Question 1

Courts interpret contracts using a subjective standard.

Accepted Answer

Contracts are interpreted using an objective standard,meaning that the courts are concerned with only the party's outward manifestations of his or her intent,not what is going on in that party's mind.The courts interpret the words and actions of the parties the way a reasonable person would interpret them.

Question 2

Lack of genuine assent is a defense to the enforcement of a contract.

Accepted Answer

Lack of genuine assent is a defense to the enforcement of a contract.A contract is supposed to be entered into freely by both parties,but sometimes the offeror secures the acceptance of the agreement through improper means such as fraud,duress,undue influence,or misrepresentation.In these situations,there really is no genuine assent to the contract,and the offeree may be able to raise the lack of genuine assent as a defense to enforcement of the agreement.

Question 3

Under the common law,the agreement begins when one party,the offeror,makes an offer to another party,the offeree.

Accepted Answer

The first element of a contract is the agreement.Under the common law,the agreement begins when one party,the offeror,makes an offer to another party,the offeree.

Question 4

The terms in express contracts are clearly set forth in written,not spoken,words.

Accepted Answer

The terms of express contracts are clearly set forth in either written or spoken words.

Question 5

An agreement consists of an assignment by one party and a delegation by the other party.

Accepted Answer

An agreement consists of an offer by one party and an acceptance of the terms by the other party.

Question 6

The Restatement of the Law Second,Contracts is not actually the law itself,so judges rarely cite it in cases since it is not an authoritative statement of what the law is.

Accepted Answer

Although judges frequently cite it in cases because it is an authoritative statement of what the law is,the Restatement of the Law Second,Contracts is not actually the law itself.

Question 7

Quasi-contracts are also known as implied-in-fact contracts.

Accepted Answer

Implied contracts,which arise not from words but from the conduct of the parties,are sometimes called implied-in-fact contracts.Quasi-contracts are sometimes referred to as implied-in-law contracts.

Question 8

A contract is a set of legally unenforceable statements of intent.

Accepted Answer

A contract is a set of legally enforceable promises.

Question 9

An offeror is the party making an offer and the offeree is the party receiving the offer.

Accepted Answer

The offeror makes the offer while the offeree receives the offer.

Question 10

Quasi-contracts are legally recognized as contracts.

Accepted Answer

Quasi-contracts are not actually contracts.

Question 11

A bilateral contract is commonly defined as a promise in exchange for an act.

Accepted Answer

If the offeror wants a promise from the offeree to form a binding contract,the contract is a bilateral contract.A bilateral contract is commonly defined as a promise in exchange for a promise.

Question 12

While negotiable instruments and recognizances are examples of informal contracts,letters of credit and contracts under seal are examples of formal contracts.

Accepted Answer

Formal contracts are those that have a special form or must be created in a specific manner.The Restatement (Second)of Contracts identifies the following four types of formal contracts: a)contracts under seal; b)recognizances; c)letters of credit; and d)negotiable instruments.

Question 13

In 1952,the United States Congress enacted as federal law the Uniform Commercial Code (UCC).

Accepted Answer

To remedy some of the difficulties created by a patchwork of different laws governing commercial transactions,the National Conference of Commissioners on Uniform State Laws and the American Law Institute drafted a set of commercial laws that could be applicable to all states.This effort was called the Uniform Commercial Code (UCC).The UCC became law in each state that adopted it completely or partially as part of its state code.Thus,for example,if a firm enters into a contract governed by the Uniform Commercial Code in Ohio,it would be operating under the Ohio Uniform Commercial Code.

Question 14

Some states still allow a contract without consideration to be enforced if it is under seal.

Accepted Answer

States today do not require contracts to be under seal.However,several states still allow a contract without consideration to be enforced if it is under seal.

Question 15

The two primary sources of contract law are the Uniform Contracts Code and the Uniform Commercial Code.

Accepted Answer

There are two primary sources of contract law: case law and the Uniform Commercial Code (UCC).

Question 16

Since it takes at least two parties to enter into an enforceable agreement,a contract cannot be classified as unilateral.

Accepted Answer

All contracts can be classified as either bilateral or unilateral.Whether a contract is bilateral or unilateral depends on what response the offeror (the party proposing the contract)expects from the offeree (the person agreeing to or accepting the contract).

Question 17

Under the common law,the elements of an offer are intent,definite and certain terms,and communication of the offer to a neutral third party.

Accepted Answer

An offer has three elements.Under the common law,these elements are intent,definite and certain terms,and communication of the offer to the offeree.

Question 18

A quasi-contract is an agreement by the parties to prevent unjust enrichment.

Accepted Answer

Quasi-contracts are not actually contracts.Rather,to prevent one party from being unjustly enriched at the expense of another,the courts impose contractual obligations on one of the parties as if that party had entered into a contract.

Question 19

Sometimes a contract may be valid yet unenforceable.

Accepted Answer

As a general rule,a valid contract is one that will be enforced.However,sometimes a contract may be valid yet unenforceable.A valid contract may be unenforceable when some law prohibits the courts from enforcing it.For example,the statute of frauds requires certain contracts to be evidenced by a writing before they can be enforced.Similarly,the statute of limitations mandates that an action for breach of contract must be brought within a set period of time,thereby limiting the enforceability of the contract.

Question 20

If you have a dental emergency and your dentist pulls your severely infected tooth without prior negotiation about payment,or even any mention of payment,you have an express contract for payment for his services.

Accepted Answer

Contracts are classified as express or implied,depending on how they are created.The terms in express contracts are clearly set forth in either written or spoken words,while implied contracts arise not from words but from the conduct of the parties.If you have a dental emergency and your dentist pulls your severely infected tooth without prior negotiation about payment,or even any mention of payment,you have an implied contract for payment for his services.

Quiz 9: Introduction to Contracts and Agreement