Question 1

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

Accepted Answer

An express contract is formed when the parties explicitly state the terms and conditions of the agreement, while an implied in fact contract arises from the conduct of the parties rather than explicit agreement. Therefore, the manner in which assent is manifested is different and distinguishes the two types of contracts.

Question 2

The Restatement and the UCC are both currently authoritative sources of contract law.

Accepted Answer

Both the Restatement of Contracts and the Uniform Commercial Code (UCC) are widely recognized as authoritative sources of contract law and are regularly cited by courts and legal professionals in the United States.

Question 3

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

Accepted Answer

A valid contract must have the elements of offer, acceptance, consideration, capacity, legality, and intention to create legal relations.

Question 4

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.

Accepted Answer

While Dave expressed interest in finding Maria's cat, there was no agreement on a specific exchange of money for services. Therefore, there was no contract formed.

Question 5

Marcus has a contract to purchase a new MP3 player. The law governing this contract is Article 2 of the UCC.

Accepted Answer

Article 2 of the UCC governs contracts for the sale of goods, which includes the sale of an MP3 player.

Question 6

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

Accepted Answer

A contract for the sale of a copyright is not specifically addressed in the Uniform Commercial Code. It may be governed by state contract law.

Question 7

A quasi contract is another name for an oral contract.

Accepted Answer

A quasi contract is not a type of contract. It is a legal concept used to describe a situation where there is no formal contract but a court may still require one party to compensate the other as if there had been a contract.

Question 8

A negotiable instrument, such as a check, is not a formal contract.

Accepted Answer

The answer of A negotiable instrument, such as a check,...

Question 9

Quasi contract is another name for a contract that is implied in fact.

Accepted Answer

A quasi-contract is not an actual contract but a legal concept where the court enforces an obligation on a party as if a contract existed, to prevent unjust enrichment. It differs from a contract implied in fact, which is a true contract formed by the conduct of the parties, not by explicit words.

Question 10

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

Accepted Answer

This is an offer for a bilateral contract because it involves a promise in exchange for a promise (the promise to pay $100 in exchange for the promise to fix the car).

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.

Accepted Answer

A person who has been declared incompetent by the courts lacks legal capacity to enter into a contract. Therefore, any agreement they enter into is void and unenforceable. A valid contract requires the parties to have legal capacity, mutual agreement, consideration, and lawful purpose.

Question 12

The usual method of showing the mutual assent necessary to create a contract is by offer and acceptance.

Accepted Answer

The conventional way of demonstrating mutual assent in contract formation is through offer and acceptance.

Question 13

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

Accepted Answer

Article 2 of the Uniform Commercial Code (UCC) pertains to the sale of goods, not services. The UCC contains a separate Article 2A, which pertains to the sale of leases.

Question 14

During the twentieth century it became harder to enter into a contract as well as to get out of one.

Accepted Answer

During the twentieth century, legal reforms in many jurisdictions aimed to simplify the process of entering into contracts by reducing formal requirements, and consumer protection laws provided more options for exiting contracts, especially for consumers.

Question 15

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

Accepted Answer

Article 2 of the UCC governs transactions involving the sale of goods, not real estate. The sale of land is generally governed by common law and/or state-specific real estate laws.

Question 16

All written contracts are considered to be formal contracts.

Accepted Answer

Written contracts can be either formal or informal depending on the nature of the agreement and the requirements for its validity. Formal contracts are a specific subset that typically require a special form or method of creation to be enforceable.

Question 17

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, rather than void or voidable.

Accepted Answer

The answer of Albert breaches a contract with Bill in...

Question 18

Each party to a contract must intentionally exchange a legal benefit or incur a legal detriment as an inducement to the other party to make a return exchange.

Accepted Answer

This is the definition of consideration in contract law. Both parties must receive some benefit or suffer some detriment in order for the contract to be considered binding.

Question 19

At common law a promise under a seal to authenticate it was effective without anything more.

Accepted Answer

Under common law, a sealed promise (also known as a "contract under seal") was considered more formal than a regular promise and therefore, did not require any additional consideration or proof of intent to be legally binding. The act of sealing the document was enough to show the parties' intention to be bound by the terms of the contract. However, modern law has reduced the significance of seals and in many cases, a contract under seal may be treated the same as any other contract.

Question 20

Contracts are primarily governed by the Uniform Commercial Code.

Accepted Answer

Contracts are mainly governed by common law, not the Uniform Commercial Code. However, certain types of contracts involving the sale of goods are subject to the UCC.

Quiz 9: Introduction to Contracts