Question 1

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 adapted and supplemented by the Uniform Electronic Transactions Act (UETA) and the federal Electronic Signatures in Global and National Commerce Act (E-SIGN Act), which specifically address electronic transactions and signatures, ensuring the UCC remains relevant in governing commercial transactions, including those in electronic commerce.

Question 2

Allannah has entered into a contract to buy a new Steinway piano. The law governing the contract is Article 3 of the UCC.

Accepted Answer

Article 3 of the UCC governs negotiable instruments (such as checks and promissory notes), not the sale of goods such as pianos. The appropriate law governing this contract would be Article 2 of the UCC, which covers the sale of goods.

Question 3

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

Accepted Answer

While some contracts are required to be in writing (such as real estate contracts), many contracts can still be legally binding even if they are not in writing, as long as all necessary elements of a contract (offer, acceptance, consideration, etc.) are present.

Question 4

"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 5

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

Accepted Answer

Article 2 of the UCC regulates the sale of goods, not real estate. Real estate transactions are typically governed by common law and state statutes.

Question 6

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 or tangible product and therefore is not under the jurisdiction of Article 2 of the Uniform Commercial Code. Instead, it is generally governed by intellectual property laws.

Question 7

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 transactions involving the sale of goods between merchants, as well as non-merchants, regardless of whether the transaction involves interstate commerce. It also covers other types of commercial transactions, such as leases and secured transactions.

Question 8

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 helping Maria find her cat, he did not offer any specific terms or conditions for the agreement. Therefore, there was no offer and acceptance, and no contract was formed.

Question 9

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 known as the presumption of bilateral contract, which assumes that the parties intended to enter into a contract that obligates both parties to perform their obligations.

Question 10

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.

Question 11

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

Accepted Answer

A valid contract must include an offer, acceptance, consideration, capacity, legality, and a meeting of the minds. If all of these requirements are present, the contract is considered binding and enforceable by law.

Question 12

A quasi contract is another name for an oral contract.

Accepted Answer

A quasi contract is not a type of contract at all. It is a legal fiction used by courts to impose contractual obligations on parties in certain situations where no actual contract exists, such as when one party has been unjustly enriched at the expense of another.

Question 13

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

Accepted Answer

The UCC (Uniform Commercial Code) governs contracts related to the sale of goods, while general contract law governs all other types of contracts such as those related to services, employment, and real estate.

Question 14

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 contract is unenforceable due to the statute of limitations expiring, but it was not inherently void (lacking legal validity from the beginning) or voidable (valid until one party chooses to void it) at the time of its creation.

Question 15

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

Accepted Answer

Throughout the twentieth century, there were various changes in contract law that made it easier to enter into a contract, such as the development of standard form contracts and the increase of electronic transactions. Additionally, there were also more options for getting out of a contract, such as breach of contract claims and the development of consumer protection laws.

Question 16

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

Accepted Answer

An implied in fact contract is just as enforceable as an express contract. The main difference between the two is that an implied in fact contract is based on the parties' actions and circumstances rather than their explicit agreement.

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 (UCC) applies to the sale of goods, not services. However, there are other articles within the UCC that may apply to certain aspects of service transactions, such as Article 2A for leases and Article 9 for secured transactions.

Question 18

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 this person would be considered void.

Question 19

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 the parties explicitly agree to the terms and conditions of the contract, either in writing or verbally. In contrast, an implied in fact contract is formed when the parties do not explicitly agree but their conduct implies that they have mutually consented to the terms of the contract.

Question 20

Charles says to Wes, "If you will mow my lawn, I will give you $15." Wes says nothing, but he mows the lawn. No contract exists under this fact situation, because Wes did not accept Charles's offer.

Accepted Answer

Wes's action of mowing the lawn can be considered as an acceptance of Charles's offer, even if he did not verbally agree to it. This creates a valid contract between the two parties.

Quiz 9: Introduction to Contracts