● 1._ An assignee takes more rights than the assignor originally had.
● 2. An assignee is the party who transfers the right to receive performance.
● 3. The most common award for breach of contract is specific performance.
● 4. A liquidated damages clause may sometimes be held unenforceable because is considered a penalty.
● 5. Duties that are personal in nature generally cannot be delegated.
● 6. Parol evidence may be allowed to explain an ambiguity.
● 7. A contract for the sale of a small parcel of remote land for $450.00 does not have to be in writing to satisfy the statute of frauds.
● 8. A lease for a term of more than one year must be in writing to satisfy the statute of frauds.
● 9. A mutual mistake of value exists if both parties know the value of a contract, but are mistaken as to the subject matter.
● 10. A material fact is one that is not very significant to the subject matter of a contract.
● 11. When proving duress to avoid a contract, the plaintiff must show he had no practical alternative but to acquiesce to the other party’s threat.
● 12. The law allows rescission of some contracts where there is mutual mistake.
● 13. A collateral or guaranty contract must be in writing to be enforceable.
● 14. A promise to “work for Alex until Alex dies” is a contract that cannot be performed within one year.
● 15. In the U.S. when a party wins a breach of contract suit, courts typically order the losing party to pay the winning party’s attorney fees.
● 16. An incidental beneficiary of a contract may sue the breaching party to recover for injury.
● 17.___In Lucy v. Zehmer, which appears in your text, and was discussed in class, the seller ultimately won the case because the contract was not in writing.
● _18.______Generally, a catalogue listing with description and price is considered an offer by the sender of the catalogue. Part Two—Fill in the Blanks (2 points each)
(19) A ________________ damages provision in a contract specifies that a certain dollar amount is to be paid in the event of a future default or breach of contract.
(20) If a plaintiff wins a breach of contract case, but is unable to prove he was damaged by the breach, the court will typically award ____________ damages.
(21) The essential feature of the agreement to void a contract on the grounds of ________________ is that the party being taken advantage of did not exercise free will in entering into the contract.
(22) When a condition operates to terminate a party’s promise to perform under a contract, it is called a condition ______________.
(23) A condition that must be fulfilled before a party is required to perform under a contract is called a condition ______________.
(24) To be valid, an offer must be communicated to the ___.
(25) A _____________is a rejection of an offer and the simultaneous making of a new offer.
(26) A contractor who completes a building to specification but is one week late in completing the building has ____________performed the contract.