Question 1

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

Accepted Answer

An express contract is formed when parties explicitly agree to the terms and conditions of a contract, either verbally or in writing. On the other hand, an implied in fact contract is formed based on the conduct of the parties and the circumstances surrounding the transaction, without explicit agreement.

Question 2

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

Accepted Answer

Article 2 of the UCC has been supplemented by the Uniform Electronic Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (E-Sign Act), which address electronic transactions and signatures, ensuring its relevance in modern electronic commerce.

Question 3

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

Accepted Answer

Implied in fact contracts are just as enforceable as express contracts, but the terms are not explicitly stated and must be inferred from the conduct and actions of the parties involved.

Question 4

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

Accepted Answer

Article 2 of the UCC deals with the sale of goods, not real estate. The sale of land is typically governed by state property law.

Question 5

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

Accepted Answer

A copyright is not considered a "good" under Article 2 of the Uniform Commercial Code, which deals with the sale of goods. Instead, the sale of a copyright is generally governed by principles of contract law and/or federal copyright law.

Question 6

As of 2016, the 2001 Revisions to Article 1, which applies to all the articles of the Code, had been adopted by all states except Missouri.In 2017, Missouri introduced a bill to enact the 2001 Revisions.

Accepted Answer

As of 2016, Missouri was the only state that had not adopted the 2001 Revisions to Article 1 of the Uniform Commercial Code, and in 2017, Missouri introduced legislation to adopt these revisions.

Question 7

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

Accepted Answer

This is because a bilateral contract involves a promise for a promise, meaning both parties have made a commitment to each other, while a unilateral contract involves a promise for performance, where one party is obligated to perform upon the occurrence of a certain event or condition. If it is unclear which type of contract was intended, the courts will presume a bilateral agreement since it is the more common type of contract.

Question 8

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 and therefore cannot enter into a binding contract. Any agreement they enter into would be considered void and unenforceable.

Question 9

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

Accepted Answer

The Uniform Commercial Code (UCC) applies to a variety of commercial transactions beyond the sale of goods, including leases, contracts, negotiable instruments, and more. It also applies to sales of goods by any person or entity, not just manufacturing firms who ship goods interstate.

Question 10

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 there was an offer made by Maria, no acceptance occurred from Dave. He expressed an intention to look for the cat, but did not explicitly agree to the terms of the offer (which would include the $50 reward). Therefore, no contract was formed.

Question 11

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.

Accepted Answer

Megan can still sue Justin because the statute of limitations for contract breaches in that state is six years, and only five years have passed, so the claim is still within the allowable time frame for legal action.

Question 12

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.

Accepted Answer

The relaxation of contract formality requirements made it easier to enter into a contract as it no longer had to be written or signed in a specific way. However, it also made it easier to get out of a contract as parties could argue that requirements were not met, such as lack of intent or consideration.

Question 13

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

Accepted Answer

As of 2011, the majority of states had not adopted the 2003 Amendments to Article 2 of the Uniform Commercial Code (UCC), which deals with the sale of goods. The amendments were not widely accepted.

Question 14

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

Accepted Answer

A contract does not necessarily need to be in writing to be legally binding. Oral contracts can also be enforceable in many situations, although they can be difficult to prove in court. However, some types of contracts (such as those involving land or goods worth more than a certain amount) do require a written agreement to be enforceable. It is always best to consult with a lawyer to ensure that your contract meets all legal requirements.

Question 15

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.

Accepted Answer

The statute of limitations for breach of contract in the state is six years, and since Bill wants to sue seven years later, the contract is unenforceable. However, it is not void or voidable.

Question 16

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

Accepted Answer

This statement is true. The UCC (Uniform Commercial Code) governs contracts for the sale of goods, while general contract law covers all other types of contracts.

Question 17

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

Accepted Answer

Article 2 of the Uniform Commercial Code only applies to the sale of goods, not services. The sale of services is subject to different rules and regulations.

Question 18

"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 19

A quasi contract is another name for an oral contract.

Accepted Answer

A quasi contract is not the same as an oral contract. A quasi contract is an obligation imposed by the law to prevent unjust enrichment, even in the absence of a contract. It is also known as an implied-in-law contract. Meanwhile, an oral contract is a legally binding agreement that is made verbally between parties.

Question 20

Verna has entered into a contract to buy a new laptop computer for personal use.The law governing the contract is Article 3 of the UCC.

Accepted Answer

Article 3 of the UCC (Uniform Commercial Code) governs negotiable instruments, such as checks and promissory notes, not sales of goods like laptops. Sales of goods are covered under Article 2 of the UCC.

Quiz 9: Introduction to Contracts