Question 1

A contract may not be voluntarily entered into in the event of

Accepted Answer

All of the above (mistake, fraud, duress) are situations in which a contract may not be voluntarily entered into, as they involve some form of coercion or deception that renders one party unable to truly consent to the terms of the agreement. All of the above circumstances can result in a contract being involuntarily entered into. Mistake occurs when one or both parties make an error about a material fact of the contract. Fraud occurs when one party intentionally deceives the other party in order to induce them to agree to the contract. Duress occurs when one party uses force or coercion to get the other party to enter into the contract. In all three circumstances, the contract is not entered into voluntarily and may be deemed void or voidable.

Question 2

Past consideration will not support a contract because it was not bargained for or given in exchange for a promise.

Accepted Answer

Past consideration refers to something that was already given or done before the promise was made, so it cannot be considered as part of the bargaining process. Therefore, it is not a valid consideration and cannot support a contract. Past consideration refers to actions or services that were performed before the contract was made. Since these actions were not bargained for or given in exchange for a promise, they cannot support a contract. Only consideration that is given in exchange for a promise can support a contract.

Question 3

Under the UCC, an offer may be accepted by any reasonable method.

Accepted Answer

False

Question 4

Promissory estoppel

Accepted Answer

Promissory estoppel is an equitable remedy that can be used as an alternative to money damages. It allows a court to prevent a certain defense from being raised. Therefore, all of the above options are correct. Promissory estoppel is an equitable remedy that can be an alternative to money damages. It also allows a court to bar a certain defense from being raised.

Question 5

Which of the following is a valid consideration?

Accepted Answer

All the options listed are examples of valid considerations. A consideration is something of value that is given by both parties to a contract that induces them to enter into the agreement to exchange mutual performances. Option A represents a modification of a contract, which is valid if both parties agree to the new terms. Option B is a valid consideration because it involves a promise to refrain from doing something (smoking) in exchange for payment. Option C is also a valid consideration, as agreeing to pay an unliquidated debt for less than the full amount can be a consideration if the debt amount is in dispute and both parties agree to settle for a lesser amount.

Question 6

A contract which calls for a promise in exchange for a promise is a bilateral contract.

Accepted Answer

A bilateral contract is a type of contract in which both parties exchange promises to do something. This is in contrast to a unilateral contract, where one party makes a promise in exchange for the other party's performance. A bilateral contract is a contract where both parties make a promise to each other. This is in contrast to a unilateral contract, where only one party makes a promise, and the other party must perform an act to accept the offer.

Question 7

An offer is terminated by the death of the offeror.

Accepted Answer

According to Section 6 of the Indian Contract Act, 1872, an offer is terminated by the death of the offeror. If the offeror dies before the offer is accepted, the offer is automatically terminated.

Question 8

Article 2 of the Uniform Commercial Code applies to contracts for the sale of services or real property.

Accepted Answer

Article 2 of the Uniform Commercial Code (UCC) applies specifically to contracts for the sale of goods, not services or real property.

Question 9

An offer can be revoked prior to acceptance unless it meets the UCC requirements of a firm offer.

Accepted Answer

According to the UCC, a firm offer cannot be revoked prior to acceptance, but for regular offers, revocation is allowed as long as it is communicated to the offeree before acceptance. According to the common law, an offeror may revoke their offer at any time prior to acceptance. However, under the Uniform Commercial Code (UCC), a merchant may make a firm offer, which is an offer that cannot be revoked for a specified period of time. To qualify as a firm offer under the UCC, the offer must be in writing, signed by a merchant, and state that it will be held open for a specified period of time.

Question 10

A contract is voidable only when both of the parties lack the capacity to contract.

Accepted Answer

A contract can also be voidable if one of the parties lacks capacity, such as if they are a minor or under duress. A contract may be voidable when one of the parties lacks capacity to contract, such as being under duress or undue influence. It does not require both parties to lack capacity.

Question 11

The Statute of Frauds requires certain contracts to be in writing to be enforceable.

Accepted Answer

The Statute of Frauds requires certain contracts, such as contracts for the sale of land or contracts that cannot be performed within one year, to be in writing to be enforceable. The Statute of Frauds is a legal requirement that certain types of contracts must be in writing in order to be enforceable in court. This includes contracts for the sale of land, contracts that cannot be performed within one year, contracts for the sale of goods over $500, and contracts in which one party acts as a guarantor or surety for another party.

Question 12

A person who lacks the mental capacity to contract may be liable for the reasonable value of necessary items provided to him.

Accepted Answer

Even if a person doesn't have the mental capacity to contract, they may be liable for the reasonable value of necessary items provided to them. This is called the doctrine of necessaries. A person who lacks the mental capacity to contract may not be able to enter into a legally binding agreement, but may still be responsible for the reasonable value of necessary items they receive. This is because the law recognizes a concept called "quasi-contract," which allows someone who provides goods or services to another person to recover the reasonable value of those goods or services, even if there was no formal contract in place.

Question 13

Which of the following is not required for a firm offer?

Accepted Answer

A firm offer does not require consideration to be valid under the Uniform Commercial Code (UCC). It primarily requires a written and signed promise by a merchant to keep an offer open for a certain period of time, not exceeding 3 months.

Question 14

Usury statutes set the amount of time after a breach of contract within which an action must be commenced.

Accepted Answer

Usury statutes regulate the amount of interest that can be charged on a loan, and do not typically address the time within which a breach of contract action must be commenced. This is usually governed by general contract law and specific statutes of limitations. Usury statutes regulate the maximum amount of interest that can be charged on a loan, they do not set the amount of time for commencing an action after a breach of contract. This is determined by the statute of limitations.

Question 15

An implied method of acceptance is the manner in which the offer is made, and an acceptance communicated in an authorized manner is effective when dispatched.

Accepted Answer

This statement is true. An offer may be made in a variety of ways, including spoken, written, or through conduct. In some cases, the offeror may imply acceptance by their behavior or actions. Additionally, if an authorized method of acceptance is communicated by the offeree, such as through mail or email, the acceptance is considered effective when it is dispatched or sent. This statement is correct. An implied method of acceptance refers to how the offer was made and can establish what communication is necessary to accept it. Additionally, an acceptance communicated in an authorized manner (e.g. through the designated postal service or email) is generally considered effective as soon as it is dispatched, even if it hasn't been received yet.

Question 16

A counteroffer acts as a revocation of an offer.

Accepted Answer

The answer of A counteroffer acts as a revocation of...

Question 17

The parol evidence rule allows testimony to vary the terms of a written contract if they are ambiguous terms or subsequent terms.

Accepted Answer

The parol evidence rule generally prohibits the introduction of extrinsic evidence that contradicts or modifies the terms of a written contract, but there are exceptions such as when the terms are ambiguous or there are subsequent agreements that modify the terms. The parol evidence rule allows for testimony to clarify or explain ambiguous terms or to show subsequent modifications to a written contract.

Question 18

A fully executed contract discharges the parties' obligations under the contract.

Accepted Answer

A fully executed contract means that all parties have fulfilled their obligations under the contract, therefore discharging those obligations. A fully executed contract means that the parties have fulfilled their obligations under the contract, thus discharging them from any further obligations.

Question 19

Consideration includes doing or refraining from that which one has a right to do, even if it has no economic value.

Accepted Answer

consideration does not have to have economic value. It can simply involve a promise to do or refrain from doing something that one has a legal right to do. Consideration can include a promise to do something or refrain from doing something, even if it has no economic value or monetary exchange involved. It is not solely based on economic value but rather on the exchange of promissory obligations.

Question 20

An offer is not definite if it contains a condition precedent that must occur before a party is obligated to perform a contract.

Accepted Answer

An offer can still be considered definite even if it contains a condition precedent; the condition simply specifies a requirement that must be fulfilled before the performance obligation under the contract becomes due.

Quiz 5: Contracts