Exam 9: Introduction to Contracts

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.

Which of the following contracts is covered by Article 2 of the Uniform Commercial Code?

A contract in which both parties exchange promises is a:

A contract for the sale of a copyright is governed by Article 2 of the Uniform Commercial Code.

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 noncontractual promise may be enforceable where there has been justifiable reliance on the promise.

Contracts that are implied in law:

Contracts are governed primarily by statute, including the UCC.

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

A promisee is the person making a promise.

As of 2011, the majority of states had adopted the 2003 Amendments to Article 2 of the UCC.

Allannah has entered into a contract to buy a new Steinway piano. The law governing the contract is Article 3 of the UCC.

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

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

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

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

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

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 :

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.

The Uniform Commercial Code does not apply to: