BLAW 3201 Chapter 9

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

A contract to buy living room funiture

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

A person who deposits money in a bank account has entered into a contract with the bank.

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?

Executory Contract

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

False

A contract for the sale of a copyright is governed by Article 2 of the UCC

False

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

False

A contract to sell life insurance is covered by Article 2 of the UCC.

False

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

False

A quasi contract is another name for an oral contract.

False

All written contracts are considered to be formal contracts.

False

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.

False

Arthur says to Bob, "If you will mow my lawn, i Will give you ten dollars." Bob says nothing, but he mows the lawn. No contract exists under this fact situation, because Bob did not accept Arthur's offer.

False

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

False

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

False

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

False

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.

False

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

False

Article 2 of the UCC deals with what type of property?

Personal

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. Brian accepts without correcting his earlier misrepresentation of fact.

Rosalind may avoid the contract

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

The courts use the doctrine of promissory estoppel to enforce non contractual promises AND Under this doctrine the promisor reasonably expects that the promisee, in reliance on the promise, will be induced by the nature of this promise to take action or refrain from taking action and the promisee does so.

Which of the following contracts is covered by Article 2 of the UCC?

The sale of a new car

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

True

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

True

Albert breaches a contract with Bill in a state where the statue of limitations is six years. Seven years later Bill wants to sue. The contract is unenforceable, but it is neither void nor voidable.

True

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.

True

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.

True

An implied contract is as enforceable as is an express contract.

True

An implied in fact contract is formed by conduct.

True

Article 2 of the UCC does not apply to the sale of services

True

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

True

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

True

General contract law governs all contracts outside the scope of the UCC.

True

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.

True

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.

True

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

True

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.

True

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.

True

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

True

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

True

Contracts that are implied in law:

are obligations imposed by law on grounds of justice and equity are intended to prevent unjust enrichment do not rest upon the assent of the contracting parties

A contract in which both parties exchange promises is a:

bilateral contract

Express contracts ad implied contracts are:

both genuine contracts equally enforceable

Any property other than interest in real property is:

personal property

A person who makes a promise is a(n):

promisor

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

sale

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

sales of personal property commercial paper secured transactions

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

state common law

Contracts are governed primarily by:

state common law

Contract law:

today usually recognizes contractual obligations whenever the parties manifest an intent to be bound.

Lee has been declared incompetent by the court and is under the care of his sister. Without his sister's knowledge, Lee rents the 30,00 seat civic center for his birthday party. Lee's contract to rent the civic center is best described as a:

void contract

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:

voidable