Deck 8: Introduction to Contract Law

Question 1

Which of the following is an example of a valid contract?

A) Tom offered to clean Harry's garden for a sum, which Harry did not agree to. On a Sunday afternoon, Tom asks Harry to pay $20 for cleaning the garden, which Harry refuses.
B) Tom offered to clean Harry's garden for a sum. Harry was very drunk and agreed. On a Sunday afternoon, Tom asks Harry to pay $20 for cleaning the garden, which Harry refuses. After persistent requests by Tom, Harry agrees to pay $10, which Tom declines.
C) Tom offered to clean Harry's garden to which Harry agreed. On a Sunday afternoon, Tom asks Harry to pay $20 for cleaning the garden, which Harry refuses.
D) Tom and Harry bet on the ongoing FIFA match, on losing which Tom had to clean Harry's garden. On a Sunday afternoon, Tom asks Harry to pay $20 for cleaning the garden, which Harry refuses.
E) Harry calls up Tom asking him to clean his garden. He offers $20 for the job and tells him that Tom can have free lunch thereafter for the next two weeks at his place. Impatiently, Tom cuts him off and agrees to clean the garden on whatever terms Harry wants.

Answer 1

E

Question 2

Under the Convention on Contracts for the International Sale of Goods, consideration is not required to form a contract.

Answer 2

True

Question 3

The Restatement of the Law of Contracts deals with the sale of goods.

Answer 3

False

Question 4

Not all rights are extinguished because a contract is unenforceable.

Question 5

This is an organized codification of the common laws of contracts.

A) The Restatement of the Law of Contracts
B) The Uniform Commercial Code
C) Implied in law
D) Case law
E) International Sale of Goods

Question 6

The most important source of contract law is _____.

A) federal statutes
B) the federal government
C) the Convention on Contracts
D) state statutes
E) civil laws

Question 7

Contracts for the purchase and sale of goods are essentially bilateral and non-executory in nature.

Question 8

The Convention on Contracts for the International Sale of Goods has been adopted by more than 40 countries excluding the United States.

Question 9

A contract with a minor remains in force unless the minor decides that he or she does not wish to be bound by it.

Question 10

If Debra makes an agreement to deliver a car to Denny, and does so, the contract is called an executory contract until Denny makes the payment.

Question 11

George offers to sell his car to Suzy for $10,000 on the coming Sunday, to which Suzy agrees. They write down the details on a paper. On the decided day, Suzy pays the cash to George, but he refuses to sell the car to her saying that his friend Marty has offered to pay $30,000 for the same car. On the basis of which doctrine can Suzy sue George?

A) Quasi-contract
B) Partially executed contract
C) Executory contract
D) Promissory estoppel
E) Implied contract

Question 12

The Uniform Commercial Code is not a federal law but uniform state law.

Question 13

The only contracts and agreements covered by Article 2 are those relating to present or future sale of goods.

Question 14

Under the Uniform Commercial Code, there is no Statute of Frauds, i.e., a requirement that certain contracts be evidenced by a writing.

Question 15

Enforceability is the degree to which agreement is manifest to those not party to it.

Question 16

The legal definition of contract is formalistic.

Question 17

_____ and contract law developed together, because having choices in society means that people decide and agree to do things with and to each other, and those agreements bind the parties.

A) Socialism
B) Fascism
C) Capitalism
D) Communism
E) Economics

Question 18

A wager is a legal contract as both parties shake on the bet.

Question 19

The Restatement Second) of Contracts won prompt respect in the courts and has been cited in innumerable cases.

Question 20

Contract law did not develop according to a conscious plan.

Question 21

Which of the following is an example of a quasi-contract?

A) Ann agreed to buy her colleague's house for $1 million and to take title on the subsequent Sunday.
B) A pizza delivery boy mistakenly leaves the neighbor's pizza on Ruby's fence and her son eats the pizza. The pizza boy asks Ruby to pay the bill.
C) A regular customer asks for a hamburger and is asked to pay $50 for it, though it is not listed on the menu.
D) Tom buys a cycle from his friend for $50 which Tom's father pays for.
E) Cindy offers to buy Nile's bat for $10 and he agrees to it in writing with both their signatures on paper.

Question 22

Which of the following forms part of Article 2?

A) General provisions
B) Commercial paper
C) Bank deposits and collections
D) Bulk transfers
E) Remedies

Question 23

In Roger's Backhoe Services, Inc. v. Nichols, which dimension of the contract was affected?

A) Mutuality
B) Enforceability
C) Completion
D) Explicitness
E) Promise

Question 24

_____ is the degree to which a contract agreement is manifest to those not party to it.

A) Mutuality
B) Enforceability
C) Explicitness
D) Completion
E) Promise

Question 25

What are the four different dimensions that contracts are classified on?

Question 26

In SouthTrust Bank v. Williams, which of the following led to the final decision of the court?

A) The SouthTrust's amendment to the regulations was ineffective.
B) The mere failure to object to the addition of a material term can be construed as an acceptance of it.
C) The parties in the case took no action that could be considered inconsistent with an assent to the arbitration provision.
D) The parties in the case never affirmatively assented to the amended regulations.
E) A written confirmation of an acceptance may modify the contract unless it adds a material term, and arbitration clauses are material terms.

Question 27

Which of the following is true about the Convention on Contracts for the International Sale of Goods CISG)?

A) Under CISG, consideration is not required to form a contract.
B) It was approved in 1942 at a diplomatic conference in Vienna.
C) CISG includes the Statute of Frauds.
D) The CISG applies to contracts for the sale of electricity.
E) CISG is mandatory to parties to an international contract for the sale of goods.

Question 28

One of the ALI's first projects, and ultimately one of its most successful, was the drafting of _____ completed in 1932.

A) the Uniform Commercial code
B) the Restatement of Law of Contracts
C) the quasi-contract
D) the Convention on Contracts for the International Sale of Goods
E) Article 2

Question 29

Which of the following is true with regard to the Uniform Commercial Code UCC)?

A) The UCC is a model law developed exclusively by the National Conference of Commissioners on Uniform State Laws.
B) It is a national law not enacted by Congress.
C) The final draft of the UCC was published in 1942.
D) The UCC is not a uniform state law.
E) The UCC is entirely uniform as all states have adopted at the same stage of its development.

Question 30

In Roger's Backhoe Service, Inc. v. Nichols, which of the following led to the final decision by the court?

A) The examination of the brick wall indicated that it was unfeasible to use that source of drainage.
B) The drainage into the underground creek was fully explored and rejected.
C) The services were beneficial to the recipient.
D) The charges submitted on the invoices for the three-day work was unfair and unreasonable.
E) There was no contract between the plaintiff and the defendant regarding the three-day work.

Question 31

Which of following would be considered an example of a valid contract?

A) Nancy agrees to buy her 15-year-old neighbor's car for $10,000.
B) George offers to pay Libber $1,000 for killing his neighbor's wife and Libber agrees to it.
C) Tim owes Peter money, but the statute of limitations has run out.
D) Tam owes Peters money, but before the statute of limitations ends, Tom is declared bankrupt.
E) Tom owes Pete money, but Pete has waited too long to collect it and the statute of limitations has run out; however, Tom promises to repay half the amount.

Question 32

What are the economic functions performed by contract law?