Question 1

If it is unclear whether the parties formed a unilateral or bilateral contract, the courts presume the parties intended a bilateral contract.

Accepted Answer

A) True 
 B)False

Question 2

What is the doctrine of promissory estoppel, and when is it used?

Accepted Answer

Promissory estoppel is a doctrine used t

Question 3

The concept of consideration in contract law includes:

Accepted Answer

A)  that each party to a contract must unintentionally exchange a legal benefit. 
B)  an inducement to each party to make a return exchange. 
C)  that each party takes out an insurance bond if the possibility of damages is above $500. 
D)  All of these. 
A)  that each party to a contract must unintentionally exchange a legal benefit. 
B)  an inducement to each party to make a return exchange. 
C)  that each party takes out an insurance bond if the possibility of damages is above $500. 
D)  All of these.

Question 4

Contract law is significant in that it is basic to other fields of law such as:

Accepted Answer

A)  sales of personal property. 
B)  commercial paper. 
C)  secured transactions. 
D)  All of these. 
A)  sales of personal property. 
B)  commercial paper. 
C)  secured transactions. 
D)  All of these.

Question 5

Sarah offers to pay Allison $150 if Allison will paint her apartment while she is out of town on vacation for two weeks.Allison makes no promise but tells Sarah that she will think about it.While Sarah is out of town, Allison paints the apartment.This is best described as:

Accepted Answer

A)  a unilateral contract. 
B)  a quasi contract. 
C)  an implied in fact contract. 
D)  a bilateral contract. 
A)  a unilateral contract. 
B)  a quasi contract. 
C)  an implied in fact contract. 
D)  a bilateral contract.

Question 6

The Uniform Commercial Code does not apply to:

Accepted Answer

A)  employment contracts. 
B)  service contracts. 
C)  insurance contracts. 
D)  contracts involving real property. 
E)  All of these. 
A)  employment contracts. 
B)  service contracts. 
C)  insurance contracts. 
D)  contracts involving real property. 
E)  All of these.

Question 7

Adonia and Merv enter a contract for the sale of a computer.If Merv breaches the contract and Adonia waits until the time specified in the statute of limitations has passed, the contract is now:

Accepted Answer

A)  void. 
B)  unenforceable. 
C)  voidable. 
D)  executory and enforceable. 
A)  void. 
B)  unenforceable. 
C)  voidable. 
D)  executory and enforceable.

Question 8

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

Accepted Answer

A valid contract is one that meets all t

Question 9

Chet makes a material misrepresentation of fact regarding his horse to Rosalind while out riding one day.Later that day, Rosalind makes an offer to buy the horse which Chet accepts, without correcting his earlier misrepresentation of fact.In this case:

Accepted Answer

A)  Chet may avoid the contract. 
B)  Rosalind may avoid the contract. 
C)  either or both Chet or Rosalind may avoid the contract. 
D)  neither Chet nor Rosalind may avoid the contract. 
A)  Chet may avoid the contract. 
B)  Rosalind may avoid the contract. 
C)  either or both Chet or Rosalind may avoid the contract. 
D)  neither Chet nor Rosalind may avoid the contract.

Question 10

Samuel Tate enters into a contract with Bill Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse.If the doghouse has not yet been built, which term describes the type of contract in existence?

Accepted Answer

A)  Quasi contract. 
B)  Executed contract. 
C)  Illusory contract. 
D)  Executory contract. 
A)  Quasi contract. 
B)  Executed contract. 
C)  Illusory contract. 
D)  Executory contract.

Question 11

In order to be legally binding, a contract must be in writing.

Accepted Answer

A) True 
 B)False

Question 12

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.

Accepted Answer

In addition to express and implied-in-fa

Question 13

Albert breaches a contract with Bill in a state where the statute of limitations is six years.Seven years later Bill wants to sue.The contract is unenforceable, but it is neither void nor voidable.

Accepted Answer

A) True 
 B)False

Question 14

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?

Accepted Answer

A)  Hal's promise not to foreclose is unsupported by consideration. 
B)  Hal's promise is noncontractual. 
C)  Hal's promise may be enforced against him based upon the doctrine of promissory estoppel. 
D)  All of these. 
A)  Hal's promise not to foreclose is unsupported by consideration. 
B)  Hal's promise is noncontractual. 
C)  Hal's promise may be enforced against him based upon the doctrine of promissory estoppel. 
D)  All of these.

Question 15

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:

Accepted Answer

A)  when Cecil tells June he will buy the RV. 
B)  when Cecil gets the money from the credit union. 
C)  when Cecil applies for the loan at the credit union. 
D)  only when June gets the $13,000. 
A)  when Cecil tells June he will buy the RV. 
B)  when Cecil gets the money from the credit union. 
C)  when Cecil applies for the loan at the credit union. 
D)  only when June gets the $13,000.

Question 16

As of 2016, the 2001 Revisions to Article 1, which applies to all the articles of the Code, had been adopted by all states except Missouri.In 2017, Missouri introduced a bill to enact the 2001 Revisions.

Accepted Answer

A) True 
 B)False

Question 17

A valid contract may be unenforceable for which reason(s)?

Accepted Answer

A)  Failure to satisfy the statute of frauds. 
B)  Running of the statute of limitations. 
C)  Both f ailure to satisfy the statute of frauds and r unning of the statute of limitations. 
D)  A valid contract is always enforceable. 
A)  Failure to satisfy the statute of frauds. 
B)  Running of the statute of limitations. 
C)  Both f ailure to satisfy the statute of frauds and r unning of the statute of limitations. 
D)  A valid contract is always enforceable.

Question 18

A valid contract is one that meets all of the requirements of a binding contract.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The requirement that each party to a contract must intentionally exchange something of value as an inducement to the other party to make a return exchange is known as:

Accepted Answer

A)  mutual assent. 
B)  consideration. 
C)  legality of object. 
D)  contractual capacity. 
A)  mutual assent. 
B)  consideration. 
C)  legality of object. 
D)  contractual capacity.

Exam 9: Introduction to Contracts

If it is unclear whether the parties formed a unilateral or bilateral contract, the courts presume the parties intended a bilateral contract.

What is the doctrine of promissory estoppel, and when is it used?

The concept of consideration in contract law includes:

Contract law is significant in that it is basic to other fields of law such as:

Sarah offers to pay Allison $150 if Allison will paint her apartment while she is out of town on vacation for two weeks.Allison makes no promise but tells Sarah that she will think about it.While Sarah is out of town, Allison paints the apartment.This is best described as:

The Uniform Commercial Code does not apply to:

Adonia and Merv enter a contract for the sale of a computer.If Merv breaches the contract and Adonia waits until the time specified in the statute of limitations has passed, the contract is now:

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

Chet makes a material misrepresentation of fact regarding his horse to Rosalind while out riding one day.Later that day, Rosalind makes an offer to buy the horse which Chet accepts, without correcting his earlier misrepresentation of fact.In this case:

Samuel Tate enters into a contract with Bill Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse.If the doghouse has not yet been built, which term describes the type of contract in existence?

In order to be legally binding, a contract must be in writing.

Albert breaches a contract with Bill in a state where the statute of limitations is six years.Seven years later Bill wants to sue.The contract is unenforceable, but it is neither void nor voidable.

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?

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:

As of 2016, the 2001 Revisions to Article 1, which applies to all the articles of the Code, had been adopted by all states except Missouri.In 2017, Missouri introduced a bill to enact the 2001 Revisions.

A valid contract may be unenforceable for which reason(s)?

A valid contract is one that meets all of the requirements of a binding contract.

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

The requirement that each party to a contract must intentionally exchange something of value as an inducement to the other party to make a return exchange is known as:

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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