Exam 13: Introduction to Contracts

Define an express contract and an implied contract; set forth the three conditions that generally must be met for the courts to find an implied contract, and give an example of an express and implied contract.

Which of the following is sometimes referred to as an implied-in-law contract?

Which of the following is an example of a formal contract?

"Wrong Deck." Penny hires Jackson to paint her back deck. She agrees to pay him $200 for the job, and he accepts sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then discovered that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, then he expects all of his funds from Penny, because the contract is executed. -What was the status of the agreement between Jackson and Penny as of Tuesday when they agreed upon the price for the job?

The term "consideration" in relation to contracts involves parties acting in an ethical manner.

Which of the following is the part of the Uniform Commercial code governing contracts for the sale of goods?

Which of the following contracts are usually voidable?

Which of the following was propounded by prominent legal scholars, recruited by the American Law Institute?

Identify and describe the four elements that are necessary for a contract to exist.

"Refusal to Pay." Business law teacher Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Betty who agreed to trim some shrubbery for $40. Max went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max because she said that he had angered the neighbors and their dog, and that he was more trouble than he was worth. Secretly, Debby was glad about the dog bite because she felt it gave her an excuse not to pay. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Betty refused to trim the shrubbery because she got a better offer and claimed that she was not bound on the contract until she started to perform. -Which of the following is an appropriate characterization of the agreement between Debby and Max?

Which of the following is the reason the Uniform Commercial Code was drafted?

As long as some of the duties under a contract have not yet been performed, the contract is considered ________________.

In the employer/employee context, the purpose of a covenant not to compete is to restrict what an employee may do after leaving a company.

Which of the following are written documents signed by a party that makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument?

The person who makes an offer is called a[n] ___________.

All contracts can be categorized as either ___________ or __________.

Congress passed the Uniform Electronic Transactions Act (UETA).

Which of the following represents the legal ability to enter into a binding agreement?

"Wrong Deck." Penny hires Jackson to paint her back deck. She agrees to pay him $200 for the job, and he accepts sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then discovered that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, then he expects all of his funds from Penny, because the contract is executed. -Which of the following is true regarding Jackson's assertion that Penny must pay him at this point if the neighbor fails to do so?

Today, courts hold that once an offeree begins performance on a unilateral contract, the offeror must hold the offer open for a reasonable time to allow the offeree to complete the performance.