Question 1

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 2

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 3

A quasi contract is another name for an oral contract.

Accepted Answer

A quasi contract, also known as an implied-in-law contract, is not a true contract, but rather a legal fiction that is imposed by a court to prevent one party from unfairly benefiting at the expense of another party. It is not an oral contract.

Question 4

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

Accepted Answer

Article 2 of the Uniform Commercial Code applies only to the sale of goods, not services.

Question 5

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

Accepted Answer

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

Question 6

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 Uniform Commercial Code (UCC) governs contracts for the sale of goods, which includes items like MP3 players.

Question 7

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 8

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 statement represents the legal principle of consideration, which is a fundamental requirement for the formation of a valid contract. Each party must offer something of value, such as money, goods, services, or a promise, in exchange for something else. This mutual exchange creates a binding obligation and allows the parties to enforce the terms of the contract. Without consideration, there is no contract.

Question 9

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

Accepted Answer

The usual method of showing mutual assent in contract formation is through offer and acceptance.

Question 10

Contracts are primarily governed by the Uniform Commercial Code.

Accepted Answer

While the Uniform Commercial Code does govern certain aspects of contracts (such as the sale of goods), contracts are primarily governed by a combination of common law and statutory law at the state and federal level.

Question 11

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

Accepted Answer

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

Question 12

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 created through direct communication in which parties explicitly state and agree to the terms of the contract. On the other hand, an implied in fact contract is formed by the conduct and circumstances of the parties, in which the terms are inferred from their actions or behavior. Therefore, the manner in which assent is manifested is different between the two types of contracts.

Question 13

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

Accepted Answer

Copyrights are considered intellectual property, and contracts for the sale of intellectual property are not governed by Article 2 of the Uniform Commercial Code. They are instead subject to specialized rules and regulations pertaining to intellectual property law.

Question 14

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

Although Dave has shown an intention to help Maria find her cat, a contract cannot be formed simply by his call to get a description of the cat and expressing his willingness to search for the cat. A contract requires a mutual agreement on terms and obligations, which is not present in this situation.

Question 15

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 16

"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 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 statute of limitations sets a time limit for bringing a lawsuit. Once this period expires, the contract becomes unenforceable, meaning Bill cannot sue Albert, but the contract itself is not void or voidable.

Question 18

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

Accepted Answer

The Restatement of Contracts and the Uniform Commercial Code (UCC) are both influential in shaping contract law, with the Restatement providing guidance and the UCC being adopted as statutory law in many jurisdictions.

Question 19

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

Accepted Answer

At common law, a promise made under seal was considered binding without the need for consideration, as the seal itself was seen as sufficient evidence of the promisor's intention to be bound by the promise.

Question 20

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 the legal capacity to enter into a binding contract. Therefore, any agreement entered into by such a person is considered void.

Quiz 9: Introduction to Contracts