A. Mediation
B. Litigation
C. Negotiation
D. Arbitration
E. Summary jury trial

Answer: B. Litigation

Question: The application of ethics to business decisions is:

Answer Choices: A. Situational ethics
B. Consequentialism
C. Business ethics
D. Sarbanes-Oxley principles
E. Business utilitarianism

Answer: C. Business ethics

Question: A false representation of material fact meant to mislead is:

Answer Choices: A. Negligent misrepresentation
B. Fraudulent misrepresentation
C. Scienter misrepresentation
D. Acknowledged misrepresentation
E. True misrepresentation

Answer: B. Fraudulent misrepresentation

Question: Benjamin threatens Alana to sign over property. This is:

Answer Choices: A. Breach of duty
B. Negligence
C. Duress
D. Coercion
E. Manipulation

Answer: C. Duress

Question: Lauren hides the defect in a bike she sells. This is:

Answer Choices: A. Manipulation
B. Condemnation
C. Concealment
D. Realignment
E. Circumstantial

Answer: C. Concealment

Question: In contract law, a ___ is an erroneous belief about facts at time of contract.

Answer Choices: A. Intentional statement
B. Mistake of law
C. Duress
D. Undue influence
E. Mistake of fact

Answer: E. Mistake of fact

Question: What must a plaintiff do to minimize damages in a breach case?

Answer Choices: A. Rescind
B. Delegate
C. Ratify
D. Delineate
E. Mitigate

Answer: E. Mitigate

Question: What are the two primary kinds of performance?

Answer Choices: A. Primary and secondary
B. Legal and equitable
C. Reserved and unreserved
D. Complete and substantial
E. Classified and unclassified

Answer: D. Complete and substantial