Professional Documents
Culture Documents
, by Walt Huber
Chapter 5 Quiz
Copyright March 2006, Educational Textbook Company
1. When an existing contract is replaced with an entirely new contract, it is called:
A. rescission.
B. assignment.
C. novation.
D. subordination.
C. implied contract.
D. all of the above.
C. Voidable
D. All of the above
C. Capacity
D. Consideration
6. A signed written contract takes precedence over oral agreements or prior written agreements based on:
A. the performance rule.
B. English common law.
C. anything of value.
D. not necessary in a valid contract.
C. an acceptance of breach.
D. all of the above.
12. If one of the parties doesnt go through with a contract (nonperformance), it is called a(n):
A. assignment.
B. breach.
C. consideration.
D. operation of law.
14. Any contract that cant be performed within one year from the date of signing:
A. is illegal.
B. must be in writing.
C. is a failure to perform.
D. is an example of duress.
15. An assignment:
A. is only for personal service.
B. transfers only liability.
C. is a new contract.
D. transfers a persons right in a contract.
16. Of the following, which most nearly means the same thing as rescind?
A. Arrest
B. Reword
C. Terminate
D. Fulfill
17. Which of the following is used to change the original terms of the purchase agreement?
A. Covenant form
B. Contingency form
18. A provision in a contract stating the purchase depends on the buyer qualifying for a loan is called a:
A. loan back-out clause.
B. covenant.