Deck 6: Contracts

Question 1

A voidable contract means that a contract does not exist at all.

Answer 1

False

Question 2

When a legally enforceable promise is broken,the injured party can seek damages.

Answer 2

True

Question 3

Quantity,prices,and delivery dates can be "filled in" by the Uniform Commercial Code gap fillers and they can be inserted into a contract when those terms are not definite.

Answer 3

False

Question 4

In civil law,contract formation refers to offer,acceptance,and consideration.

Question 5

Restrictions on ability to contract may be external,such as those imposed by clauses like noncompete agreements.

Question 6

Revocation is the retraction of an offer before it is accepted.

Question 7

A minor who enters into a contract with a party who has capacity may not void the contract.

Question 8

Federal contract law overrides state contract law in all cases.

Question 9

Article 8 of the Uniform Commercial Code governs contracts between a merchant and the sale of goods.

Question 10

The Uniform Commercial Code is not a law until state legislatures adopt it as law.

Question 11

For common-law contracts,the primary issue is whether the parties intended to enter into a binding agreement.

Question 12

In common-law contracts,the acceptance must be precisely the same as the offer.

Question 13

The Statute of Frauds requires all types of contracts to be in writing to be enforceable.

Question 14

Common law governs contracts for services and also contracts not otherwise governed by the Uniform Commercial Code.

Question 15

An agreement that is based on both parties' prior actions,such as payment on a given date,would be considered an implied-in-fact contract.

Question 16

A unilateral contract is one in which the accepting party may only accept through a promise.

Question 17

Contracts are a form of private law because the terms contained within a contract bind the relevant parties,not the public as a whole.

Question 18

If a court ordered you to pay for a pizza that was mistakenly delivered to your home and which you ate,they would be issuing an express contract.

Question 19

An illusory promise can constitute valid consideration.

Question 20

Since "warranty" is an essential term that cannot be "filled in" by the Uniform Commercial Code,it must be specified in the contract for it to be binding.

Question 21

Quantum meruit is the name for damages awarded in quasi-contract cases.

Question 22

Someone who suffers from a temporary cognitive defect cannot disaffirm a contract.

Question 23

The duties imposed on a party may be transferred to another party by delegation,unless the contract expressly restricts delegation.

Question 24

Performance means that parties to a contract have fulfilled their duties under the contract.

Question 25

In delegation and in assignment,the original contracting party is "off the hook" if it transfers its rights to another party.

Question 26

Unconscionability is a defense used when a contract contains markedly unfair terms against the party with less bargaining power than the party who created the terms and induced the other party to sign it.

Question 27

Contracts statutes of limitations range from three to ten years.

Question 28

A mandatory arbitration clause is very common in employment contracts.

Question 29

A duty to mitigate is a duty placed on a party injured by breach,requiring that party to avoid damages by making reasonable efforts.

Question 30

Specific performance is required in contracts for land.

Question 31

Strict performance is a standard of performance in a contract that means that the performance under the contract is scrutinized subjectively.

Question 32

An integrated agreement means that any statements made before the parties signed the contract are part of the contract.

Question 33

A liquidated damages clause allows parties to set the amount of damages in the event of breach.

Question 34

A material breach in a service contract is when the party has substantially performed but has not strictly performed.

Question 35

An equitable remedy cannot substitute for consideration when detrimental reliance is found.

Question 36

When a party fails to perform under the terms of the contract without a legally justifiable reason,the party is said to be in breach of the contract.

Question 37

In a common-law contract,if consideration does not firmly commit the parties to the deal,then consideration will fail.

Question 38

Performance to the standard of personal satisfaction can be enforced if the contract expressly requires it.

Question 39

Exculpatory clauses are frequently employed when risk of injury exists.

Question 40

Bankruptcy discharge is a permanent legal excuse from performance.

Question 41

In common law,_____ gives the power of acceptance to another party and includes the agreement's essential elements,which must be definite and certain.

A)ability
B)offer
C)consideration
D)capacity
E)authority

Question 42

In contracts governed by the Uniform Commercial Code,_____ can be inserted into a contract when those terms are not definite and certain.

A)revocations
B)gap fillers
C)boilerplate codes
D)bookkeeping codes
E)battle of the forms

Question 43

Identify the correct statement about common-law contracts.

A)All common-law contracts are bilateral.
B)Common-law contracts govern the sale of goods.
C)Contracts between merchants are governed by common-law contracts.
D)Common-law contracts provide more flexibility in contract formation than exists in the UCC.
E)All common-law contracts must contain valid consideration.

Question 44

An)_____ contract refers to the status of a contract that may be terminated due to some defect.

A)dominant
B)rescissible
C)non-negotiable
D)inexistent
E)voidable

Question 45

Identify the standard for service contracts,which means that the performing party acted in good faith and conveyed enough benefit of the contract to the other party so that the other party can use it for its intended purpose and that the defects arising under the contract may be remedied by money damages.

A)Personal satisfaction
B)Substantial performance
C)Reasonable person standard
D)Complete performance
E)Strict performance standard

Question 46

Withdrawing on an offer to buy a house prior to the seller accepting it is a:

A)counteroffer.
B)rejection.
C)suspension.
D)revocation.
E)breach.

Question 47

Which of the following is true about a unilateral contract?

A)It is a contract in which both parties make a promise.
B)It is a contract wherein the terms of the contract are incomplete.
C)It is one in which the accepting party may only accept through an action.
D)It is a promise for a promise.
E)It is one in which there are duties on both sides.

Question 48

Which of the following statements about the Uniform Commercial Code UCC)is true?

A)The UCC article 2 governs contracts for services and securities.
B)The UCC article 1 governs contracts between merchants and the sale of goods.
C)The UCC seeks to provide uniformity to contracts law among the different states.
D)The UCC contract formation includes offer,acceptance,and consideration.
E)The UCC governs land and houses.

Question 49

Which of the following is NOT an example of an unscrupulous behavior in which a merchant might engage?

A)bait and switch
B)false advertising
C)invitation to bargain
D)race-based denial of services
E)refusal to contract

Question 50

A counteroffer:

A)is the retraction of an offer before it is accepted.
B)is not really an offer,but functions as the revocation of an offer.
C)is a new offer based on the rejection of a previous offer.
D)functions as both an offer and an acceptance.
E)refers to offer,acceptance,and consideration.

Question 51

Which of the following terms cannot be "filled in" by the Uniform Commercial Code gap fillers?

A)Prices
B)Place for delivery
C)Warranties
D)Quantity
E)Delivery dates

Question 52

In common-law contracts,the acceptance must be an)_____ of the offer to constitute valid acceptance.

A)counteroffer
B)consideration
C)equivocal and absolute acceptance requirement
D)mirror image
E)option contract

Question 53

An acceptance is valid when the offeree:

A)Deposits the acceptance in the mail
B)Meets with the other party to confirm final terms
C)Confirms an appointment with a notary public
D)Confirms that she or he will not revoke the terms of the agreement,24 hours in advance of the final meeting time.
E)Agrees to final terms and indicates an intention to sign.

Question 54

Identify the term that describes discrepancies between contract terms that would be fatal in common-law contract formation.

A)Legal detriments
B)Battle of the forms
C)Noncompete agreement
D)Illusory promise
E)Boilerplate language

Question 55

Which of the following requires certain types of contracts to be in writing to be enforceable?

A)Rules of evidence
B)Restriction on assignment
C)The substantive common law rule
D)An exculpatory clause
E)The Statute of Frauds

Question 56

Identify the correct statement about common-law contracts.

A)Common-law governs contract between merchants and the sale of goods.
B)If all elements of common-law contract formation exist,then the contract is voidable.
C)All common-law contracts are bilateral.
D)Offer and consideration together form mutual assent.
E)The acceptance must be precisely the same as the offer.

Question 57

In common law,which of the following together form mutual assent?

A)Legality and enforceability
B)Capacity and legality
C)Offer and acceptance
D)Offer and consideration
E)Acceptance and consideration

Question 58

Identify the correct statement about contracts.

A)Generally speaking,contracts are a form of public law.
B)A contract represents mutual assent to a bargained-for exchange between parties.
C)Universally,people disagree that breaching a contract carries ethical implications.
D)When a legally enforceable contract is breached,the injured party cannot seek damages.
E)All contracts are legally unenforceable promises.

Question 59

A minor breach is when the party has:

A)strictly performed but has not substantially performed.
B)not substantially performed under the terms of the contract.
C)strictly performed but has not performed to the standard of personal satisfaction.
D)substantially performed but has not strictly performed.
E)strictly performed but has not met reasonable person standard.

Question 60

When a party invites others to make offers to buy,it is an):

A)binding offer.
B)invitation to bargain.
C)actual offer.
D)intention to be legally bound.
E)irrevocable offer.

Question 61

If a contract concerns an illegal subject matter and a court will not step in to such a contract to enforce its promises,it is an example of _____ as a defense to performance.

A)lack of capacity
B)duress
C)unconscionability
D)undue influence
E)impossibility

Question 62

_____ refers to any statements or actions that are not captured within the four corners of the contract.

A)Integration clause
B)Novation
C)Exculpatory clause
D)Parol evidence
E)Noncompete clause

Question 63

_____ is a standard of performance in a contract that means that the performance under the contract is scrutinized subjectively,either by a party to the contract or by a third-party beneficiary specified in the contract.

A)Reasonable person standard
B)Substantial performance standard
C)Personal satisfaction standard
D)Tender of performance
E)Strict standard of performance

Question 64

_____ is a type of equitable remedy that may be imposed on parties to avoid injustice,when one party detrimentally relied on another party's promise.

A)Promissory estoppel
B)Specific performance
C)Injunction
D)Declaratory relief
E)Subrogation

Question 65

Which of the following is used as a defense when a contract contains markedly unfair terms against the party with less bargaining power or sophistication than the party who created the terms and induced the other party to sign it?

A)Impossibility
B)Unconscionability
C)Duress
D)Undue influence
E)The statute of limitations

Question 66

_____ is a remedy that requires complete performance in a breach,rather than,or in addition to,monetary damages.

A)Specific performance
B)Prohibitory injunction
C)Liquidated damages
D)Penal damages
E)Rescission

Question 67

Which of the following is an objective standard based on reasonableness in a contract against which actions are measured to determine sufficiency?

A)Beyond a reasonable doubt
B)Reasonable person standard
C)Personal satisfaction standard
D)Tender of reasonable performance
E)Strict standard of performance

Question 68

Frustration of purpose is:

A)rarely a successful defense to contract.
B)a defense to contract that can be exercised when one party had no other reasonable alternative but to enter into a contract due to economic pressure.
C)a defense that can be used when fulfilling a contract has become extraordinarily difficult or unfair for one party.
D)when the contract has become essentially worthless to one party,though the event giving rise to that state was unknown to both parties to the contract at formation.
E)a defense to performance of contract for debtors who file for bankruptcy protection.

Question 69

_____ is an affirmative defense that can be raised by a defendant to argue that the complaint is being brought too late,by law,to do anything about it.

A)The statute of repose
B)Frustration of purpose
C)The Statute of Frauds
D)Mistake
E)The statute of limitations

Question 70

_____ is a defense to contract performance,and implies that the party had no other reasonable alternative but to enter into the contract.

A)Impossibility
B)Lack of capacity
C)Duress
D)Unconscionability
E)Undue influence

Question 71

With reference to contract formation problems,if the Uniform Commercial Code is the relevant type of law:

A)all essential elements need to be stated in definite and certain terms.
B)acceptance should be a mirror image of the offer.
C)quantity does not need to be stated in definite terms.
D)and if the offer did not contain the essential terms in definite and certain form,then that offer will not be valid.
E)formation is much simpler than in common law.

Question 72

_____ is a standard of performance in a contract that requires perfect performance.

A)Strict performance
B)Performance to the standard of personal satisfaction
C)The reasonable person standard
D)Substantial performance
E)Tender of performance

Question 73

Define contracts.

Question 74

An)_____ is an agreement that transfers all rights and duties to a new party to the contract and releases the previous party from any further obligation arising from the original contract.

A)assignment
B)novation
C)delegation
D)quantum meruit
E)formation

Question 75

An)_____ clause is an express limitation on potential or actual liability arising under the subject matter of the contract.

A)noncompete
B)mandatory arbitration
C)acceleration
D)liquidated damages
E)exculpatory

Question 76

The rights conveyed by a contract may be transferred to another party by:

A)formation.
B)promissory estoppel.
C)novation.
D)quantum meruit.
E)assignment.

Question 77

Which of the following requires certain contracts to be in writing and signed by the defendant to be enforceable against the defendant?

A)Good Samaritan law
B)The statute of limitations
C)Parol evidence
D)The Statute of Frauds
E)The mandatory arbitration clause

Question 78

Mistake is:

A)a false statement of fact.
B)rarely a successful defense to contract.
C)when the contract has become essentially worthless to one party.
D)when one party has used deception to acquire property.
E)a threat made to compel a person to do something against his/her judgment.

Question 79

Misrepresentation:

A)is a defense that can be used when fulfilling a contract has become unfair for one party.
B)is rarely a successful defense to contract
C)is when a party makes a false statement that induces the other party to enter into the contract.
D)occurs when people lack capacity.
E)requires certain contracts to be in writing and signed by the defendant to be enforceable against the defendant.

Question 80

What is the implied covenant of good faith and fair dealing?