Exam 9: Introduction to Contracts

A contract is a binding agreement that the courts will enforce.

A change in contract law between the nineteenth and twentieth centuries was:

Define and distinguish between: a. express and implied contracts b. executed and executory contracts c. bilateral and unilateral contracts.

What is the difference between a valid contract and a void contract?

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.

When one party performs an action to the benefit of the other, even if a contract has not been effectively made, a court may rule that the performing party was entitled to recoup the reasonable value of the services rendered under:

Hal promises not to foreclose on a mortgage that he holds on an office complex that Christopher owns. In reliance on this promise, Christopher spends $200,000 to remodel the complex. Which of the following is correct with regard to Hal's promise?

A promisee is the person making a promise.

Contracts are governed primarily by statute, including the UCC.

June offers to sell her RV to Cecil for $13,000. Cecil says he will apply for a loan and will buy the RV within a week. A contract is formed:

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

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

Steven makes a material misrepresentation of fact regarding his motorcycle to Huong who agrees to buy the motorcycle based upon the misrepresentation. This contract is:

"I promise to pay you $100 if you will promise to fix my car next month." This is an offer for a unilateral contract.

Mike, a plumbing contractor, was hired to correct a stoppage in the sewer line at Sarah's house. During his work, he discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. To meet public regulations, the water pipe had to be replaced either then or later, when the yard would have to be redug. Mike replaced the water pipe and Sarah inspected the work daily and did not object to the extra work. When Mike finished, Sarah refused to pay for the water pipe replacement since that was not what she originally hired Mike to do and she had never specifically agreed to that work. Sarah must pay Mike for his labor and materials costs for both the sewer and water line repair.

The United Nations Convention on Contracts for the International Sales of Goods (CISG) governs  contracts  for the international sales of goods between parties 

Express contracts and implied in fact contracts are:

Lance has a contract with Smith to resurface a driveway at the Smith residence. Lance by mistake stops at the Jones residence and resurfaces Jones' driveway. Jones lives next door to Smith and knows that Lance is at the wrong residence. Jones, however, says nothing and watches while Lance resurfaces his driveway. Is Jones under any contractual obligation to pay Lance for resurfacing his driveway? Explain your answer.

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

Atsuko signs a contract to work as a sales rep for Incellmed Corporation for a period of two years. This contract is governed by: