Exam 9: Introduction to Contracts

Is the installation of a battery in an automobile subject to Article 2 of the UCC or to the common law of contracts? Why?

The Uniform Commercial Code sufficiently addresses the concerns that parties have when contracts are made to create or distribute information.

Contracts must always be in writing to be enforceable.

An oral contract that is covered by the statute of frauds is:

A fundamental difference between a promissory estoppel and traditional contract principles is that a promissory estoppel protects:

Which of the following is NOT covered by Article 2 of the UCC?

Alan and Ben have a contract. Alan has performed 100 percent and Ben has performed 50 percent of it. This contract is now executory.

An otherwise valid contract whose enforcement is barred by the applicable contract statute of limitations is an example of a(n):

Jimmy and Pat had a long-standing professional relationship. In 2001, Jimmy's business began experiencing financial strain. The two friends discussed Jimmy's personal problems and financial difficulties, and Pat was concerned about his friend's depressed mental state. In 2003, Pat flew from Atlanta to New York to meet Jimmy. Prior to Pat's flight, Jimmy's employee had faxed copies of various construction contracts and correspondence relating to Jimmy's controversial projects for Pat to review. In late 2005, Pat billed Jimmy for a $40,000 balance that Jimmy owed on the alleged oral contract. In a letter to Pat, Jimmy stated: "I have paid you plenty and will not pay you any more. I have not called for any professional advice since then." Pat filed suit against Jimmy for breach of contract. Will Pat succeed?

Why does Article 2 hold merchants to a higher standard than nonmerchants?

To qualify as a contract, a set of promises must be based on a voluntary agreement, which is made up of an offer and a(n) _____ of that offer.

Why was the emergence of large corporations so important in shaping the 20^th century contract law?

What type of transactions are governed by the Uniform Commercial Code?

Calvin tells Sara that he will sell her his car for $5,000. Sara agrees. The exchange is to take place in 10 days. The contract between Calvin and Sara is now:

Fun Foods fraudulently induces Holly to buy a household products franchise by grossly misstating the average revenues of its franchisees. She discovers the misrepresentation after she has resold some products that she has received but before she has paid Fun Foods for the products. Holly wants to cancel the franchise contract on the basis of the fraud. What is the remedy available to her?

Linda wanted to replace the old carpet in her home. She entered into a contract with Carpet Co., for the purchase and installation of a new carpet. The price of the carpet was $3,000 and the cost of the labor to install the carpet was $150. Later, Linda became dissatisfied with this transaction and now wants to sue Carpet Co. Linda wants to apply the contract rules of the UCC, but Carpet Co., wants to apply the contract rules of the common law. Which source of law should govern this case?

How have the drafters of the Code tried to promote fair dealing and higher standards in the marketplace?

The Code empowers courts to deal fairly with a contract that is grossly unfair or one-sided by recognizing the concept of:

The UCC differs from the common law of contracts in that the UCC:

The essence of a contract is that it is a legally enforceable promise or set of promises.