Question 1

Express contracts and implied in fact contracts:

Accepted Answer

A)  are both genuine contracts. 
B)  are equally enforceable. 
C)  are not really contracts. 
D)  Two of these are true. 
A)  are both genuine contracts. 
B)  are equally enforceable. 
C)  are not really contracts. 
D)  Two of these are true. D

Question 2

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

A) True 
 B)False  False

Question 3

Stan sends for a law school catalog from Ivory Towers University.According to the catalog, the law school applications are evaluated on the basis of undergraduate grades, standardized test scores, and references.Stan, who is a straight-A student, has high test scores and excellent references, applies and pays the $100 application fee.His application is rejected.Later he finds out that others with low grades and test scores were accepted based on their family connections and donations made to the University.If Stan followed all of the guidelines in the college catalog and paid the required application fee, then according to the court in Steinberg v.Chicago Medical School :

Accepted Answer

A)  there is not a contract. 
B)  there is a quasi contract. 
C)  there is a valid contract; the school bound itself to honor the obligations set forth in the college catalog. 
D)  there is a voidable contract. 
A)  there is not a contract. 
B)  there is a quasi contract. 
C)  there is a valid contract; the school bound itself to honor the obligations set forth in the college catalog. 
D)  there is a voidable contract. C

Question 4

Article 2 of the Uniform Commercial Code does not apply to the sale of services.

Accepted Answer

A) True 
 B)False

Question 5

Due to relaxed contract formality requirements enacted during the twentieth century it became easier to enter into a contract as well as to get out of one.

Accepted Answer

A) True 
 B)False

Question 6

A quasi contract is another name for an oral contract.

Accepted Answer

A) True 
 B)False

Question 7

A promisee is the person making a promise.

Accepted Answer

A) True 
 B)False

Question 8

Matt says to Lynn, "If you will mow my lawn, I will give you $20." Lynn replies, "O.K." Under these facts, each party is a promisor and each party is a promisee.

Accepted Answer

A) True 
 B)False

Question 9

A contract in which both parties exchange promises is a:

Accepted Answer

A)  voidable contract. 
B)  bilateral contract. 
C)  unilateral contract. 
D)  quasi contract. 
A)  voidable contract. 
B)  bilateral contract. 
C)  unilateral contract. 
D)  quasi contract.

Question 10

If Anna by mistake delivers to Bob a plain, unaddressed envelope containing $50 intended for Cora:

Accepted Answer

A)  Bob is under no obligation to return the money. 
B)  Bob is under a contractual obligation to return the money. 
C)  Bob's obligation to return the money is quasi-contractual. 
D)  Bob's obligation to return the money is implied in fact. 
A)  Bob is under no obligation to return the money. 
B)  Bob is under a contractual obligation to return the money. 
C)  Bob's obligation to return the money is quasi-contractual. 
D)  Bob's obligation to return the money is implied in fact.

Question 11

Able is involved in an automobile accident and is injured.While he is unconscious, the police call an ambulance which takes him to a hospital.Able is treated at the hospital and released a day later.The hospital sends him a bill for $4,500, which Able refuses to pay, claiming it is too high and he never consented to the treatment because he was unconscious.Able:

Accepted Answer

A)  has entered into a unilateral contract with the hospital and therefore will have to pay the bill. 
B)  will have to pay the hospital, because this is a quasi-contractual agreement. 
C)  has entered into an implied in fact contract with the hospital. 
D)  and the hospital have entered into a bilateral contract, the terms of which require that he pay the bill. 
A)  has entered into a unilateral contract with the hospital and therefore will have to pay the bill. 
B)  will have to pay the hospital, because this is a quasi-contractual agreement. 
C)  has entered into an implied in fact contract with the hospital. 
D)  and the hospital have entered into a bilateral contract, the terms of which require that he pay the bill.

Question 12

Quasi contracts are used to provide a remedy when the parties enter into a(n):

Accepted Answer

A)  void contract. 
B)  implied in fact contract. 
C)  situation in which promissory estoppel applies. 
D)  All of these. 
A)  void contract. 
B)  implied in fact contract. 
C)  situation in which promissory estoppel applies. 
D)  All of these.

Question 13

Alfred makes a material misrepresentation of fact to Betty, and based upon the misrepresentation, Betty enters into a contract.Betty now realizes she was deceived and wants to get out of the contract.This contract is voidable at Betty's option.

Accepted Answer

A) True 
 B)False

Question 14

Contracts that are implied in law:

Accepted Answer

A)  are obligations imposed by law on grounds of justice and equity. 
B)  are intended to prevent unjust enrichment. 
C)  do not rest upon the assent of the contracting parties. 
D)  All of these. 
A)  are obligations imposed by law on grounds of justice and equity. 
B)  are intended to prevent unjust enrichment. 
C)  do not rest upon the assent of the contracting parties. 
D)  All of these.

Question 15

A contract to sell life insurance is covered by Article 2 of the Uniform Commercial Code.

Accepted Answer

A) True 
 B)False

Question 16

What are the essential elements of a contract? List and discuss them.

Accepted Answer

(a) Manifestation of mutual assent; (b)

Question 17

Discuss the definition of a contract given in The Restatement, Second, of Contracts.

Accepted Answer

The Restatement defines a contract as "a

Question 18

Which of the following is not generally required in order to have a valid contract?

Accepted Answer

A)  Mutual assent. 
B)  A lawful purpose. 
C)  Fairness of the bargain. 
D)  Parties who have contractual capacity. 
A)  Mutual assent. 
B)  A lawful purpose. 
C)  Fairness of the bargain. 
D)  Parties who have contractual capacity.

Question 19

Which of the following is NOT always necessary in order for a valid contract to be formed?

Accepted Answer

A)  Mutual assent. 
B)  Legality of purpose. 
C)  A writing. 
D)  Competent parties. 
A)  Mutual assent. 
B)  Legality of purpose. 
C)  A writing. 
D)  Competent parties.

Question 20

Thomas contacted Welsh, a realtor, and asked him to be looking for property that is at least 20 acres, zoned commercial, within the city limits.  Welsh responded that he would look for such a property and reminded Thomas that the typical finders fee in such a situation is 10% of the property asking price.  If Thomas responds with "I know," the parties have formed an express contract by mutually manifesting assent to the essential terms.

Accepted Answer

A) True 
 B)False

Exam 9: Introduction to Contracts

Express contracts and implied in fact contracts:

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.

Article 2 of the Uniform Commercial Code does not apply to the sale of services.

Due to relaxed contract formality requirements enacted during the twentieth century it became easier to enter into a contract as well as to get out of one.

A quasi contract is another name for an oral contract.

A promisee is the person making a promise.

Matt says to Lynn, "If you will mow my lawn, I will give you $20." Lynn replies, "O.K." Under these facts, each party is a promisor and each party is a promisee.

A contract in which both parties exchange promises is a:

If Anna by mistake delivers to Bob a plain, unaddressed envelope containing $50 intended for Cora:

Quasi contracts are used to provide a remedy when the parties enter into a(n):

Alfred makes a material misrepresentation of fact to Betty, and based upon the misrepresentation, Betty enters into a contract.Betty now realizes she was deceived and wants to get out of the contract.This contract is voidable at Betty's option.

Contracts that are implied in law:

A contract to sell life insurance is covered by Article 2 of the Uniform Commercial Code.

What are the essential elements of a contract? List and discuss them.

Discuss the definition of a contract given in The Restatement, Second, of Contracts.

Which of the following is not generally required in order to have a valid contract?

Which of the following is NOT always necessary in order for a valid contract to be formed?

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remediespart Iv: Sales

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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