Deck 5: Contracts and Sales

Question 1

Past consideration is an adequate consideration to support a promise, therefore, it can create a contract.

Answer 1

False
Explanation: Past consideration is not adequate consideration to support a promise, therefore, it will not create a contract.

Question 2

Which of the following requirements of a valid contract ensures that those who enter into agreements understand the nature and effect of their agreements?

A) Consideration
B) Capacity to enter into a contract
C) Legality
D) Mutual assent

Answer 2

B
Explanation: For a contract to be valid, the parties entering into the contract must have the capacity to enter into contracts. Capacity ensures that those who enter into agreements understand the nature and effect of their agreements.

Question 3

Suretyship is the legal relationship formed when someone agrees to pay another's debt if the debtor does not pay.

Answer 3

True
Explanation: Suretyship is the legal relationship formed when someone agrees to pay another's debt if the debtor does not pay.

Question 4

Under the UCC, a change in the offer by offeree will only be considered a counteroffer if the offeree intends it to be so.

Question 5

The Uniform Commercial Code addresses contracts involving land, services or intangibles.

Question 6

The Restatement of Contracts is also known as "common law of contracts."

Question 7

Which of the following requirements of a valid contract best represents the agreement between the parties as to the contract's terms and their intent to actually enter into a contract rather than just inquiring or joking with each other?

A) Consideration
B) Capacity to enter into a contract
C) Legality
D) Mutual assent

Question 8

The consideration requirement of a valid contract ensures that those who enter into agreements understand the nature and effect of their agreements.

Question 9

If the terms of a contract have been fully performed, it is known as a unilateral contract.

Question 10

If it is illegal to do an act, then it is illegal to contract to have the act done. Which of the following terms best describes this concept?

A) Consideration
B) Capacity to enter into a contract
C) Legality
D) Mutual assent

Question 11

A _____ is a voluntary promise between two or more parties for which the law will provide a remedy for nonperformance.

A) report
B) contract
C) notice
D) memo

Question 12

If an offer is made, but before it can be accepted, the subject matter of the offer becomes illegal, the offer is terminated.

Question 13

If there is no consideration between the parties, there is no valid and binding contract.

Question 14

The _____ requirement of a valid contract ensures that parties to the contract actually bind themselves to the agreement by exchanging an agreed-upon legal detriment.

A) consideration
B) capacity to enter into a contract
C) legality
D) mutual assent

Question 15

Contracts implied in fact are known as quasi contracts.

Question 16

An express contract is created when the parties enter into the agreement by their actions rather than because they have actually discussed the matter.

Question 17

A valid contract requires the exchange of consideration or something of agreed value between the parties entering into the contract.

Question 18

When the offeree initially rejects an offer, and then later accepts it, acceptance is not effective when sent.

Question 19

A novation takes the assignor out of the contract altogether and substitutes the assignee in the assignor's place.

Question 20

Each state has its own common law of contracts that governs how contracts are made and enforced in its state so rather than knowing the law in each state, states' contract laws have been distilled into a compilation called the Uniform Commercial Code.

Question 21

A contract that is required to be in writing and is not or part of an agreement reached orally before or at the time of contracting is not included in the final written agreement then the contract will be _____.

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

Question 22

The _____ is a compilation of the most common approaches to states' common law of contracts, but is not, in and of itself, law.

A) Code of Federal Regulations
B) Federal Register
C) Restatement of Contracts
D) Uniform Commercial Code

Question 23

With reference to a valid contract, _____ indicates that the offeror is extending an offer and the offeree is accepting the offer.

A) capacity to enter into a contract
B) mutual assent
C) legality
D) consideration

Question 24

If a contract meets the requirements, except one or both of the parties was not of legal age, or there was fraud in the inducement as the basis for a party to enter the contract then the contract is a(n) _____ contract.

A) voidable
B) bilateral
C) implied in fact
D) quasi

Question 25

Which of the following statements is true regarding the Uniform Commercial Code?

A) The term common law of contracts tends to be used interchangeably with the Uniform Commercial Code.
B) It addresses contracts for the sale of goods.
C) It is a compilation of the most common approaches to states' common law of contracts.
D) It addresses contracts involving land, services or intangibles.

Question 26

These contracts are not really contracts at all. Rather, they are an obligation imposed by law upon an individual who receives a benefit under circumstances in which they would ordinarily be required to pay but no agreement to pay exists. Identify the category of contract in the discussion.

A) Executory contracts
B) Unenforceable contracts
C) Contracts implied in law
D) Voidable contracts

Question 27

A unilateral contract is a contract in which:

A) the terms of a contract have been fully performed.
B) one of the parties to the contract does not have the capacity to contract.
C) one party promises to do an act if the other party does something.
D) all the requirements of a valid contract have been fulfilled.

Question 28

_____ are also known as quasi contracts.

A) Contracts implied in law
B) Unenforceable contracts
C) Contracts implied in facts
D) Voidable contracts

Question 29

When the terms of the contract have not yet been performed, it is known as a(n) _____ contract.

A) express
B) quasi
C) executory
D) optional

Question 30

All of the following statements are true regarding the Restatement of Contracts EXCEPT:

A) it is a compilation of the most common approaches to states' common law of contracts.
B) states can adopt the Restatement in whole, or in part, or even modify, as they see fit.
C) the terms "common law of contracts," tends to be used interchangeably with contract law contained in the Restatement.
D) it is a law, in and of itself.

Question 31

A(n) _____ contract only buys the offeree time to accept or reject the offer and does not mean the offeree must accept.

A) unenforceable
B) option
C) void
D) express

Question 32

An executed contract is a contract in which:

A) the terms of a contract have been fully performed.
B) one of the parties to the contract does not have the capacity to contract.
C) one party promises to do an act if the other party does something.
D) all the requirements of a valid contract have been fulfilled.

Question 33

In contracting to buy a car, you agree to exchange money you otherwise would not have to give the dealer in exchange for title and possession of a car the dealer would not otherwise have to give you. This is an example of the _____ requirement of a valid contract.

A) mutual assent
B) legality
C) capacity to enter into a contract
D) consideration

Question 34

Which of the following statements is definitely true regarding an option contract?

A) It is also known as a quasi contract.
B) It is created when the parties enter into the agreement by their actions rather than because they have actually discussed the matter.
C) It lacks mutual assent.
D) An option contract only buys the offeree time to accept or reject the offer.

Question 35

, those who are intoxicated or otherwise under the influence of mind-altering drugs or those who are mentally incompetent cannot enter into a valid contract?

A) Mutual assent
B) Legality
C) Capacity to enter into a contract
D) Consideration

Question 36

Which of the following statements is most likely to be true regarding a contract implied in fact?

A) It is also known as a quasi contract.
B) It is a contract in which one party promises to do an act if the other party does something.
C) The terms of the contract have been fully performed.
D) It is created when the parties enter into the agreement by their actions rather than because they have actually discussed the matter.

Question 37

If the contract does not have legal subject matter or there was fraud in the execution in entering into the agreement, then the contract does not actually exist at all. This is called a(n) _____ contract.

A) implied in fact
B) unilateral
C) quasi
D) void

Question 38

David says to Mike, "I promise to give you $200 if you paint my house." This is most likely to be an example of a(n) _____ contract.

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

Question 39

If, instead, Jan said to Pedro, "I promise to give you $100 if you promise to drive my car to Malibu from San Francisco." It is most likely to be an example of a(n) _____ contract.

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

Question 40

The _____ is one of the two sets of laws that governs contracts.

A) Uniform Commercial Code
B) Code of Federal Regulations
C) main purpose doctrine
D) nondelegation doctrine

Question 41

Which of the following best represents a rebuttable presumption that arises when it is shown that the person accused of exerting undue influence had a dominant relationship with the other party to the contract?

A) Fraud in the execution.
B) Undue influence
C) Duress
D) Unilateral mistake

Question 42

The mailbox rule is also known as the _____ acceptance rule.

A) direct
B) deposited
C) expressed
D) optional

Question 43

While the obligor's permission is not necessary for a valid assignment, if the obligor gives permission, so that now all three parties agree to the assignment, it is called a _____.

A) quasi contract
B) suertyship agreement
C) sponsored agreement
D) novation

Question 44

Under the UCC an acceptance that makes changes to the offer is only considered a counteroffer if:

A) the acceptance is expressed after rejection.
B) the offeree so intends.
C) the acceptance is seasonable.
D) the acceptance is expressed in the form of silence.

Question 45

The legal relationship formed when someone agrees to pay another's debt if the debtor does not pay is most likely to be an example of a(n):

A) quasi contract
B) void contract.
C) suretyship agreement
D) sponsored agreement

Question 46

Which of the following statements best describes the mailbox rule?

A) Unless otherwise agreed, an acceptance is effective when it is sent if it is sent correctly.
B) If no time is specified in the offer, then the law will impose a reasonable time based on the circumstances.
C) A change in the offer by offeree will only be considered a counteroffer if the offeree intends it to be so.
D) If an offer is made but before it can be accepted the subject matter of the offer becomes illegal, the offer is terminated.

Question 47

Shawnee agrees to provide massage therapy to Pam for six months. Shawnee thought the agreement was for Swedish massage. Pam thought it was for deep tissue massage. Deep tissue massage costs twice as much as Swedish massage and Shawnee refuses to honor the agreement. This is most likely to be an example of:

A) duress.
B) fraud in the inducement.
C) mutual mistake.
D) fraud in the execution.

Question 48

Which of the following will be considered as a valid consideration for a contract?

A) The consideration is not bargained for.
B) The party giving the consideration does not suffer a legal detriment.
C) The party receiving the consideration receives a legal benefit.
D) The consideration is not exchanged between the parties.

Question 49

The _____ Rule provides that if there is a valid, written, integrated contract between the parties, then evidence of prior or contemporaneous agreements will not be permitted to vary or alter its terms.

A) Parol Evidence
B) Mailbox
C) Deposited Acceptance
D) Main Purpose

Question 50

Jane told Grandma that Grandma was signing a birthday card for her son. In fact, it is the deed to Grandma's house. This is an example of:

A) duress.
B) fraud in the inducement.
C) mutual mistake.
D) fraud in the execution.

Question 51

Which of the following statements is true regarding consideration?

A) The law does not deal with the value of consideration unless fraud is involved.
B) A valid and binding contract can exist without consideration.
C) If you buy a car the seller's consideration is the price of the automobile.
D) If you buy a car the buyer's consideration is the title and possession to the car.

Question 52

If an incompetent party enters into a contract, the contract will be:

A) a contract implied in law.
B) an express contract.
C) a quasi contract.
D) a void contract.

Question 53

With reference to mutual assent, which of the following concepts applies when both parties are aware that they do not know all they need to know before contracting, and they contract anyway?

A) Fraud in the execution
B) Undue influence
C) Duress
D) Mutual ignorance

Question 54

What is an acceptance with varied terms?

A) An acceptance that is not definite or seasonable
B) An acceptance after a prior rejection
C) An acceptance in the form of silence
D) An acceptance that makes changes to the offer

Question 55

In the case of _____ the one being defrauded actually knows he or she is entering into a contract, but has been told untruths about significant parts of the contract that form the basis of the bargain.

A) unconscionability
B) fraud in the inducement
C) undue influence
D) duress

Question 56

If a party is below the legal age for contracting, his or her contracts are:

A) the contracts implied in law.
B) voidable at their option.
C) quasi contracts.
D) option contracts.

Question 57

With reference to assignment, the one to whom rights are assigned is a(n) _____.

A) obligee
B) assignee
C) delegator
D) obligor

Question 58

If an offer is made but before it can be accepted the subject matter of the offer becomes illegal, the offer:

A) becomes an option contract.
B) is considered as an executed contract.
C) is terminated.
D) becomes a contract implied in fact.

Question 59

If an acceptance is seasonable then it means:

A) the acceptance was expressed in the form of silence.
B) the offer was accepted by the agent of the offeree.
C) the offer was accepted within the time set out by the offeror.
D) the acceptance was expressed after a prior rejection.

Question 60

_____ is exerting pressure through threats or use of physical force, economic disadvantage, exposure of private matters, etc., to get a party to enter into a contract.

A) Duress
B) Undue influence
C) Fraud in execution
D) Gap filling

Question 61

What is a contract? What are the requirements of a valid contract?

Question 62

Explain the Parol Evidence Rule.

Question 63

What are quasi contracts? Explain with the help of an example.

Question 64

Discuss with an example, the mailbox rule.

Question 65

List the various factors that result in the termination of the offer.

Question 66

What are the two sets of laws that govern contracts?

Question 67

Discuss with examples unilateral and bilateral contracts.

Question 68

What are the different requirements of an offer in order to be sufficient to create a contract?

Question 69

Explain the terms legal detriment and legal benefit.

Question 70

Discuss the Restatement of Contracts.

Question 71

Discuss undue influence as a challenge to mutual assent.

Question 72

What is a void contract?

Question 73

Discuss inadequate considerations.

Question 74

Discuss suertyship agreement.

Question 75

Discuss briefly, capacity to contract.