Testing Your Knowledge of Contracts

Take this 20 question quiz to test your knowledge of contracts. Answer key is at the bottom.

1. Which of the following do you need in order to have an enforceable contract?
   1. Consideration
   2. Offer
   3. Acceptance
   4. All of the above
2. True or false, if you sue someone and you win, you’re always entitled to recover your legal fees.
   1. True
   2. False
3. True or false, courts will almost always enforce an arbitration clause in a contract?
   1. True
   2. False
4. The purpose of a contract is to:
   1. Memorialize your intentions
   2. Take advantage of your counterparty
   3. Memorialize your expectations
   4. Allocate risk between the parties
   5. Both A and C
   6. A, C, and D
5. Courts will do which of the following when interpreting a contract?
   1. Courts will enforce a contract “as is”, even if it’s a bad deal for one of the parties
   2. Courts will re-write the parts of the contract that are unfair or inequitable
   3. All of the above
   4. None of the above
6. An agreement to agree on something later is:
   1. Always enforceable
   2. Almost always unenforceable
   3. Sometimes enforceable
   4. Never enforceable
7. What is the best skill in negotiating any contract?
   1. Listening
   2. Speaking first
   3. Cornering your opponent
   4. Splitting the difference
8. True or false, if you don’t have a signed agreement, then the agreement is not enforceable.
   1. True
   2. False
9. True or false, Courts will consider your subjective undocumented intent for entering into an agreement
   1. True
   2. False
10. Which of the following is correct? Ambiguities in a contract can arise out of any of the following:
    1. failing to define a key term
    2. failure to set forth an essential procedure or “condition precedent”
    3. conflicts between key contract documents.
    4. All of the above
11. True or false, Courts will often consider prior oral agreements when interpreting a contract, even if those prior agreements contradict or add to the written terms of a contract?
    1. True
    2. False
12. What is considered a “fair deal”?
    1. One that is reasonable for both parties given the specific facts and circumstances
    2. One that does not undermine your ability to reasonably perform your work
    3. One that doesn’t cause you to lose money
    4. All of the above
    5. None of the above
13. True or false, you can be personally liable on a breach of contract claim.
    1. True
    2. False
14. True or false, you can limit your liability through a written contract.
    1. True
    2. False
15. True or false, a claim for fraud can arise out of the same exact facts that form the basis for a breach of contract claim.
    1. True
    2. False
16. True or false, a contract may consist of more than one document.
    1. True
    2. False
17. True or false, you can terminate a contract for a non-material breach
    1. True
    2. False
18. Which of the following would be the most likely measure of damages in a breach of contract lawsuit?
    1. The money owed to you under the contract for services you performed
    2. Pain and suffering
    3. The opportunities you lost in the process of performing work under the contract
    4. All of the above
19. Which of the following do you need in order to prove a breach of contract claim?
    1. You have to show that you’re a U.S. citizen
    2. You have to have an agreement in writing
    3. You have to show that you’ve been damaged
20. True or false, a modification to a contract can be enforceable without any additional legal consideration.
    1. True
    2. False

 

 

 

 

 

ANSWER KEY:

1. D
2. B
3. A
4. F
5. A
6. B
7. A
8. B
9. B
10. D
11. B
12. D
13. A
14. A
15. B
16. A
17. B
18. A
19. C
20. B