Deck 11: Contracts and Commercial Law

Question 1

A promise to make a gift has traditionally been considered

A) voidable.
B) void.
C) unenforceable.
D) enforceable.

Answer 1

C

Question 2

Contracts relying on promises of future performances are called _______ contracts.

A) futures
B) executory
C) promissory
D) option

Answer 2

B

Question 3

An option contract is not binding without

A) pre-agreed occurrence.
B) money.
C) consideration.
D) a written agreement.

Answer 3

C

Question 4

_______ aims at destroying the contract and its obligations and putting the parties back in the position they were in prior to the agreement.

A) Specific performance
B) Injunctive relief
C) Rescission
D) Reformation

Question 5

Contracts by minors for _______ are usually enforceable.

A) goods over $50
B) real estate
C) items of normal use
D) necessaries

Question 6

_______ is a remedy requiring a breaching party to carry out the terms of the contract.

A) Specific performance
B) Injunctive relief
C) Rescission
D) Reformation

Question 7

In the absence of a contract complete with offer, acceptance, and consideration, a court may enforce a promise under the principle of promissory estoppel where

A) the promisee was unaware of the promise.
B) the promisor created an unconscionable contract.
C) the promisor induced detrimental reliance on the promise.
D) performance is impossible.

Question 8

A person discovering that the house she has just contracted to buy has a well-known (but not known to her as a stranger to the region) reputation as a haunted house

A) is bound by the principle of caveat emptor .
B) might get out of the contract by obtaining the relief of rescission in equity.
C) can sue for breach of contract based on fraud.
D) has no remedy because a purchaser is responsible for making reasonable inspections and inquiries into the status and conditions of real property about to be purchased.

Question 9

In contract law obligations are based on _______, in contrast to tort, where obligations are imposed by law.

A) mutual agreement of parties
B) the UCC
C) unspoken intention of parties
D) detrimental reliance

Question 10

John offers to sell his car to Mary for $5000 and Mary responds, saying "I'll give you $4500." Mary's statement constitutes a(n)

A) acceptance.
B) revocation of the offer.
C) counteroffer.
D) modification.

Question 11

Where an offer calls for a return promise, it is called a _______ contract.

A) unilateral
B) conditional
C) mutual
D) bilateral

Question 12

When Vito Corleone makes an "offer you can't refuse" ("either your signature or your brains go on this contract"), the contract is voidable on grounds of

A) fraud.
B) undue influence.
C) duress.
D) misrepresentation.

Question 13

A contract made by a minor is

A) unenforceable.
B) void.
C) voidable.
D) illegal.

Question 14

In Hanks v. McNeil Coal Corporation (the father sold property to a coal company, and the son, conservator of the father's estate, was trying to invalidate the sale), the court held that

A) the contract could be voided because the son, as conservator of the father's estate, had proved his father was insane at the time of the contract.
B) the real property sale was voidable because the sale was directly connected with the horse medicine business.
C) the contract was void because the father had been adjudicated insane prior to signing the contract.
D) the son had failed to prove the father's mental problem affected his conduct with regard to the contract.

Question 15

_______ is an equitable principle asserting that one receiving a benefit at another's loss owes restitution to the other.

A) Unjust enrichment
B) Reformation
C) Injunctive relief
D) Promissory estoppel

Question 16

Which of the following is most likely to be a unilateral contract?

A) Gift of an engagement ring
B) Offer of a reward
C) Purchase at a retail store
D) Promise to make a gift

Question 17

A quasi-contract may be imposed by the court where

A) a unilateral contract has not been performed.
B) silence constitutes acceptance.
C) moral obligation overcomes lack of consideration.
D) performance is impossible.

Question 18

Which of the following must be made in writing to be enforceable?

A) Unilateral contracts
B) Contracts with minors
C) Contracts for the sale of land
D) Sales contracts

Question 19

Reformation of a written contract is appropriate where

A) agreement was induced by misrepresentation.
B) an inadvertent mistake was made in writing the contract.
C) one of the parties was intoxicated when signing the contract.
D) both parties have breached the contract.

Question 20

In Lucy v. Zehmer (the "seller" claimed that the offer to sell the land was a joke), the court held that

A) the contract was unenforceable because the seller "was high as a Georgia pine" when he made the offer.
B) the contract was unenforceable because it had not been delivered to the "buyer."
C) the contract was binding and the "buyer" was entitled to specific performance.
D) the "seller" had revoked the offer before the "buyer" accepted it.

Question 21

In the case of Hoffman v. Red Owl Stores , the prospective franchisee recovered under the theory of

A) specific performance.
B) promissory estoppel.
C) injunctive relief.
D) restitution.

Question 22

Which of the following would not ordinarily constitute consideration (as in Rose v. Elias )?

A) A promise to pay money
B) Money payment to buy an option
C) Love and affection
D) Services constituting companionship

Question 23

A contract formed between parties of very unequal power, such as where the more powerful party prepares a standard written contract that the other party must sign or refuse, is called

A) a contract of adhesion.
B) an unconscionable contract.
C) economic duress.
D) undue influence.

Question 24

In Tierney v. Four H Land Company Limited Partnership , the court held that

A) the district court was correct for not ordering specific performance because the burdens on Four H and Western outweighed the benefits to the Tierneys.
B) the 1998 CUP and the agreement that set forth the core requirements for reclamation of the property were not sufficiently certain and definite to describe what was required of Four H and Western.
C) specific performance was an appropriate remedy for Four H's and Western's breach, and the district court should have ordered it.
D) specific performance, as an equitable remedy, is not appropriate for a lawsuit concerning real property.