acct 324

Which of the following occurs when nearly all of the terms of the agreement are complete; there has been an honest effort to complete all of the contract terms; and there has been no willful departure from the terms of the agreement?

Substantial performance

Which of the following occurs when a minor's parents or legal guardians give up their right to exercise legal control over the minor?

emancipation

The most common ______ remedies include rescission and restitution, orders for specific performance, and injunctions.

equitable

Courts allow modifications or limitations to remedies unless the remedies fail in their: _______.

essential purpose

A(n) ______ is an order either forcing a person to do something or prohibiting a person from doing something.

injunction

Complete performance occurs when all aspects of the parties' duties under the contract are carried out

perfectly

The _______ requires that the seller write up a warranty for any good sold for more than $10.

Magnuson-Moss

Identify the major obstacles to legal assent.

misrepresentation duress

Parol evidence is admitted to determine whether a contract is ______.

void voidable

A person who purchases stolen goods has what type of title to the goods?

void title

A seller can cancel a contract and reclaim the goods if a buyer used fraud, making the title

voidable

Generally, contracts made by intoxicated persons are ______.

voidable

If a contract resulted from duress, the innocent party can: _______.

opt to void the contract

What type of contract allows the offeree a fixed amount of time to consider an offer without the offeror being able to revoke the contract during that fixed period of time?

option contract

Good title is acquired when a buyer purchases a good from a seller who:

owns the good free and clear

Good title requires that the seller

owns the good free and clear

The obligations of sellers, lessors, buyers and lessees are determined by all of the following except:

parity

The obligations of sellers, lessors, buyers and lessees are determined by all of the following except: _______.

parity

Whenever a written agreement contains a serious and obvious typographical error, ______ evidence is admissible to demonstrate it was an error, as well as to set forth the proper term

parol

Like the statute of frauds, the ______ evidence rule allows for eight ______ that would be admissible in court.

parol; exceptions

Courts can allow ______ evidence to ______ the missing parts, while not modifying the written agreement in any substantial way.

parol; fill in

Which of the following is a basic obligation of buyers and lessees as set forth in the Uniform Commercial Code?

payment

An agreement in violation of a statute or legal code is illegal: ______.

per se

In an accord and satisfaction, it is the ______ that discharges the party.

satisfaction

If a person had no knowledge of a claim's falsity, we say that he or she lacked:

scienter

If a person had no knowledge of a claim's falsity, we say that he or she lacked: ________.

scienter

In false misrepresentation, the party knows that the misrepresentation is false, yet still makes the representation to another party. This indicates that the party making the misrepresentation has: _______.

scienter

The Latin term for knowledge is:

scienter

Promissory estoppel and contracts under ______ are two exceptions to the common law rule requiring consideration.

seal

The parties may agree that the _______ must have the opportunity to repair or replace nonconforming goods within a particular period of time.

seller

If a buyer rejects goods for being nonconforming, it is subject to the

seller having an opportunity to cure the deficiency in the goods

The states have been given three choices regarding third-party beneficiaries of warranties, including that:

seller's warranties extend to anyone injured by the good seller's warranties extend to the buyer's household members and guests seller's warranties extend to any reasonable and foreseeable user

A divisible contract is also known as a(n) ______ contract.

severable

Which of the following terms refers to a contract that may have both illegal and legal portions, allowing a court to void the illegal portions and enforce the rest?

severable

With shipment contracts, the seller is required to

ship the goods by common carrier to buyer.

In a _______ contract, the buyer bears the risk of loss while the goods are in transit, and title passes to the buyer at the time and place of shipment.

shipment

An injured party has no justifiable claim of fraud after relying on assertions whose falsity: _______.

should have been obvious

As a general rule, ______ cannot be used to form a contract.

silence

A _______ contract has the goods transferred at the time of the sale or some time later by the seller's delivery.

simple delivery

Concurrent conditions exist when the parties are to perform their obligations for each other:

simultaneously

In order to meet the written requirements of the statute of frauds, a document needs: _______.

some form of mark as long as it was meant as a signature

In the context of contracts related to an interest in land, the statute of frauds covers ______.

some transfers of interest in land

Consequential damages are also referred to as _____ damages.

special

Which of the following is an order requiring that the breaching party fulfill the terms of the agreement?

specific performance

The term "parol" means:

speech or words outside of the written contract

When the judgment involved is a matter of personal taste, courts apply a(n) ______ satisfaction standard.

subjective

A condition ______ is a future event that terminates the obligations of the parties when it occurs

subsequent

LAW FIRM LLP agrees to hire Joe if he maintains an active law license. This would be an example of a condition ________ agreement.

subsequent

Common law usually substitutes perfect tender with the doctrine of

substantial performance

In the context of the circumstances in which the Statute of Frauds applies, contracts involving secondary obligations are included under _____.

suretyship

A weight loss product was advertised on TV as being a safe way to lose weight. The advertisements did not indicate that the consumer of the product would probably be likely to have dangerously high blood pressure and an increased likelihood of heart attack. The consumer can: _______.

take legal action against the advertiser due to misrepresentation

Through ______, parties discharge their duty by making an offer to perform and being ready, willing, and able to perform.

tender

If the seller is not a merchant, the risk of loss remains with the buyer under the rule of _____.

tender of delivery

Rescission is the ______ of the contract.

termination

A warranty of title is defined by:

the Uniform Commercial Code

According to ______, situations that require contracts in writing include the lease of goods and the sale of securities and personal property if the price is greater than $5,000.

the Uniform Commercial Code

In addition to the statute of frauds, ______ allows for an admission provision to create a contract that is required, but is not in writing.

the Uniform Commercial Code (UCC)

Heavily one-sided agreements are known as ______.

unconscionable contracts

Special relationships in which one person takes advantage of a dominant position in a relationship to unfairly persuade the other and interfere with that person's ability to make his or her own decision to enter into a contract is known as: _______

undue influence

Which of the following are major obstacles to legal assent?

undue influence mistake Unconscionablility

Carol was the favorite niece of her aunt Esther. Esther had always loved to pamper her niece and usually indulged her in almost anything. Carol had a lot of sway over her aunt and convinced her to invest in a land development project. If Carol persuaded her aunt to sign a contract for the land deal, Carol would be given a $50,000 bonus. Carol pressured her aunt to come to a decision about the contract and prevented her aunt from consulting her attorney. Aunt Esther would normally never have engaged in such a contract, but her judgment was affected by her relationship with Carol. Carol had: _______.

undue influence over Aunt Esther

A mistake of a material fact by one party is known as a(n):

unilateral mistake

An error by one party about a material fact, that is, a fact that is important in the context of the particular contract is called a(n) ______.

unilateral mistake

If the parties disagree about the amount of money owed, the debt is ______.

unliquidated

The Uniform Commercial Code defines ______ as any practice that members of an industry expect to be part of their dealings.

usage of trade

What occurs when a party gives a loan at an interest rate exceeding the legal maximum?

usury

When a party "assigns" a contract to another party, the assignor is impliedly guaranteeing that the rights being assigned are:

valid

A mistake can be of two types. One is a mistake of fact about the deal. The other is a mistake of the ______ of what is being exchanged.

value

The enforceability of covenants not to compete in employment contracts: _______.

varies from state to state

A contract overturned for illegal subject matter or for being illegal to perform is generally declared: _______.

void

If no exception allows a usurious loan, a few states declare all usurious loans ______, which means the lender is not entitled to recover either interest or principal from the borrower.

void

When an agreement is deemed illegal, courts will usually label it ______.

void

If the buyer of goods is a minor, then the title that is passed to the buyer is a(n)

voidable title

_______ title occurs in certain situations where the contract between the original parties would be _______ but the goods have already been sold to a third party.

voidable; void

Under common law, the only implied warranty is a(n): _______

warranty of assignability

In contracts for the lease of goods or the sale of securities, the UCC indicates that if the contract is over ______, it must be writing.

$5,000

Using the objective standard to establish contractual intent, courts are concerned with looking at which of the following?

-Actions and behavior of the parties in public regarding the agreement -Words and documents in public from the parties regarding the agreement

In general, what are the ways an offeree can manifest intent to enter into a contract? (Check all that apply.)

-By performance of the requested actions under the offer and contract -By giving the offeror a return promise (e.g., promise to pay contract value)

If the offer does not make it clear how the offeree should respond, in what way can the offeree respond under the contract?

-By performing the required acts of the contract -By giving the offeror a return promise as consideration

What are methods by which termination of a contractual offer can occur?

-Counteroffer by the offeree -Revocation by the offeror

In the absence of a description in the offer of what form of communication must be used to form a valid acceptance, what methods of communication are generally accepted as reasonable?

-In person communication -Telephone communication -Email communication

What are the elements of a contractual offer?

-Offer must be communicated to the offeree -Intent by the offeror to be bound by the agreement -Offer must contain definite terms

Under common law, a valid contractual offer will be:_______.

-certain in its terms -definite in its terms

In obtaining cover, which of the following must a buyer do?

Purchase goods that are reasonable substitutes

What type of conditions are explicitly stated in a contract?

express

Someone who has come into possession of stolen goods

never has good title

Courts will usually consider an illegal agreement: ______

void

Identify the examples of procedural unconscionability.

A person's inability to fully read a contract Excessive use of legalese Hard-to-read print on the back of an agreement

A sale-or-return contract allows the ______ to return the goods at any time as part of a sales contract.

buyer

If no means of communicating an acceptance is specified, what means will be accepted?

Any reasonable means including telephone, mail, fax, email and in person communication

The means by which the offeree can communicate a valid acceptance to the offeror may be:

-expressly stated in the offer -implied from the facts and circumstances surrounding the communication of the offer to the offeree

A warranty is an assurance:

by one party that the other party can rely on its representation of fact

How many types of sales contracts are covered under the UCC? Multiple choice question.

four

The UCC lays out essentially _____ broad factual scenarios for the sale of goods. Multiple choice question.

four

Which section of the UCC allows a buyer to recover the goods identified in the contract if the seller becomes insolvent within ten days after receiving the first payment due under the agreement?

2-502

The means by which the offeree can communicate a valid acceptance to the offeror may be: _______.

-expressly stated in the offer -implied from the facts and circumstances surrounding the communication of the offer to the offeree

Which section of the Uniform Commercial Code requires good faith in the performance and enforcement of every contract?

1-203

Which section of the Uniform Commercial Code defines course of dealing as previous commercial transactions between the same parties?

1-205(1)

Which section of the Uniform Commercial Code defines usage of trade as any practice that members of an industry expect to be part of their dealings?

1-205(2)

Today, how many states will still enforce contract under seal even if it is not supported by consideration?

10

UCC Section 2-502 allows a buyer to recover the goods identified in the contract if the seller becomes insolvent within ______ after receiving the first payment due under the agreement.

10 days

What conditions would legally cause an offer to be immediately terminated?

-Offeror loses legal capacity to be in a contract -Death of the offeror

Under common law, what are the necessary elements of a valid contractual acceptance?

-The intent by the offeree to be bound by acceptance of contract. -The acceptance will have the definite and certain terms of the offer.

A valid contractual offer must be communicated to what party?

-The offeree -The agent of the offeree who is acting on behalf of the offeree

The origin for our statute of frauds was the English law, Act for the Prevention of Frauds and Perjuries, which was passed in: _______.

1677

Which section of the Uniform Commercial Code defines course of performance as the history of dealings between the parties in the particular contract at issue?

2-208(1)

Which sections of the Uniform Commercial Code state that tender of delivery requires that the seller/lessor have and hold conforming goods at the disposal of the buyer/lessee and give the buyer/lessee reasonable notification to enable him or her to take delivery?

2-503(1); 2A-508(1)

Which sections of the Uniform Commercial Code embrace the perfect tender rule?

2-601; 2A-509

UCC Section _____ sometimes allows the buyer to revoke acceptance of nonconforming goods

2-608

Which section of the UCC indicates that the buyer who has accepted goods may later revoke the acceptance only if the buyer can show that one or more defects substantially impair the value of the goods?

2-608

Which sections of the Uniform Commercial Code address the effect of destroyed goods on contract performance?

2-613; 2A-221

Which sections of the UCC establish the doctrine of commercial impracticability?

2-615(a); 2A-405(a)

Which section of the Uniform Commercial Code allows sellers to withhold delivery of goods when the buyer is in breach?

2-703(a)

Which of the following Uniform Commercial Code Sections allows a seller or lessor to cancel the contract if the buyer or lessee is in breach?

2-703(f) and 2A-523(1)(a)

Which section of the Uniform Commercial Code allows a seller to stop delivery of goods that are in transit?

2-705(1)

Which section of the UCC allows a buyer, when a seller fails to deliver the goods and is in breach, to cancel the contract and then seek remedies that give the buyer the benefit of the bargain?

2-711(1)

Which section of the UCC allows parties to create agreements that make it clear the remedies outlined in the agreement are exclusive remedies?

2-719

Which section of the UCC allows a lessee, after a lessor fails to deliver the goods and is in breach, to cancel the contract and then seek remedies that give the lessee the benefit of the bargain?

2A-508(1)(a)

Which section of the UCC allows a lessee to cover, or substitute, goods for those due under a lease agreement?

2A-518

Which section of the UCC allows a lessee to reject goods?

2A-519

Which section of the Uniform Commercial Code allows lessors to withhold delivery of goods when the lessee is in breach?

2A-523(1)(c)

Which of the following is not a section of the Uniform Commercial Code that would allow a buyer or a lessee to accept nonconforming goods and then seek monetary damages to give them the benefit of the bargain?

2A-626

How many exceptions to the parol evidence rule are there?

8

If a business does inadvertently cash a "paid-in-full" check, it has _______ days to offer the debtor repayment in the same amount.

90

According to the Uniform Commercial Code, "in transit" means that the seller or lessor has delivered the goods to which of the following parties?

A carrier or a bailee

What is not a valid exception to the statute of frauds?

A contract that is unprofitable to all parties

In which of the following situations is a contract enforceable?

A contract with a legal subject matter A contract that can perform legally

Which of the following statements are true of legal consideration?

A court will not regulate the amount of consideration in the absence of fraud. Any consideration, however small, will support a promise.

Which of the following clauses seeks to blend other agreements either into a final agreement or into something explicitly identified as being outside the final agreement?

A merger clause

Which of the following is a correct statement regarding a minor's obligations on disaffirmance?

A minor's obligations on disaffirmance vary from state to state

Identify a scenario where the parties have agreed that the silence will be considered acceptance.

A person has a library subscription that is renewed automatically unless he or she explicitly asks to stop the subscription.

Which of the following is true about a bilateral contract?

A promise in exchange for a promise can be consideration. A promise to perform has value.

Which of the following is a correct statement regarding a promise to refrain from doing something you are legally entitled to do?

A promise to not do something you are legally entitled to do is sufficient consideration for a contract.

Under which of the following circumstances does the Uniform Commercial Code allow buyers and lessees to seek the remedy of specific performance?

A remedy at law is inadequate.

Which of the following statements is most accurate regarding a restrictive covenant made in conjunction with the sale of an ongoing business?

A restrictive covenant made in conjunction with the sale of an ongoing business is enforceable.

What type of contract allows for a buyer to be able to return the goods under the contract at any point in the future?

A sale-or-return contract

Good faith is irrelevant when passing what type of title?

A void title

Abigail was shopping in an antique store and was drawn to what appeared to be an antique plate. The antique dealer said the plate was created in the 1800s in England. In reality, the plate was made in China in 2000. The plate was stamped with this information on the bottom. Abigail bought the plate, but then later sued for fraudulent misrepresentation. The court will not rescind the contract because: _______.

Abigail did not have justifiable reliance since she could have easily discovered the falsity of the seller's claims

Identify exceptions to the preexisting duty rule

Additional work required to fulfill the promised obligation UCC Article 2 (sale of goods) Unforeseen circumstances

Identify exceptions to the preexisting duty rule.

Additional work required to fulfill the promised obligation Unforeseen circumstances UCC Article 2 (sale of goods)

Which of the following is a legally-recognized way to expressly ratify a contract?

After reaching majority, a person states orally or in writing that he or she intends to be bound by the contract entered into as a minor.

Which of the following is considered a false assertion of fact?

An act of concealment An incorrect assertion A nondisclosure

What constitutes a valid admission under the statute of frauds?

An admission is a statement under oath or as part of a legal process in which a party being sued admits the existence of a contract.

In order for a mutual mistake to interfere with legal consent, the following must be present.

An adverse effect on a party who did not agree to bear the risk of the mistake at the time of the agreement A material effect on the agreement A basic assumption about the subject matter of the contract

Anna promises Elsa that she will clean Elsa's house and Elsa promises Anna she will pay Anna $100 when Anna is done. Which of the following is true?

Anna and Elsa have formed a bilateral contract. Anna and Elsa's promises are an exchange of something of value. Anna's promise in exchange for Elsa's promise is sufficient consideration.

Which of the following terms refers to a situation when, before the actual time for performance, a contracting party decides not to complete the contract?

Anticipatory repudiation

Scott needs his cars washed by tomorrow afternoon, so he calls Betty and tells her he'll pay her $100 if she washes both cars the next morning. Betty tells Scott, "I'll do it if I wake up in time." Which of the following statements is true?

Betty has not promised to wash Scott's cars.

Which of the following statements is correct regarding the legality and enforceability of contracts?

Both a contract that requires an illegal act for performance and a contract for an illegal purpose are unenforceable.

What happens if a legal contract is formed and its subject later becomes illegal under a new statute?

Both parties are discharged from their obligations.

What occurs whenever a party fails to perform his or her obligations under the contract?

Breach

What are the reasons why a partial performance exception to the statute of frauds could be applied?

Buyer has taken possession of a land interest as part of a contract Partial payment for a contract involving an interest in land

Identify the state that does not allow the admission exception as part of the statute of frauds.

California

Which of the following activities are allowed on Sundays in most states under the Sabbath law?

Charity work Obtaining necessities Executing contracts

Identify the types of contracts that minors do not have the right to disaffirm in most states, as determined by courts or state legislatures in the interest of public policy.

Child support contracts Marriage contracts Enlistment in the armed services

The obligations of lessors and lessees are determined by terms the parties outline in agreements, custom, and rules outlined by the Uniform ______ Code.

Commercial

Which of the following terms refers to a situation when performance is still objectively possible, but would be extraordinarily injurious or expensive to one party?

Commercial impracticability

What type of contract has goods transported by the buyer via a common carrier?

Common-carrier delivery contract

What type of contract is formed when a seller places goods with a common carrier for delivery after a contract is executed?

Common-carrier delivery contract

is type of contract occurs when the goods are delivered to the buyer via a common carrier, such as a trucking line.

Common-carrier delivery contract

In the context of contractual offers, if an offeree changes his or her mind after dispatching a rejection by certified mail, what can the offeree do to ensure that the contract is formed?

Communicate acceptance by another mode of communication before rejection reaches the offeror.

damages are said to compensate a plaintiff for his or her loss of the benefit of a contract.

Compensatory

Which of the following occurs when all aspects of the parties' duties under the contract are carried out perfectly?

Complete performance

refers to the active hiding of the truth about a material fact.

Concealment

What kind of contract has an event or occurrence that must occur before the contract can be executed?

Condition precedent contract

What type of sales contract is contingent on approval?

Conditional sales contract

What type of goods meet contract specifications?

Conforming

Which of the following damages are foreseeable damages that result from special facts and circumstances arising outside the contract itself, and must be within the contemplation of the parties at the time the breach occurs?

Consequential

______ damages include damages for lost profits, as long as these damages are not too speculative.

Consequential

In the context of the statute of frauds, which of the following is an exception to the requirement of a written contract under UCC?

Contracts between merchants selling goods to one another

What must be done in relation to contracts involving an interest in land?

Contracts involving an interest in land are covered by the statute of frauds, and as such, must be in writing.

Identify the legal exception whereby loans may exceed the predetermined maximum in a state despite usury statute.

Corporate loans for facilitating business transactions

What is the term for an offer made by the offeree to the offeror proposing a substituted bargain differing from the original proposed offer?

Counteroffer

An offeror may try to avoid being bound to a contract by later claiming she was only joking when she made the offer. Which of the following is an accurate statement regarding the willingness of a court to consider such evidence?

Courts are generally not interested in such evidence of hidden intent.

Which of the following is not a type of contractual condition?

Deterrent condition

Promissory estoppel requires what major element in order to exist?

Detrimental reliance by the injured party

Promissory estoppel requires what form of contractual mindset?

Detrimental reliance on the offer

Which of the following refers to termination of a party's obligations under a contract?

Discharge

Sheila tells Ed that if Ed fixes her air conditioner by the end of the day, Sheila will pay Ed $500. Which of the following is true?

Ed and Sheila have entered into a valid unilateral contract.

What type of remedies are typically unique solutions specifically crafted to the demands of the situations?

Equitable

"Oral contracts between merchants selling goods to one another need not be in writing." Which exception to the statute of frauds does the given statement indicate?

Exception under UCC

Which of the following is not a type of monetary damages available in a successful breach of contract lawsuit?

Existential

Identify the three basic categories of warranties.

Express warranties, implied warranties of title, and implied warranties of quality

What is the most common reason a buyer would be in breach?

Failure to accept conforming goods

What is the most common reason a buyer would be in breach? Multiple choice question.

Failure to accept conforming goods

If, due to factors beyond the control of the parties, an essential event does not occur, and neither party had assumed the risk of the event's non-occurrence, the contract may be discharged according to which doctrine?

Frustration of purpose

William tells his neighbor George that he will give George a job as his butler if George promises to drop out of college. Which of the following is true?

George's promise to refrain from going to college is consideration.

What form of contract for title occurs when the seller cannot transfer the goods under the contract because they are in a 3rd party's storage, so instead, the seller gives the buyer a written document transferring property interest in the goods?

Goods-in-bailment contract

What is the name of a contract where the goods are placed in a warehouse under a third party's control?

Goods-in-bailment contract

Which of the following is not a recognized purpose of licensing statutes?

Government protection of the public's constitutional rights

UCC Section 1-203 requires good faith in the performance and enforcement of every contract. What is good faith? Multiple choice question.

Honesty in fact

Which of the following is a correct statement regarding a minor's power to disaffirm or void a contract?

If a minor chooses to disaffirm a contract, he or she must void the entire contract.

In which of the following situations is a contract be discharged under the frustration of purpose doctrine?

If due to factors beyond the control of the parties, the event that is the purpose of the contract does not occur, and neither party has assumed the risk of the event's nonoccurrence

When does the court look at the adequacy of consideration in a contract?

If the court believes fraud occurred If the court thinks that undue influence was used

In which of the following situations is parol evidence contradictory to the final terms admissible?

If the oral agreement was made subsequent to the creation of the contract

In the context of misrepresentation, when can a consumer take legal action against a company?

If the product benefits are exaggerated in advertisements If the product benefits are misrepresented on labels If the product benefits are misrepresented on the packaging

In the context of misrepresentation, when can a consumer take legal action against a company?

If the product benefits are misrepresented on the packaging If the product benefits are exaggerated in advertisements If the product benefits are misrepresented on labels

Intent to deceive occurs when the party making the false statement ______.

implies having personal knowledge of its accuracy.

Jane bought a microwave oven from a store in town. When she got it home, the oven did not heat her dinner or anything she put in it. The failure of the oven to reasonably perform as expected is a violation of what kind of UCC warranty?

Implied warranty of merchantability

Which of the following are exceptions to the statute of frauds?

In an instance where promissory estoppel has been established Partial performance on a contract Admission by one party to a contract

Under what circumstances will an offeror not be able to rescind a unilateral contract offer?

In instances where the offeree has already started to perform under the contract

Which of the following legal principles holds both contracting parties equally responsible for an illegal agreement?

In pari delicto

Under the Uniform Commercial Code, which of the following types of damages are buyers and lessees entitled to in case of breach of contract?

Incidental damages Consequential damages

What type of contract is intended to be a complete and final representation of the parties' agreement?

Integrated contract

Identify a provision under the Uniform Commercial Code Section 2-706 when a buyer is in breach of a contract.

It allows the seller to keep any profits he or she makes on the resale.

Identify the true statements about express warranty.

It can be oral or written. It is a material term of the contract.

Which of the following statements is true of mistake of fact?

It consists of unconscious ignorance of a past or present material event. It is an affirmative defense.

Which of the following is true about a unilateral contract?

It is a promise in exchange for performance. It is a real contract because it is a mutual exchange of value.

What is a tender?

It is an offer by a contracting party to perform, along with being ready, willing, and able to perform, a duty outlined in a contract.

What is an injunction?

It is an order either forcing a person to do something or prohibiting a person from doing something.

Identify the true statements about past consideration

It is enforceable to the extent necessary to avoid injustice. It is enforceable if it was given with the expectation of future payment.

Which of the following statements is true about past consideration?

It is not a real consideration. It refers to a situation where one party provides value before the promise is made.

intent to deceive occurs when the party making the false statement

implies having personal knowledge of its accuracy.

The statute of frauds is found in what federal code?

It is not found in any federal code, but rather is encompassed in state statutes and state common law.

In the context of contractual offers, which of the following statements best describes express authorization?

It is the specific mode of communication of acceptance that is stated in the offer.

In which of the following forms a written contract may be considered evidence under the statute of frauds?

It must contain certain specific elements, such as all contractual terms. It can consist of several documents. It can be a single document.

Which of the following statements is true of the parol evidence rule?

It prevents evidence that substantially contradicts the agreement in its written form.

Death of an offeror will have what effect on a contractual offer?

It will cause the offer to be terminated.

Andy is an artist and Jane runs a famous art gallery. Jane calls Andy and tells him she has seen some of his work and likes it. She tells him to bring his newest paintings to her gallery and says "I promise that if I like them, I will show them in my gallery." Which of the following is true?

Jane made an illusory promise. Andy has no contract to compel Jane to show his paintings.

Joan teaches Bobby how to shoot an outside jump shot in basketball. Bobby becomes such a good basketball player he gets a full scholarship to college and becomes highly sought after by professional teams. Just before he signs a contract with a pro team, Bobby tells Joan, "I promise I'll give you $500,000 when I sign that contract. I owe you for teaching me that jump shot." Which of the following is true?

Joan's work with Bobby in the past is not consideration to enforce Bobby's promise.

Julie, a 16-year-old student, enters a three-year modeling contract with a local ad agency. After two months, she realizes that the modeling schedule is too hectic and interferes with her school and other activities. She does not want to continue modeling. Which of the following statements is true in the given scenario?

Julie can void the contract immediately

The following transfer in interests in land fall within the statute of frauds?

Lease contracts Mortgage contracts

Nathan enters a contract to renovate Marjorie's boutique by a certain date. At the time of the creation of the contract, Nathan and Marjorie add a clause stating the amount Nathan will pay Marjorie as damages if he is not able to complete the renovation by the date mentioned in the contract. Which type of damages does the given scenario exemplify?

Liquidated damages

Which of the following states allows casino gambling?

Louisiana

Patty and Mario dispute whether Patty owes Mario $1,000. Patty asks Mario if she can give him her gold necklace, worth $500, in full payment of the debt. Mario agrees and takes the gold necklace. Which of the following is true?

Mario taking the necklace constitutes an accord and satisfaction.

Under common law, what types of terms must be included in a valid contractual offer?

Material terms, all major items necessary for mutual consent that are clearly laid out

In the context of contracts for necessaries, which of the following statements is true of the liability of minors

Minors can be held liable for the reasonable value of necessaries. Minors can disaffirm contracts for necessaries.

Which of the following is a correct statement regarding minors and contracts?

Minors may enter into only voidable contracts.

Which of the following is not a means by which parties to a contract may agree to discharge each other from their obligations?

Mutual remuneration

Which of the following refers to a situation in which parties agree that they simply wish to discharge each other from their mutual obligations and therefore cancel the contract?

Mutual rescission

What states have not passed legislation to incorporate a statute of frauds in their state code?

New Mexico Louisiana

Bella attended a sheriff's auction for goods that were seized. If Bella buys something at the auction, will she have warranty of title?

No, because Bella knows that the goods did belong to someone else.

Seller and Buyer agreed on a selling price for an antique table. Seller told Buyer to inspect the table before writing the bill of sale. Buyer stated an inspection was not necessary. At home, Buyer noticed a significant crack. Can Buyer bring a claim to enforce any express or implied warranties?

No, because Buyer waived those rights when she refused to inspect the table.

Buyer bought a computer which was supposed to be able to run specific software. Unfortunately, the computer did not live up to all its promises. Buyer brought a claim against Seller five years after she discovered the computer would not run her software as promised. Can Buyer successfully bring a warranty claim against Seller?

No, because she failed to comply with the applicable statute of limitations.

Raj ordered two dozen turquoise necklaces that he would sell at a local store. Because the jewelry was made of natural turquoise, there were variations of color in the stones that were used for the jewelry, so the pieces did not look exactly alike. Can Raj claim that the goods were not merchantable, since the stones in the ring varied in color?

No, because the UCC implied warranty of merchantability allows for some variations would occur in the normal course of trade.

Phillip was trying to decide on what kind of car he should buy. The salesperson told him that the Lamborghini was the "fastest car in the world", and "is a real chick magnet". Phillips could not resist, so he bought the car. One week later he brought the car back saying that the car was neither the fastest car in the world and nor had women given him the time of day when he was in the car. Phillip demanded his money back, charging the salesperson made express warranties that proved to be false. Can Phillip get his money back?

No, because the salesman's claim was an example of puffing and does not create an express warranty. It is not a representation of facts.

Lee had just purchased a software package and was looking over the written warranty. The software had cost Lee over $100, and he wanted to make sure that the warranty was sufficient. He was baffled by the language of the warranty, since it was all in legalese and was not readily understandable. Is this a valid written warranty?

No, because the warranty was written in legalese and not well understood.

Which of the following terms means that it is, in fact, not possible to lawfully carry out one's contractual obligations?

Objective impossibility

Which of the following is an element in the formation of a contractual offer?

Offer must include serious intent by the offeror to be bound to an agreement

As a general rule, when an agreement is deemed illegal, courts will usually label it void, meaning neither party can enforce the agreement, and neither is entitled to recovery. Which of the following is not a recognized exception to this rule?

One of the parties withdraws from an illegal agreement after an illegality occurs.

Identify the factors that would result in rescission of a contract based on duress.

One party threatens to file a criminal lawsuit unless consent is given to the terms of the contract. One party threatens physical harm or extortion to gain consent to a contract. One party threatens the other's economic interests, i.e., economic duress.

Who can accept a valid offer that will create a binding contract?

Only the offeree or his or her agent

A court will allow what type of evidence to prove a subsequent modification of a written contract?

Parol evidence

What is the common law rule that bars the admission of oral testimony to prove agreement to certain terms if there is a written contract between the parties after the oral testimony occurs?

Parol evidence rule

What rule allows for oral evidence to prove that a written contract was based on oral terms?

Parol evidence rule

The exception to the statute of frauds that is applicable when a buyer of land has paid a portion of the sales price to prove the existence of a contract is: _______.

Partial performance

Which of the following are true about an agreement between parties?

Parties could indicate, by agreement, the expectation regarding performance. Sometimes, language in the parties' agreement limits the rigidity of the perfect tender rule.

Which of the following constitutes a potential exception to the perfect tender rule?

Past dealings between the contracting parties

Which of the following is a buyer not required or allowed to do in order to rightfully cover?

Pay more than fair market value for substitute goods.

What are some things that could be material terms in a valid contract?

Price of goods Parties involved

______ obligations do not require a written document.

Primary

Which of the following does not fall within the statute of frauds and as such, the contract does not have to be in writing?

Primary obligations Secondary obligations where the main reason is to obtain a personal benefit

What are the types of contracts that fall within the scope of the statute of frauds?

Promises made in consideration of marriage Contracts related to an interest in real property

Which of the following is not a potential contract remedy available to a seller or lessor if the buyer or seller is in breach?

Recover incendiary damages.

Which of the following is a potential contract remedy available to a seller or lessor if the buyer is in breach?

Recover liquidated damages.

Which of the following is not a contract remedy available to buyers and lessees under the Uniform Commercial Code?

Recover punitive damages.

Which of the following terms refers to the situation where a court allows a contract to be rewritten because the document does not reflect the parties' actual agreement?

Reformation

What options does a buyer have when a seller sends nonconforming goods?

Reject the goods subject to the seller's curing the deficiency in the goods. Accept the goods as is.

What constitutes the termination of a contract?

Rescission

According to the ______, discharge by reason of impracticability requires that the party claiming discharge prove that he or she did not expressly or impliedly agree to performance in spite of impracticability that would otherwise justify nonperformance.

Restatement (Second) of Contracts

Which of the following factors does not determine the obligations of sellers and buyers in contracts for the sale of goods transactions?

Rules outlined by the Uniform Contract Code

What type of contract allows the buyer to take possession of goods prior to a contract being executed in order for the buyer to decide if he or she will complete contract?

Sale-on-approval contract

What section of the UCC requires contracts in excess of $500 to be in writing?

Section 2-201

Identify the UCC Sections that sometimes allow the buyer or lessee to revoke acceptance of nonconforming goods.

Section 2A-517 Section 2-608

Which of the following is not a contract remedy available to buyers and lessees under the Uniform Commercial Code?

Seek an equitable injunction.

Most jurisdictions choose which of the states' choices for how to regard third-party beneficiaries of warranties?

Seller's warranties extend to any reasonable and foreseeable user.

What does a minor need to do to disaffirm a contract?

Show an intention by words or action to rescind the contract

As a general rule, what effect does silence have in formation of contracts?

Silence cannot be used to form a contract.

identify the activities that are forms of gambling?

State-run lotteries Horse tracks

Which of the following terms refers to a situation in which it would be very difficult to carry out the contract?

Subjective impossibility

Which of the following is not a common equitable remedy?

Subrogation

What occurs when all the material elements of a contract are satisfied, even if some non-material requirements may not be satisfied?

Substantial performance

Which of the following terms refers to an agreement that is overly harsh or lopsided?

Substantive unconscionability

Which of the following terms indicates mutual consent by contracting parties to replace an old agreement with a new one?

Substituted contract

What is the name of the moment that goods under a contract are available for the buyer to take?

Tender of delivery

Bobby built a dog house for Rhonda and Rhonda agreed to pay Bobby $1,500. Rhonda sends Bobby a check for $1,000 with a note that says "this is all I can pay you." Bobby cashes the check. Which of the following is true?

The $1,500 is liquidated debt. Rhonda does have to pay Bobby the remaining $500. There is no dispute that Rhonda owes Bobby $1,500.

What allows for the use of parol evidence to clear ambiguity in a written contract by looking at past business dealings?

The UCC

Which of the following are not elements of a written agreement under the statute of frauds?

The agreement must be profitable for both parties. The agreement must be signed by an agent, not the principal to the contract.

Phil tells Gloria that if she works for him full time, he'll pay her $1,000 a week. As a result and based on Phil's promise, Gloria quits her job at the department store and puts a down payment on a car. When Gloria shows up at Phil's to start work, Phil tells her he's changed his mind about the full time job. What are Gloria's options?

The best way to enforce Phil's promise is to assert promissory estoppel.

Which of the following is a correct statement regarding a competent party's recourse against a minor who disaffirms when the consideration the minor received is damaged or destroyed?

The competent party has no recourse against the minor.

Which of the following is true of the states that do not consider merger clauses to be binding?

They consider merger clauses to be recommendations.

Which of the following is true of marriage agreement based on mutual promises?

They do not need to be written. They do not fall within the statute of frauds.

Once an offeree rejects an option contact (a contract open for a predetermined period of time), what happens?

The contract is immediately terminated.

If there is a property interest attached to a marriage contract, then what is true about the contract?

The contract must be in writing.

Which of the following is not a means by which parties to a contract may agree to discharge each other from their obligations?

The cost of litigation or some form of ADR as compared to the value of the likely remedy The likelihood of success The possibility of getting a better or faster resolution through some form of alternative The desire or need to maintain an ongoing relationship with the potential defendant

What will a court use to determine if a contract is void or voidable?

The court will admit parol evidence to determine if a contract is void or voidable

Walter contracts to purchase Marie's mansion and estate for $50,000. Marie's mansion and estate has a property tax value of $1 million. There is no fraud or undue influence involved in the transaction. Which of the following is an incorrect statement regarding the enforcement of this contract?

The court will find the $50,000 an insufficient amount of consideration and cancel the contract.

How would a court likely respond to an offeror's attempt to avoid contract liability by claiming she was merely joking when she made an offer to the offeree? (Assume the offeree accepted the offer based on the reasonable belief that the offer was legitimate.)

The court would enforce the contract, since courts are not usually interested in an offeror's hidden intent.

What are the elements of the statute of frauds exception for promissory estoppal?

The detrimental reliance of the injured party could have been foreseen by the other party. One party detrimentally relied on an oral promise.

Which of the following does not constitute a potential exception to the perfect tender rule?

The doctrine of subsequent performance

Factors that are considered by a court in undue influence claims include all of the following: _______.

The dominant party gained undue enrichment from the agreement. The dominant party rushes the other party to consent. The non-dominant party was isolated from advisers at the time of the agreement.

What is the most common way to breach a sales contract?

The failure of the seller to deliver the goods to the buyer

In the context of a breach of contract by the buyer, in which situation is the seller most likely to be entitled to the contract price as damages?

The finished goods cannot be sold elsewhere.

Which of the following conditions need not be satisfied for substantial performance?

The formation of a contract between a merchant obligor and a non-merchant obligee

Under which of the following circumstances does the UCC allow buyers and lessees to seek the remedy of specific performance?

The goods identified in the contract are unique.

Identify the factors a party should consider before filing suit for breach of contract

The likelihood of success The possibility of getting a better or faster resolution through some form of alternative The cost of litigation or some form of ADR as compared to the value of the likely remedy The desire or need to maintain an ongoing relationship with the potential defendant

Identify an exception to the need to have the secondary obligation in writing.

The main-purpose rule

Which of the following is true of a contract that has innocent misrepresentation?

The misled party can rescind the contract. The misled party cannot sue for damages.

Before a contract can be voided for a mutual mistake, which of the following conditions must be met?

The mistake must be about a basic assumption that affects the subject matter of the contract. The mistake must have a material effect on the agreement. The enforcement of the contract will have an adverse effect on the party who did not agree to bear the risk of the mistake at the time of the agreement.

Which of the following conditions would permit a court to invalidate a contract on grounds of unilateral mistake?

The mistake was caused by an accidental clerical error. One party made a mistake about a material fact, and the other party knew about the mistake.

Which of the following is true of prenuptial agreements?

They do not require consideration legally.

Which of the following would allow a court to invalidate a contract on the grounds of unilateral mistake?

The mistake was so serious that the contract is unconscionable, that is, so unreasonable that it is outrageous. The mistake was caused by a clerical error that was accidental and did not result from gross negligence. One party made a mistake about a material fact, and the other party knew or had reason to know about the mistake.

Forrest hires Nadine to turn his basement into a family room for $50,000. About halfway through, Nadine discovers for the first time that the wood in the floor of the basement was riddled with mold and all the wood had to be removed and replaced. Nadine tells Forrest that it will cost him an additional $10,000 for this work. Which of the following is true?

The mold was an unforeseen circumstance to the basement work, and it was lawful for Nadine to charge Forrest for the additional work.

If an offer states that it is good for thirty days, what happens in thirty days if the offeree has not responded?

The offer terminates immediately.

If there is no stated period when the offeree must accept or reject an offer, when will the offer expire?

The offer will expire after a reasonable period of time.

Which of the following is not a basic common-law requirement for a valid acceptance?

The offeree's written acceptance, dispatched by certified mail, to the offeror

In the context of contractual offers, which of the following statements is true of unilateral offers?

The offeror must give the offeree a reasonable time to complete it if the offeree has begun performing.

What is one way in which parties can create an integrated contract?

The parties can include a merger clause in the written contract.

To justify recovery under a theory of quasi-contract, which of the following must a plaintiff prove?

The plaintiff had reasonably expected to be compensated for a benefit conferred on the defendant. The plaintiff conferred a benefit on the defendant.

If a fully integrated agreement has been written, then what is the presumption?

The presumption is that no oral evidence can be admitted to change terms of contract.

Linda goes to a shoe store to buy waterproof shoes. In which of the following scenarios an implied warranty of fitness for a particular purpose is created?

The salesclerk refers Linda to a particular shelf of shoes when she asks for waterproof shoes.

Which of the following is true of a goods-in-bailment contract?

The seller has either a negotiable document of title, a nonnegotiable document of title, or a contract or other instrument showing ownership that is not a negotiable or nonnegotiable document of title.

How long must a buyer wait before revoking a contract when the seller fails to cure nonconforming goods?

The seller is given a reasonable period of time.

What are the elements of a written agreement under the statute of frauds?

The subject matter of the agreement must be defined. Parties to a contract must be identified. All pertinent terms must be listed.

In order for the courts to find a nondisclosure of a material fact to be equated with and have the same legal effect as a false assertion, the following elements must be present.

There is a failure to correct assertions of fact that are no longer true. There is a statute that requires disclosure. A relationship of trust exists between the parties to the contract.

In the context of justifiable reliance on a false assertion, which of the following is true of the modern contract law?

There is less emphasis on the duty to inspect

A valid offer under common law requires which of the following elements? (Check all that apply.)

There must be definite and certain terms. You need the intent to be bound by an acceptance. The offer must be properly communicated to the offeree.

Identify a true statement about integrated contracts.

They are in written form. They are considered complete.

Identify a true statement about conditions in contracts.

They can be expressly inserted into the contract by the parties.

Which of the following is true of severable contracts

They can be partially voided by the court. Their legal portion can be enforced by the court.

Which of the following is true of states where the purpose of licensing is to provide government control over the profession or generate revenue?

They enforce contracts with unlicensed professionals.

Which of the following is true of secondary obligations?

They fall within the statute of frauds. They involve a party outside a primary agreement.

Which of the following statements is true of equitable remedies?

They grew out of the English court's authority to fashion remedies when the existing laws did not provide any adequate ones. They were typically unique solutions specifically crafted to the demands of the situations.

Which of the following is true of anticompetitive agreements?

They restrain trade. They are against public policy.

Sam takes photos at the Callie's wedding. Sam thinks Callie owes him $1,000 for the wedding, while Callie think she only owes Sam $750. Callie sends Sam a check for $750. Which of the following is true?

This is an unliquidated debt.

What are the conditions for promissory estoppel to occur?

To avoid an injustice, the promise must be enforced. A party reasonably relies on another's promise. One party makes a promise and knows the other party will rely on it.

What is the basic object of awarding damages in contract law?

To compensate the aggrieved party

Identify a purpose of the statute of fraud

To ease contractual negotiations by requiring sufficiently reliable evidence to prove the existence and specific terms of a contract

Identify a purpose of the statute of fraud.

To ease contractual negotiations by requiring sufficiently reliable evidence to prove the existence and specific terms of a contract

Which of the following statements is correct regarding the legal exceptions to usury statutes?

To facilitate business, most states with usury statutes allow corporations to borrow at rates exceeding the maximum.

What is a main purpose of the statute of frauds?

To prevent parties from entering into contracts with which they do not agree

Identify what would be considered part of "land" under the statute of frauds.

Trees on the land Buildings on the land

Parties are free to create provisions to indicate how title will pass with a commercial transaction, but if the parties do not address the issue, then the default rules are found in the

UCC

The UCC and the common law differ, with the _______ requiring perfect tender and the _______ requiring the lesser standard of substantial performance.

UCC / common law

If parties to a contract do not address how title to goods will be treated, then the default rules are found in the

Uniform Commercial Code

According to ______, parol evidence is admissible for the sake of clarification if it addresses prior dealings between the parties or usages of trade in the business they are in.

Uniform Commercial Code (UCC)

Which of the following is not a situation in which a contract may be discharged by operation of law?

Unilateral novation

In Case 23-4, Hubbard v Utz Quality Foods, the main issue involved a question of whether _______ was within its legal rights when it decided to rescind or revoke ________ of potatoes supplied by ________.

Utz, acceptance, Hubbard

Wanda works for Humongous Corporation. Part of her job, for which she was hired 10 years ago, is to prepare a monthly report of all transactions in her department. After 10 years, Wanda tells Humongous that she wants another $500 a month to prepare the reports. Which of the following is true?

Wanda has an existing contractual duty to prepare the report.

When does the buyer have the option to revoke a contract?

When a cure is not possible When the seller has failed to cure the deficiency within a reasonable time

In the context of exceptions under UCC, which of the following contracts is enforceable even if it is an oral contract?

When a merchant sells goods to another merchant

In which of the following situations are covenants not to compete enforceable?

When it is in conjunction with the sale of a business

in which of the following situations are covenants not to compete enforceable?

When it is in conjunction with the sale of a business

Under the mailbox rule, a revocation is effective:

When received by the offeree

When does title transfer for goods with a simple delivery contract?

When the contract is executed

When can a minor be given full legal capacity to enter into contracts?

When the minor moves out of the parents' house and begins supporting himself or herself When the minor marries When the minor's parents or legal guardians give up their right to exercise legal control over the minor

Under the common law mirror-image rule, when is a counter offer formed?

When the offeree's acceptance does not include all of the terms of the offeror's offer

When is promissory estoppel in effect?

When the party's reliance is to her own detriment

When is it reasonable to assume that the offeree's silence constitutes acceptance?

When the previous course of dealings between the parties have established such a pattern of behavior

Which of the following is not a factor a party should consider before filing suit for breach of contract?

Whether the potential defendant violated a duty of care and proximately caused damages to the party as a result

Misha bought an electric stove from a popular home appliances store. A year later, the stove malfunctioned and started a fire that caused extensive damage to her kitchen. According to the statute of limitations created by the Uniform Commercial Code, how long does Misha have to file a lawsuit for breach of the contract?

Within four years of the day when the damage was caused by the fire

Lydia bought a microwave oven the previous day to help warm up some food she planned to serve at her party that night. One of the party guests, Deb, asked Lydia if it would be okay to warm up her coffee in the microwave. Lydia said yes, but when Deb touched the door of the microwave, she got a very nasty shock. Lydia tried to bring a claim against the seller, but the seller claimed that all warranties had been disclaimed in the operator's manual. Lydia looked for the disclaimer and found it buried in the operator's manual in very small print. The language used many legal terms that were unfamiliar to Lydia or any other member of the public. Will Lydia be able to sustain a claim against the seller?

Yes, because the disclaimer was not in clear, unambiguous, language in conspicuous type.

Which of the following is an element for the creation of a valid contractual offer in common law?

You need the intent to be bound by an acceptance of the offeree.

Which warranty involves a seller's description of a product's physical nature or its use, used to induce a buyer to execute a sales contract, which then becomes part of a contract?

`express warranty

A minor would be most likely able to disaffirm which of the following contracts?

a contract for stereo equipment

In the context of equitable remedies, reformation refers to a situation in which

a contract is rewritten because it does not reflect the parties' actual agreement

Anticipatory repudiation refers to the situation in which

a contracting party decides not to complete the contract before the actual time of performance.

An express warranty is:

a material term of the contract

Which of the following businesses would most likely be able to enforce an exculpatory clause?

a night club

An express warranty should not be confused with an implied warranty for the fitness of:

a particular purpose

Which of the following is not a type of consideration?

a promise to accept a gift

In a bilateral contract, the offeror is expecting what action from the offeree?

a return promise

Which of the following is not typically considered a necessary?

a vacation

In the event that a revocation of the offer is sent, but the offeree communicates acceptance to the offer before the revocation is received,

a valid contract has been formed

If the offer merely authorizes certain modes of acceptance, but does not condition acceptance on the use of those modes, use of an unauthorized means of acceptance is: _______.

acceptable

Parties to a contract can agree before hand that the silence is a form of ______.

acceptance

In an accord and satisfaction, the promise to perform the new duty is called the

accord

The most obvious way to obtain a good title is to

acquire it from the person who currently owns the item

A(n) ______ contract is an agreement presented on a take-it-or-leave-it basis.

adhesion

A(n) ______ is a statement made in court, under oath, in which one party against whom charges have been brought admits that an oral contract existed, even though the contract was required to be in writing.

admission

If there is a an obvious typo in a written contract, the court will: _______.

admit parol evidence to correct the typo

If a written agreement has missing parts, the court will:

admit parol evidence to fill in missing parts

If oral evidence is being offered to clarify an ambiguous term in a written contract, then the court will:

admit the oral evidence

When calculating the length of time it will take for performance on a contract to determine if the contract falls within the scope of the statute of frauds, the start date for calculating time will be the day: _______.

after the contract is create

Under the equal dignity rule, if an agreement would have to be in writing if negotiated by a principal, then it would also have to be in writing if it were negotiated by a(n)

agent

Agreements that restrain trade, called ______ agreements, are viewed as being harmful to consumers and against public policy

anticompetitive

A(n) ______ occurs whenever a party fails to perform her obligations under the contract.

breach

If the seller chooses to write up a warranty for any goods sold for more than $15, then the Magnuson-Moss Act states that warranty may contain:

any limitations on the warranty names and addresses of warrantors the procedures necessary to activate the warranty remedies

According to the Restatements of Contracts, if no mode of communication is specified in the offer, then ______.

any reasonable means of acceptance is valid

Contracts made in consideration of marriage ______ subject to the Statute of Frauds.

are

Under the UCC, goods are merchantable if the goods:

are produced, within the variations permitted by the agreement, of even kind, quality and quantity within each unit and among all units involved are able to pass without objection in the trade or market for similar goods

According to Section 2-302 of the Uniform Commercial Code, if a court -- as a matter of law -- finds a contract or any clause of the contract to have been unconscionable at the time it was made, the court may do all of the following except: _______.

award the affected party treble damages

A title is voidable if the buyer uses a(n) check.

bad

Without being asked, Johan washed his neighbor Bill's car every Saturday for a month. At the end of the month, Johan demanded payment of $100 from Bill for his services. Bill refused. If Johan sues for breach of contract, Johan will likely lose because there was no ______ exchange.

bargained-for

Unlike the statute of frauds, when UCC the UCC makes an exception when parties admit to the existence of an oral contract, it provides that a contract required to be in writing but admitted to in court will ______.

be enforceable only for the quantity admitted

Under the parol evidence rule, oral testimony is inadmissible to prove certain terms or agreement if it comes:

before the existence of a written contract. at the same time as the execution of the written contract.

In trying to give the seller or lessor the ______ of the bargain, and nothing more, courts often grant damages to recover the purchase price or lease payments due.

benefit

In a(n) ______ contract, the offeror makes a promise in return for a promise from the offeree.

bilateral

Public policy involves: _______.

both the government's concern for its citizens and the beliefs people hold regarding the proper subject of business transaction

For a contract to be enforceable under the statute of frauds, the signature ______.

can be an initial as long as it is intended as a signature

If an individual comes into possession of stolen property, then they:

can never receive good title

Under the Restatement (Second) of Contracts, if no mode of communication is specified in an offer, then acceptance: _______.

can occur through any reasonable means

Under the UCC, writing "paid in full" on a check for less than the full amount of the debt owed will not be an accord and satisfaction unless the creditor inadvertently cashes the check and waits longer than 90 days to offer the debtor repayment in the same amount, or unless the

check is sent to a special address for disputed amounts per the creditor's request.

If the written contract has ambiguous terms, the court allows oral evidence for the purpose of ______

clarifying the contract

A party seeking equitable relief must prove that he or she has "______ ______," that is, has not been deceitful or done anything in breach of contract.

clean hands

Secondary obligations are also known as:

collateral promises suretyship promises

Secondary obligations are also known as:_______.

collateral promises suretyship promises

If a buyer and seller execute a contract and the seller places the goods with ______ delivery, then a common-carrier delivery contract exists.

common carrier for

The UCC changed the law of warranties which was originally covered by: _______.

common law

The situation in which the buyer is a minor can create a voidable title comes from _____.

common law

A written agreement under the parol evidence rule is presumed to be: _______.

complete

An indivisible contract requires ______ performance by both parties, even if it appears to contain multiple parts.

complete

A buyer may waive both implied and express warranties by failing to

comply with the seller's request to inspect the goods examine goods for which an express warranty was created by a sample or model

The active hiding of the truth about a material fact is legally known as: _______.

concealment

conditions occur when each party's performance is conditioned on the performance of the other.

concurrent

A(n) ______ sales contract occurs when the sale is contingent on approval.

conditional

Contracts containing conditions affecting the performance obligations of the parties are called ______ contracts.

conditional

contracts contain conditions affecting performance obligations of the parties.

conditional

A(n)_________ _________ contract is a type of contract in which the sale itself is contingent on approval; it can either be a sale-on-approval contract or a sale-or-return contract.

conditional sales

Most breaches of contract for buyers occur when _______ goods that are agreed to are not ______ by the buyer when delivered.

conforming; accepted

______ damages include damages for lost profits, as long as these damages are not too speculative

consequential

A promise to refrain from doing something is sufficient: _______.

consideration

Every contract must be supported by the element of: _______.

consideration

Capacity is an element of a legally binding: _______.

contract

Conforming goods are goods that meet ______ specifications.

contract

The partial performance exception to the statute of frauds deals with:

contracts with a property interest

Under the common law mirror-image rule, if an offer and acceptance do not have the exact terms in the contract, then the acceptance is treated as a(n)

counter offer

Justin informs Joseph that he will not be able to accept the contract for doing woodwork for the winter at Joseph's farm because of prior commitments. A day later, Justin calls up Joseph and tells him the original terms of the contract is acceptable to him and he can take up the offer. However Joseph tells Justin he would indeed like Justin to do the work however her will pay on $15/hour rather than $18/hour mentioned in the original contract. This proposal made by Joseph illustrates a

counteroffer

The UCC defines ______ as previous commercial transactions between the same parties.

course of dealing

According to the Uniform Commercial Code, ______ refers to the history of dealings between the parties in the particular contract at issue.

course of performance

Identify a true statement about contracts with unilateral mistakes.

courts are hesitant to void them

Which of the following terms refers to a buyer's right to substitute goods for those due under a sales agreement?

cover

For examination of statute of frauds applicability, the one year period begins the day after the contract is ______, not when it is scheduled to begin.

created

According to the right to ______, sellers and lessors can repair, adjust, or replace defective or nonconforming goods as long as they give prompt notice of their intent to do so, and then remedy the problem within the contract time for performance.

cure

Under exceptions under the UCC, oral contracts for ______ are enforceable even if they would normally have to be in writing.

customized goods

The obligations of sellers, lessors, buyers and lessees are determined in part by which of the following?

customs

The obligations of sellers, lessors, buyers and lessees are determined in part by which of the following? Multiple choice question.

customs

A prenuptial agreement involves a contract before marriage:

dealing with property rights

contracts require that the seller deliver goods to a destination stipulated under a sales contract.

destination

What type of contracts require the seller to deliver goods to a destination stipulated in a sales contract?

destination contracts

According to the Uniform Commercial Code, if goods are identified at the time the parties entered into a contract and these goods are ______ through no fault of the parties before risk of loss passes to the buyer, the parties are excused from performance. Multiple choice question.

destroyed

Mutual rescission refers to a situation in which parties agree that they simply wish to_______ each other from their mutual obligations and therefore cancel the contract.

discharge

In order to disclaim a warranty, the seller must:

disclaim it in clear, unambiguous, conspicuous language

Exceptions to title warranties occur if they are:

disclaimed or modified by specific language or if the seller is obviously unable to guarantee title

A severable contract is also known as a(n) ______ contract.

divisible

Courts ______ allow a non-breaching party to intentionally increase his or her damages.

do not

Unlike secondary obligations, primary obligations ______.

do not need to be in writing

When a written agreement was conditioned on terms agreed to orally, the parol evidence rule allows parties to introduce evidence because such evidence ______.

does not substantially modify the written agreement

Discharge by performance refers to parties discharging their obligations by:

doing what they agreed to do

The essential element of undue influence is the existence of a ______.

dominant-subservient relationship

When one party is forced into an agreement by the wrongful act of another party, it is known as:

duress

When one party is forced into an agreement by the wrongful act of another, it is known as: _______.

duress

Contractual conditions may be

either implied by law or expressly inserted into the contract by the parties

Contractual conditions may be:

either implied by law or expressly inserted into the contract by the parties

In a case of fraudulent or negligent misrepresentation, a victim can _______.

either rescind the contract or keep the contract and sue for damages

James negligently misrepresented that a baseball card was a highly collectible and rare card. He did not mean to deceive the buyer of the card, but the court found that he was negligent. Therefore, the buyer will receive

either rescission of the contract or damages

Contract law is primarily designed to:

enforce the intentions of contracting parties

Covenants not to compete in connection with the sale of a business are generally:

enforceable

Covenants not to compete in connection with the sale of a business are generally: _______.

enforceable

Specific performance is sometimes called specific

enforcement

To justify recovery under a theory of quasi-contract, a plaintiff must prove that the defendant would be unjustly ______ from receiving the benefit without compensating the plaintiff for it.

enriched

One of the main purposes of the statute of frauds is to prevent parties from: _______.

entering into contracts to which they do not agree

If the owner of goods entrusts possession of a particular good to a merchant who deals in those goods, then there is

entrustment

A party seeking ______ relief must prove that there is no adequate legal remedy available.

equitable

Usury occurs when a party gives a loan at an interest rate ______ the legal _____

exceeding; maximum

A(n) ______ clause releases one of the contracting parties from all liability, regardless of who is at fault or what injury is suffered.

exculpatory

A(n) ______ ratification occurs when, after reaching the age of majority, the person states she intends to be bound by the contract entered into as a minor.

express

conditions are explicitly stated in the contract.

express

warranties are explicitly stated.

express

There are three basic categories of warranties:

express warranties implied warranties of quality implied warranties of title

Any description of the good's physical nature or its use, either in general or specific circumstances, that becomes part of the contract is known as: _______

express warranty

If the buyer relies on representations, those representations become part of the contract in the form of:

express warranty

John bought a lawnmower that contained the following statement, "Guaranteed to cut grass as long as two feet high". John was delighted since he had let his grass grow up to one foot. When he tried to use the mower, it would work for a few steps, then choke out. John returned the mower and asked for his money back. The mower's failure to perform is a breach of: _____.

express warranty

Ratification may be either ______ or ______.

express; implied

n many states, parents may be liable when a child causes harm if it can be proved that the parents: _____.

failed to properly supervise the child

The most common way for there to be a breach of contract for a sales transaction is

failure to deliver the goods

The public policy argument in favor of supporting the enforceability of a restrictive covenant regarding the sale of a business involves the ______.

fairness of the sale

Primary obligations are within the statute of frauds and, therefore, must be in writing to be enforceable.

false

True or false: If the offeree makes a mistake and sends the acceptance to the wrong address, there is acceptance on dispatch.

false

A _______ does not have to be an actual statement; it may also be an act of concealment or nondisclosure.

false assertion of fact

According to the Uniform Commercial Code, how long does a plaintiff have to sue for breach of contract once the cause of action accrues? Multiple choice question.

four years

According to the statute of ______, if a contract can possibly be performed within one year, the contract does not need to be in writing in order to be enforceable.

frauds

An intentional and knowing false representation of a material act that is intended to mislead the other party is known as a(n): _______.

fraudulent misrepresentation

Mr. Matisse was an art dealer who sold original works of art and copies of famous artwork. Mr Matisse saw a couple of customers who gave him the impression that they knew next to nothing about artwork. They were interested in purchasing a copy of a famous Picasso. When they asked Mr. Matisse if the work was an original, Mr. Matisse assured them it was really an original work of Picasso's and he further stated, "I should know -- I am an art dealer". Mr. Matisse was fully aware that it was a copy, but he needed the income. So he sold the painting to the couple at a very high price. The couple discovered that the painting was a copy when they tried to insure it. They sued Mr. Matisse. The court will find that Mr. Matisse had engaged in: _______.

fraudulent misrepresentation and would award damages to the couple

Which of the following is a type of legal capacity a person suffering from a mental illness may have, depending on the nature and extent of their deficiency?

full

According to the Magnuson-Moss Act, if a seller's written warranty is silent about whether it is a full or limited warranty, the act assumes that it is a(n):

full warranty

In some cases, if past consideration was given with the expectation of ______ payment, the court may enforce the promise.

future

______ refers to agreements in which parties pay consideration for the chance, or opportunity, to obtain an amount of money or property.

gambling

Industry officials prefer to use the term ______, rather than gambling, to refer to agreements in which parties pay consideration for the chance, or opportunity, to obtain an amount of money or property.

gaming

Katie offered to buy Jonathan's set of trading cards. Although Jonathan was reluctant to sell the cards to Katie, Katie threatened to physically hurt him if he did not sell. Jonathan reluctantly agreed and Katie gave him the money she had promised. Jonathan later changed his mind and went to court to try to get his trading cards back. Jonathan's best argument to have the contract voided is that there was no: _______

genuine assent

In a transfer of title, if the seller holds a void title, then the buyer:

gets nothing, since the title is a void title

The purpose of a merger clause is to:

give direction to a judge that the written contract is intended to be the final and complete statement of the agreement

The UCC protects _____ faith purchasers in a commercial transaction.

good

faith is irrelevant in determining if a void title has passed to another individual.

good

The UCC attempts to protect what type of purchasers in a valid commercial transaction?

good faith purchasers

If a good faith purchaser acquires an item from a merchant who was entrusted with the item from an owner who did not want the item sold, what form of title does the purchaser have?

good title

The most obvious way of attaining _______ title is acquiring it from someone who has it, and who owns the title _______

good; free and clear

When a seller transfers a _______ title, it will never become a(n) ______ title for the buyer.

good; void

______-in-bailment is a contract where the goods are placed in storage under the control of a third party.

goods

Under the UCC, a warranty of title assumes that the seller (1) has the right to transfer title free and clear of any liens, judgments, or infringements of intellectual property rights of which the buyer does not have knowledge and (2): _______.

has good and valid title to the goods

In the computer software industry, it is an accepted part of the trade that new software should be shipped in shrink-wrapped containers to demonstrate that the software is fresh from the factory. Barbara purchased software from the manufacturer and was very surprised when the box was delivered with no shrink-wrap, and the DVD and other materials were carelessly thrown in the box. Barbara called the manufacturer and said that this was not acceptable since the: _______.

implied warranty of trade usage has been violated

Barry was interested in buying a house. He has worked with his real estate agent, Rita, for two years now. His real estate agent found the exact type of house that he was looking for except that she failed to disclose that the house had a severe infestation of termites that had left the structure of the house compromised and in danger of collapse. The state required both the agent and the owners to disclose any apparent or latent defect in the house, but both parties failed to tell Barry about the damage. Barry entered a bid and the owners accepted his bid. Barry had a house inspector inspect the house and when he was told of the termite infestation, he sued to rescind the contract based on nondisclosure. The court will find that this nondisclosure: _______.

has the same effect as a false assertion and will act to rescind the contract

The written requirement under the statute of frauds can be demonstrated by:

having several written documents as part of a contractual agreement

In order to receive damages as a result of fraudulent misrepresentation, the plaintiff must demonstrate that

he or she was injured or harmed by the misrepresentation

If a unilateral mistake has been made about a material fact of the contract, the courts are: _______.

hesitant to void the contract

If a buyer has deceived the seller regarding his or her true______ , then a title is voidable.

identity

When a person promises that they may do something if they want to, they have made an ______ promise. Such a promise is not sufficient consideration.

illusory

A substituted contract ______ discharges the parties from their obligations under the old contract and replaces those obligations with the new obligations imposed by the substituted contract.

immediately

In case of the death of the offeror, the offer terminates

immediately

Which of the following is a condition that is not explicitly stated, but is inferred from the nature and language of the contract?

implied

conditions are those that are not explicitly stated, but are inferred from the nature and language of the contract.

implied

Most courts find that continuing to act in accordance with a contract, such as continuing to make regular payments after reaching the age of majority, constitutes a(n) _______.

implied ratification

Which of the following occurs when a former minor takes some action after reaching the age of majority consistent with the intent to ratify a contract?

implied ratification

Under the UCC, _____ include the implied warranty of merchantability, the implied warranty of particular purpose, and the implied warranty of trade usage.

implied warranties of quality

Shawna had borrowed Vivian's Rolex watch which was worth $10,000. While she was wearing the watch, Maria, a friend of Vivian's, came up to Shawna and said she would give her $6,000 for the watch. Maria knew the watch belonged to Vivian. Shawna accepted the money and gave the watch to Maria. When Vivian found out, she claimed the sale must be voided due to a breach in the

implied warranties of title

An express warranty is explicitly stated, whereas a(n) ______ is automatically injected into the contract, as a matter of law.

implied warranty

Alan bought a grandfather clock from a clock dealer; however, the clock failed to keep time and either stopped working or slowed down. Alan could ask for his money back since the clock violated the UCC's: _______.

implied warranty of merchantability

Louis had a standing order of 500 pounds of tuna with a wholesaler who did business on the docks. On this particular day, Louis came to pick up the order for the restaurant he worked for, but refused the shipment because the fish appeared to be old and showing signs of decay. The wholesaler was furious and demanded payment, but Louis refused saying that the goods were not acceptable. The UCC warranty that Louis could use as a defense is the:

implied warranty of merchantability

The UCC warranty that codifies a reasonable expectation that a good will perform as it should is known as a(n): _______.

implied warranty of merchantability

In this case, a(n) _______ contract is created when the offeree is silent but receives a legal benefit.

implied-in-fact

What type of contract is formed when the offeree receives the benefits of offered services with a reasonable opportunity to reject them and knows that some form of compensation is expected, yet remains silent?

implied-in-fact

According to the Restatement (Second) of Contracts, if a court -- as a matter of law -- finds a contract or any clause of the contract to have been unconscionable at the time it was made, the court may do all of the following except: ______

impose statutory sanctions on the party who drafted the contract

Commercial ______ is used when performance is still _________ possible, but would be extraordinarily injurious or expensive to one party.

impracticability; objectively

According to the legal principle of ______ both contracting parties are equally responsible for an illegal agreement.

in pari delicto

____________, or incompetence, is the possession of a mental or physical defect that prevents a natural person from being able to enter into a legally binding contract.

incapacity

If a buyer is in breach, which of the following does the Uniform Commercial Code UCC Section 2-706 allows the seller to recover?

incidental damages The difference between the resale price and the contract price

Another term for incapacity is:

incompetence

Courts do not allow a non-breaching party to intentionally ______ his or her damages.

increase

A(n) ______ contract must be enforced or rejected in its entirety.

indivisible

If declaring parts of a contract void would substantially alter it, such a contract is Blank 1 of 1; in such a situation, a court must either enforce or reject the contract in its entirety.

indivisible

Which of the following contracts requires complete performance by both parties, even if it appears to contain multiple parts?

indivisible

A false statement about a material fact that was based on an innocent belief that the false statement was true is a(n): _______.

innocent misrepresentation

Jonathan was a sales person at a hardware store. The store had run a promotion for the past week which would give any customer who bought a lawnmower a free leaf blower. The promotion had ended the previous day, but Jonathan thought the promotion ran through the next day. Jonathan's customer had agreed to buy a lawnmower and Jonathan put a leaf blower in his cart thinking that it would be free due to the promotion. However, the check-out person rang it up as a charge against the customer. Jonathan's assertion that the customer would get a free leaf-blower with the purchase of the lawnmower is an example of: _______.

innocent misrepresentation

Unless the parties have agreed otherwise, the buyer or lessee typically ______ the goods before paying

inspect

Once the buyer or lessee ______ the goods, he or she decides whether to accept the goods.

inspects

Once a fully ______ agreement has been written, no oral evidence of any prior or contemporaneous agreement can be admitted in court to change the terms of the agreement.

integrated

Jeff was shopping for a good used car. He met Seth, the salesperson, and asked Seth many questions about the car. Seth told Jeff that the car Jeff was asking about had very low mileage and that he knew that himself since he had processed the sale of the car from the former owner. In reality, Seth had personally set back the odometer in the car. What kind of scienter did Seth have?

intent to deceive

The partial performance exception to the statute of frauds covers contracts: _______.

involving property interest

In order to have promissory estoppel, the agreement:

is not otherwise an enforceable contract

If the buyer is aware that there is a problem with the transfer of goods, the buyer: _______.

is purchasing those goods at their own risk.

If a contractual offer becomes illegal, what is status of the offer?

it is immediately terminated

Which of the following is not a commonly recognized way by which a party's contractual obligations can be terminated?

labor cost increase

Gabe and Nelson entered into a contract where Gabe agreed to buy a sword owned by Nelson for $300. Gabe thought he was buying the Japanese sword owned by Nelson, but Nelson intended to sell the French rapier. Obviously, the two parties committed a mistake of fact which results in a(n): _______.

lack of assent

Adhesion contracts are : _______.

legal

A promise that the courts will require the parties to obey is known as: _______.

legal assent

If there is a misrepresentation in a contract, the court allows the parties to rescind the contract because the contract lacks ______

legal assent

Once a person reaches the age of majority, she may ratify, or ______ contracts made as a minor.

legally affirm

In terms of the effect of entering into an agreement with a person who is unlawfully unlicensed, in some states the rule is "no ______, no ______." These states will not enforce any agreement with an unlawfully licensed professional.

license; contract

A buyer may waive their warranty rights by bringing a case against the seller after the UCC or state's set time limit. If the claim is filed after that specified time, the buyer waives their rights by failing to comply with the statute of:

limitations

Which of the following is a type of legal capacity a person suffering from a mental illness may have, depending on the nature and extent of their deficiency?

limited

The Magnuson-Moss Act requires that if a seller decides to issue a written warranty for goods being sold for more than $10, the warranty must specify if it is a(n):

limited or full warranty

If there is no dispute that money is owed, then the debt is ______.

liquidated

Damages specified as a term of a contract, before a breach of contract occurs, are called ______.

liquidated damages

For a(n) ______ debt, if the debtor offers to pay less money than is owed as full payment and the creditor agrees, there is not a(n)______, and even if the debtor pays the money agreed to, the creditor may nevertheless sue for the balance it believes is owed.

liquidated; accord

Trey was a pilot for a large airline. He also spent his spare time selling his homemade vitamins. These vitamins were capsules filled with cod liver oil, but Trey told his customers that these vitamins were a cure for cancer. Trey knew that the cod liver oil in the vitamins would never cure cancer, but he made the claim anyway. He promised that if his customers would invest in a month-to-month delivery plan for these vitamins that the purchaser would never be plagued with cancer again. Suppose that Paul bought the vitamins and then got cancer. If Paul sues Trey for fraudulent misrepresentation, Paul will: _______.

lose, because he should not have relied on Trey's representation

If a construction contract is breached by the landowner before the construction is begun, damages are simply the ______ of the contract.

lost profits

The ______ rule states that an acceptance is valid when mailed and a revocation is only effective when received.

mailbox

One of the benefits of the statute of frauds is that it: _______.

makes contractual negotiations easier by ensuring all the specific terms of a contract are written and aware to all parties

What type of breach occurs when a party unjustifiably fails to substantially perform his or her obligations under the contract, thereby discharging the non-breaching party from his or her obligations under the contract?

material

______ terms allow a court to determine damages if one of the parties breaches the contract.

material

A(n) ______ discharges the nonbreaching party from his or her obligations under the contract.

material breach

Arthur bought some books from a booth at a flea market. Arthur had assumed the owner of the booth was the owner of the books, but much to Arthur's surprise, the police showed up at his door stating that the books were stolen property. Whenever a buyer is unaware that the seller is transferring goods for which no good title passes, the buyer:

may treat the contract as in breach

If contractual performance involves a _______ or utility standard, courts use a(n) ______ satisfaction standard.

mechanical; objective

In an entrustment case with a good faith purchaser, the owner of the item in question can only sue the

merchant

The landmark case defining and illustrating the implied warranty of ______ is Webster v. Blue Ship Tea Room, Inc.

merchantability

Under the UCC, the implied warranties of quality include the implied warranty of:_______.

merchantability trade usage a particular purpose

When the parties to a transaction are ______, the Uniform Commercial Code imposes a higher standard of good faith.

merchants

A(n) ______ explicitly states that the written contract is intended to be the complete and final version of the contract between the parties and that other possible agreements between the parties, besides the one in question, are not part of the final written agreement.

merger clause

If the buyer of goods under a contract is a(n) ______, then the title that the buyer receives is

minor; voidable

In most states, ______ are liable for a minor's personal torts.

minors, not their parents

A pharmaceutical company was marketing a new drug which had been tested for its effectiveness in curing headaches. The drug was very good at curing headaches, but that was all it did. However, the executives wanted to raise the sales of the drug by also claiming that it provided a cure for hair loss. There was absolutely no proof of this, but the pharmaceutical company advertised the drug as a headache cure and a hair loss cure. Soon there were complaints that the drug did not work as a hair loss cure. The pharmaceutical company is guilty of: _______.

misrepresentation

An untruthful assertion by one of the parties about a material fact of the contract is: _______.

misrepresentation

The parties to a contract typically have a particular understanding as to the good or service they are giving or receiving. If one or both parties are under the wrong impression of that good or service, we say that a(n):

mistake has occurred

Whenever possible, courts award _______ damages rather than some form of _______ relief.

monetary, equitable

The UCC, always diligent in its goal to facilitate the flow and ease of commercial activity, recognizes that a well-accepted course of dealing or trade usage may create implied warranties dependent on the circumstances. This is known as a(n): _______.

mplied warranty of trade usage

If there is something in addition to a promise to marry as part of a marriage agreement, then the agreement: _______.

must be in writing

In order to be considered exempt from the statute of frauds, a contract:

must be possibly performed in one year, even if the performance is highly unlikely

Peter contracted with Abe to buy his motorcycle. Peter thought he had bought the 2011 motorcycle, but Abe had intended to sell his 1990 motorcycle. Since both parties were mistaken about a material term of the contract, this is called a(n) ____.

mutual mistake

A normal marriage agreement is typically a(n):

mutual promise that does not fall within the statute of frauds

Sabbath laws typically do not apply to contracts for obtaining ______, including prescription medication, food, and anything else related to health or survival.

necessities

Courts find _______ only when the party making the false statement should have known the truth using the skills and competence required of a person in her position or profession.

negligent misrepresentation

Jacqueline was at an antique book store. She was interested in purchasing a very old edition of Dickens' Great Expectations. Jacqueline remarked that the price was quite high, but Mark, the sales clerk, told her that it was a first edition. Mark was not sure the book was actually a first edition. He could have easily verified this because the owner of the shop, Mr. Sykes, was an expert on Dickens and antique books. Mr.Sykes was in his office a few steps from the counter. Mark was rather lazy, and he thought it was too much bother to check with Mr.Sykes, so he sold Jacqueline the book at a very high price. Jacqueline had the book appraised and learned later that it was not a first edition. She tried to return the book, but Mark said all sales were final. Jacqueline sued saying that Mark had misrepresented the fact that the book was a first edition. The judge is most likely to find: _______.

negligent misrepresentation

if Ron makes a statement that he believes is true, but Ron could have known the truth about a material fact if he used reasonable care to find the truth, then the statement that was made is known as: _______.

negligent misrepresentation

Suppose Jeremy offers a job to Carol but states in the offer, "I must receive your acceptance by email before 5:00PM September 5" Carol puts her signed acceptance in the mail September 3rd but the acceptance does not arrive until September 7th. Jeremy and Carol have

no agreement, because Carol did not accept in the manner and time specified in the offer

If an acceptance is sent to the wrong address and never arrives at the correct address, then there is: ______.

no contract

The failure to provide pertinent information about the projected contract is known as: _______.

nondisclosure

_____ is a failure to provide pertinent information about the contract.

nondisclosure

As a general rule, parents are ______ liable for contracts entered into by their minor children.

not

UCC Sections 2-615(a) and 2A-405(a) state that a delay in delivery or nondelivery, in whole or in part, is not a breach in circumstances in which performance has been made impracticable because a contingency has occurred that was _____ when the parties reached an agreement.

not contemplated

Leslie sold Tom her house for $5,000, but lied to Tom because she did not actually own the house. The court is likely to: _______.

not enforce the contract

If no exception allows a usurious loan, a few states declare all usurious loans void, which means that the lender is ______.

not entitled to recover either principal or interest

When a court determines a restraint on trade is reasonable and the restraint is part of a subordinate, or ancillary, clause in a contract, the restraint is typically allowed. Such restraints are known as a ______.

not to compete covenant

A court was asked to void a contract based on mutual mistake. The parties had entered into an agreement where the seller of goods believed that he was to deliver the goods on the truck which was designated as Route 1. However, the buyer thought he was contracting for the truck designated as Route 2. The only difference between the two trucks was the delivery date -- the Route 1 shipment would be delivered one day sooner than goods shipped on Route 2. The later delivery did not really affect the buyer in any negative way. The buyer was so furious about the late delivery that he wished to teach the trucking company a lesson and requested the court to void the contract. The court will: _______.

not void the contract, since at least one of the elements of mutual mistake is missing

If intoxication causes a person to exercise poor judgment in making a contract, the contract is ______ unless the other party unfairly capitalized on the impaired judgment.

not voidable

Sometimes the parties to the agreement want to replace one of the parties with a third party. This substitution of a party is called a(n)

novation

What is the standard that courts use to interpret contracts?

objective standard

A counteroffer is made from the ______ to the ______

offeree; offeror

If it is not clear whether the ______ wants performance or a return promise, the offeree has the option of either performing or making a return promise.

offeror

The name of the party initiating an offer for a contract is the

offeror

Which party to a contract is said to be the "master of their offer"?

offeror

Who has the power to decide by what means an offer can validly be accepted?

offeror

which party to a contract can revoke an offer at any time?

offeror

What are the names of the parties that form a contract?

offeror offeree

Most states will allow a merger clause to constitute the stated intent of the parties unless ______.

one party offers proof of a personal defense against the contract

Promissory estoppel is the contractual concept that

one party reasonably relied on another's promise and due to that reliance, the court won't allow the revocation of the offer now

In a case of an innocent mistake, a victim can

only request rescission of the contract

In a case of an innocent mistake, a victim can: _______.

only request rescission of the contract

Sometimes a contract may be discharged not by anything the parties do but, rather, by ______.

operation of law

Discharge by ______ refers to parties discharging their obligations by doing what they respectively agreed to do under the terms of the contract.

performance

As a general rule, covenants not to compete in employment contracts are: _______.

permissible

Compensatory damages are designed to put the ______ in the position she would have been in had the contract been fully performed.

plantiff

For compliance with the statute of frauds one-year rule, the one year is measured by the: _______.

possibility of completing the contract

The test for compliance with the one-year rule considers the ______.

possibility of completing the contract within one year

A condition ______ is a particular event that must occur in order for a party's duty to arise

precedent

When a contract is based on a future event occurring first, then that future event is called a condition _______

precedent

Performance of a duty you are obligated to do under the law is not good consideration. This is known as the ______ duty rule.

preexisting

A purpose of the statute of fraud is to ______.

prevent unreliable oral evidence from interfering with a contractual relationship

A benefit of the statute of frauds to enforcement of a contract is that it

prevents unreliable oral evidence from interfering with a contractual relationship.

A prenuptial agreement is an agreement made by two parties _____ regarding ownership rights to property.

prior to their marriage

A party seeking enforcement of an exculpatory clause must be a(n) ______ business or individual not important to the ______ interest.

private; public

______ unconscionability describes conditions that impair one party's understanding of a contract, as well as the integration of terms into a contract.

procedural

If a construction contract is breached by the landowner before the construction is begun, damages are simply lost

profits

Statements of opinion are often salespersons' exaggerations and are known as: _______.

puffing

In an agreement for the sale of goods over $500, only the _____ needs to be stated.

quantity

Recovery in _________contract is often sought when a party thought a valid contract existed, and thus gave up something of value relying on the existence of a contract.

quasi

Through recovery based on ______-contract, the court may impose a contract-like obligation on a party to prevent an injustice from occurring.

quasi

An implied _______ occurs when a former minor takes some action after reaching the age of majority consistent with intent to ratify a contract.

ratification

When the parties to a transaction are merchants, the Uniform Commercial Code imposes a good faith standard of not only honesty in fact, but also reasonable commercial standards of fair dealing. This second requirement is often called commercial: _______. Multiple choice question.

reasonableness

With a sale on approval contract, the buyer _______ prior to the execution of a contract in order to decide if she will complete the contract.

receives the goods

The remedy that is most appropriate when a mutual mistake has occurred is:

recission

UCC Section 2-702(2) allows a seller to ______ goods when it discovers the buyer is insolvent.

reclaim

An exculpatory clause releases one of the contracting parties from all liability: _______.

regardless of who is at fault

The Uniform Commercial Code allows the seller or lessor to presume acceptance if the buyer or lessee fails to ______ the goods within a reasonable time.

reject

The Uniform Commercial Code Sections 2-601 and 2A-519 allow the buyer or lessee to ______.

reject the goods

Upon inspection, if goods are nonconforming, the buyer may ______ the goods, subject to the seller's right to ______.

reject; cure

Suppose Joseph calls Justin and says, "Justin, I've found someone else to do my woodwork for the winter, and I won't be needing you." A day later Joseph changes his mind and calls Justin and wants to hire him based on the previously discussed terms. This is a valid

rejection

Suppose Joseph calls Justin and says, "Justin, I've found someone else to do my woodwork for the winter, and I won't be needing you." A day later Joseph changes his mind and calls Justin and wants to hire him based on the previously discussed terms. This is a valid: _______.

rejection

With a novation, original contract duties

remain

Laurie's new hedge-trimmer failed to work after only 3 days. The written warranty that came with the hedge-trimmer did not specify whether or not the warranty would be a full or limited warranty. Laurie brought the hedge-trimmer back and demanded the store provide a remedy to the situation. According to the Magnuson-Moss Act, Laurie is entitled to: _______.

replacement of the good or defective part or she is entitled to a refund

The courts insist on a "meeting of the minds" to have a valid contract and even if a misrepresentation was innocent and without intent, the court will: _______.

rescind the contract

A contract that is voidable can be ______, where the person canceling the contract is required to return everything she gave the other party and return anything the other party gave to her.

rescinded

A court ordered that a contract was voidable due to the lack of legal assent. The court also ordered that both parties must return what the other party had given to them. This scenario exemplifies the: _______

rescission of a contract

Brenda went shopping for a new computer at a nearby computer store. Her salesperson, Alan, had been told by another sales associate that a free printer was to be given to any customer who purchased a new laptop. This was not the case, but Alan believed the sales associate since he had been working at the store for two years. Alan told Brenda about the free printer, and Brenda purchased the laptop. Unfortunately Brenda was charged for the printer. Brenda was very angry and went to court. The judge found that there was innocent misrepresentation, and therefore, Brenda can be given: _______.

rescission of the contract, but no damages

A covenant not to compete is also known as a(n):

restrictive covenant

if an offer is for a unilateral contract, the offeree can accept only by providing the requested performance. Suppose Bill offered to pay $500 to anyone who returned his lost dog to him. Mary could accept by:______

returning the dog

Which of the following is not a basic obligation of buyers and lessees as set forth in the Uniform Commercial Code?

revocation

The buyer may ______ acceptance if the nonconformity ______ impairs the value of the goods, but only if the buyer had a legitimate reason for the initial acceptance.

revoke; substantially

Assume that an offer merely authorizes certain modes of acceptance, but does not condition acceptance on the use of those modes. In such a situation, if the offeree uses an unauthorized means of acceptance: _______.

the acceptance creates a valid contract upon receipt by the offeror

If the main purpose for taking on a secondary obligation is personal benefit, then

the agreement does not fall under the statute of frauds and does not have to be in writing.

In cases where a seller sues the buyer for breach of the contract, the court is most likely to award

the benefit of the bargain to the seller

In cases where a seller sues the buyer for breach of the contract, the court is most likely to award ______

the benefit of the bargain to the seller

According to the Restatement (Second) of Contracts, discharge by reason of impracticability requires that the party claiming discharge prove all of the following except that:

the breaching party violated a duty of care to the party claiming discharge, and caused damages as a result

UCC Section 2-608 indicates that the buyer who has accepted goods may later revoke the acceptance only if _____.

the buyer can show that the defects substantially impair the value of the goods

UCC Sections 2-703(f) and 2A-523(1)(a) allow a seller to cancel a contract if

the buyer is in breach

UCC Sections 2-703(f) and 2A-523(1)(a) allow a seller to cancel a contract if ______.

the buyer is in breach

The Uniform Commercial Code Section 2-702(2) allows a seller to reclaim goods when it discovers that

the buyer is insolvent

Once an offeree rejects an option contact (a contract open for a predetermined period of time), what happens?

the contract is immediately terminated

According to the Uniform Commercial Code, if the seller breaches the contract, the compensatory damages are calculated as

the difference between the contract price and the market price on the day the goods were supposed to be delivered

According to the Uniform Commercial Code, if the seller breaches the contract, the compensatory damages are calculated as ______.

the difference between the contract price and the market price on the day the goods were supposed to be delivered

In some states, under ______ contracts that would normally fall under the statute and need a writing if negotiated by the principal must be in writing even if negotiated by an agent.

the equal dignity rule

The injured party has two responsibilities in a case of false assertion. The first is that there is no claim of false assertion if the falsity is obvious, and the other is that there is no claim of false assertion if

the falsity could have been discovered by inspecting the item

When a seller of goods knows or has reason to know why a buyer is buying specific goods and that the buyer is relying on the seller to make the selection, this warranty is:

the implied warranty of fitness for a particular purpose

The quintessential case Webster v. Blue Ship Tea Room defined and illustrated ______.

the implied warranty of merchantability

Within the statute of frauds, the term "land" means:

the land and soil itself of a parcel of property anything attached to the parcel of property, such as trees and buildings

In the context of contracts, the legal capacity of a party refers to ______.

the mental ability to understand his or her rights

When there is entrustment and a good faith purchaser has acquired an item from a merchant, the original owner of the item can bring legal action against

the merchant

If an owner entrusts the possession of goods to a merchant who deals in goods of that kind

the merchant can transfer all rights in the goods to a buyer in the ordinary course of business

If the subject matter of a contractual offer is destroyed, then what is the status of the offer?

the offer is immediately terminated

As a general rule, a revocation of an offer is effective when

the offeree receives it

In the context of discharge by mutual agreement, discharge by novation refers to the situation in which

the original parties and a third party all agree that the third party will replace one of the original parties and that the original party will then be discharged

In the context of discharge by mutual agreement, discharge by novation refers to the situation in which ______

the original parties and a third party all agree that the third party will replace one of the original parties and that the original party will then be discharged

UCC sections indicate that if the tender of delivery fail in any respect to conform to the contract, the buyer/lessee has _____.

the right to accept or reject the entire shipment the right to reject part and accept part of the shipment

Which of the following refers to the right of sellers and lessors to fix problems with nonconforming goods?

the right to cure

The word parol in the "parol evidence rule" refers to

the spoken words outside of the original writing of a contract.

In the context of a contractual offer, silence by the offeree can be interpreted as acceptance when ______.

the two parties have a long-standing relationship where rejection is immediately communicated by the offeree

In the context of general rules for illegal agreements, a party is allowed to sue for performance if ______.

the violated statute is intended to protect the specific class to which the party belongs

The title "statute of frauds" is misleading because: _______.

there is not one statute, but rather the statute of frauds is a general collection of concepts that has been incorporated at the state level

The UCC recognizes the rights of other parties in addition to the rights of the buyer. This is known as warranty rights of:

third parties

There are ______ steps under the UCC to forming a simple delivery contract.

three

The UCC defines a sale as the passing of ______ from seller to buyer. Multiple choice question.

title of an item

The UCC defines a sale as the passing of ______ from the seller to the buyer for _______.

title; a price

Consideration for a prenuptial agreement offers evidence that both parties have agreed:

to all the terms of the agreement, and the agreement is not biased in favor of one party

In an option contract, the offeree gives consideration to the offeror

to have an offer that cannot be revoked by the offeror for a period of time

For a simple delivery contract, the goods are:

transferred at the time of the sale or at some time later by seller's deliver

When a contract consists of both written and oral elements, judges tend to

treat it as nonfinalized contract

Judges will typically handle an agreement that consists of both written and oral elements by: _______.

treating the contract as not finalized and assuming the parties do not intend to have the written part represent the entire agreement

Substantive Blank 1 of 1 occurs when an agreement is overly harsh or lopsided.

unconscionability

The common law would not enforce contracts the courts deemed ______.

unconscionable

Under common law, a(n) ______ contract is unenforceable.

unconscionable

Which of the following terms refers to an agreement so unfair that it is void of conscience?

unconscionable

Alice had recently purchased a treadmill for her home gym. Her daughter, Kim, asked for her mom's permission to use the treadmill. Alice gave her permission, but when Kim started to run on the treadmill, the machine started to violently shake and threw Kim off the treadmill, causing her injury. Alice brought a legal claim against the company on behalf of her daughter, claiming that Kim had a valid claim because of the: _______. Multiple choice question.

warranty rights of third parties

Under the mailbox rule, acceptance is valid: _______.

when it is mailed by the offeree

As a general rule, a revocation is effective

when offeree receives the revocation

An implied warranty of fitness for a particular purpose is when a seller or lessor knows or has reason to know:

why the buyer or lessee is purchasing or leasing the goods in question. that the buyer or lessee is relying on him or her to make the selection

To revoke acceptance means to ______ acceptance of

withdraw

If one party promises something to another party as part of an offer of marriage then the contract must be ______ to be enforceable.

written

In the context of the statute of frauds, contracts in which one party promise(s) something in exchange for another's promise to marry must be ______ to be enforceable.

written

Josh contracted with a railroad company to have his order of lumber delivered by the train the company called Westward. Actually, there were two trains that were named Westward. They were identical trains, but had different delivery times. Josh thought his goods were being delivered by Westward I which delivered goods at the end of October. Westward II had a delivery date of February. Josh thought he was contracting for Westward I and the railroad company thought he wanted Westward II. Will the court void or rescind the contract due to mutual mistake?

yes, since all of the required elements are present for mutual mistake