Question 1

In addition to the four basic requirements of a contract,which of the following must also occur in order to have a valid contract?

Accepted Answer

A) The agreement must always be in writing. 
B) There must be evidence of undue influence. 
C) There must be an absence of invalidating conduct. 
D) A legal remedy must be available for there to be a breach. 
A) The agreement must always be in writing. 
B) There must be evidence of undue influence. 
C) There must be an absence of invalidating conduct. 
D) A legal remedy must be available for there to be a breach. C

Question 2

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 (a) and (b). 
D) A valid contract is always enforceable. 
A) Failure to satisfy the statute of frauds. 
B) Running of the statute of limitations. 
C) Both (a) and (b). 
D) A valid contract is always enforceable. C

Question 3

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

Accepted Answer

(a)A contract in which the parties manifest assent in words is called an express contract; a contract formed by conduct is an implied in fact contract.
(b)A contract that has been fully carried out by all of the parties is an executed contract.The term executory contract applies to contracts that are still partially or entirely unperformed by one or more of the parties.
(c)When a contract is formed by the exchange of promises,each party is under a duty to the other.This is referred to as a bilateral contract.A unilateral contract occurs when only one of the parties has made a promise.

Question 4

Brian 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 Brian accepts,without correcting his earlier misrepresentation of fact.In this case:

Accepted Answer

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

Question 5

It is common for transactions to involve multiple contracts.Identify at least four contracts that might be involved in Costello's sale of land to Johnston.

Accepted Answer

Possible contracts include: (a)Costello'

Question 6

A quasi contract is another name for an oral contract.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

Article 2 of the UCC lacks relevance in modern society because it,including its amendments, does not provide rules related to electronic commerce.

Accepted Answer

A) True 
 B)False

Question 10

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 the above. 
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 the above.

Question 11

Alice 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 12

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.

Question 13

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

Question 14

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 15

Possible remedies for a breach of contract include:

Accepted Answer

A) compensatory damages. 
B) fines. 
C) incarceration. 
D) All of the above. 
E) None of the above. 
A) compensatory damages. 
B) fines. 
C) incarceration. 
D) All of the above. 
E) None of the above.

Question 16

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.

Accepted Answer

A) True 
 B)False

Question 17

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 18

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 19

__________ 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 20

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

Accepted Answer

The Restatement defines a contract as "a

Exam 9: Introduction to Contracts

In addition to the four basic requirements of a contract,which of the following must also occur in order to have a valid contract?

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

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

Brian 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 Brian accepts,without correcting his earlier misrepresentation of fact.In this case:

It is common for transactions to involve multiple contracts.Identify at least four contracts that might be involved in Costello's sale of land to Johnston.

A quasi contract is another name for an oral contract.

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

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:

Article 2 of the UCC lacks relevance in modern society because it,including its amendments, does not provide rules related to electronic commerce.

The concept of consideration in contract law includes:

Alice 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.

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:

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

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

Possible remedies for a breach of contract include:

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

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.

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

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

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 and 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

Filters