Chapter 9 Blaw

What are the 4 contractual elements?

1. Mutual Asset 2. Consideration 3. Legality of Object 4. Capacity of the parties

A person who makes a promise is a(n): a.promisor. b.promisee. c.offeror. d.executor.

A

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

A

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.

B

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

B

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.

B

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.

B

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.

C

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.

C

Promissory estoppel is found in Section ____ of the Restatement (Second) of Contracts. a.71 b.81 c.90 d.None of the above

C

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.

D

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.

D

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 the above.

D

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 the above.

D

Express contracts and implied contracts are: a.both genuine contracts. b.equally enforceable. c.not really contracts. d.Both (a) and (b).

D

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 the above.

D

A _______ contract is legally binding because of its particular form or mode of expression.

Formal

A formal contract differs from an informal contract because informal contracts for not depend on mere _____ for their legal validity

Formality

______ ____ is a doctrine used to enforce noncontractual promises where there has been justifiable reliance on the promise and justice require the enforcement of the promise It is used to avoid injustice when the promisor reasonably expected that the promisee would be induced to take definite and substantial action or to forbear.

Promissory Estoppel

A _____ contract is one that meets all the requirements of a binding contract. It is n enforceable promise or arrangement.

Valid

A _____ contract is an agreement that does not meet all of the requirements of a binding contract. It is merely a promise or agreement having no legal effect/

Void

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 and why

Yes, He had knowledge of the benefit he received and did not prevent Lance from conferring this benefit

Contracts are governed primarily by: a.state common law. b.federal common law. c.statutory law. d.federal case law.

A

Sales of personal property are governed by Article ____ of the Uniform Commercial Code (UCC). a.2 b.3 c.6 d.None of the above.

A

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.

A

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.

B

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. 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.

B

A contract in which both parties exchange promises is a: a.voidable contract. b.bilateral contract. c.unilateral contract. d.quasi contract.

B

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. a.Abe has entered into a unilateral contract with the hospital and therefore will have to pay the bill. b.This is a quasi-contractual agreement. c.Abe has entered into an implied in fact contract with the hospital. d.Abe and the hospital have entered into a bilateral contract, the terms of which require that he pay the bill.

B

Any property other than an interest in real property is: a.goods. b.personal property. c.tangible property. d.intangible property.

B

Article 2 of the Uniform Commercial Code deals with what type of property? a.Real b.Personal c.Intangible d.Business

B

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.Both (a) and (b).

C

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.Both (a) and (b) d.A valid contract is always enforceable

C

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.

C

Anna by mistake delivers to Bob a plain, unaddressed envelope containing $50 intended for Cora. a.Bob can keep the money. b.Bob is under a contractual obligation to return the money. c.Bob's obligation to return the money is quasi contractual. d.Bob's obligation to return the money is implied in fact.

C

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

C

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

C

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.

D

Promissory estoppel is a contractual doctrine that includes the following considerations: a.The courts use the doctrine of promissory estoppel to enforce noncontractual 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.Both (a) and (b).

D

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

D

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

D