BLaw
If a court later finds that a person lacked mental capacity at the time the contract was entered into, the contract is _____.
voidable at the election of that person (or his or her guardian or administrator)
If the offer or circumstances do not indicate otherwise, the means the offeror used to communicate the offer is the impliedly authorized means for accepting.
True
If the promisee does or agrees to do something he or she had no prior legal duty to do in exchange for the promisor's promise, that provides legal value.
True
If the promisor's performance will satisfy a legal duty that the promisee owes a third party, the third party is a creditor beneficiary.
True
If two parties used a form contract, and one of the parties drafted the contract, ambiguities are resolved against the party who drafted the contract.
True
In a bilateral contract, both parties make a promise.
True
In determining whether the offeree accepted the offer, the court looks for the offeree's present intent to contract.
True
In most states, the agreements of persons who have been adjudicated insane are void.
True
Incidental beneficiaries acquire no rights under the contract and so cannot sue for nonperformance.
True
Many states require contracts to pay a commission on the sale of real estate to be evidenced by a writing.
True
Many states require contracts to pay debts barred by a bankruptcy discharge or the statute of limitations to be evidenced by a writing.
True
Misrepresentation can result from negligence on the part of the misrepresenter.
True
Not all promises are contracts.
True
Offerors generally have the power to revoke their offers at any time prior to acceptance, even if they have promised not to revoke for a stated period of time.
True
Once a binding accord and satisfaction has been entered into, parties give up their right to have a court decide their liability.
True
Oral evidence can be introduced to help a court resolve ambiguities in a written contract.
True
People are free to make bad bargains.
True
Promisors in complete performance contracts who do not completely perform their contractual duties cannot recover the contract price. They may, however, recover in quasi contract for benefits conferred on the other party.
True
Rob's construction firm did not give Casey a certificate, issued by Timothy Engineering Firm, indicating that the work has been completed to satisfaction. Hence, Casey has no duty to pay Rob's firm.
True
If an offer does not state a time for acceptance, it is valid:
for a reasonable time, which depends on the circumstances of the offer.
Gilles tampers with the odometer of a car he is trying to sell. In order to convince the buyer that the car has run fewer miles than it actually has, he manually sets the odometer to the numbers of miles he wants displayed. In this scenario, Gilles is guilty of _____.
fraud with intent to deceive
Assignees should promptly notify the promisor of an assignment because the promisor who renders performance to the assignor without notice of the assignment:
has no further liability under the contract.
A creditor beneficiary:
has rights against both the promisee and the promisor.
"One who waits too long to complain has indicated satisfaction with the agreement despite the initial lack of true consent" is the idea behind the doctrine of:
ratification.
Statutes that require proof of character and skill and impose a penalty for violation are considered:
regulatory.
A key point of differentiation between duress and undue influence lies in the:
relationship between the parties at the time of the contract.
A contract that has been fully performed is an executory contract.
False
A minor must petition the court to receive emancipation.
False
A party to an illegal contract who is aware of the agreement's illegality may still recover damages.
False
A seller cannot accept a buyer's offer by simply promising to ship the goods or by shipping the goods.
False
A void contract is enforceable against both parties unless a party with the right to cancel the contract has done so.
False
According to the Uniform Commercial Code (UCC), if goods are specially manufactured for the buyer and not suitable for sale to others in the normal course of the seller's business, and the seller has made a substantial beginning in manufacturing them or has entered into a binding agreement to acquire them for the buyer before learning that the buyer is denying the existence of a contract, the contract between the parties must be in writing in order to be enforceable.
False
According to the Uniform Commercial Code (UCC), if one or both parties are nonmerchants, additional terms proposed by the offeree automatically become part of the agreement unless the offer expressly limited acceptance to its own terms.
False
Advertisements for rewards for the return of lost property, for information, or for the capture of criminals are generally held to be offers for bilateral contracts.
False
All courts hold that cashing a "payment in full" check discharges the obligation of debt under the Uniform Commercial Code.
False
An executed contract for necessaries is enforceable according to the terms of the contract.
False
An offeree's acceptance is not effective upon dispatch if the offer is sent by a stipulated means.
False
An unenforceable contract is one that meets the basic legal requirements for a contract but will not be enforced due to some other legal rule
False
Annie buys a car from Bob's Motors. She then sells the car to Michael, who agrees to make the remaining payments Annie owes Bob's Motors. Bob's Motors is a creditor beneficiary of Annie, and can therefore recover the balance due only from her, and not from Michael.
False
Anticipatory repudiation must always be express, not implied.
False
As a general rule, statutes that require proof of character and skill and impose a penalty for violation are considered revenue-raising statutes.
False
Contracts involving personal rights are generally assignable.
False
Contracts made by minors are void.
False
Courts today require a threat of physical injury for a finding of duress.
False
Creditors usually enter compositions in order to force the debtor into involuntary bankruptcy.
False
Duress exists only when the parties had some confidential relationship at the time of the contract.
False
Even a mere untrue assertion is sufficient to prove misrepresentation.
False
Fraud is negligent misrepresentation.
False
If a person is adjudicated insane after entering into a contract, his or her personal representative cannot ratify the contract.
False
If an event must occur before a party's duty to perform arises, it is called a concurrent condition.
False
If an oral contract is declared to be unenforceable under the statute of frauds and one of the parties has rendered some performance under the contract that conferred benefits on the other party, he or she can recover the reasonable value of the performance on an express contract theory.
False
If part of a divisible contract becomes illegal, the whole contract is illegal.
False
If possible, the courts interpret an offer as proposing a unilateral contract.
False
If the contract calls for the parties to perform their duties at the same time, each party's duty to perform is conditioned on the other party's performance. These conditions are called conditions subsequent.
False
If the offeree rejects the offer, the offeror may counteroffer.
False
If the parties' agreement is represented by a written instrument, a nonmaterial, negligent alteration of the instrument by one of the parties discharges the other party.
False
In determining contractual intent, courts rely on what the parties say they actually, or subjectively, intended.
False
Life insurance contracts are a common form of incidental beneficiary contract.
False
Minors are liable for the value of necessaries they have purchased under a contract but have not received at the time they disaffirm.
False
Only certain specified individuals, and not members of the general public, can be incidental beneficiaries of contracts.
False
The Restatement (Second) of Contracts carries the force of law.
False
The UCC applies only to commercial sales of goods, whereas the CISG governs both consumer and commercial transactions.
False
Ann has been treated off and on for mental illness. In regard to Ann, capacity to contract is presumed.
True
At a fairly early point in the development of contract law, the common law courts decided not to enforce gratuitous promises.
True
Which of the following is true regarding how courts apply the UCC's treatment of the issue of unconscionability?
A consumer dealing with a merchant is more likely to prevail on a claim of unconscionability than is a merchant dealing with another merchant.
Which of the following is true of unconscionable contracts?
A court may refuse to enforce an unconscionable contract as contrary to public policy.
Which of the following is true of a contract made by a minor?
A minor is given the right to disaffirm his or her contract.
Which of the following is a correct statement regarding the test of contractual incapacity?
A person could be medically insane but still have the legal capacity to contract.
Which of the following statements is true of a quasi contract?
A person is not held liable under quasi contract for benefits he or she received unknowingly.
The following promises do not need consideration to be enforceable.
A promise in which promissory estoppel applies.
Identify the correct statement regarding consideration.
A promisor's promise not to commit a crime or a tort can never be consideration.
Which of the following statements is considered an actionable misrepresentation?
A statement concerning a present fact
Which of the following is true of misrepresentation in contracts?
A victim has to show detriment from misrepresentation to cancel a contract.
_____ means that a general hearing was held on the person's mental competency, and the court determined that the person was of unsound mind and appointed a guardian or conservator of the person's estate.
Adjudication
Which of the following statements is true of assignors?
An assignor does not impliedly warrant the solvency of a promisor.
Which of the following statement.is true of Article 2?
Article 2 does not apply to service contracts
Beth offered to sell Carlos her boat for $8,000 on April 1. Carlos said he would think about it. On April 6, Will offered to buy Beth's boat for $8,500, and Beth sold him the boat. On April 7, Carlos called Beth and said that he accepted her offer to buy the boat. Which of the following is true regarding the position of the parties.
Beth's offer was considered open for a reasonable time, and assuming that time had not passed, Carlos created a contract by accepting.
On January 1, 2006, Bev owed City Bank $5,000 on her car loan. The loan was due in May 2006. On January 1, 2006, Bev sent the bank a check for $4,800 marked "In full payment for any and all claims City Bank has against me." City Bank cashes the check. Under these circumstances, _____.
Bev can avoid paying the $200
Which of the following is true of discharge of contracts?
Both parties to a contract are discharged when they have completely performed their contractual duties.
Which of the following statements is true of browse-wrap agreements?
Browse-wrap contracts often accompany the sale of software.
_____ are agreements between a debtor and two or more creditors who agree to accept a stated percentage of their _____ claims against the debtor at or after the due date, in _____ satisfaction of their claims.
Compositions; liquidated; full
_____ are defined as contracts in which the only choice for one of the parties is between agreeing to the terms dictated by the other party or not contracting at all.
Contracts of adhesion
Edward owes Frank $100, payable in six months. Frank, who is leaving the country, gives his rights to the payment to Marge for $80. Which of the following is true about the scenario?
Edward owes Marge $100.
Which of the following is true of emancipation?
Emancipation is the term used to describe the termination of a parent's right to receive services and wages from a child and to generally control him.
Jim offered to sell Janelle his comic book collection and she accepted. However, the parties did not state a price. Under the UCC, the agreement would be:
Enforceable as long as Jim and Janelle intended to form an agreement and there is a reasonably certain basis for giving a remedy.
Which of the following statements is true of exculpatory clauses?
Exculpatory clauses, when enforced, can effectively relieve a party of liability for the consequences of his own negligence.
The United Nations Convention on Contracts for the International Sale of Goods (CISG) is similar to the Uniform Commercial Code (UCC) in that it considers an offer sufficiently definite if it lacks price terms.
False
The basic thing the courts require for the creation of an offer is a future intent to contract on the part of the offeror.
False
The biggest reform of contract law has resulted from the adoption of the Multilateral Contracts Code (MCC).
False
The law uses the word veracity to describe the ability of a person to do a legally valid act.
False
The minor who does not disaffirm within a reasonable time after attaining majority is held to have rescinded the contract.
False
To accept an offer for a unilateral contract, where a promise is exchanged for an act, the offeree need not necessarily perform the act requested by the offeror.
False
When determining the legality of an agreement, the courts do not presume the parties intended a legal result.
False
Tina promises her husband Frank $50 if he will not drive in an intoxicated state over the weekend, and Frank agrees to stay away from driving after drinking. Which of the following is true regarding that agreement?
Frank's promise does not constitute consideration.
Basic UCC requirements in regard to the statute of frauds include a requirement that the writing sets forth the price agreed upon between the parties.
True
In many states, intoxicated persons are treated like people who lack mental capacity:
Only if they were so intoxicated that they were unable to understand the nature of the business at hand when they entered into the agreement.
Which of the following statements is true of delegation of duties?
If the duty to be performed could be performed fully by many different persons, it is delegable.
A mistake may involve which of the following?
Ignorance of a material fact
_____ are worded in a way that allows the promisor to decide whether or not to perform the promise.
Illusory promises
Which of the following statements is true of justifiable reliance?
It cannot lead to rescission of a contract if the complaining party was aware of the truth.
Which of the following statements is true of the Uniform Commercial Code about acceptance by shipment?
It forces the seller to give the buyer timely notice of his inability to fill an order.
Which of the following is true of the United Nations Convention on Contracts for the International Sale of Goods (CISG)?
It mainly aims to unify and codify an international law of sales.
Which of the following is true of anticipatory repudiation?
It occurs if promisors, prior to the time for performance, indicate an intent not to perform their duties under the contract.
Rachel agrees to sell her boat worth $3,000 to Jake for $2,000, but she later refuses to complete the deal. Jake sues for damages. What is the likely outcome?
Jake will be awarded $1,000 in compensatory damages.
Leroy writes a letter that says, "I agree to sell to Jay five modern art paintings," and he signs the letter. Jay is an art dealer and he receives this writing from Leroy and does not object in writing within 10 days of receiving it. Which of the following is true according to the Uniform Commercial Code?
Jay has lost his statute of frauds defense because he did not object to the contract.
Jess is 17 years old and bought a new computer from Wallie. Three days after he turned 18, Jess sold the computer to his sister. Which of the following is the most likely result regarding any attempt by Jess to disaffirm the contract with Wallie?
Jess has indicated his intent to be bound by the contract by selling the computer and can no longer disaffirm.
Which of the following is the meaning of the term "caveat emptor"?
Let the buyer beware
Laura offered to sell Louis a tract of land. The offer was complete and certain as to all material terms. The offer stated that a telegraphed acceptance was required. Within a reasonable time, Louis telephoned Laura to accept. Which of the following is a true statement about this situation?
Louis has not accepted and there is no contract.
Susan wanted to give a diamond pendant to Lucy, her daughter. Susan entered into a contract with Andrew, a dealer who specializes in diamond jewelry. Susan had promised to pay him if he delivered the pendant to Lucy. Andrew withdrew from the contract and Lucy wanted to sue him. Which of the following statements is true in this scenario?
Lucy can sue Andrew as she is a donee beneficiary of the contract.
Harry owns a Cadillac and a Porsche. Ryan has always wanted a Porsche and knows Harry owns one. Harry decides to sell his Cadillac and buy a BMW. A mutual friend of Ryan and Harry tells Ryan, "Harry's selling his car." Thinking Harry is selling the Porsche (he does not know he also has a Cadillac), Ryan calls Harry and says, "I'll give you $9,500 for your car." Harry, thinking Ryan is talking about the Cadillac, says, "You've got a deal." On what grounds is the above agreement open for rescission?
Mutual mistake
Contract conditions may be expressly or impliedly created.
True
Contracts of adhesion refer to contracts in which the only choice for one of the parties is between "adhering" to the terms dictated by the other party or not contracting at all.
True
Donald agrees with Julie that he will pay her $1,000 to paint his barn. Halfway through her painting, Donald tells her that he wants to revoke the offer. Donald may:
Not revoke because the contract is bilateral, and Julie accepted; so if he stops the work, he is liable for contractual damages.
Which of the following is true of the right to disaffirm?
On disaffirmance, people lacking mental capacity must return any consideration that they had received.
Which of the following is intended to avoid unjust enrichment?
Quasi contract
GP Corp. had been contracted by the public services department of Kingston to install monitoring systems at all public places. This was to be done in two phases and the city had the right to terminate the contract. GP had plans to use a subcontractor, Rex, whom they usually hired for the last phases of projects executed by them. After two weeks of the work, the city of Kingston found that things were not going according to plan and terminated GP's contract. Under these circumstances:
Rex cannot sue the public services department of Kingston because he is only an incidental beneficiary.
Bill downloaded an antivirus software from the Internet. Under the Uniform Commercial Code (UCC), the software is a:
Service
Jin moves into a neighborhood in Philadelphia and opens a repair shop. He is harassed by the local gang leader who wants to extort money from him. He promises to pay Sheng, a police officer whose patrol includes Jin's store, $50 a week to "keep an eye on the store" while walking his patrol. Which of the following statements is true of this situation?
Sheng's promises toward Jin are not consideration.
Digital signatures are given the same effect as written ink on paper.
True
Stintson Corp. had agreed to create employee identity cards for McLaughlin Inc. for $60,000. Some of the cards delivered by Stintson Corp. had damages made during the lamination process. McLaughlin Inc. promised Stintson Corp. an additional $20,000 to replace the damaged identity cards, and Stintson Corp. did so. Then McLaughlin Inc. refused to pay Stintson Corp. more than $60,000 for the work. Which of the following statements is true of this situation?
Stintson Corp. is not entitled to any more than $60,000 for its work.
Concerned about barking, Lee pays her neighbor Wanda $100 to refrain from buying a dog. The agreement is:
Supported by consideration.
Exculpatory clauses that seek to avoid liability for willful misconduct or fraud are generally unenforceable.
True
Penny, whose main job is in law but who makes ceramics as a hobby, mailed Albert, a ceramics merchant, a signed letter on December 10 offering to sell her supplies because she planned to discontinue her ceramics hobby. Surprisingly, however, during the Christmas season, she started receiving a number of offers to buy her merchandise and began to give consideration to starting a side business in ceramics. She called Albert on December 18 and told him that she revoked her offer. Albert told her that it was too late because he had just put in the mail, on December 17, an acceptance to her offer. Assuming that Penny had not yet received the letter accepting her offer, which of the following would courts in most states rule?
That it was too late for Penny to revoke the contract once Albert mailed the acceptance.
Which of the following was the result in the case in the text, J.L. v. J.L., the case involving whether a father was required to honor a promise to his wife to pay funds monthly to adult children?
That the promise was not enforceable because of a lack of consideration on the wife's part.
Connor contracted with Sean to rent the rooftop of Sean's two-story commercial building for a party. Connor told Sean that the building was along the route of the annual Thanksgiving Day Parade, and he wanted to have a party to watch the parade. Due to inclement weather, the parade was cancelled. Which of the following is Connor's best argument that he should not have to pay Sean?
That the theory of commercial frustration applies.
Generally, a bilateral contract that lacks mutuality is unenforceable due to lack of consideration.
True
Mike orally hires Vonda to defame a local politician. Vonda does so and requests payment. Mike refuses to pay. Which of the following is true regarding the situation of the parties
The agreement is unenforceable because a contract that cannot be performed without committing a tort is illegal.
If an authorized means of acceptance is expressly or impliedly present, any attempt by the offeree to accept by a nonauthorized means is not effective until the acceptance is actually received by the offeror.
True
If either party entering a contract lacks the capacity to contract, the contract is void or voidable, depending on the kind of incapacity involved.
True
If the legal remedies for breach of contract are not adequate to fully remedy a party's injuries, a court has the discretionary right to grant an equitable remedy.
True
Which of the following was the result in Permison v. Comcast Holdings Corporation, the case in the text involving whether a cable customer was bound by an arbitration clause?
The court ruled that there was insufficient evidence that the customer received and had an opportunity to review and understand the terms of the offer and that the plaintiff cable company had provided insufficient evidence to result in enforcement of the arbitration agreement.
Mary and Perry entered into a written, signed contract by which Mary agreed to buy Perry's home for $150,000. Mary and Perry orally agreed, but did not put into writing, that a condition precedent to the purchase was that Mary would be approved for financing. Unfortunately, although she put forth a good faith effort, Mary could not get a loan and refused to go through with the sale. Which of the following would be the most likely result if Perry sued Mary for breach of contract?
The court will likely rule in Mary's favor because oral testimony may be used to prove the existence of a condition precedent.
Peter hired Alicia to burn his house down so that Peter could collect the insurance money. He paid Alicia, but Alicia never set the fire. If Peter sues Alicia for breach of contract, what is the likely outcome?
The court will not force Alicia to return Peter's money.
Sheila was in a dispute with Bob regarding the adequacy of goods supplied under a contract. In an effort to settle the matter, Sheila sends Bob a check marked "payment in full." If Bob cashes the check, which would be the result in a majority of states?
The court would rule that cashing the check discharged any obligation of Sheila and that Bob would not be able to recover further amounts.
Which of the following is true of the laissez-faire economic theories that were prevalent in the 19th century?
The courts were unwilling to interfere with people's private agreements or to do anything that might interfere with the country's growing industrialization.
Which of the following statements about an offer is true?
The death of an offeror will terminate the offer.
Which of the following is true about building and construction contracts?
The engineer's or architect's certificates, which are often issued at each stage of completion, indicate that the work is done to the satisfaction of the architect or engineer.
Which of the following statements about shrink wrap contracts is true?
The label on shrink wrap contracts states that by removing the shrink wrap, the buyer accepts the terms of the software seller's licensing agreement.
Brian offers to sell Jerry his house, but a hurricane destroys the house before Jerry accepts the offer. What would be the possible outcome of this offer?
The offer is terminated when the house is destroyed as it happened without the knowledge or fault of either of the parties.
Which of the following is true about unilateral mistakes?
The plaintiff needs to promptly notify the defendant when a mistake is discovered.
_____ prohibit charging more than a stated amount of interest for the use of money.
Usury laws
Zeta is contracted to perform a violin solo for Pat. Zeta assigns the contract to Roy. Which of the following statements is true about delegation of duty in this case?
This is not a valid delegation of Zeta's duty to play because the contract is one in which Zeta's personal skill as a musician is an essential part of the agreement.
Jamison, the owner of a shoe store, received a written confirmation from ABC Wholesaler in regard to his purchase of 100 pairs of shoes. Jamison threw the confirmation in the trash because he knew he had not ordered any shoes. He had encountered problems with sellers from ABC before and was tired of dealing with them. Which of the following is true should ABC sue alleging a valid contract between the parties for the sale of the shoes?
The statute of frauds does not bar the admission into evidence of the written confirmation, but ABC would still be required to convince the court that the parties had a contract.
Which of the following is a basic Code writing requirement for contracts?
The written evidence should indicate the quantity of goods sold.
Adults who contract with minors are bound to the agreement unless the minor chooses to disaffirm.
True
After the court has found that one of the parties to a dispute made an offer, the next thing it looks for to determine is whether the offeree accepted the offer.
True
Although the statutes of frauds of all the states are not the same, most states require only a memorandum of the parties' agreement; they do not require that the entire contract be in writing or that the writing be in a single document.
True
Which of the following is true of employment contracts?
They involve personal rights.
Which of the following is true of blue laws?
They prohibit the performance of certain work on Sunday.
An agreement represents a "meeting of the minds" between contracting parties.
True
Why are contracts prohibiting competition with a buyer of a business or an employer generally assignable with the sale of the business?
To protect the goodwill of the business
A contract is a legally enforceable promise or set of promises.
True
A guarantor's promise must be evidenced by a writing.
True
A liquidated debt is one that is due and certain, which means that there is no dispute about the existence or the amount of the debt.
True
A party who enters an illegal contract may rescind the contract if done so before the illegal act is performed and may recover any consideration given.
True
According to Article 2 of the Uniform Commercial Code (UCC), a sales contract can be created in any manner sufficient to show agreement, including conduct by both parties which recognizes the existence of a contract.
True
According to the Uniform Commercial Code (UCC), a timely expression of acceptance creates a contract even if it states additional terms on points the offer did not address.
True
Robert was under contract to play football for the United Lions in May 2007. However, he died in an accident before he could perform his contract. His death will terminate his contract.
True
Ronny contracted Smiths to supply a dress for his niece, Lucie, on her birthday. Since the dress was intended for Lucie, Ronny cannot modify the contract without her consent.
True
Taking action to conceal a fact indicates scienter.
True
The Uniform Commercial Code (UCC) specifically states that an order requesting "prompt" or "current" shipment of goods impliedly invites acceptance by either a prompt promise to ship or a prompt shipment of the goods.
True
The Uniform Commercial Code (UCC) states that contracts for the sale of goods costing $500 or more are not enforceable without being evidenced by writing or other specified evidence.
True
The courts allow one who rescinds the contract before any illegal act has been performed to recover any consideration given.
True
The courts generally infer an intent to deceive from the fact that the defendant knowingly made a misstatement to a plaintiff who was likely to rely on it.
True
The idea that a contract is a voluntary agreement between the parties is the basis of contract law.
True
The term mistake is used in contract law to describe the situation in which one or both of the parties to an agreement acted under an untrue belief about the existence or nonexistence of a material fact.
True
Those who discover that they have been the victim of misrepresentation, fraud, duress, undue influence, or mistake must act promptly to rescind or disaffirm their contracts.
True
Traditional contract law is basically designed to protect bargains that people make and that satisfy all the legal requirements for a binding contract
True
Written evidence of some kinds of contracts is required.
True
perform arises at the time the contract is formed, even though the time for performing is set for a future date. The parties may, however, provide that a party's duty to perform is qualified by the happening of some event, or condition.
True
The Uniform Commercial Code (UCC) differs from the United Nations Convention on Contracts for the International Sale of Goods (CISG) in that the:
UCC holds merchants to higher standards in some circumstances, while the CISG does not make a distinction between merchants and nonmerchants.
Which of the following types of contracts is created when a party with superior bargaining power imposes unfair terms on the other party?
Unconscionable contracts
Blackhawk Corporation contracted to sell Greeneye Corporation some materials that Greeneye needed to fulfill a contract it had with a third party. Knowing that Greeneye was in desperate need of the materials, Blackhawk called Greeneye the day before delivery was due and threatened to withhold delivery unless Greeneye agreed to pay a higher price. Greeneye could not get the materials elsewhere and would suffer a huge financial loss without them, so it agreed to pay the higher price. Greeneye later asserts that its promise to pay the higher price is unenforceable because it was the product of duress. Which of the following statements is true of this situation?
Under modern contract law, Blackhawk's threat to cause Greeneye economic harm could be considered duress and the contract may be considered voidable.
Mary runs an ad in the paper offering a $5 reward for the return of her lost dog, Sparky. Mary has made a promise to pay the person who performs the act of returning Sparky. This is a(n) _____ contract.
Unilateral
With regard to the United Nations Convention on Contracts for the International Sale of Goods (CISG) and the Uniform Commercial Code (UCC), which of the following statements is correct?
Unlike the UCC, the CISG does not consider an offer sufficiently definite if it lacks price terms.
_____ the Uniform Commercial Code (UCC), the UN Convention on Contracts for the International Sale of Goods (CISG) holds acceptances to be effective when they are _____, not when they are _____.
Unlike; received; dispatched
A guaranty contract is treated as an original contract outside the scope of the statute of frauds under which of the following circumstances?
When the leading object doctrine applies.
On March 10, Martin entered into an oral contract with Wilson. Under the oral contract, they agreed that Wilson will work for Martin for two years for a salary of $50,000 per year. Wilson quit his job the next day so that he could join Martin. But on March 12, Martin called Wilson and repudiated the contract, stating that he had decided not to hire him after all. If Wilson decides to sue, which of the following is most likely to be true?
Wilson may use the doctrine of promissory estoppel to show that he had materially relied on the oral promise and will suffer serious losses if the promise is not enforced.
A promise exchanged for a promise is an example of:
a bilateral contract.
Lydia's father has named Lydia in his will as the inheritor of his farm. He has also named her as a beneficiary in his insurance policy. Lydia is:
a donee beneficiary.
Composition agreements are:
agreements between a debtor and two or more creditors who agree to accept a stated percentage of their liquidated claims against the debtor at or after the due date.
According to the Restatement (Second) of Contracts, promissory estoppel requires:
a promise that the promisor should foresee is likely to induce reliance.
When one or both parties to an illegal bargain are ignorant of the facts that made the bargain illegal, the court is most likely to:
allow recovery for performance rendered before the parties learned of the illegality.
On the same basis and for the same reasons as minors, people lacking mental capacity:
are liable for the reasonable value of necessaries.
Injunctions are:
available when a breach of contract threatens to produce an irreparable injury.
Under the Uniform Electronic Transactions Act (UETA), _____.
barriers to e-commerce are removed by giving effect to electronic records and signatures
Conditions in contracts:
can be impliedly created.
Ali enters into a contract with Billy's Brewpub to be a bartender. Ali is not aware that Billy's does not have a liquor license. Under these circumstances, it is most likely that Ali:
can recover the wages for bartending before he learned of the violation.
Assignees:
can sue a promisor for nonperformance.
Rocky was voted the most valuable player of his university's basketball team. Rocky:
cannot delegate his duties since they involve his personal skill.
A party suing for breach of contract who has suffered actual losses as a result of the breach is entitled to recover _____.
compensatory damages
The doctrine of promissory estoppel does NOT require:
consideration.
Tony contracted to buy wheat from Brown, a farmer. It was contracted that Tony would pay Brown three days after the delivery of the wheat. Brown's delivery would be a(n) _____ of Tony's duty to pay.
constructive condition precedent
The offeror who makes a firm offer and promises to hold it open for six months:
could revoke after three months, assuming the offeree has not already accepted the offer.
Under the commercial frustration doctrine, performance is excused when:
events occur after the formation of the contract that would make the return performance of the other party worthless to the promisor.
Which of the following is the most likely indicator of contractual incapacity?
dementia
In a contract involving a minor, whether an item can be considered "necessary":
depends on the minor's station in life.
Logan, a farmer, had agreed to supply corn to Roxy Inc. Unfortunately, his crops wilted due to extreme temperatures. Logan decided to terminate its agreement as he could not find suitable substitutes for the crops. However, Logan can be excused for nonperformance on grounds of:
destruction of subject matter.
The failure to obtain a license required by a statute for revenue-raising purposes:
does not affect the legality of unlicensed persons' agreements.
A promise to make a gift for a charitable or educational purpose is unenforceable unless and until the institution to which to promise was made incurs obligations by relying on the promise. This exception is usually justified on the basis of either _____ or _____.
estoppel; public policy
The parol evidence rule refers to the:
idea that when the parties have expressed their agreement in a complete, unambiguous writing, the writing is the best evidence of their intent.
Timothy is a construction worker in one of the leading firms of a city. His employment contract includes a clause which says he cannot work as a construction worker within the city for fifteen years once he leaves the company. This clause is:
illegal as a contract in restraint of trade.
Under both the Uniform Commercial Code (UCC) and the common law, the acceptance cannot materially vary from the offer:
in the sale of real estate, services, and in sale of goods when forms are not exchanged.
The municipality of College Town enters into a contract with Wooster Inc. to have the town's roads repaired. Katie is a resident of College Town and will be considered a(n):
incidental beneficiary.
When an offeror does not specifically indicate what he is willing to do and what he wants the offeree to agree to do in return, his behavior will probably be classed as an:
invitation to negotiate.
Advertisements for the sale of goods at a specified price are considered by the courts as:
invitations to negotiate.
A donee beneficiary:
is a third-party beneficiary to whom a gift of the contracted performance is given.
A revenue-raising statute:
is not designed to protect the public; and, if violated, will not result in a finding of illegality.
According to the Uniform Commercial Code, if the original agreement requires any modification to be in writing, an oral modification:
is unenforceable.
When a promisor appoints another person to perform his duties under a contract, _____.
it is called a delegation
A restraint that is merely ancillary to a contract may be legal if:
it is designed to protect interests created by the contract.
A promisor who delegates duties is _____ if the party to whom the duties were delegated fails to satisfactorily perform them.
liable to the promisee
When two parties have directly, but orally, stated all of the terms of a contract at the time it was formed, they have:
made an express contract.
Kids' Corner, a toy store, ordered a supply of stuffed toys from Toyland Inc. The toys were supposed to be delivered on December 1 but were sent to Kids' Corner on December 5. There has been a(n) _____ of contract.
material breach
Past consideration is sometimes accepted for _____.
moral obligations
Under section 2-209 of the Uniform Commercial Code, agreements to modify existing contracts for the sale of goods:
need no new consideration to be binding.
According to the Uniform Commercial Code (UCC), when acceptance is made expressly conditional on agreement to new terms proposed by the offeree, _____ contract is created.
no
If Roger sells Jan his home and tells her it is in "a great neighborhood," Jan could probably show which of the following should she be burglarized a short time later:
no offense.
When parties to an oral contract have both fully performed their obligations under the contract, the parties are:
not allowed to rescind the contract.
The U.N. Convention on the International Sale of Goods has decided that a writing is:
not required for the enforcement of oral international contracts.
A mandatory injunction:
occurs when a court orders a party to do a certain act.
An offeree who attempts to accept after an offer has terminated is himself making a(n) _____.
offer
In a unilateral contract, the offer is accepted when the:
offeree performs the requested act.
Habib makes an offer to sell 500 television sets to Aisha. Habib is the _____.
offeror
The legal concept of unconscionability:
pertains to unequal bargains.
The equitable doctrine of _____ allows some parties to recover under oral contracts that the statute of frauds would have ordinarily rendered unenforceable.
promissory estoppel
The doctrine of promissory estoppel:
protects reliance, not bargains.
Undue influence:
requires a confidential relationship.
Article 2 of the Uniform Commercial Code (UCC) applies to all contracts for the:
sale of goods.
A misrepresentation knowingly made with an intent to deceive is known as _____.
scienter
A minor can typically disaffirm a contract made for _____.
stereo equipment
A liquidated damage provision will be enforced when:
the amount specified is reasonable and actual damages are difficult to determine.
For an assigned claim to be valid, _____.
the contract must not be voidable for any other reason known to the assignor
The means used by an offeror to communicate the offer is:
the impliedly authorized means for accepting unless the circumstances indicate otherwise.
A person lacking mental capacity must return the other party to status quo when:
the other party was unaware of the person's lack of mental capacity.
A person suffering from mental impairment can have the legal capacity to contract if:
the person entered a binding contract during a lucid moment.
In case of duress, there is no voluntary consent if:
the plaintiff's free will was overcome.
Under the Electronic Signatures in Global and National Commerce Act (E-Sign), _____.
the price and procedures for withdrawing consent must be spelled out to the customer
A collateral contract involves:
three parties and two promises, one of which is conditional.
Maya makes an agreement with Ravi for Ravi to steal Professor Hussain's laptop computer. The agreement between Maya and Ravi is _____.
void
Miriam makes an oral agreement with John to sell him 200 acres of prime farmland for a mere $500. Their agreement is:
unenforceable as real estate contracts need to be in writing.
Rebecca contracted Matthew Properties Inc. to repair her apartment for $20,000. On completion of repairs, Rebecca observed that the garage and the attic had not been repaired. Although the contract stated that Matthew Properties will repair the garage and the attic thoroughly, Rebecca did not raise the issue. She instead made a full payment for the services rendered. In this scenario, Matthew Properties Inc. has been discharged from obligations of repairing the garage and the attic by a(n):
waiver.
To determine whether the offeror has created a present intent to contract, courts consider:
whether the offeror has communicated it to the offeree.
If a professor charges extra fees to take a regularly scheduled class, it would not qualify as consideration because such an act:
would violate the preexisting duty rule.