Contract Law Questions

1. If a time for performance is not stated in the contract,
then the contract must be performed immediately.

True

False

2. The type of agency created when one person is falsely
represented to be an agent when no such agency relationship exists, is known
as:

Agency by estoppel

Agency by operation of law

The equal dignities rule

Sovereign immunity

3. Which of the following is one of the two questions that
must be answered in order to apply the doctrine of respondeat superior?

Is the alleged tortfeasor engaged in an extremely dangerous
activity?

Is the alleged tortfeasor a servant or an alter ego?

Is the alleged tortfeasor a servant or independent
contractor?

Is the alleged tortfeasor an agent or a servant?

4. An anticipatory breach occurs when a party to a contract
expresses or clearly implies an intention not to perform to contract after
being required to act.

True

False

5. Which of the following are equitable remedies?

Monetary damages

Specific performance

Specific performance and injunctive relief

Monetary damages, specific performance, and injunctive
relief

6. In which of the following situations may an agent legally
appoint a subagent?

When the case involves coagents

When the appointment is implied from the nature of the
employment

When the situation involves a nondelegable duty

When the coagent demands such an appointment

7. When an assignment occurs, the assignee assumes the
contractual obligations previously held by the assignor.

True

False

8. A person given broad authority to conduct the bulk of a
principal’s business is called a:

Master

Borrowed servant

Croprietor

General agent

9. An agent may terminate an agency relationship by
revocation.

True

False

10. List the ways an agency can be created.

11. What person may be appointed an agent under a power of
attorney?

Anyone

Anyone who can lawfully contract in his or her own name

An attorney only

Anyone who is approved by the court

12. A substantial or legally sufficient reason for doing
something is known as ____.

Revocation

Renunciation

Commingling

Good cause

13. An agency is always:

Contractual

Gratuitous

Consensual

Binding

14. An agent does not have the authority to represent the
principal.

True

False

15. A statue that provides for a time limitation for legal
action (suits) to be filed, are known as ________.

Statute of Time Limits

Statute of Limits

Statute of Limitations

Limited Statues

16. A transfer of a contract duty is a(n):

Novation

Assignment

Warranty

Delegation

17. When an agent is appointed by the principal to negotiate
and enter into contracts on behalf of the principal, is known as:

Contractual Liability

Contractual Responsibility

Tort Liability

Criminal Liability

18. A warranty is a promise, statement, or other
representation of certain qualities.

True

False

19. An individual who is affected by a contract but who does
not receive any benefits from it is known as a third party.

True

False

20. Express authority may never be indicated by conduct.

True

False

21. A transfer of a contract right is called a(n):

Delegation

Transfer

Assignment

Beneficiary

22. The agent’s duty of loyalty means that the agent cannot
act ____.

For two principals

For more than one year for the same principal

For two principals in the same transaction

For an undisclosed principal

23. The range of activities authorized by the pricipal to
the agent is known as the _______.

Scope of authority

Scope of responsibility

Statement of work

Scope of work

24. Authority granted to an agent may be express, implied,
apparent, or known.

True

False

25. An agency coupled with an interest may not be revoked
without the consent of all the parties.

True

False