Question 1

A contract may not be voluntarily entered into in the event of&#10;A)mistake&#10;B)fraud&#10;C)duress&#10;D)any of the above

Accepted Answer

All of the above (mistake, fraud, duress) are situations in which a contract may not be voluntarily entered into, as they involve some form of coercion or deception that renders one party unable to truly consent to the terms of the agreement. All of the above circumstances can result in a contract being involuntarily entered into. Mistake occurs when one or both parties make an error about a material fact of the contract. Fraud occurs when one party intentionally deceives the other party in order to induce them to agree to the contract. Duress occurs when one party uses force or coercion to get the other party to enter into the contract. In all three circumstances, the contract is not entered into voluntarily and may be deemed void or voidable.

Question 2

Past consideration will not support a contract because it was not bargained for or given in exchange for a promise.

Accepted Answer

Past consideration refers to something that was already given or done before the promise was made, so it cannot be considered as part of the bargaining process. Therefore, it is not a valid consideration and cannot support a contract. Past consideration refers to actions or services that were performed before the contract was made. Since these actions were not bargained for or given in exchange for a promise, they cannot support a contract. Only consideration that is given in exchange for a promise can support a contract.

Question 3

Under the UCC, an offer may be accepted by any reasonable method.

Accepted Answer

False

Question 4

Promissory estoppel&#10;A)is an equitable remedy&#10;B)is an alternative to money damages&#10;C)allows a court to bar a certain defense to be raised&#10;D)all of the above

Accepted Answer

Promissory estoppel is an equitable remedy that can be used as an alternative to money damages. It allows a court to prevent a certain defense from being raised. Therefore, all of the above options are correct. Promissory estoppel is an equitable remedy that can be an alternative to money damages. It also allows a court to bar a certain defense from being raised.

Question 5

Which of the following is a valid consideration?&#10;A)a promise to complete additional work under a construction contract for more money&#10;B)a promise to pay someone $400 if he agrees to stop smoking for a year&#10;C)a promise to pay an unliquidated debt for less than the full amount&#10;D)all of the above

Accepted Answer

All the options listed are examples of valid considerations. A consideration is something of value that is given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances. Option A represents a modification of a contract, which is valid if both parties agree to the new terms. Option B is a valid consideration because it involves a promise to refrain from doing something (smoking) in exchange for payment. Option C is also a valid consideration, as agreeing to pay an unliquidated debt for less than the full amount can be a consideration if the debt amount is in dispute and both parties agree to settle for a lesser amount.

Question 6

A contract which calls for a promise in exchange for a promise is a bilateral contract.

Accepted Answer

A bilateral contract is a type of contract in which both parties exchange promises to do something. This is in contrast to a unilateral contract, where one party makes a promise in exchange for the other party's performance. A bilateral contract is a contract where both parties make a promise to each other. This is in contrast to a unilateral contract, where only one party makes a promise, and the other party must perform an act to accept the offer.

Question 7

An offer is terminated by the death of the offeror.

Accepted Answer

According to Section 6 of the Indian Contract Act, 1872, an offer is terminated by the death of the offeror. If the offeror dies before the offer is accepted, the offer is automatically terminated.

Question 8

Article 2 of the Uniform Commercial Code applies to contracts for the sale of services or real property.

Accepted Answer

Article 2 of the Uniform Commercial Code (UCC) applies specifically to contracts for the sale of goods, not services or real property.

Question 9

An offer can be revoked prior to acceptance unless it meets the UCC requirements of a firm offer.

Accepted Answer

According to the UCC, a firm offer cannot be revoked prior to acceptance, but for regular offers, revocation is allowed as long as it is communicated to the offeree before acceptance. According to the common law, an offeror may revoke their offer at any time prior to acceptance. However, under the Uniform Commercial Code (UCC), a merchant may make a firm offer, which is an offer that cannot be revoked for a specified period of time. To qualify as a firm offer under the UCC, the offer must be in writing, signed by a merchant, and state that it will be held open for a specified period of time.

Question 10

A contract is voidable only when both of the parties lack the capacity to contract.

Accepted Answer

A contract can also be voidable if one of the parties lacks capacity, such as if they are a minor or under duress. A contract may be voidable when one of the parties lacks capacity to contract, such as being under duress or undue influence. It does not require both parties to lack capacity.

Question 11

The Statute of Frauds requires certain contracts to be in writing to be enforceable.

Accepted Answer

The answer of The Statute of Frauds requires certain contracts...

Question 12

A person who lacks the mental capacity to contract may be liable for the reasonable value of necessary items provided to him.

Accepted Answer

The answer of A person who lacks the mental capacity...

Question 13

Which of the following is not required for a firm offer?&#10;A)a valid consideration&#10;B)a writing signed by a merchant&#10;C)assurances that the offer will be kept open for up to 3 months&#10;D)an offer to sell goods

Accepted Answer

The answer of Which of the following is not required...

Question 14

Usury statutes set the amount of time after a breach of contract within which an action must be commenced.

Accepted Answer

The answer of Usury statutes set the amount of time...

Question 15

An implied method of acceptance is the manner in which the offer is made, and an acceptance communicated in an authorized manner is effective when dispatched.

Accepted Answer

The answer of An implied method of acceptance is the...

Question 16

A counteroffer acts as a revocation of an offer.

Accepted Answer

The answer of A counteroffer acts as a revocation of...

Question 17

The parol evidence rule allows testimony to vary the terms of a written contract if they are ambiguous terms or subsequent terms.

Accepted Answer

The answer of The parol evidence rule allows testimony to...

Question 18

A fully executed contract discharges the parties' obligations under the contract.

Accepted Answer

The answer of A fully executed contract discharges the parties'...

Question 19

Consideration includes doing or refraining from that which one has a right to do, even if it has no economic value.

Accepted Answer

The answer of Consideration includes doing or refraining from that...

Question 20

An offer is not definite if it contains a condition precedent that must occur before a party is obligated to perform a contract.

Accepted Answer

The answer of An offer is not definite if it...

Question 21

Which of the following contracts would be unenforceable because of the Statute of Frauds?&#10;A)A written contract that is made up of several documents.&#10;B)A written contract that is signed only by the party against whom enforcement is sought.&#10;C)a contract that is fully performed&#10;D)The Statute of Frauds would not be a defense to these contracts.

Accepted Answer

The answer of Which of the following contracts would be...

Question 22

Patty, a minor of age 16, purchases a car from Larry.One month later, Patty crashes the car, disaffirms the contract and seeks return of the purchase price.Which of the following is most certain?&#10;A)Patty cannot rescind the contract because the car is not able to be returned.&#10;B)Patty owes Larry nothing, because she is a minor.&#10;C)Patty owes Larry the reasonable value of the vehicle because it is a necessary item.&#10;D)none of the above

Accepted Answer

The answer of Patty, a minor of age 16, purchases...

Deck 5: Contracts