Deck 9: Introduction to Contracts and Agreement

Question 1

Courts interpret contracts using a subjective standard.

Answer 1

False
Explanation: Contracts are interpreted using an objective standard,meaning that the courts are concerned with only the party's outward manifestations of his or her intent,not what is going on in that party's mind.The courts interpret the words and actions of the parties the way a reasonable person would interpret them.

Question 2

Lack of genuine assent is a defense to the enforcement of a contract.

Answer 2

True
Explanation: Lack of genuine assent is a defense to the enforcement of a contract.A contract is supposed to be entered into freely by both parties,but sometimes the offeror secures the acceptance of the agreement through improper means such as fraud,duress,undue influence,or misrepresentation.In these situations,there really is no genuine assent to the contract,and the offeree may be able to raise the lack of genuine assent as a defense to enforcement of the agreement.

Question 3

Under the common law,the agreement begins when one party,the offeror,makes an offer to another party,the offeree.

Answer 3

True
Explanation: The first element of a contract is the agreement.Under the common law,the agreement begins when one party,the offeror,makes an offer to another party,the offeree.

Question 4

The terms in express contracts are clearly set forth in written,not spoken,words.

Question 5

An agreement consists of an assignment by one party and a delegation by the other party.

Question 6

The Restatement of the Law Second,Contracts is not actually the law itself,so judges rarely cite it in cases since it is not an authoritative statement of what the law is.

Question 7

Quasi-contracts are also known as implied-in-fact contracts.

Question 8

A contract is a set of legally unenforceable statements of intent.

Question 9

An offeror is the party making an offer and the offeree is the party receiving the offer.

Question 10

Quasi-contracts are legally recognized as contracts.

Question 11

A bilateral contract is commonly defined as a promise in exchange for an act.

Question 12

While negotiable instruments and recognizances are examples of informal contracts,letters of credit and contracts under seal are examples of formal contracts.

Question 13

In 1952,the United States Congress enacted as federal law the Uniform Commercial Code (UCC).

Question 14

Some states still allow a contract without consideration to be enforced if it is under seal.

Question 15

The two primary sources of contract law are the Uniform Contracts Code and the Uniform Commercial Code.

Question 16

Since it takes at least two parties to enter into an enforceable agreement,a contract cannot be classified as unilateral.

Question 17

Under the common law,the elements of an offer are intent,definite and certain terms,and communication of the offer to a neutral third party.

Question 18

A quasi-contract is an agreement by the parties to prevent unjust enrichment.

Question 19

Sometimes a contract may be valid yet unenforceable.

Question 20

If you have a dental emergency and your dentist pulls your severely infected tooth without prior negotiation about payment,or even any mention of payment,you have an express contract for payment for his services.

Question 21

Which of the following are examples of people who do not have the capacity to enter into legally binding contracts?

A)Those over the age of majority and those suffering from a mental illness.
B)People suffering from physical illness and intoxicated persons.
C)Intoxicated persons and those over the age of majority.
D)Those under the age of 21 and those over the age of 70.
E)People under the age of majority,people suffering from mental illness,and intoxicated persons.

Question 22

The mailbox rule provides that an acceptance is valid when it is received by the offeror.

Question 23

What are the elements of a binding contract?

A)Offer,acceptance,consideration,and assent
B)Acceptance,consideration,assent,and a legal object
C)Agreement,offer,acceptance,and consideration
D)Agreement,consideration,contractual capacity,and assent
E)Agreement,consideration,contractual capacity,and a legal object

Question 24

If Bill overhears Sam offer to sell his car to Helen for $5,000,Bill can walk over to Sam and form a contract by accepting the offer.

Question 25

Consideration is defined as ________.

A)being cordial in the negotiation of contracts
B)refraining from unethical behavior in the negotiation of contracts
C)being both cordial and refraining from unethical behavior in the negotiation of contracts
D)a bargained-for exchange
E)a contract negotiated in person rather than by telephone or e-mail

Question 26

Which of the following represent(s)a lack of genuine assent?

A)Acceptance secured through fraud.
B)Acceptance secured through undue influence.
C)Acceptance secured through misrepresentation.
D)Acceptance secured through fraud or undue influence,but not through misrepresentation.
E)Acceptance secured through fraud,undue influence,or misrepresentation.

Question 27

If an acceptance is received after a rejection is received,the acceptance is not valid.

Question 28

In the absence of a time condition in the offer,the offer will expire after thirty (30)days.

Question 29

Which of the following are the two primary sources of contract law?

A)Case law and the Restatement (Second)of Contracts.
B)Case law and the Uniform Commercial Code (UCC).
C)The Uniform Commercial Code (UCC)and the Convention on Contracts for the International Sales of Goods (CISG).
D)Case law and the Convention on Contracts for the International Sales of Goods (CISG).
E)The Convention on Contracts for the International Sales of Goods (CISG)and the Restatement (Second)of Contracts.

Question 30

An offeror can revoke the offer at any time unless the offeror says he or she will hold the offer open for a stated period of time.

Question 31

The person who agrees to the terms of an offer by another party is called the ________.

A)offeree
B)offeror
C)assignor
D)assignee
E)delegatee

Question 32

Which of the following is a source of law that has become more important with increasing globalization?

A)The International Contracts Code
B)The International Commercial Code
C)The Uniform Contracts Code
D)The Convention on Contracts for the International Sale of Goods
E)The Convention for the Global Standardization of Commercial Trade and Contract Law

Question 33

Which of the following describes a contract as "a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty"?

A)The Restatement (Second)of Contracts
B)The Uniform Contracts Code
C)The United States Constitution
D)The International Commercial Code
E)The Restatement of Torts

Question 34

The legal ability to enter into a binding agreement is known as ________.

A)a proffer
B)concurrence
C)acceptance
D)contractual capacity
E)informed consent

Question 35

An offer made by one party and accepted by another party is called a(n)________.

A)legal object
B)agreement
C)coherence
D)alliance
E)concurrence

Question 36

The person who makes an offer is called the ________.

A)offeree
B)offeror
C)assignor
D)delegator
E)assignee

Question 37

The mirror-image rule says that the terms of the acceptance must mirror the industry-specific terms applicable to the contract.

Question 38

According to the Restatement of Contracts,silence can never constitute acceptance.

Question 39

Which element of a contract requires that the contract not be either illegal or against public policy?

A)Consideration
B)Contractual capacity
C)Legal object
D)Agreement
E)Ethical litmus test

Question 40

If the subject matter of the offer is destroyed or becomes illegal,the offer is rescindable at the election of the offeror or the offeree.

Question 41

A contract is ________ if one or both of the parties have the ability to either withdraw from the contract or enforce it.

A)voidable
B)executory
C)implied-in-law
D)implied-in-fact
E)void

Question 42

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

A)Different states had different laws governing contracts that did not allow interstate commerce to flow smoothly.
B)Many states had no law governing contracts.
C)Federal law governing contracts was difficult to apply.
D)The Uniform Contracts Code had already been successfully adopted by the states.
E)The Restatement of the Law Second,Contracts was not being evenly and fairly applied.

Question 43

The law of contracts is primarily ________ law.

A)constitutional
B)statutory
C)common
D)persuasive,but not binding,
E)remanded

Question 44

Which of the following is a correct statement regarding quasi-contracts?

A)They are sometimes called implied-in-law contracts,but they are not actually contracts.
B)They are sometimes called implied-in-law contracts,and they are actual contracts.
C)They are sometimes called implied-in-fact contracts,but they are not actually contracts.
D)They are sometimes called implied-in-fact contracts,and they are actual contracts.
E)They are sometimes called express contracts,but they are actually implied contracts.

Question 45

A(n)________ contract is,in effect,not a contract at all.

A)voidable
B)executory
C)implied
D)executed
E)void

Question 46

Which of the following is recognized by a court to prevent one party from being unjustly enriched at the expense of another party?

A)An express contract
B)A quasi-contract
C)An implied contract
D)An implied-in-fact contract
E)A bilateral contract

Question 47

Expiration of the statute of limitations period for a breach of contract action may make a contract ________.

A)executed
B)executory
C)unenforceable
D)illusory
E)implied-in-fact

Question 48

Which of the following contracts are usually voidable?

A)Contracts entered into as a result of fraud.
B)Contracts entered into as a result of duress.
C)Contracts entered into as a result of undue influence.
D)Contracts entered into as a result of fraud or duress,but not undue influence.
E)Contracts entered into as a result of fraud,duress,or undue influence.

Question 49

A(n)________ contract is one that contains all the legal elements of a contract.

A)quasi-
B)voidable
C)void
D)valid
E)illusory

Question 50

________ contracts arise not from words but from the conduct of the parties.

A)Implied
B)Express
C)Liquidated
D)Bilateral
E)Unilateral

Question 51

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

A)executory
B)executed
C)implied-in-law
D)implied-in-fact
E)illusory

Question 52

Prominent legal scholars,recruited by the American Law Institute,organized the principles of the common law of contracts into the Restatement of the Law,Contracts.This compilation has been revised and published as:

A)The Restatement of the Law Second,Contracts.
B)The Convention on Contracts for the International Sales of Goods.
C)The Uniform Commercial Code.
D)The Uniform Contracts Code.
E)The Restatement of Torts,Second.

Question 53

Jacquelyn accepts Monique's offer to sell her a used car for $2,000.At what point is there a binding contract between the two parties?

A)When Jacquelyn and Monique make the agreement.
B)When Jacquelyn pays Monique the $2,000.
C)When Monique delivers the car to Jacquelyn.
D)Three business days after Jacquelyn accepts delivery of the car.
E)Three calendar days after Jacquelyn accepts delivery of the car.

Question 54

All contracts can be categorized as either ________ or ________ contracts.

A)unilateral; equilateral
B)equilateral; trilateral
C)bilateral; trilateral
D)unilateral; bilateral
E)bilateral; equilateral

Question 55

If a firm enters into a contract governed by the Uniform Commercial Code in Ohio,it would be operating under:

A)Federal common law.
B)Federal statutory law.
C)The Ohio Uniform Commercial Code.
D)Both the federal Uniform Commercial Code and the Ohio Uniform Commercial Code.
E)Either the federal Uniform Commercial Code or the Ohio Uniform Commercial Code,at the election of the seller and assuming the seller specifies choice of law in the contract.

Question 56

In a(n)________ contract,the offeror wants a performance to form the contract.

A)equilateral
B)bilateral
C)unilateral
D)executed
E)anticipatory

Question 57

________ contracts have all of their terms clearly set forth in either written or spoken words.

A)Implied
B)Express
C)Quasi-
D)Illusory
E)Implied-in-law

Question 58

The part of the Uniform Commercial Code that governs contracts for the sale of goods is Article ________.

A)2
B)2A
C)3
D)3A
E)4

Question 59

A(n)________ contract is commonly defined as a promise in exchange for a promise.

A)unilateral
B)trilateral
C)executed
D)bilateral
E)classified

Question 60

Once all of the terms of the contract have been fully performed,the contract is said to be ________.

A)executory
B)executed
C)implied-in-law
D)implied-in-fact
E)illusory

Question 61

If nothing is stated to the contrary in terms of an auction,an auction is presumed to be ________.

A)non-binding
B)a quasi-contract
C)without reserve
D)with reserve
E)an implied-in-law contract

Question 62

The term ________ comes from the days when the contract was literally sealed by a piece of soft wax into which an impression was made.

A)implied-in-fact
B)implied-in-law
C)under wax
D)under seal
E)in the King's hand

Question 63

An example of a(n)________ is a bond used as bail in a criminal case.

A)contract under seal
B)implied-in-law contract
C)recognizance
D)quasi-contract
E)voidable contract

Question 64

Which of the following is true regarding when an offeree may reject an offer?

A)Regardless of how long an offeror states that an offer will be held open,once the offeree rejects it,the offer is terminated.
B)If the offeror states that an offer will be held open for a certain amount of time,then it is open for that length of time even if the offeree rejects the offer prior to the expiration of that time.
C)An offer must remain open for at least three business days before an offeree may reject it.
D)An offer must remain open for at least seven calendar days before an offeree may reject it.
E)An offer must remain open for at least thirty calendar days before an offeree may reject it.

Question 65

If a person wishes to ensure that an offer will in fact be held open for a set period of time,the person may do so by entering into a(n)________ contract with the offeror.

A)quasi-
B)implied
C)voidable
D)option
E)implied-in-law

Question 66

How can an offer terminate?

A)Only through the offeror's revocation of the offer.
B)Only through the offeror's revocation of the offer,the offeree's rejection of the offer,or the offeree's counteroffer.
C)Through the offeror's revocation of the offer,the offeree's rejection of the offer,or destruction of the subject matter of the offer.
D)Through the offeror's revocation of the offer,but not before the offer is held open for five days.
E)Through the offeror's revocation of the offer,but not before the offer is held open for seven days.

Question 67

If Maria says to Peter "I bet you a million dollars that it is going to rain tomorrow" and Peter knows that Maria is joking,Maria's statement would not be a valid offer due to the lack of:

A)definite and certain terms
B)adequate communication to the offeree
C)contractual intent
D)contractual capacity
E)legal representation

Question 68

In an auction ________,the seller is treated as making an offer to accept the highest bid.

A)for the sale of real estate
B)for the sale of personal property
C)without reserve
D)with reserve
E)per se

Question 69

As of the publication of the textbook,how many states still allow a contract without consideration to be enforced if it is under seal?

A)Five
B)Eight
C)Ten
D)Twenty-three
E)Thirty-seven

Question 70

Constance asks Kathy if Kathy will sell her used business law book for $50.What is the status of the negotiations?

A)No offer has been made.
B)An offer has been made,but it may be revoked.
C)An offer has been made that may not be revoked.
D)A contract has been formed.
E)A contract has been formed,but it may be set aside at the option of either party.

Question 71

What was the result in the Lucy v.Zehmer case (referenced in the textbook)involving whether allegations of joking regarding the sale of land prevented the formation of a contract?

A)The court ruled that the contract would not be enforced because one of the parties was subjectively joking.
B)The court ruled that the contract would not be enforced because one of the parties was joking and a reasonable person should have known that.
C)The court ruled that the contract would not be enforced because the parties had been consuming alcohol.
D)The court ruled that the agreement would be enforced because of the outward manifestations of agreement.
E)The court ruled that the contract would be enforced because of what the parties said,regardless of whether an objective person would have thought joking was involved.

Question 72

Which of the following refers to the right of an offeror to revoke his offer,even if the offeror says he will hold the offer open for a stated period of time?

A)The offeror is the "originator of his offer."
B)The offeror is the "master of his offer."
C)The offeror is the "proponent of his offer."
D)The offeror is the "adjudicator of his offer."
E)The offeror is the "arbiter of his offer."

Question 73

Which of the following are formal contracts?

A)Contracts under seal
B)Implied-in-law contracts
C)Letters of credit
D)Contracts under seal and letters of credit,but not implied-in-law contracts
E)Contracts under seal,letters of credit,and also implied-in-law contracts

Question 74

The ________ terms of an offer and a resulting contract are those terms that would allow a court to determine what the damages would be in the event that one of the parties breaches the contract.

A)implied
B)implied-in-law
C)material
D)equitable
E)illusory

Question 75

Which of the following is a written document 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?

A)A negotiable instrument
B)An implied-in-law contract
C)A recognizance
D)An implied-in-fact contract
E)A commercial bond

Question 76

Which of the following is the first element of a contract?

A)The agreement
B)Contractual intent
C)An invitation to negotiate
D)Consideration
E)A writing

Question 77

A ________ is an agreement by the person who issues the letter to pay a sum of money on receipt of an invoice and other documents.

A)commercial bond
B)letter of credit
C)letter of acknowledgement
D)negotiated credit instrument
E)recognizance

Question 78

As a general rule,when is revocation of an offer effective?

A)When it is mailed by the offeror.
B)When it is received by the offeree.
C)Three business days after the offeror makes the offer,assuming the offeree has not already accepted the offer.
D)Seven calendar days after the offeror makes the offer,assuming the offeree has already accepted the offer.
E)Thirty calendar days after the offeror makes the offer,assuming the offeree has not already accepted the offer.

Question 79

What was the result in the Lefkowitz v.Great Minneapolis Surplus Store Inc.case (referenced in the textbook)involving an advertisement for the sale of fur coats?

A)The court ruled that the advertisement was not an offer because it involved a luxury good.
B)The court ruled that the advertisement was an offer but that the customer who was suing had not properly accepted it.
C)The court ruled that the advertisement was not an offer because it was a ridiculously low offer that the plaintiff should have known was not to be taken seriously.
D)The court ruled that the advertisement was not an offer because advertisements are never offers; instead,they are merely invitations for customers to make an offer.
E)The court ruled that the advertisement was an offer and that the plaintiff properly accepted it.

Question 80

Under common law,when does formation of an agreement begin?

A)When the offeree makes an offer to the offeror.
B)When consideration is provided.
C)When funds are transferred.
D)When a writing is executed.
E)When the offeror makes an offer to the offeree.