Deck 6: Contracts

Question 1

Legal sufficiency for consideration depends not on whether a promisee suffered a detriment in some way but on the value of the consideration.

Answer 1

False
Explanation: Legal sufficiency depends not on the value of the consideration but on whether the promisee suffered a detriment in some way.To hold otherwise would put the courts in the place of the market in deciding the value of transactions.

Question 2

_____ refers to the bargained-for legal value that one party agrees to pay or provide to secure the promise of another.

A)Discharge
B)Consideration
C)Agreement
D)Reformation

Answer 2

B
Explanation: Consideration refers to the bargained-for legal value that one party agrees to pay or provide to secure the promise of another.All legally enforceable contracts must exhibit this feature to become meaningful.

Question 3

In an implied-in-fact contract,the contract is inferred on the basis of the behavior of the parties.

Answer 3

True
Explanation: In an implied-in-fact contract,the contract is inferred on the basis of the behavior of the parties.The contract is inferred on the basis of the facts-that is,by the behavior of the parties.

Question 4

An offeror cannot revoke an offer any time prior to acceptance.

Question 5

Contracts for services are governed by the Uniform Commercial Code (UCC).

Question 6

The victim of a breach can recover just the direct losses from the breach and not any indirect losses that were incurred as a consequence of that breach.

Question 7

An effective offer must be the product of a present intent,it must be definite,and it must be communicated to the offeree.

Question 8

Unilateral offers are not accepted by performance.

Question 9

According to discharge by operation of law,the contractual responsibilities of a debtor may be discharged by a bankruptcy decree.

Question 10

Failure to fully perform without a lawful excuse for that failure results in a breach of contract.

Question 11

A contract is labeled executory when all parties have completed their performances.

Question 12

The point of nominal damages is to illustrate the wrongfulness of a breach.

Question 13

Consideration is used by the courts to distinguish a contract from a gratuitous promise.

Question 14

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

A)It governs contracts for services.
B)It covers cars,clothing,and appliances.
C)It regulates transactions not involving the sale of goods.
D)It covers real estate,stocks,and bonds.

Question 15

Contracts entered by minors are voidable contracts.

Question 16

A valid offer must include the present intent to enter a contract.

Question 17

A third party cannot enforce a contract where that contract was expressly intended to benefit the third party.

Question 18

Anticipatory breach of contract occurs when a party,before performance is due,indicates by word or deed that she or he will not perform.

Question 19

A fully performed oral contract,not in compliance with the Statute of Frauds,will be rescinded by the courts.

Question 20

Contract law is a necessary foundation for a capitalist,free market-system.

Question 21

When a promisee's primary purpose in entering a contract is to make a gift to another,that third party is a(n) _____ of the contract.

A)incidental beneficiary
B)contingent beneficiary
C)creditor beneficiary
D)donee beneficiary

Question 22

Which of the following refers to the term blue laws?

A)They are laws forbidding the practice of certain professions without a license.
B)They are laws forbidding usury.
C)They are laws forbidding the conduct of certain kinds of business on Sundays.
D)They are laws forbidding gambling.

Question 23

A contract is labeled _____ until all parties fully perform.

A)anticipatory
B)executory
C)contributory
D)declaratory

Question 24

Which of the following statements is true of the conditions concurrent clause?

A)Each performance is independent.
B)It specifies that the parties are to perform their duties at the same time.
C)An event must occur before the parties are obliged to perform.
D)It excuses performance if a future event transpires.

Question 25

_____ are agreements that are so thoroughly one-sided that fairness precludes enforcing them.

A)Yellow dog contracts
B)Quasi-contracts
C)Voidable contracts
D)Unconscionable contracts

Question 26

Problems of unconscionability often arise in situations in which:

A)a contract to commit a crime or a tort is illegal and unenforceable.
B)the contract,if enforced,would not be in the best interest of the public.
C)the bargaining power of one of the parties is much superior to the other.
D)a party participates in any potentially hazardous activity.

Question 27

Which of the following statements indicates a material breach of contract?

A)A party falls beneath substantial performance and does not have a lawful excuse for that failure.
B)Complete performance is not achieved because of minor deviations from the agreed-upon performance.
C)Before performance is due,a party indicates by word or deed that she or he will not perform.
D)A party performs the tasks and completes the contract.

Question 28

Intentional untruths constitute _____.

A)misrepresentation
B)falsification
C)fraud
D)mistake

Question 29

Which of the following exceptional circumstances admits parol evidence?

A)To prove circumstances that would validate a written contract
B)To delete terms from a complete written contract
C)To explain ambiguities in a written contract
D)To infer the terms of a contract in a one-sided manner

Question 30

Jim makes an agreement to play live music at Rusty's Tavern every Thursday night.Last Thursday,he had the flu and hence could not go to Rusty's.What can be concluded about the agreement with respect to Jim's condition?

A)His performance can be excused due to a condition precedent.
B)His performance can be excused due to a condition subsequent.
C)His absence should be penalized because personal service contracts are never excused.
D)His absence should be penalized because there was a nonmaterial breach of contract.

Question 31

Which of the following statements is true of incidental beneficiaries?

A)Often a second party receives benefit from a contract.
B)The benefit received was not the contracting parties' primary purpose or intent.
C)The primary purpose in entering a contract is to make a gift to another.
D)The beneficiary can sue the contracting party for payment.

Question 32

Identify the clause that specifies that an event must occur before the parties to a contract are obliged to perform.

A)An express conditions clause
B)A conditions concurrent clause
C)A conditions precedent clause
D)An implied conditions clause

Question 33

Legally enforceable contracts must exhibit _____,which means parties must have the legal ability to enter the contract; that is,they must be sane,sober,and of legal age.

A)genuineness of assent
B)consideration
C)legality
D)capacity

Question 34

The doctrine of _____ states that a promisor is stopped from denying the existence of a contract where a promisee has detrimentally relied on that promise.

A)ultra vires
B)promissory estoppel
C)substantial performance
D)promissory note

Question 35

If a mentally incompetent person is unable to understand the purpose and effect of a contract but has not been legally adjudged insane,_____.

A)the competent party has an absolute right to rescind the contract
B)the contract would not be voidable at the option of the impaired party
C)the contract would not be void at the option of the impaired party
D)the impaired party would have to pay the reasonable value of any necessaries received under the contract

Question 36

A person offers a $100 reward to anyone who finds his lost dog.This is an example of a(n) _____ contract.

A)bilateral
B)unilateral
C)express
D)implied-in-fact

Question 37

Which of the following types of contracts refers to those entered by minors who have the option,under the law,of either disaffirming or fulfilling most contracts?

A)Unenforceable contracts
B)Void contracts
C)Unconscionable contracts
D)Voidable contracts

Question 38

Meg,who is on the lookout for a temporary security officer,approaches a security agency.The agency sends one of its reserve security officers to guard Meg's commercial building.Which of the following types of contract does Meg enter into with the security agency?

A)Bilateral contract
B)Implied-in-fact contract
C)Unilateral contract
D)Quasi contract

Question 39

Sometimes genuine assent is not secured and a contract may be rescinded because one of the parties is forced to agree,for fear of harm.The legal defense available in this situation is _____.

A)duress
B)undue influence
C)fraud
D)mistake

Question 40

Skye,who is unaware of Nathan's mental incompetency,enters into an agreement with Nathan to paint her house.Skye does not know that Nathan has been adjudged insane by a court of law and therefore is angry at him for not finishing the work on time.This agreement between Skye and Nathan is an example of a(n) _____ contract.

A)voidable
B)option
C)enforceable
D)void

Question 41

A court order that may either require or forbid a party to perform a specified act is a(n) _____.

A)rescission
B)reformation
C)injunction
D)quasi-contract

Question 42

What are the features to be exhibited by a legally enforceable contract? Explain how contracts can be discharged on the basis of conditions.

Question 43

Describe some of the elements of a valid offer with examples.

Question 44

Identify and define any three types of damages that may be available as remedies in law in a contract action and give an example of each.

Question 45

Explain any two types of equitable remedies in contract cases with an example each.

Question 46

Describe the purpose of the doctrine of promissory estoppel and list the three elements required to prove it in court.Give an example to illustrate the use of a promissory estoppel.

Question 47

Explain the term accord and satisfaction and explain how it relates to the discharge of a contract.What are the two ways in which contracts can be discharged by lawful excuses?