Unit 4 Business Contracts Quiz

What information can you expect in a preamble to a contract?

The purchase price of goods.
Names of the parties to the contract
A condition to one party’s performance
A guaranty

Which of the following would likely be the title of a contract?

The Agreement
The Contract
Settlement Agreement
The Contract and Agreement

Where would a Seller typically assure a Buyer that it the sole owner of the goods being sold?

In a warranty
In a preamble
In an exhibit
In a representation

What would we expect to find in a sentence of the contract beginning with NOW THEREFORE?

Words of agreement and a recital of consideration
A covenant to pay
A termination provision
Events of default

Which of the following would mean the same as a WHEREAS clause?

A recital.
Consideration
A termination clause
A title

Which date is written in standard format?

March 1 2020
March, 1 2020
March 1. 2020
March 1, 2020

Which of the following is a standard way to create a defined term?

ABC, Inc., a Delaware corporation (buyer)
ABC, Inc., a Delaware corporation (“Buyer”)
ABC, Inc., a delaware Corporation (“Buyer”)
ABC, Inc. a Delaware corporation (hereinafter the buyer)

What is the difference between the term of a contract and the termination of a contract?

Both are actually identical in meaning and refer to the duration of the contract
Term may refer to the expected duration of a contract while termination refers to the ending of the contract, possibly earlier than expected
Term refers to the effective date of a contract while termination refers to the closing date of a contract
Term refers to the closing date of a contract and termination refers to the effective date of a contract

What is a closing in a business deal?

The point when title (ownership) of property transfers from one party to another.
The point when a contract ends.
The point when a contract begins.
The event of a default.

Which of the following best defines an event of default?

A clause of a contract
An occurrence that causes the contract to automatically terminate
An occurrence that will provide a party with the right to terminate a contract
An occurrence that delays the effective date of a contract

Which of the following has the closest meaning to “this contract is made as of March 2, 2020”

This contract is executed on March 2, 2020
This contract’s effective date is March 2, 2020
This contract is signed on March 2, 2020
This contract cannot come into force until 30 days after March 2, 2020

Which of the following has the closest meaning to covenant?

Consideration
Past consideration
Price
Promise

Which of the following has the best definition of a breach of contract?

To break a promise in a contract
To terminate a contract
To lie in a representation
To fraudulently induce a counter-party to enter into a contract

Which of the following is most likely to be part of a Schedule to a contract for a commercial loan?

A covenant to pay by a certain date
A personal guaranty by one of the borrower’s principals
A list of pending lawsuits against the borrower
Recitals concerning the background to the loan agreement

Of the following, which is the best definition of a merger clause?

An acknowledgement of consideration in a contract
A provision in a contract where the parties state the agreement in final, complete, and no other evidence should be introduced to change or add to the meaning of the contract
A provision in a contract which provides that the contract was drafted by both parties
A provision in contract incorporating exhibits into the contract

Unit 4 Business Contracts Quiz

Unit 4 Business Contracts Quiz

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