b

Which Article of the UCC governs contracts for the sale of goods?

2

Which of the following is true of a mutual mistake?

A contract entered into based on mutual mistake can be rescinded by either party.

In which of the following situations may court order specific performance by the breaching party?

A contract for the sale of a rare coin that the defendant now refuses to sale.

Which of the following describes a quasi-contract?

A contractual obligation imposed by court to prevent unjust enrichment.

Brian promises his tennis coach that he will not ride his motorcycle until the tournament is over even though he loves riding it. What type of consideration does the example suggest?

A detriment to the promisee.

What is an accord?

A promise to perform a new duty

Which of the following is an exception to the preexisting duty rule?

Additional work.

Which of the following constitutes an offer?

An auction without reserve.

What condition in a contract is not explicitly stated but is inferred from the nature and language of the contract?

An implied condition

Which of the following statements describes a recognizance?

An obligation in which a party acknowledges in court that he or she will perform some specified act.

After Company X enters into a contract with Company Y, it advises Company Y of its intent to not honor its contractual obligations. This is an example of:

Anticipatory repudiation

Under which of the following contracts does a minor generally not have the right to disaffirm?

Both life insurance contracts and marriage contracts

What are the two primary sources of contract law?

Case law and the UCC.

What type of damages are awarded to a plaintiff as reimbursement for her or his losses?

Compensatory

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

Conditions of the contract are not met

Which of the following is not a condition of promissory estoppel?

Consideration must clearly exist.

Which is not an element of a valid offer?

Contractual capacity.

A basic test to determine whether an exculpatory clause is unenforceable is to see if the enforcing party engages in a business indirectly related to the public interest.

False

An agreement to commit a crime or tort is enforceable by the courts.

False

Compensatory damages are foreseeable damages that result from special facts arising outside the contract.

False

Contracts under seal require specific consideration for them to be legal.

False

Courts will not rescind a contract for a misrepresentation made by one party.

False

Covenants not to compete in employment contracts are illegal in most states.

False

For a liquidated debt, the plaintiff must show actual, tangible evidence to prove his or her legal damages.

False

In an auction without reserve, the seller is merely expressing an intent to receive offers.

False

In an executory contract, all terms must be fully performed.

False

Nondisclosure occurs when a party tries to hide the truth about an important fact of the agreement.

False

Secondary obligations are not within the statute of frauds and do not have to be in writing.

False

The court always considers the adequacy of consideration given by the parties.

False

What degree of trust generally exists when a party is able to unduly influence another party?

High

Which third-party beneficiaries do not have any rights to enforce a contract?

Incidental beneficiaries

Which of the following describes a false statement about a fact material to an agreement that the person who made the statement believed to be true?

Innocent misrepresentation

Which of the following is true of a severable contract?

It has both legal and illegal portions in the contract.

Which group wrote the Restatement of Law, Contracts?

Legal scholars.

Which clause states that the written agreement accurately reflects the final, complete version of the agreement?

Merger clause

What is a plaintiff seeking if he requests legal damages?

Monetary damages

Which of the following will not emancipate a minor?

Moving out of the house but still getting support from parents.

If a party rescinds a contract, what must they do with whatever they received from the other party?

Must return it.

Which of the following is not a defense to a contract?

No consideration.

Under the statute of frauds, how many specific requirements for the form of a written contract exists?

None of these choices are correct.

What is an agreement whereby the offeree gives the offeror a piece of consideration in exchange for the offeror's agreement to hold the offer open for the specified period of time?

Option contract.

Which of the following exceptions to the statute of frauds is due to a party's detrimental reliance on the contract?

Promissory estoppel

In which of the following instances can injustice be avoided by carrying out the promise?

Promissory estoppel.

Which of the following is not an element of a contract?

Proper form.

Which of the following damages are imposed to punish the defendant and deter such conduct in the future?

Punitive

What type of signature is required under the statute of frauds?

Some sort of mark for a signature

How is the amount of liquidated damages which may be awarded by a court determined?

Specified in the contract

A unilateral contract may be rescinded if:

The mistake was caused by a clerical error that did not result from gross negligence.

A mutual mistake of a material fact generally makes a contract voidable.

True

A voidable contract may be rescinded.

True

An option contract is an agreement whereby the offeree gives the offeror a piece of consideration in exchange for the offeror's agreement to hold the offer open for the specified period of time.

True

Contracts entered into with or by a minor are voidable.

True

If the subject matter of the offer is destroyed or becomes illegal, the offer immediately terminates.

True

The plaintiff has an obligation to try to mitigate one's damages in a breach-of-contract case.

True

The statute of frauds does not relate to fraudulent contracts.

True

Which contract classification is defined as a promise in exchange for an act?

Unilateral.

Under a condition precedent clause, a party's duty does not arise until __________.

a certain event occurs

Under the mirror-image rule, the terms of the __________ must mirror the terms of the offer.

acceptance

The mailbox rule applies to:

an acceptance.

Bob's promise to paint Mary's house if he has time is an illustration of:

an illusory promise.

A substantive unconscionable contract contains conditions that:

are one-sided.

Mark signs an agreement giving his mother the rights to collect the rent from an apartment he owns. In this case, Mark is a/an __________.

assignor

An indivisible contract requires complete performance by __________.

both parties

A party in a contract who transfers his or her duties to perform to a third party who is not part of the original contract is known as a(n):

delegator

The parol evidence rule applies to agreements that are:

fully integrated.

For a contract to be enforceable under the statute of frauds, it must be:

in writing.

If the parties do not dispute the amount of money owed, the debt is a(an) __________ debt.

liquidated

An offer immediately terminates in all of the following situations, except:

manifestation of intent to be bound.

A misrepresentation is an untruthful assertion by one of the parties about a __________.

material fact

Under an adhesion contract, negotiations are:

nonexistent.

Consideration must be __________.

the product of a bargained for exchange

A contract where the powerful party dictates the terms of the agreement and eliminates the other party's free will are considered __________.

unconscionable

Jane is Harriet's caregiver. If Jane convinces Harriet to change her will and leave Jane all of her possessions, the will may be voidable due to __________.

undue influence

If one or both parties have the ability to either withdraw from the contract or enforce it, the contract is said to be:

voidable