Chapter 9 LENB

How many states have adopted Uniform Commercial Code?

50

Which of the following is an accurate statement regarding an expression of possible interest in an exchange?

An expression of possible interest is not an offer.

Which of the following are the sources of contract law?

Case Law Uniform Commercial Code

_______ contracts are not from words but from the conduct of the parties.

Implied

Which of the following is an incorrect statement regarding a contract under seal?

In order for a contract to be enforced it must be under seal

______ are called simple because no formalities are required in making them.

Informal contracts

Under which of the following circumstances can an advertisement constitute an offer?

It appears from the advertisement wording that the store intends to make an offer.

Which of the following is an accurate statement if an offer is directed to a specific offeree?

Only the offeree to whom the offer was directed can accept the offer.

Which of the following is a situation where a valid contract may be unenforceable?

The applicable statute of limitations has expired.

The ______ is a statutory source of contract law in the United States applicable to transactions involving the sales of goods.

Uniform Commercial Code

A lack of genuine assent can result from all but which of the following?

acceptance

In which of the following auctions must the seller accept the highest bid?

an auction without reserve

Which of the following not a type of formal contract according to the Restatement (Second) of Contracts?

an implied-in-law contract

A(n) _____ contract is commonly defined as a promise in exchange for a promise.

bilateral

Contractual ______ is the legal ability to enter into a binding agreement.

capacity

According to common law, which of the following is a required element of an offer?

communication of the offer to the offeree

_______ is what each party gets in exchange for his or her promise under the contract?

consideration

Once all the terms in a contract have been fully performed, the contract is _______.

executed

The term ______ refers to a contract in which not all of the terms have been fully performed.

executory

The terms of a(n) _______ are clearly set forth in either written or spoken words.

express

_______contracts that have a special form or must be created in a special manner.

formal

A ______ is an agreement by a person or institution that issues it to pay sum of money on receipt of invoice and other documents.

letter of credit

A ______ is written document signed by a person who makes an unconditional promise to pay sum of money on demand or at a certain time to the holder of the instrument.

negotiable instrument

A contract must have a legal ______?

object

Contracts are interpreted using a(n) ________ standard, meaning the courts are concerned with only the parties outward manifestation of his or her intent.

objective

Who accepts the terms of the offer?

offeree

Who makes an offer?

offeror

A bond used as bail in a criminal case is an example of a(n) ______?

recognizance

An offeror can _____ an offer at any time, even if she says that she will hold the offer open for a stated period of time.

revoke

The most common unilateral contract offer is a(n) ________.

reward

Under ______, the terms of an offer must be definite and certain.

the common law

To say that a contract is ______ means that the contract cannot be enforced by the courts because of an applicable law.

unenforcable

As a general rule a(n) _______ is one that will be enforced.

valid

When a contract is ______, either its object is illegal or it has some defect that is so serious that it is not a contract.

void

Which of the following refers to a situation where one or both parties can either withdraw from a contract or enforce it?

voidable

If nothing is said to the contrary in the terms of an auction, the auction is presumed to be ______.

with reserve

To say that a contract lacks the proper form typically means it lacks a(n) _______?

writing