Deck 9: Introduction to Contracts

Question 1

Article 2 of the Uniform Commercial Code does not apply to the sale of services.

Answer 1

True

Question 2

A contract for the sale of a copyright is governed by Article 2 of the Uniform Commercial Code.

Answer 2

False

Question 3

Hana has entered into a contract to buy a new tablet for personal use. The law governing the contract is Article 2of the UCC.

Answer 3

True

Question 4

"I promise to pay you $100 if you will promise to fix my car next month." This is an offer for a unilateral contract.

Question 5

Due to relaxed contract formality requirements enacted during the twentieth century it became easier to enter into a contract as well as to get out of one.

Question 6

A quasi contract is another name for an oral contract.

Question 7

A contract to sell five acres of land is governed by Article 2 of the UCC.

Question 8

In order to be legally binding, a contract must be in writing.

Question 9

If it is unclear whether the parties formed a unilateral or bilateral contract, the courts presume the parties intended a bilateral contract.

Question 10

Justin breaches a contract with Megan in a state where the statute of limitations is six years. Five years later Megan wants to sue. The contract is unenforceable.

Question 11

If a person who has been declared incompetent by the courts enters into an agreement, that agreement is void, because it does not meet all the requirements of a binding contract.

Question 12

As of 2011, the majority of states had adopted the 2003 Amendments to Article 2 of the UCC.

Question 13

Maria posted several signs in the neighborhood offering $50 for the return of her lost cat. Dave calls to get a description of the cat and tells Maria, "I'll look for your cat." A contract is formed by Dave's call to Maria.

Question 14

Albert breaches a contract with Bill in a state where the statute of limitations is six years. Seven years later Bill wants to sue. The contract is unenforceable, but it is neither void nor voidable.

Question 15

General contract law governs all contracts outside the scope of the UCC.

Question 16

Article 2 of the UCC lacks relevance in modern society because it, including its amendments, does not provide rules related to electronic commerce.

Question 17

The 2001 Revisions to Article 1, which applies to all the articles of the Code, have been adopted by all states..

Question 18

An implied in fact contract is not as enforceable as an express contract.

Question 19

The Uniform Commercial Code applies only to sales of goods by manufacturing firms who ship goods to buyers interstate.

Question 20

The difference between an express contract and an implied in fact contract is the manner in which the parties manifest assent.

Question 21

George has been declared incompetent by the court and is under the care of his sister. Unknown to his sister, George rents the 10,000-seat civic center for his birthday party. George's contract to rent the civic center is best described as:

A) a void contract.
B) a quasi contract.
C) a voidable contract.
D) an enforceable contract.

Question 22

A contract is a binding agreement that the courts will enforce.

Question 23

A contract in which both parties exchange promises is a:

A) voidable contract.
B) bilateral contract.
C) unilateral contract.
D) quasi contract.

Question 24

Charles says to Wes, "If you will mow my lawn, I will give you $15." Wes says nothing, but he mows the lawn. No contract exists under this fact situation, because Wes did not accept Charles's offer.

Question 25

A promisee is the person making a promise.

Question 26

Matt says to Lynn, "If you will mow my lawn, I will give you $20." Lynn replies, "O.K." Under these facts, each party is a promisor and each party is a promisee.

Question 27

Atsuko signs a contract to work as a sales rep for Incellmed Corporation for a period of two years. This contract is governed by:

A) Article 2 of the UCC.
B) state common law.
C) federal statute.
D) the law of quasi contract.

Question 28

Contracts are governed primarily by statute, including the UCC.

Question 29

A valid contract is one that meets all of the requirements of a binding contract.

Question 30

The requirement that each party to a contract must intentionally exchange something of value as an inducement to the other party to make a return exchange is known as:

A) mutual assent.
B) consideration.
C) legality of object.
D) contractual capacity.

Question 31

A noncontractual promise may be enforceable where there has been justifiable reliance on the promise.

Question 32

Alfred makes a material misrepresentation of fact to Betty, and based upon the misrepresentation, Betty enters into a contract. Alfred now thinks that the contract is not fair to him. This contract is voidable at Alfred 's option.

Question 33

An implied in fact contract is formed by conduct.

Question 34

In addition to the four basic requirements of a contract, which of the following must also occur in order to have a valid contract?

A) The agreement must always be in writing.
B) All terms of the agreement must be clearly indicated.
C) There must be an absence of invalidating conduct.
D) A legal remedy must be available for there to be a breach.

Question 35

Mike, a plumbing contractor, was hired to correct a stoppage in the sewer line at Sarah's house. During his work, he discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. To meet public regulations, the water pipe had to be replaced either then or later, when the yard would have to be redug. Mike replaced the water pipe and Sarah inspected the work daily and did not object to the extra work. When Mike finished, Sarah refused to pay for the water pipe replacement since that was not what she originally hired Mike to do and she had never specifically agreed to that work. Sarah must pay Mike for his labor and materials costs for both the sewer and water line repair.

Question 36

A contract to sell life insurance is covered by Article 2 of the Uniform Commercial Code.

Question 37

The United Nations Convention on Contracts for the International Sales of Goods (CISG) governs all contracts for the international sales of goods between parties located in different nations that have ratified the CISG.

Question 38

Thomas contacted Welsh, a realtor, and asked him to be looking for property that is at least 20 acres, zoned commercial, within the city limits.  Welsh responded that he would look for such a property and reminded Thomas that the typical finders fee in such a situation is 10% of the property asking price.  If Thomas responds with "I know," the parties have formed an express contract by mutually manifesting assent to the essential terms.

Question 39

Ronald says to Evan, "If you design and build my back deck according to these specifications by the time I return from California in 6 weeks, I will pay you $5,000." Evan does not respond but has the landscaping done by the time Ronald returns. This is an example of a unilateral contract.

Question 40

Alfred makes a material misrepresentation of fact to Betty, and based upon the misrepresentation, Betty enters into a contract. Betty now realizes she was deceived and wants to get out of the contract. This contract is voidable at Betty's option.

Question 41

Which of the following is NOT always necessary in order for a valid contract to be formed?

A) Mutual assent.
B) Legality of purpose.
C) A writing.
D) Competent parties.

Question 42

The concept of consideration in contract law includes:

A) that each party to a contract must unintentionally exchange a legal benefit.
B) an inducement to each party to make a return exchange.
C) that each party takes out an insurance bond if the possibility of damages is above $500.
D) All of these.

Question 43

According to the UCC, an enforceable agreement involving the transfer of title of goods from a seller to a buyer for a price is called a(n):

A) commercial contract.
B) express contract.
C) formal contract.
D) sale.

Question 44

A(n) __________ contract is one in which the terms have been definitely and specifically stated and agreed upon.

A) express
B) implied
C) written
D) formal

Question 45

June offers to sell her RV to Cecil for $13,000. Cecil says he will apply for a loan and will buy the RV within a week. A contract is formed:

A) when Cecil tells June he will buy the RV.
B) when Cecil gets the money from the credit union.
C) when Cecil applies for the loan at the credit union.
D) only when June gets the $13,000.

Question 46

Sarah offers to pay Allison $150 if Allison will paint her apartment while she is out of town on vacation for two weeks. Allison makes no promise but tells Sarah that she will think about it. While Sarah is out of town, Allison paints the apartment. This is best described as:

A) a unilateral contract.
B) a quasi contract.
C) an implied in fact contract.
D) a bilateral contract.

Question 47

Which of the following contracts is covered by Article 2 of the Uniform Commercial Code?

A) The sale of a house.
B) The sale of a new car.
C) An employment agreement.
D) A sale of automobile insurance.

Question 48

Stan sends for a law school catalog from Ivory Towers University. According to the catalog, the law school applications are evaluated on the basis of undergraduate grades, standardized test scores, and references. Stan, who is a straight-A student, has high test scores and excellent references, applies and pays the $100 application fee. His application is rejected. Later he finds out that others with low grades and test scores were accepted based on their family connections and donations made to the University. If Stan followed all of the guidelines in the college catalog and paid the required application fee, then according to the court in Steinberg v. Chicago Medical School :

A) there is not a contract.
B) there is a quasi contract.
C) there is a valid contract; the school bound itself to honor the obligations set forth in the college catalog.
D) there is a voidable contract.

Question 49

Chet makes a material misrepresentation of fact regarding his horse to Rosalind while out riding one day. Later that day, Rosalind makes an offer to buy the horse which Chet accepts, without correcting his earlier misrepresentation of fact. In this case:

A) Chet may avoid the contract.
B) Rosalind may avoid the contract.
C) either or both Chet or Rosalind may avoid the contract.
D) neither Chet nor Rosalind may avoid the contract.

Question 50

Able is involved in an automobile accident and is injured. While he is unconscious, the police call an ambulance which takes him to a hospital. Able is treated at the hospital and released a day later. The hospital sends him a bill for $4,500, which Able refuses to pay, claiming it is too high and he never consented to the treatment because he was unconscious. Able:

A) has entered into a unilateral contract with the hospital and therefore will have to pay the bill.
B) will have to pay the hospital, because this is a quasi-contractual agreement.
C) has entered into an implied in fact contract with the hospital.
D) and the hospital have entered into a bilateral contract, the terms of which require that he pay the bill.

Question 51

Contracts that are implied in law:

A) are obligations imposed by law on grounds of justice and equity.
B) may create unjust enrichment.
C) require the assent of the contracting parties.
D) can only be enforced if both parties willingly comply.

Question 52

Samuel Tate enters into a contract with Bill Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, which term describes the type of contract in existence?

A) Quasi contract.
B) Executed contract.
C) Illusory contract.
D) Executory contract.

Question 53

Express contracts and implied in fact contracts are:

A) both genuine contracts.
B) exactly the same thing, just two different names.
C) not really contracts.
D) both enforceable only if written and signed.

Question 54

An obligation imposed by law where there has been no agreement or expression of assent by word or act on the part of either party involved is a(n):

A) implied in fact contract.
B) express contract.
C) void contract.
D) quasi contract.

Question 55

A change in contract law between the nineteenth and twentieth centuries was:

A) a relaxation of requirements of contract formation.
B) an increase in technical requirements for contract formation.
C) a movement toward enforcement of promises only if there was strict compliance with basic contract requirements.
D) increasing difficulty for parties to get out of a contract.

Question 56

Steven makes a material misrepresentation of fact regarding his motorcycle to Huong who agrees to buy the motorcycle based upon the misrepresentation. This contract is:

A) void.
B) voidable.
C) executed.
D) unenforceable.

Question 57

Adonia and Merv enter a contract for the sale of a computer. If Merv breaches the contract and Adonia waits until the time specified in the statute of limitations has passed, the contract is now:

A) void.
B) unenforceable.
C) voidable.
D) executory and enforceable.

Question 58

Which of the following is not generally required in order to have a valid contract?

A) Mutual assent.
B) A lawful purpose.
C) Fairness of the bargain.
D) Parties who have contractual capacity.

Question 59

When one party performs an action to the benefit of the other, even if a contract has not been effectively made, a court may rule that the performing party was entitled to recoup the reasonable value of the services rendered under:

A) an express contract.
B) quantum meruit.
C) promissory estoppel.
D) Article 2 of the UCC.

Question 60

Quasi contracts are used to provide a remedy when the parties enter into a(n):

A) void contract.
B) implied in fact contract.
C) situation in which promissory estoppel applies.
D) express contract.

Question 61

If Anna by mistake delivers to Bob a plain, unaddressed envelope containing $50 intended for Cora:

A) Bob is under no obligation to return the money.
B) Bob is under a contractual obligation to return the money.
C) Bob's obligation to return the money is quasi-contractual.
D) Bob's obligation to return the money is implied in fact.

Question 62

Hal promises not to foreclose on a mortgage that he holds on an office complex that Christopher owns. In reliance on this promise, Christopher spends $200,000 to remodel the complex. Which of the following is correct with regard to Hal's promise?

A) Hal's promise not to foreclose is supported by consideration.
B) Hal's promise is contractual.
C) Hal's promise may be enforced against him based upon the doctrine of promissory estoppel.
D) Hal's promise is a contract modification.

Question 63

Lance has a contract with Smith to resurface a driveway at the Smith residence. Lance by mistake stops at the Jones residence and resurfaces Jones' driveway. Jones lives next door to Smith and knows that Lance is at the wrong residence. Jones, however, says nothing and watches while Lance resurfaces his driveway. Is Jones under any contractual obligation to pay Lance for resurfacing his driveway? Explain your answer.

Question 64

What are the essential elements of a contract? List and discuss them.

Question 65

The United Nations Convention on Contracts for the International Sales of Goods (CISG) governs  contracts  for the international sales of goods between parties 

A) l ocated in any nations.
B) who have specified in their agreement that they will be bound by the CISG.
C) located in different nations that have ratified the CISG.
D) where at least one party is a sovereign nation.

Question 66

What is the difference between a valid contract and a void contract?

Question 67

Define and distinguish between:
a. express and implied contracts
b. executed and executory contracts
c. bilateral and unilateral contracts.

Question 68

The Uniform Commercial Code applies to:

A) employment contracts.
B) service contracts.
C) insurance contracts.
D) contracts involving sale of personal property.

Question 69

The doctrine of promissory estoppel:

A) is a doctrine enforcing contractual promises.
B) includes as a requirement within the doctrine that there has been justifiable reliance on the promise.
C) is applied in almost every contract enforcement due to frequent misinterpretations.
D) is a remedy for fraud.

Question 70

Discuss the definition of a contract given in The Restatement, Second, of Contracts.

Question 71

What is the doctrine of promissory estoppel, and when is it used?

Question 72

It is common for transactions to involve multiple contracts. Identify at least four contracts that might be involved in Costello's sale of land to Johnston.

Question 73

Possible remedies for a breach of contract do not include:

A) compensatory damages.
B) restitution.
C) incarceration.
D) reliance damages.

Question 74

Morris interviewed for a job as plant manager at Northland Bearings and was offered a two-year contract if she could relocate and start the new job within three weeks. Morris agreed. Northland promised to follow up the oral agreement with a written contract setting forth all the agreed terms, but the contract had not arrived within several days. Morris wanted to give two-weeks' notice to her present employer, so she called Northland to check on the written contract and was told it was ready to be sent to her and assured her the job was hers. She gave notice of her intention to quit her present job and moved two states away to the Northland location. When Morris arrived for her first day of work, she was told someone else with better qualifications had been found and hired for the position. Morris:

A) has no recourse since she never received a written contract, as required by the statute of frauds for a contract that cannot be performed within one year of its making.
B) has no recourse because promises are not enforceable if they do not meet all the requirements of a contract, and here Morris lacked capacity.
C) may be entitled to good-faith reliance damages under the doctrine of promissory estoppel to avoid injustice.
D) cannot enforce the contract since she had not actually started working at Northland.

Question 75

A valid contract may be unenforceable for which reason(s)?

A) Failure to satisfy the statute of frauds.
B) Running of the statute of limitations.
C) Both f ailure to satisfy the statute of frauds and r unning of the statute of limitations.
D) A valid contract is always enforceable.