Deck 9: Introduction to Contracts

Question 1

Quasi contract is another name for a contract that is implied in fact.

Answer 1

False

Question 2

All written contracts are considered to be formal contracts.

Answer 2

False

Question 3

A quasi contract is another name for an oral contract.

Answer 3

False

Question 4

Article 2 of the Uniform Commercial Code does not apply to the sale of services.

Question 5

A valid contract is one that meets all of the requirements of a binding contract.

Question 6

Marcus has a contract to purchase a new MP3 player.The law governing this contract is Article 2 of the UCC.

Question 7

During the twentieth century it became harder to enter into a contract as well as to get out of one.

Question 8

Each party to a contract must intentionally exchange a legal benefit or incur a legal detriment as an inducement to the other party to make a return exchange.

Question 9

The usual method of showing the mutual assent necessary to create a contract is by offer and acceptance.

Question 10

Contracts are primarily governed by the Uniform Commercial Code.

Question 11

A contract to sell five acres of land is governed by Article 2 of the UCC.

Question 12

The difference between an express contract and an implied in fact contract is the manner in which assent is manifested.

Question 13

A contract for the sale of a copyright is governed by Article 2 of the Uniform Commercial Code.

Question 14

Maria posted several signs in the neighborhood offering $50 for the return of her lost cat.Dave calls to get a description of the cat and tells Maria, "I'll look for your cat." A contract is formed by Dave's call to Maria.

Question 15

A negotiable instrument, such as a check, is not a formal contract.

Question 16

"I promise to pay you $100 if you will promise to fix my car next month." This is an offer for a unilateral contract.

Question 17

Albert breaches a contract with Bill in a state where the statute of limitations is six years.Seven years later Bill wants to sue.The contract is unenforceable, rather than void or voidable.

Question 18

The Restatement and the UCC are both currently authoritative sources of contract law.

Question 19

At common law a promise under a seal to authenticate it was effective without anything more.

Question 20

If a person who has been declared incompetent by the courts enters into an agreement, that agreement is void, because it does not meet all the requirements of a binding contract.

Question 21

Promissory estoppel is a contractual doctrine that includes the following considerations:

A)The courts use the doctrine of promissory estoppel to enforce unilateral promises.
B)Under this doctrine the promisor reasonably expects that the promisee, in reliance on the promise, will be induced by the nature of the promise to take action or refrain from taking action and the promisee does so.
C)The courts will not, under any circumstance, enforce promises that do not include all four of the elements of contract.
D)None of these apply to promissory estoppel.

Question 22

A contract to sell life insurance is covered by Article 2 of the Uniform Commercial Code.

Question 23

A noncontractual promise may be enforceable where there has been justifiable reliance on the promise.

Question 24

If a contract is not clearly unilateral or bilateral, the courts presume that the parties intended a unilateral contract.

Question 25

Contracts are governed primarily by:

A)state common law.
B)federal common law.
C)statutory law.
D)federal case law.

Question 26

Caroline signs a contract to work as a sales rep for Incellmed Corporation for a period of two years.This contract is governed by:

A)Article 2 of the UCC.
B)state common law.
C)federal statute.
D)the law of quasi contract.

Question 27

A contract in which both parties exchange promises is a:

A)voidable contract.
B)bilateral contract.
C)unilateral contract.
D)quasi contract.

Question 28

Mike, the owner of a yogurt shop, orders 500 quarts of yogurt from his supplier.Nothing, however, is said by either party about the price or method of payment.The supplier ships the yogurt as ordered.Since this is a contract implied in fact, Mike must pay his supplier for the yogurt.

Question 29

The Uniform Commercial Code would be applied in which of the following situations?

A)A contract for landscape services
B)A contract for sale of patent rights
C)A contract for the purchase of farmland
D)A contract to buy living room furniture

Question 30

Larry says to Jeff, "If you will mow my lawn, I will give you fifteen dollars." Under these facts, no contract is formed until Jeff finishes mowing the lawn.

Question 31

An implied contract is as enforceable as an express contract.

Question 32

Amendments to Article 2 of the UCC were promulgated in 2003 to reflect developments in the law and business practices and to accommodate electronic commerce.

Question 33

Contract law:

A)has seen little change during the nineteenth and twentieth centuries.
B)has experienced an expansion of the absolute freedom of contract during the twentieth century.
C)today usually recognizes contractual obligations whenever the parties manifest an intent to be bound.
D)requires privity between parties seeking to enforce contractual rights.

Question 34

Ann makes a material misrepresentation of fact to Brian, and based upon the misrepresentation, Brian enters into a contract.Ann now thinks that the contract is not fair to her.This contract is voidable at Ann's option.

Question 35

Any property other than an interest in real property is:

A)goods.
B)personal property.
C)tangible property.
D)intangible property.

Question 36

Common law relating to the formation of contracts has little relevance in the business world today.

Question 37

Alice makes a material misrepresentation of fact to Betty, and based upon the misrepresentation, Betty enters into a contract.Betty now realizes she was deceived and wants to get out of the contract.This contract is voidable at Betty's option.

Question 38

Lee has been declared incompetent by the court and is under the care of his sister.Without his sister's knowledge, Lee rents the 30,000-seat civic center for his birthday party.Lee's contract to rent the civic center is best described as a:

A)valid contract.
B)voidable contract.
C)void contract.
D)quasi contract.

Question 39

Ron says to Matt, "If you design and landscape my front lawn by the time I return from Paris next month, I will pay you $5,000." Matt does not respond but has the landscaping done by the time Ron returns.This is an example of a unilateral contract.

Question 40

An implied in fact contract is formed by conduct.

Question 41

According to the Restatement, manifesting an intention to act or an intention to refrain from acting in a specified manner is considered to be:

A)an implied in fact contract.
B)an express contract.
C)a promise.
D)a quasi contract.

Question 42

Ken promises not to foreclose on a mortgage that he holds on an office complex that Christopher owns.In reliance on this promise, Christopher expends $200,000 to remodel the complex.Which of the following is correct with regard to Ken's promise?

A)Ken's promise not to foreclose is unsupported by consideration.
B)Ken's promise is noncontractual.
C)Ken's promise will be enforced against him based upon the doctrine of promissory estoppel.
D)All of these.

Question 43

Abe is involved in an automobile accident and is injured.While he is unconscious, the police call an ambulance which takes him to a hospital.Abe is treated at the hospital and released a day later.The hospital sends him a bill for $2,400, which Abe refuses to pay, claiming it is too high and he never consented to the treatment because he was unconscious.Abe:

A)has entered into a unilateral contract with the hospital and therefore will have to pay the bill.
B)has a quasi-contractual agreement with the hospital.
C)has entered into an implied in fact contract with the hospital.
D)and the hospital have entered into a bilateral contract, the terms of which require that he pay the bill.

Question 44

Which of the following is characteristic of contract law during the twentieth century compared with contract law in the nineteenth century?

A)Privity of contract gained in importance.
B)Many of the formalities of contract formation were relaxed.
C)Contract liability is absolute and escape from liability, once assumed, is rare.
D)There is a narrower view of contract damages.

Question 45

Which of the following is correct with regard to a contract?

A)All contracts must be in writing.
B)A person who deposits money in a bank account has entered into a contract with the bank.
C)A contract may be for a tortious purpose.
D)To be valid, a contract must be bilateral and cannot be unilateral.

Question 46

Contract law is significant in that it is basic to other fields of law such as:

A)sales of personal property.
B)commercial paper.
C)secured transactions.
D)All of these.

Question 47

Which of the following contracts is covered by Article 2 of the Uniform Commercial Code?

A)The sale of a house
B)The sale of a new car
C)An employment agreement
D)A sale of automobile insurance

Question 48

Steven intentionally makes a material misrepresentation of fact regarding his motorcycle to Thelma who agrees to buy the motorcycle based upon the misrepresentation.This contract is:

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

Question 49

Tate enters into a contract with Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse.If the doghouse has not yet been built, which term describes the type of contract in existence?

A)Quasi contract
B)Executed contract
C)Illusory contract
D)Executory contract

Question 50

One of the changes in contract law between the nineteenth century and the twentieth century is that in more recent times:

A)contractual liability, once assumed, can rarely be escaped.
B)contract damages are viewed more narrowly and equitable remedies are no longer available.
C)privity of contract is required.
D)intended third-party beneficiaries may sue in their own right.

Question 51

An obligation imposed by law where there has been no agreement or expression of assent by word or act on the part of either party involved is a(n):

A)implied in fact contract.
B)express contract.
C)void contract.
D)quasi contract.

Question 52

Which of the following is NOT always necessary in order for a valid contract to be formed?

A)Mutual assent
B)Legality of purpose
C)A writing
D)Competent parties

Question 53

Contracts that are implied in law:

A)are obligations imposed by law on grounds of justice and equity.
B)are intended to prevent unjust enrichment.
C)do not rest upon the assent of the contracting parties.
D)All of these.

Question 54

According to the UCC, an enforceable agreement involving the transfer of title of goods from a seller to a buyer for a price is called a(n):

A)commercial contract.
B)express contract.
C)formal contract.
D)sale.

Question 55

Article 2 of the Uniform Commercial Code deals with what type of property?

A)Real
B)Personal
C)Intangible
D)Business

Question 56

A(n) contract is one in which the parties have manifested their agreement by oral or written language, or both.

A)express
B)implied
C)executory
D)formal

Question 57

Brian makes a material misrepresentation of fact regarding his horse to Rosalind while out riding one day.Later that day, Rosalind makes an offer to buy the horse.Brain accepts without correcting his earlier misrepresentation of fact.In this case:

A)Brian may avoid the contract.
B)Rosalind may avoid the contract.
C)either or both Brian or Rosalind may avoid the contract.
D)neither Brian nor Rosalind may avoid the contract.

Question 58

Which of the following is not generally required in order to have a valid contract?

A)Mutual assent
B)A lawful purpose
C)Fairness of the bargain
D)Parties who have contractual capacity

Question 59

Sarah offers to pay Allison $150 if Allison will paint her apartment while she is out of town on vacation for two weeks.Allison makes no promise but tells Sarah that she will think about it.While Sarah is out of town, Allison paints the apartment.This is best described as a(n):

A)unilateral contract.
B)quasi contract.
C)implied in fact contract.
D)bilateral contract.

Question 60

Express contracts and implied contracts are:

A)both genuine contracts.
B)equally enforceable.
C)voidable for lack of capacity.
D)All of these.

Question 61

Which of the following is an informal contract?

A)A letter of credit.
B)A written contract for the sale of a 5-acre tract of land.
C)A check.
D)A recognizance.

Question 62

List and discuss the essential elements of a contract.

Question 63

What is a formal contract? How does a formal contract differ from an informal contract?

Question 64

Sales of personal property are governed by Article of the Uniform Commercial Code (UCC).

A)1
B)2
C)3
D)None of these.

Question 65

Lance has a contract with Smith to resurface a driveway at the Smith residence.Lance by mistake stops at the Jones residence and resurfaces Jones' driveway.Jones lives next door to Smith and knows that Lance is at the wrong residence.Jones, however, says nothing and watches while Lance resurfaces his driveway.Is Jones under any contractual obligation to pay Lance for resurfacing his driveway? Explain your answer.

Question 66

What is the doctrine of promissory estoppel and when is it used?

Question 67

A valid contract may be unenforceable for which reason(s)?

A)Failure to satisfy the Statute of Frauds
B)Running of the Statute of Limitations
C)Lack of capacity
D)All of these reasons

Question 68

Promissory estoppel is found in Section of the Restatement (Second) of Contracts.

A)70
B)80
C)90
D)100

Question 69

A promise against public policy:

A)can be contractual.
B)is enforceable if the parties have capacity and mutual assent and they exchange consideration.
C)has no legal remedy available for breach.
D)must be in writing to be enforceable.

Question 70

What is the difference between a valid contract and a void contract?

Question 71

Discuss how the common law of contracts, Article 2 of the Uniform Commercial Code, and the Restatement of the Law of Contracts combine to form the law of contracts.Is there a difference between how a court would regard Article 2 of the UCC and the Restatement of the Law of Contracts? Why? Explain your answer.

Question 72

Anna by mistake delivers to Bob a plain, unaddressed envelope containing $50 intended for Cora.Bob:

A)can keep the money.
B)is under a contractual obligation to return the money.
C)has a quasi-contractual obligation to return the money.
D)has an implied in fact obligation to return the money.