Deck 9: Introduction to Contracts

Question 1

A quasi-contract is the legal designation of an oral contract.

Answer 1

False

Question 2

As English judges were developing the common law of contracts in the twelfth and thirteenth centuries:

A)most promises were found to be enforceable.
B)promises were found not binding unless written and sealed.
C)the term "contract" became common.
D)changes in the law occurred rapidly.

Answer 2

B

Question 3

Reliance on the promise made by the defendant doesn't need to be evidenced in order for promissory estoppel to apply.

Answer 3

False

Question 4

Unilateral contracts are usually considered illegal.

Question 5

Contracts for the sale of patents,automobiles,cleaning services and paper clips would all be governed by Article 2 of the Uniform Commercial Code.

Question 6

When John comes home from work one evening,he finds that the leaves in his frontyard have been raked and put in bags.Later,a man comes to collect for the yard work done.John refuses to pay for the work since he has never seen the man before and did not hire him to do his yard work.Which of the following answers is most accurate?

A)This is an implied, unilateral contract and he must pay the price requested by the man.
B)John has to pay as this is an implied, bilateral executed contract.
C)The court would order John to pay the reasonable value of the yard work because of the benefit conferred on him.
D)John would not have to pay for the yard work as he did not have the opportunity to reject the offer.

Question 7

Dawn and Isaac sign a contract in which Dawn agrees to deliver 8 bags of flour in exchange for Isaac's promise to pay $25 per bag.Dawn delivers the flour.Isaac pays for the goods.This contract is fully executory.

Question 8

Jerry offers to shovel the snow from Ben's driveway for $35.Ben grabs his shovel and begins to work.This is an example of:

A)an implied, unilateral contract.
B)an express, unilateral contract.
C)an implied, bilateral contract.
D)an express, bilateral contract.

Question 9

Strawly Corp.wants to sell land which has toxic waste underground.It may shift all the responsibility for environmental cleanup to the buyer by including such a provision in the sales contract.

Question 10

A valid contract can legally be voided by either party.

Question 11

Under a contract,Danielle is required to make a set of draperies out of fabric chosen by the homeowners,the Flynns.After Danielle makes the draperies according to the contract requirements,her duties under the contract are discharged.

Question 12

When promissory estoppel is used by the courts,it is because there is NOT an enforceable contract present.

Question 13

Alex promises to pay $100 to anyone who finds his lost watch.Kate finds and returns the watch to Alex after hearing of the reward money.Alex and Kate have an enforceable unilateral contract.

Question 14

Robert offers to buy a car from Jane for $400.Jane must accept this offer in order to form an enforceable contract.

Question 15

Erin goes into Great Buy Electronics store and purchases a TV.She agrees to pay for the TV in 30 days on the store's "30 days same as cash" plan.This is an executed contract.

Question 16

Valerie promises Teresa that she will pay Teresa $75 if Teresa will clean Valerie's house by noon on Saturday.If Teresa cleans the house by noon on Saturday and Valerie pays the $75,then this is an implied,bilateral,executory contract.

Question 17

The common law governs contracts for:

A)services.
B)real estate.
C)employment.
D)All of the above.

Question 18

The elements of a contract are agreement,consideration,legality,and capacity.

Question 19

Miles purchased a lawnmower with an attached warning that said,"The manufacturer is not responsible in the case of an injury caused by the lawnmower." If Miles is injured because of a defect in the mower and sues the lawnmower manufacturer,he will most likely:

A)lose, as he agreed to not hold the lawnmower manufacturer liable.
B)lose, as he assumed the risk.
C)win, as this warning would be unenforceable.
D)win, as all lawnmower manufacturers are strictly liable.

Question 20

One purpose of contract law is to make business matters more predictable.

Question 21

On January 16,Deb offers to sell her waterbed to Colleen for $600.Colleen accepts and agrees to pay Deb $600 on January 27.Which of the following is correct?

A)On January 16, the contract was executory.
B)On January 16, the contract was executed.
C)This contract is a unilateral contract.
D)There is no contract until one party performs.

Question 22

Courts may award damages called "quantum meruit":

A)which means "as much as he deserved."
B)which is money the court believes the plaintiff morally ought to have.
C)even though there was no valid contract entitling the plaintiff to it.
D)All of the above.

Question 23

Walter enters a dentist office and points to a damaged tooth.The dentist,Matt,treats the tooth.If Walter refused to pay and Matt sued:

A)Walter would win as there was no contract.
B)Walter would win because of the UCC.
C)Matt would win; this is an implied contract.
D)Matt would win in quantum meruit.

Question 24

The courts will find an implied contract when:

A)there is no written agreement.
B)conduct of the parties indicates they intended an agreement.
C)there is promissory estoppel.
D)the contract is executory but not executed.

Question 25

Which of the following statements about quasi-contracts is true?

A)The plaintiff gave some benefit to the defendant.
B)The plaintiff reasonably expected to be paid for the benefit and the defendant knew this.
C)The defendant would be unjustly enriched if he did not pay.
D)All of the above.

Question 26

Patty is a poor college student struggling to work and keep up with her studies.Fred,her uncle,promises to pay Patty support of $200 per month for the next six months.Although Fred didn't ask her to,she quits her current job in order to devote full time to her studies for the next six months.Fred makes one payment and then stops with no explanation.If Patty sues,what is the likely result?

A)Fred would win, as he did not ask Patty to quit her job.
B)Patty would win, as a contract was formed when Fred promised to pay her the support.
C)Fred would win, as family members cannot sue each other for breach of an oral promise.
D)Patty may win under the doctrine of promissory estoppel.

Question 27

Which of the following represents a unilateral offer?

A)"I will pay you $50 if you mow my lawn."
B)"I am willing to shovel your driveway if you accept to pay me $50."
C)"I will pay you $50 for your CD player."
D)"Your backpack is probably worth $50."

Question 28

Which of the following types of property would be goods under the Uniform Commercial Code?

A)A promissory note.
B)A stock.
C)A patent.
D)A computer.

Question 29

Mike made the following offer to Mick: "I will pay you $500 if you agree to paint my house." Mick replied that he would.At this point,the contract is an:

A)executed, bilateral, express contract.
B)executory, bilateral, implied-in-law contract.
C)executory, unilateral, express contract.
D)executory, bilateral, express contract.

Question 30

Larry goes to his barber who has cut his hair for the past several years.The barber proceeds to cut his hair as they talk about the most recent snow storm to hit the area.This is an example of a:

A)unilateral, implied contract.
B)bilateral, implied contract.
C)unilateral, express contract.
D)bilateral, express contract.

Question 31

Zena enters into a contract with Steeley Company to purchase a washer and dryer.She doesn't understand the financing terms,but signs the agreement anyway because she needs the appliances.The financing terms are very unfavorable to Zena,and she is unable to make all of her payments when they are due.Steeley sues.The court would:

A)be exercising judicial restraint if it requires Zena to pay as she promised, even if the agreement was unfair and unwise.
B)have to rewrite the contract to be fair to both parties.
C)have to declare the contract void since it contained terms unfavorable to the weaker party to the transaction.
D)use the theory of promissory estoppel to remedy any unfavorable terms in the contract.

Question 32

One of the factors leading courts away from a laissez-faire approach to contract law was:

A)the movement away from requiring a writing and a seal on contracts.
B)a change in relative bargaining power between parties to contracts.
C)the assumption that promises are not legally significant.
D)the assumption that parties had freedom to contract and would have to live with the consequences.

Question 33

Ron enters into a contract to paint Paul's house.When Paul decides on a color,Ron will buy the paint and paint the house for the price of $2,500.This contract is governed by:

A)the common law of contracts because this is a mixed contract (one for services and goods).
B)the common law of contracts because the predominant factor of the contract is for the sale of services and not goods.
C)the Uniform Commercial Code because a sale of goods is involved.
D)both the common law and the Uniform Commercial Code.

Question 34

Jennifer has offered to sell her computer for $1750 to Jack.She tells Jack that the computer is only six months old but,in fact,the computer is three years old,and Jennifer wants to unload the lemon.Jack agrees to buy the computer based on Jennifer's representations.This contract is:

A)a void agreement because of the fraud involved.
B)a voidable contract, one that Jack can void.
C)a voidable contract, one that Jennifer can void.
D)void according to the UCC.

Question 35

Which of the following statements about an express contract is true?:

A)It must be in writing.
B)It may be inferred by the conduct of the parties involved.
C)The two parties explicitly state all important terms of their agreement.
D)None of the above.

Question 36

Noncompetition agreements are:

A)more common today than they were in the past, although policy issues they raised in the 1700s have never gone away.
B)now illegal, as they violate antitrust laws.
C)infrequently litigated.
D)relatively recent developments, first used following the Great Depression in the United States.

Question 37

What is not required to establish promissory estoppel?

A)A promise made by the defendant.
B)A promise made by the plaintiff in response to the defendant's promise.
C)Reliance on the defendant's promise.
D)Enforcing the promise is the only way to avoid injustice.

Question 38

Contracts that do not arise from mutual agreement but are created by courts to avoid unjust enrichment are:

A)express contracts.
B)implied contracts.
C)quasi-contracts.
D)unilateral contracts.

Question 39

The basic distinction between a bilateral contract and a unilateral contract is that:

A)only one promise is involved in a bilateral contract.
B)only one promise is involved in a unilateral contract.
C)the Statute of Frauds applies to one and not the other.
D)one is enforceable, the other is not.

Question 40

In the case Norton v.Hoyt,the court held that Norton failed to establish promissory estoppel because:

A)Norton never promised anything in return for Hoyt's promise.
B)Norton breached the contract.
C)Norton did not establish a clear, unambiguous promise.
D)Hoyt had made an illusory promise.

Question 41

LarsonSoft,Inc.is a software producer that entered into a verbal agreement with XYZ Corporation wherein XYZ agreed to buy LarsonSoft's newly developed software.The agreement also provided that LarsonSoft would supply training personnel,as well as technical personnel,to work with XYZ employees in installing and learning the software.What law governs this agreement?

Question 42

Rameriz and Cox enter a contract obligating Cox to supply Rameriz with 2,000 bushels of corn by the end of September.Weather conditions are poor and Cox is unable to grow that much corn himself,but could obtain enough to make up the required difference at a financial loss.Discuss the general purpose of contracts and the result of seeking enforcement of this contract both in a court exercising judicial restraint and in a court practicing judicial activism.

Question 43

Discuss the requirements of promissory estoppel.

Question 44

List and briefly describe the basic elements of a contract.

Question 45

Explain what the Restatement of Contracts is and describe the role it plays in contract law.

Question 46

Preferred Contractors was a general contractor and owner of a condominium complex which was under construction.Barrett,a subcontractor,had been hired by Henderson Plumbing,another subcontractor,to help it complete the plumbing work on the project.When Henderson began using shoddy installation procedures and subsequently fell behind the scheduled completion time for the project,Preferred Contractors urged Barrett to correct Henderson's mistakes and to finish the job.Barrett refused to continue until he knew who would pay him,since he feared Henderson's financial position was shaky.Nonetheless,Preferred Contractors' job superintendent told Barrett to go ahead even if Barrett and Preferred Contractors had no contract because "he would use his influence to try to help Barrett get his money." Barrett finished the work and sent a $7,500 bill to Henderson,which was never paid.When Barrett later sent the bill to Preferred Contractors,these facts emerged: Preferred Contractors told him that due to Barrett's failure to notify Preferred Contractors promptly of Henderson's non-payment,Preferred Contractors had already paid Henderson in full and therefore would not pay twice for the work.Discuss the best possible theory of recovery Barrett may argue.