Question 1

A contract is ________ if one or both of the parties have the ability to either withdraw from the contract or enforce it.

Accepted Answer

A contract is voidable if one or both of the parties have the ability to either withdraw from the contract or enforce it.

Question 2

Which of the following is the reason the Uniform Commercial Code was drafted?

Accepted Answer

Having different laws governing contracts in different states did not make interstate commerce flow smoothly.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).

Question 3

The law of contracts is primarily ________ law.

Accepted Answer

The law of contracts is primarily common law.

Question 4

Which of the following is a correct statement regarding quasi-contracts?

Accepted Answer

Quasi-contracts are sometimes called implied-in-law contracts,but they 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 5

A(n)________ contract is,in effect,not a contract at all.

Accepted Answer

A void contract is,in effect,not a contract at all.Either its object is illegal or it has some defect that is so serious that it is not a contract.

Question 6

Which of the following is recognized by a court to prevent one party from being unjustly enriched at the expense of another party?

Accepted Answer

Quasi-contracts are sometimes called implied-in-law contracts,but they 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 7

Expiration of the statute of limitations period for a breach of contract action may make a contract ________.

Accepted Answer

A valid contract may be unenforceable when there is some law that prohibits the courts from enforcing it.For example,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 8

Which of the following contracts are usually voidable?

Accepted Answer

Contracts resulting from fraud,duress,or undue influence are voidable by the innocent party.

Question 9

A(n)________ contract is one that contains all the legal elements of a contract.

Accepted Answer

A valid contract is one that contains all the legal elements of a contract: the agreement,the consideration,contractual capacity,and a legal object.

Question 10

________ contracts arise not from words but from the conduct of the parties.

Accepted Answer

Implied contracts arise not from words but from the conduct of the parties.

Question 11

As long as some of the duties under a contract have not yet been performed,the contract is considered ________.

Accepted Answer

As long as some of the duties under the contract have not yet been performed,the contract is considered executory.

Question 12

Prominent legal scholars,recruited by the American Law Institute,organized the principles of the common law of contracts into the Restatement of the Law,Contracts.This compilation has been revised and published as:

Accepted Answer

Prominent legal scholars,recruited by the American Law Institute,organized the principles of the common law of contracts into the original Restatement of the Law,Contracts.The compilation has subsequently been revised and published as Restatement of the Law Second,Contracts.

Question 13

Jacquelyn accepts Monique's offer to sell her a used car for $2,000.At what point is there a binding contract between the two parties?

Accepted Answer

A bilateral contract is commonly defined as a promise in exchange for a promise.As soon as the promises are exchanged,a contract is formed and the parties' legal obligations arise.

Question 14

All contracts can be categorized as either ________ or ________ contracts.

Accepted Answer

All contracts can be classified as either bilateral or unilateral.

Question 15

If a firm enters into a contract governed by the Uniform Commercial Code in Ohio,it would be operating under:

Accepted Answer

The Uniform Commercial Code (UCC)is law in each state that has 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 (state)Uniform Commercial Code.

Question 16

In a(n)________ contract,the offeror wants a performance to form the contract.

Accepted Answer

In a unilateral contract,the offeror wants a performance to form the contract.The offeror wants the offeree to do something,not promise to do something.

Question 17

________ contracts have all of their terms clearly set forth in either written or spoken words.

Accepted Answer

Express contracts have all their terms clearly set forth in either written or spoken words.

Question 18

The part of the Uniform Commercial Code that governs contracts for the sale of goods is Article ________.

Accepted Answer

The part of the Uniform Commercial Code that is relevant to contracts is Article 2,which governs contracts for the sale (exchange for a price)of goods (tangible,movable objects).

Question 19

A(n)________ contract is commonly defined as a promise in exchange for a promise.

Accepted Answer

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

Question 20

Once all of the terms of the contract have been fully performed,the contract is said to be ________.

Accepted Answer

Once all the terms of the contract have been fully performed,the contract is said to have been executed.

Quiz 9: Introduction to Contracts and Agreement