Question 1

A(n) __________ contract is one in which the terms have been definitely and specifically stated and agreed upon.

Accepted Answer

A) express 
B) implied 
C) written 
D) formal 
A) express 
B) implied 
C) written 
D) formal A

Question 2

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. C

Question 3

James offers to sell his fishing boat to Brenda for $3,000.Brenda says she will apply for a loan and will buy the boat within a week.A contract is formed:

Accepted Answer

A) when Brenda tells James she will buy the boat. 
B) when Brenda gets the money from the credit union. 
C) when Brenda applies for the loan at the credit union. 
D) only when James gets the $3,000. 
A) when Brenda tells James she will buy the boat. 
B) when Brenda gets the money from the credit union. 
C) when Brenda applies for the loan at the credit union. 
D) only when James gets the $3,000. A

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Article 2 of the UCC governs sales of goods but it lacks relevance in modern society because it does not provide rules related to electronic commerce.

Accepted Answer

A) True 
 B)False

Question 6

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:

Accepted Answer

A) void. 
B) voidable. 
C) executed. 
D) unenforceable. 
A) void. 
B) voidable. 
C) executed. 
D) unenforceable.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

__________ is/are any property other than an interest in real property.

Accepted Answer

A) Goods 
B) Personal property 
C) Tangible property 
D) None of the above. 
A) Goods 
B) Personal property 
C) Tangible property 
D) None of the above.

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

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 the above, (a) and (b). 
A) are both genuine contracts. 
B) are equally enforceable. 
C) are not really contracts. 
D) Two of the above, (a) and (b).

Question 11

Contracts are governed primarily by statutory law.

Accepted Answer

A) True 
 B)False

Question 12

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 13

A __________ is an obligation imposed by law to avoid injustice.

Accepted Answer

A) contract implied in law. 
B) bilateral contract. 
C) quasi contract. 
D) Both (a) and (c) are correct. 
A) contract implied in law. 
B) bilateral contract. 
C) quasi contract. 
D) Both (a) and (c) are correct.

Question 14

The court in Skebba v.Kasch stated that a court, in fashioning a remedy, can consider any equitable or legal remedy which will prevent injustice.

Accepted Answer

A) True 
 B)False

Question 15

Remedies for breach of contract include all but which of the following?

Accepted Answer

A) Compensatory damages. 
B) Punitive damages. 
C) Restitution. 
D) Equitable remedies. 
A) Compensatory damages. 
B) Punitive damages. 
C) Restitution. 
D) Equitable remedies.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A valid contract is one that meets all t

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

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

Accepted Answer

A) True 
 B)False

Question 20

Maria posted several signs in the neighborhood offering $50 for the return of her lost cat.Dave calls to get a description of the cat and tells Maria, "I'll look for your cat." A contract is formed by Dave's call to Maria.

Accepted Answer

A) True 
 B)False

Exam 9: Introduction to Contracts

A(n) __________ contract is one in which the terms have been definitely and specifically stated and agreed upon.

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

James offers to sell his fishing boat to Brenda for $3,000.Brenda says she will apply for a loan and will buy the boat within a week.A contract is formed:

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

Article 2 of the UCC governs sales of goods but it lacks relevance in modern society because it does not provide rules related to electronic commerce.

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:

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

__________ is/are any property other than an interest in real property.

A contract in which both parties exchange promises is a:

Express contracts and implied in fact contracts:

Contracts are governed primarily by statutory law.

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

A __________ is an obligation imposed by law to avoid injustice.

The court in Skebba v.Kasch stated that a court, in fashioning a remedy, can consider any equitable or legal remedy which will prevent injustice.

Remedies for breach of contract include all but which of the following?

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

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

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

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

Maria posted several signs in the neighborhood offering $50 for the return of her lost cat.Dave calls to get a description of the cat and tells Maria, "I'll look for your cat." A contract is formed by Dave's call to Maria.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer

Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

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 Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

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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