Deck 9: Nature of Traditional and E-Contracts

Question 1

Common law of contracts refers to contract law developed primarily by state courts.

Answer 1

True

Question 2

Ross makes an offer to Elizabeth to sell his automobile to her for $10,000.In this case,Ross is the offeree and Elizabeth is the offeror.

Answer 2

False

Question 3

Article 2 of the UCC prescribes a set of uniform rules for the creation and enforcement of contracts for the sale of goods.

Answer 3

True

Question 4

The goal of the Uniform Commercial Code is to regularize foreign trade norms among the 50 states of the U.S.A.

Question 5

Agreement to a contract requires an offer by the offeror and an acceptance of the offer by the offeree.

Question 6

If ambiguity is detected while determining the type of contract,it is presumed to be a bilateral contract.

Question 7

A unilateral contract can be accepted without the performance of an act by the offeree.

Question 8

The UCITA establishes uniform legal rules for the formation and enforcement of electronic contracts and licenses.

Question 9

An offer to create a unilateral contract cannot be accepted by a promise to perform.

Question 10

Objective theory of contracts states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.

Question 11

The UCITA does not require state legislature to become law of a state.

Question 12

Companies are not permitted to issue licenses by e-commerce.

Question 13

A contract is bilateral contract if the offeror's promise is answered with the offeree's promise of acceptance.

Question 14

Traditional contract rules do not apply to e-contracts.

Question 15

Provision of services qualifies as a "consideration" for an enforceable contract.

Question 16

If the law requires that a contract be in writing,failure of such a contract to be in writing does not impact its enforcement.

Question 17

Under the objective theory of contracts,the subjective intent of a party to enter into a contract is irrelevant.

Question 18

An act of performance is necessary to create a bilateral contract.

Question 19

Restatement of the Law of Contracts is the agreed upon federal law in the United States.

Question 20

The UCITA is a law common to all states and does not require state legislatures to adopt it as a statute for the state

Question 21

There is no right to a jury trial in an equitable action.

Question 22

Which of the following statements is true about contracts?

A)The offeror is the party to whom an offer to enter into a contract is made.
B)An offeree is the authority that supervises the signing of a contract.
C)A contract is created when the offer is made and before it is accepted.
D)To have an enforceable contract,there must be mutual assent by the parties.

Question 23

Equity is a doctrine that permits judges to make decisions based on fairness,equality,moral rights,and natural law.

Question 24

In a recognizance,a party acknowledges in court that he or she will pay a specified sum of money if a certain event occurs.

Question 25

A contract that has been fully performed by both sides is called an executory contract.

Question 26

A quasi-contract is an equitable doctrine whereby a court may award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contract existed.

Question 27

A voidable contract is also termed as an unenforceable contract.

Question 28

If one of the parties to a contract can enforce the contract,it is considered valid.

Question 29

An express contract can be stated orally.

Question 30

Two brothers,Sam and Jim,were fighting over the division of their ancestral property.After ten years of legal battle,a frustrated Sam contacted a powerful politician who subjected Jim to extreme duress to make him sign a contract of assent in favor of Sam.When Jim takes this contract to court,the contract will be declared ________.

A)enforceable
B)conditionally enforceable
C)voidable
D)unenforceable

Question 31

Which of the following is true of the UCC?

A)The UCC aims to create a uniform system of accounting among the 50 states.
B)The common law of contracts normally takes precedence over the provisions of the UCC.
C)Article 2 of the UCC prescribes a set of uniform rules for the creation and enforcement of rules of taxation.
D)Article 2A of the UCC prescribes a set of uniform rules for the creation and enforcement of contracts for the lease of goods.

Question 32

Which of the following is an acceptable consideration for a contract?

A)arrest
B)penalty
C)money
D)sentence

Question 33

A letter of credit is considered an informal contract as it does not have a special method of creation.

Question 34

Checks and drafts are considered informal contracts as their method of creation varies from one bank to another.

Question 35

An implied-in-law contract is a contract in which agreement between parties has been inferred from their conduct.

Question 36

Which of the following is true of the Restatement of the Law of Contracts?

A)It serves as a reference for guidance in contract disputes.
B)It does not identify negotiable instruments as formal contracts.
C)Its goal is to create a uniform system of commercial law among the 50 states.
D)It is the absolute federal law for contracts drafted in the U.S.A.

Question 37

To create an implied-in-fact contract,it must be established that the plaintiff provided the property or services gratuitously.

Question 38

An offer to create a unilateral contract can be revoked by the offeror any time prior to the offeree's performance of the requested act.

Question 39

Contracts under seal are thus named because they are highly confidential,and the parties to these contracts are not allowed to talk about their terms.

Question 40

If one of the parties has the option to void his or her contractual obligations,the contract if considered voidable.

Question 41

What is recognizance?

A)a party's acknowledgement in court that he or she will pay a specified sum of money if a certain event occurs
B)a sealed document that contains a formal contract whose contents are known to both parties and the referee who supervised its signing
C)a sealed document that contains an informal contract whose contents are known only to the parties
D)a party's acknowledgement in court that he or she is not liable to pay any money if a certain event occurs

Question 42

Alan tells Sherry that he will pay her $5,000 if she runs the Boston Marathon.Once Sherry starts running the marathon,Alan ________.

A)can revoke the contract as informal verbal agreements are not binding
B)cannot revoke the contract
C)can reduce the money on offer
D)can only increase the money on offer

Question 43

Michael Harrison opens an online store where people from all over the world can purchase and download iPhone apps.Which of these should Michael consult to know the rules of trading through his online store?

A)common law of contracts
B)objective law of contracts
C)UCITA
D)UCC

Question 44

Which of the following is an informal contract?

A)check
B)bank draft
C)lease
D)recognizance

Question 45

Which of the following is true of UCITA?

A)It establishes the rules for operation of franchises in the U.S.A.
B)It does not become law until a state adopts it as a statute.
C)It solely deals with the formation of electronic contracts,not licenses.
D)It addresses most of the legal issues that are encountered while starting an entrepreneurial venture.

Question 46

If a contract is required to be in writing under the Statute of Frauds but is not,the contract is ________.

A)valid
B)void
C)voidable
D)unenforceable

Question 47

Ben was talking to Harry who was drunk.Harry agreed to give his car to Ben as a token of friendship.Once sober,Harry asks Ben to return his car.This contract is considered ________.

A)valid
B)void
C)voidable
D)unenforceable

Question 48

An offeror uses blackmail to make an offeree sign a contract that involves the sale of the offeree's house.The contract is ________.

A)valid
B)void
C)voidable
D)unenforceable

Question 49

Which of the following statements is true about contracts?

A)Parties to an informal contract can use any words they choose to express their contract.
B)A contract under seal is disclosed only to the offeror of the contract.
C)A letter of credit is an informal contract.
D)A void contract is the same as a voidable contract.

Question 50

Which of the following is a necessary condition for a contract to be considered valid?

A)It is enforceable by both the parties.
B)It is enforceable by at least one of the parties.
C)It can be voided by one of the parties.
D)It can be voided by both parties.

Question 51

A contract is ________ if the offeror's promise is answered with the offeree's promise of acceptance.

A)unilateral contract
B)bilateral contract
C)executed contract
D)executory contract

Question 52

The ________ establishes uniform legal rules for the formation and enforcement of electronic contracts and licenses.

A)common law of contracts
B)Restatement of the Law of Contracts
C)UCITA
D)UCC

Question 53

A contract is ________ if the offeror's offer can be accepted only by the performance of an act by the offeree.

A)unilateral
B)bilateral
C)implied-in-law
D)executory

Question 54

Windsor,the owner of Windsor's Sandwiches contacts a new supplier Gary.He tells Gary that he will pay him $375 if Gary delivers 20 pounds of cheese the following morning.Gary promises to make the delivery as requested by Windsor.This creates a ________ contract between them.

A)unilateral
B)bilateral
C)implied-in-law
D)executory

Question 55

A contract that has been fully performed on both sides is called an ________ contract.

A)executory
B)executed
C)option
D)executive

Question 56

According to the objective theory of contracts,the intent to enter into an express or implied-in-fact contract is judged by the ________.

A)reasonable person standard
B)legality of the contract
C)doctrine of equity
D)common law of contracts

Question 57

The ________ states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.

A)Restatement of the Law of Contracts
B)Restatement (Second)of Contracts
C)objective theory of contracts
D)common law of contracts

Question 58

Yvonne finds a carpenter to do some repairs for her house and tells him that if he finishes the job within Saturday,she would pay him $1,000.This offer creates a(n)________ contract.

A)executed
B)executory
C)unilateral
D)bilateral

Question 59

Contracts that have been fully performed by one side but not by the other are classified as ________ contracts.

A)executory
B)executed
C)void
D)voidable

Question 60

Martha contacts a bakery to get a cake for her son's birthday party.She tells the baker that she will pay him $150 for the cake if he delivers the cake on Friday evening.If the baker does not deliver the cake on Friday evening,which of the following will hold true?

A)Martha can sue the baker to recover $150 in damages.
B)Martha can sue the baker but cannot recover damages.
C)The baker has to give $150 plus cost of the replacement cake to Martha as he entered into a verbal contract with her.
D)Martha cannot sue the baker.

Question 61

Elizabeth signs a contract to purchase a new car from Spadace Motors.She has not yet paid for the car and Spadace Motors has not yet delivered the car to Elizabeth.This is an example of a(n)________ contract.

A)void
B)unenforceable
C)executed
D)executory

Question 62

A(n)________ is an equitable doctrine whereby a court may award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contract existed.

A)bilateral contract
B)common law of contracts
C)implied-in-fact contract
D)quasi-contract

Question 63

In a(n)________ contract,agreement between parties is inferred from their conduct.

A)implied-in-law
B)implied-in-fact
C)express
D)formal

Question 64

Which of the following is true of the equity doctrine?

A)Equity is resorted to when an award of money damages would not be the proper remedy.
B)In an action in equity,the jury decides the equitable issue.
C)An equitable action could be tried with a judge or a jury.
D)The doctrine of equity cannot be applied in contract cases.

Question 65

Explain the doctrine of equity with reference to contracts.

Question 66

An oral agreement to purchase a neighbor's bicycle is a(n)________ contract.

A)voidable
B)void
C)express
D)implied

Question 67

How are unjust enrichment and unjust detriment prevented in the context of contracts?

Question 68

Which of the following statements is true of the doctrine of quasi-contract?

A)It allows a court to award monetary damages to a defendant because no actual contract existed between the parties.
B)It applies only where there is an enforceable contract between the parties.
C)It is an equitable doctrine intended to prevent unjust enrichment.
D)Agreement between parties to a quasi-contract has been inferred from their conduct.

Question 69

What are the possible problems that can come up in a unilateral contract?

Question 70

Kyle goes to a used-car showroom to buy a sedan.He signs an agreement with the store which bears the name of the car,price,and other details.This is an example of a(n)________ contract.

A)unilateral
B)implied-in-law
C)implied-in-fact
D)express

Question 71

Which of the following elements must be established to create an implied-in-fact contract?

A)The plaintiff provided the property or services gratuitously.
B)The plaintiff made the defendant sign the contract and then changed its terms,calling the new terms "previously implied".
C)The defendant was given an opportunity to reject the property or services provided by the plaintiff but failed to do so.
D)The defendant accepted the property or services offered by the plaintiff as a fee for an illegal activity.

Question 72

A(n)________ is stated orally or in written words.

A)express contract
B)implied-in-law contract
C)implied-in-fact contract
D)quasi-contract

Question 73

Which of these is an instance of a quasi-contract?

A)an employee receiving his or her paycheck every month
B)an unconscious man being nursed by a hospital,having been brought in by a passer-by
C)two companies signing a business agreement that spans an undefined duration
D)a woman hiring a caterer only after the caterer promises to deliver the food on time

Question 74

Which of the following is true of enforcing a contract?

A)A contract is only considered valid if it is enforceable by both parties.
B)In an unenforceable contract,at least one party has the option to void his or her contractual obligations.
C)Void contracts are enforceable in cases involving mutual mistakes.
D)Parties may voluntarily perform a contract that is unenforceable.

Question 75

Compare valid,void,voidable and unenforceable contracts.

Question 76

Explain the basic requirements that must be met for a contract to be enforceable.

Question 77

Stella is injured in a motor accident and is brought to the hospital by a passerby.Stella subsequently passes into a coma.The doctors and other staff perform the necessary medical procedures to save her life.Stella comes out of her coma after two months and is released from the hospital after the doctors are satisfied by her recovery.Under the doctrine of ________ contract,Stella has to pay the hospital for its services.

A)express contract
B)quasi-contract
C)implied-in-fact contract
D)formal contract

Question 78

________ is a doctrine that permits judges to make decisions based on fairness,equality,moral rights,and natural law.

A)Common law of contracts
B)Restatement of the Law of Contracts
C)Equity
D)Objective theory of contracts