Deck 9: Introduction to Contracts

Question 1

In most contract cases,judges practice judicial activism because it is a means to avoid injustice.

Answer 1

False

Question 2

Zena enters into a contract with Steeley Company to purchase a washer and dryer.She doesn't understand the financing terms,but signs the agreement anyway because she needs the appliances.The financing terms are very unfavorable to Zena,and she is unable to make all of her payments when they are due.Steeley sues.The court would:

A) be exercising judicial restraint if it requires Zena to pay as she promised, even if the agreement was unfair and unwise.
B) have to rewrite the contract because that is the only way to be fair to both parties.
C) have to declare the contract void since it contained terms unfavorable to the weaker party to the transaction.
D) use the theory of promissory estoppel to remedy any unfavorable terms in the contract.

Answer 2

A

Question 3

I tell you that if you promise to paint my house this month,I'll pay you $1,000 when you finish the job.If you accept,this is a unilateral contract.

Answer 3

False

Question 4

Lucy and Rick sign a contract in which Lucy agrees to deliver 10 boxes of chocolates in exchange for Rick's promise to pay $5 per box.Lucy delivers the candy.Rick pays for the goods.This contract is fully executory.

Question 5

Valerie promises Teresa that she will pay Teresa $75 if Teresa will clean Valerie's house by noon on Saturday.If Teresa cleans the house by noon on Saturday and Valerie pays the $75,then this is an implied,bilateral,executory contract.

Question 6

When Olga asks Sven if he wishes to sell his Harley motorcycle,he replies that he would not sell it "for less than $2,000." Olga replies,"I accept," and hands him $2,000.A contract exists.

Question 7

A quasi-contract is the same as an oral contract.

Question 8

April put an advertisement in the newspaper advertising the sale of her computer for $500.Simultaneously,six people responded to the ad by mail with formal written acceptances.April is bound on six contracts to sell her computer for $500.

Question 9

Software clickwrap and shrinkwrap agreements limiting the manufacturer's maximum responsibility to a refund of the purchase price even if the software destroys your hard drive have generally been found to be binding against consumers.

Question 10

When promissory estoppel is used by the courts,it is because there is NOT an enforceable contract present.

Question 11

A contract is:

A) any agreement between two adult parties of sound mind.
B) a promise that the law will enforce.
C) a written, but not an oral, agreement between parties with legal contractual capacity.
D) a promise, with or without consideration, on which a party relies and the only way to avoid injustice is to enforce the promise.

Question 12

The elements of a contract are agreement,consideration,legality,and capacity.

Question 13

Mike made the following offer to Mick: "I will pay you $500 if you agree to paint my house." Mick replied that he would.At this point,the contract is an:

A) executed, bilateral, express contract.
B) executory, bilateral, implied-in-law contract.
C) executory, unilateral, express contract.
D) executory, bilateral, express contract.

Question 14

Mary goes into Honest Harry's Electronics and purchases a big-screen TV.Mary agrees to pay for the TV in 30 days on the store's "30 days same as cash" plan.This is an executory contract.

Question 15

Contracts for the sale of fabric,automobiles,computers,furniture,and paper clips would all be governed by Article 2 of the Uniform Commercial Code.

Question 16

The basic distinction between a bilateral contract and a unilateral contract is:

A) a unilateral contract is created by the courts rather than by parties to an agreement.
B) one is enforceable, the other is not.
C) one must be in writing, the other may be oral.
D) only one promise is involved in a unilateral contract.

Question 17

Larry goes to his barber who has cut his hair for the past several years.The barber proceeds to cut his hair as they talk about the most recent snow storm to hit the area.This is an example of a:

A) unilateral, implied contract.
B) bilateral, implied contract.
C) unilateral, express contract.
D) bilateral, express contract.

Question 18

An offer can be terminated only by the person who made the offer.

Question 19

The common law requires that an acceptance be on precisely the same terms as the offer.

Question 20

The UCC codifies the common law mirror image rule for the sale of goods.

Question 21

In the historic case of Hamer v.Sidway,the uncle's estate:

A) lost, as there was consideration.
B) lost, as the uncle was dead.
C) won, as there was no consideration.
D) won, as there was a completed gift.

Question 22

Collector Carl displays his beer can collection at the local swap meet.Mary sees the collection and is interested in buying it.Carl says he will sell the collection for $1,500.Mary says she really likes the collection but is only willing to pay $1,000.Which of the following is correct?

A) Mary's counteroffer terminates Carl's offer of $1,500.
B) If Carl rejects Mary's counteroffer, she can still accept Carl's offer of $1,500.
C) Neither offer is valid. Who would ever pay $1,000 or $1,500 for a beer can collection?
D) Mary's offer is a firm offer. Carl has an exclusive right to consider her offer for a reasonable period of time.

Question 23

Patty is a poor college student struggling to work and keep up with her studies.Fred,her uncle,promises to pay Patty support of $200 per month for the next six months.Although Fred didn't ask her to,she quits her current job in order to devote full time to her studies for the next six months.Fred makes one payment and then stops with no explanation.If Patty sues,what is the likely result?

A) Fred would win, as he did not ask Patty to quit her job.
B) Patty would win, as a contract was formed when Fred promised to pay her the support.
C) Fred would win, as family members cannot sue each other for breach of an oral promise.
D) Patty may win under the doctrine of promissory estoppel.

Question 24

"I'll sell my car to you if I decide to sell it" is an example of:

A) a conditional offer.
B) an unliquidated offer.
C) an unilateral contract.
D) an illusory promise, which is not consideration.

Question 25

What is not required to establish promissory estoppel?

A) A promise made by the defendant.
B) A promise made by the plaintiff in response to the defendant's promise.
C) Reliance on the defendant's promise.
D) Enforcing the promise is the only way to avoid injustice.

Question 26

Keith told Carrie,"I am going to sell my snow blower.Do you want to buy it today for $150?" Carrie replied that she did.In this situation:

A) Carrie is the offeror and Keith is the offeree.
B) Keith is the offeror and Carrie is the offeree.
C) there is no offer because the offeror's intent was not clear.
D) there is no offer because the terms are indefinite.

Question 27

Dick offered to sell Jane his 1955 Thunderbird convertible.Before Jane can accept the offer,lightning strikes the car and it is totally destroyed.Which of the following is true?

A) Jane can still accept the offer and John must find a 1955 Thunderbird to sell.
B) The offer is terminated.
C) Dick can still revoke his offer so long as he does so before Jane accepts.
D) Jane can still accept the offer. She will be entitled to the insurance proceeds.

Question 28

Which of the following is not required under quasi-contract?

A) The plaintiff provided a benefit to the defendant.
B) The plaintiff reasonably expected to be paid.
C) The defendant acknowledges the obligation.
D) The defendant would be unjustly enriched if he did not pay.

Question 29

Walter enters a dentist office and points to a damaged tooth.The dentist,Matt,treats the tooth.If Walter refuses to pay and Matt sues:

A) Walter would win as there was no contract.
B) Walter would win because of the UCC.
C) Matt would win; this is an implied contract.
D) Matt would win in quantum meruit.

Question 30

Walter worked nights as a clerk in a fast-food store.On his last work shift,Walter's boss told him,"I'm really grateful for the year that you have worked here.I am going to give you a bonus of $500 in your last paycheck." When Walter got his last paycheck,there was no bonus.If Walter sues,the likely result will be:

A) Walter will win, as the promise is enforceable.
B) Walter will lose, as he gave no consideration.
C) Walter will lose unless the promise was in writing.
D) Walter will win, as no consideration is required to modify an employment contract.

Question 31

Jack mails an offer to Joan that states,"I offer to sell you my car for $2000.If I don't hear from you in 10 days,I will assume you are willing to buy the car for the stated price." Jack hears nothing by the deadline and assumes he has a deal.What is the result?

A) Jack has a deal. His offer was intended and contains definite terms.
B) Jack has a deal. Joan should have responded saying she is not interested in the car if she didn't want to be bound to the offer.
C) Joan is not bound. Generally an offeree must say or do something to accept an offer.
D) Joan is not bound. Ten days is not a reasonable amount of time to consider the offer and accept by mail.

Question 32

Jennifer has offered to sell her computer for $1750 to Jack.She tells Jack that the computer is only six months old but,in fact,the computer is three years old,and Jennifer wants to unload the lemon.Jack agrees to buy the computer based on Jennifer's representations.This contract is:

A) a void agreement because of the fraud involved.
B) a voidable contract, one that Jack can void.
C) a voidable contract, one that Jennifer can void.
D) a void contract because of the UCC.

Question 33

A resource that is not "the law," but is a codification of what the ALI regards as the best rulings of contract law and which is used by judges as a reference in deciding contracts cases is:

A) the common law.
B) the Uniform Commercial Code.
C) Article 2.
D) the Restatement (Second) of Contracts.

Question 34

The Uniform Commercial Code governs contracts for the sale of:

A) goods.
B) real estate.
C) stock certificates.
D) All of the above.

Question 35

Contracts that do not arise from mutual agreement but are created by courts to avoid unjust enrichment are:

A) express contracts.
B) implied contracts.
C) quasi-contracts.
D) unilateral contracts.

Question 36

Shelly offers to sell Jane goods both parties know are stolen.Jane accepts the offer,and agrees to pay for the goods.Later,Jane refuses to accept or pay for the goods.If Shelly sues Jane for breach of contract,what is the probable result?

A) Shelly would win as this is a valid, enforceable contract.
B) Jane would win as this is a voidable contract.
C) Shelly would win as this is a unilateral contract.
D) The law would not enforce Jane's promise, as it does not have a lawful purpose.

Question 37

Robert,a minor,buys a laptop from Jane for $450.State law allows a minor to disaffirm contracts within a reasonable time after turning 18.Robert disaffirms the contract the day after turning 18 and returns the laptop.This contract was:

A) a valid contract; Robert cannot disaffirm.
B) a voidable contract; Robert can disaffirm.
C) a void contract.
D) unenforceable because it needed to be in writing to be enforceable.

Question 38

An express contract:

A) must be in writing.
B) may be inferred by the conduct of the parties involved.
C) has both parties setting forth their intentions.
D) is not valid in many states.

Question 39

If there was no contract but a court finds that the plaintiff gave a benefit to the defendant,the plaintiff reasonably expected to be paid for the benefit and the defendant knew this,and the defendant would be unjustly enriched if he did not pay,the court:

A) cannot award any damages, since there is no contractual basis for them.
B) will generally award quantum meruit.
C) will generally award the damages requested by the plaintiff.
D) generally awards money it believes the plaintiff morally ought to have.
E) Both (b) and (d).

Question 40

When Myrtle comes home from work one evening,she finds that her yard has been mowed and trimmed.Later,a man comes to collect for the yard work done.Myrtle refuses to pay for the work since she has never seen the man before and did not hire him to do her yard work.Which of the following anss is most accurate?

A) This is an implied, unilateral contract and she must pay the price requested by the man.
B) This is an express, voidable contract that either party may avoid.
C) The court would order Myrtle to pay the reasonable value of the yard work because of the benefit conferred on her.
D) Myrtle would not have to pay for the yard work.

Question 41

Preferred Contractors was a general contractor and owner of a condominium complex which was under construction.Barrett,a subcontractor,had been hired by Henderson Plumbing,another subcontractor,to help it complete the plumbing work on the project.When Henderson began using shoddy installation procedures and subsequently fell behind the scheduled completion time for the project,Preferred Contractors urged Barrett to correct Henderson's mistakes and to finish the job.Barrett refused to continue until he knew who would pay him,since he feared Henderson's financial position was shaky.Nonetheless,Preferred Contractors' job superintendent told Barrett to go ahead even if Barrett and Preferred Contractors had no contract because "he would use his influence to try to help Barrett get his money." Barrett finished the work and sent to Henderson a $7,500 bill,which was never paid.When Barrett later sent the bill to Preferred Contractors,these facts emerged: Preferred Contractors told him that due to Barrett's failure to notify Preferred Contractors promptly of Henderson's non-payment,Preferred Contractors had already paid Henderson in full and therefore would not pay twice for the work.Discuss the best possible theory of recovery Barrett may argue.

Question 42

Explain what the Restatement of Contracts is and describe the role it plays in contract law.

Question 43

List and briefly describe the basic elements of a contract.

Question 44

Discuss the requirements of promissory estoppel.

Question 45

Frank's Furniture Company promised in a written agreement to purchase as much walnut wood "as it desires" from Forestry Products,Inc.If Frank's purchased walnut wood from another source and Forestry Products sued,what is the likely result?