Exam 2 Part 2 Review
When two parties have directly, but orally, stated all the terms of a contract at the time it was formed, they have: made an express contract. not made an enforceable contract. made an implied contract. executed a contract.
A A contract is express when the parties have directly stated its terms at the time the contract was formed. They may have done this orally or in writing. Here, all elements of a contract are specifically stated (offer, acceptance, consideration).
Which of the following is true regarding a quasi contract? A person is not held liable under quasi contract for benefits he or she received unknowingly. A person is held liable under quasi contract for benefits he or she reasonably believed were given as a gift. A quasi contract does not involve contract-like duties imposed by the court. A quasi contract is a legal fiction created by the court to avoid enrichment of the dominant party.
A A quasi contract is a legal fiction created by the court to avoid injustice in certain cases. A person is not held liable under quasi contract for benefits he or she received unknowingly, or for benefits he or she reasonably believed were given as a gift.
An offeree who attempts to accept after an offer that has terminated is himself making a(n) __________. offer firm offer revocation counteroffer
A An offeree who attempts to accept after an offer has terminated is himself making an offer because he is indicating a present intent to contract on the terms of the original offer. The original offeror is free to accept or reject this new offer.
If possible, courts interpret an offer as proposing a(n) __________. bilateral contract unilateral contract invitation to negotiate counteroffer
A The courts, if possible, interpret an offer as proposing a bilateral contract. A bilateral contract is a promise for a promise, and the offeree must make the promise requested in the offer.
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. a unilateral no an implied a conditional
B According to the Uniform Commercial Code (UCC), when acceptance is made expressly conditional on agreement to new terms proposed by the offeree, no contract is created.
Which of the following is true about a contract? It does not require contractual capacity if the parties are eighteen years of age or older. An oral contract is always enforceable if it is supported by the greater weight of the evidence. It is an agreement based on an offer and an acceptance of the offer. It need not be supported by consideration.
C A contract is (1) an agreement (an offer and an acceptance of the offer) (2) supported by consideration (with some exceptions) (3) voluntarily entered into (4) by parties having capacity to contract (5) to do a legal act or acts. In addition to these elements, written evidence of some kinds of contracts is required.
A counteroffer: is a mirror-image of the offer. is an inquiry into the terms of the offer. impliedly rejects an offer. does not affect the material terms of the contract.
C An offeree may impliedly reject an offer by making a counteroffer. Any attempt by the offeree to change the material terms of the offer or to add significant new terms to the offer is treated as a counteroffer. This is so because the offeree is showing her unwillingness to accept the offeror's terms.
A subcontractor's bid: is never revocable. must be accepted by the general contractor if the bid is reasonable according to industry-specific standards. is considered an offer. can always be withdrawn, even if the general contractor has substantially relied on it.
C The bidding process in construction work is a source of many legal disputes. People who advertise for such bids (the owner of the project or a general contractor who wants to farm out a portion of a large job to a subcontractor, for example) are generally held to have made an invitation to offer. Those who submit bids are treated as offerors.
If Gwen hands Lisa a detailed offer for the purchase of Lisa's pottery wheel and Lisa signs the offer without changing any of its terms, the parties have created a: contingent contract. multilateral contract. unilateral contract. bilateral contract.
D A bilateral contract is a promise for a promise, and the offeree must make the promise requested in the offer. So, if Gwen hands Lisa a detailed offer for the purchase of Lisa's pottery wheel, and Lisa signs the offer without changing any of its terms, both parties are bound on the terms of the offer.
Alejandro makes an offer to sell 500 television sets to Lenora. Alejandro is the __________. agent offeree delegator offeror
D Alejandro is the offeror in the above case as Alejandro offers to sell 500 television sets to Lenora. Lenora is the offeree. A person who has made an offer (the offeror) has given the party to whom he or she has made the offer (the offeree) the power to create a binding contract by accepting.
By far, the greatest number of preexisting duty cases involve __________ duties. statutory equitable illusory contractual
D By far, the greatest number of preexisting duty cases involve contractual duties. These cases usually occur when the parties attempt to modify an existing contract but no new consideration is furnished to support the agreement to modify.
T/F 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
T/F If Jamal tells, Mai "I'll give you $500 if you find my lost cat Dexter," Mai must promise in writing to find Dexter in order to accept Jamal's offer.
False
T/F Like an offer, acceptance is subjectively determined.
False
T/F Once a binding accord and satisfaction has been entered into, the parties have agreed to have a trial jury decide their liability.
False
T/F The only person with the legal power to accept an offer and create a contract is the original offeror (or his or her agent).
False
T/F Contracts are called either unilateral or bilateral, depending on whether one or both parties have fulfilled their contractual obligations.
False
T/F Suppose Fong owns a liquor store that has been robbed several times. He promises to pay Kamala, a police officer responsible for patrolling Fong's neighborhood, $100 per week to "keep an eye on the store" while on patrol. Fong's promise is enforceable because it is supported by consideration.
False
T/F The courts have generally held that advertisements for the sale of goods at a specified price are offers.
False
T/F Article 2 of the Uniform Commercial Code applies to all contracts for the sale of goods.
True
T/F A contract is express when the parties directly state its terms at the time the contract is formed.
True
T/F A voidable contract is enforceable against both parties unless a party with the right to cancel the contract has done so.
True
T/F 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
T/F An option is a separate contract for the limited purpose of holding an offer open.
True
T/F Any attempt by the offeree to materially alter the terms of the offer is treated as a counteroffer that terminates the offer.
True
T/F Compositions 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, in full satisfaction of their claims.
True
T/F Consideration is legal value, bargained for and given in exchange for an act or promise.
True
T/F Contracts for the sale of real estate must be in writing to be enforceable.
True
T/F Mere silence on the part of the offeree is generally not acceptance.
True
Stenson Corporation agreed to create employee identification cards for McLaughlin, Inc. for $60,000. Some of the cards delivered by Stenson were damaged during the lamination process. McLaughlin promised Stenson an additional $20,000 to replace the damaged identification cards, and Stenson did so. McLaughlin refused to pay Stenson more than $60,000 for the work. Which of the following is true in this case? Stenson Corporation is only entitled to $60,000 for its work. Stenson Corporation is only entitled to $60,000 for its work, since as a matter of law, hybrid contracts (i.e., contracts including both goods and services) cannot be modified. McLaughlin, Inc. owes Stenson Corporation the additional $20,000 due to Stenson's forbearance. Stenson Corporation is entitled to the additional $20,000, as legal value has nothing to do with adequacy of consideration.
A By far the greatest number of preexisting duty cases involve contractual duties. These cases usually occur when the parties attempt to modify an existing contract but no new consideration is furnished to support the agreement to modify. In this scenario, providing more identity cards to McLaughlin, Inc. to replace the damaged ones is merely a continuation of Stenson's preexisting duty.
Consideration can have legal value if the promisee: does something he or she had no prior legal duty to do in exchange for the promisor's promise. makes a return promise in the case of a unilateral contract. rejects the promisor's offer within three (3) business days from the date the promisor made the offer. does not give up something in exchange for the promise made by the promisor.
A Consideration can have legal value in one of two ways. 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. If the promisee agrees not to do something he or she has a legal right to do in exchange for the promisor's promise, that also provides legal value.
Which of the following must be present for an offer to have a legal effect? Definiteness Invitation to offer A receipt of mailing by certified mail Invitation to negotiate
A Definiteness must be present for an offer to have a legal effect. An "invitation to offer" or an "invitation to negotiate" will have no legal effect.
Which of the following is true regarding consideration? A promisor's promise not to commit a crime or a tort can never be consideration. As a general rule, performing or agreeing to perform a preexisting duty is consideration. A promise by public officials to perform their official duties always constitutes consideration. When new consideration is provided to support a contract modification, the modification is unenforceable.
A Every member of society has a duty to obey the law and not commit crimes or torts. Therefore, a promisor's promise not to commit such an act can never be consideration.
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. could revoke after three months, even if the offeree has already accepted the offer. cannot revoke the offer under any circumstances unless the offeree consents to the revocation. could revoke after six months, even if the offeree has already accepted the offer.
A Firm offers are irrevocable for the period of time stated in the offer. If none is stated, they are irrevocable for a reasonable time, as determined by the circumstances of the case. The outer limit on the period of irrevocability for firm offers is three months, whatever the terms of the offer may say. So, the offeror who makes a firm offer and promises to hold it open for six months could revoke after three, assuming the offeree has not accepted.
ael sent Jen an offer to sell his mountain bike for $150. After thinking about the offer for a few days, Jen sent Yael a letter accepting his offer and asked if he intended to leave the book basket attached to the bike. The next day, before Jen's letter arrived, Yael phoned Jen and told her that he had decided to sell his bike to Jake, who had offered him $200. Which of the following statements holds true of this case? Jen's acceptance was good and a contract was created when Jen's letter was mailed. Yael could revoke the contract as the goods had not exchanged hands yet. The contract was not valid as the UCC held acceptances to be valid only when they were received and acknowledged in writing by the offeror. Jen used unauthorized means of acceptance.
A In the given scenario, Jen sends Yael a letter accepting his offer. Jen's acceptance was good and a contract was created when Jen's letter was mailed. Yael calling up Jen to revoke the contract will not end the contract. As a general rule, an acceptance is effective when dispatched (delivered to the communicating agency) if the offeree uses an authorized means of communication.
Selena enters into an agreement with Tops-n-Tails, Inc., an event management company, to coordinate her wedding in June 2019 for $10,000. In March 2019, Selena calls Tops-n-Tails to tell the company the deal is off, since she thinks she can do a better job herself. Tops-n-Tails sues Selena, and Selena argues lack of consideration as a defense. Which of the following is true regarding this case? Tops-n-Tails has given consideration. Selena can enforce Tops-n-Tails' promise to her. Tops-n-Tails can enforce the agreement against Selena, since it has legally accepted a unilateral contract. Selena was the only promisor in this contract.
A Since bilateral contracts by definition include two promises, each party is both a promisor (on the promise he or she made to the other party) and a promisee (on the promise the other party made in return). Also, merely making the requested promise is enough for consideration in bilateral contracts cases. Thus, in the given scenario, Tops-n-Tails, Inc. has given consideration.
Which of the following is true regarding the Uniform Commercial Code (UCC)? -The UCC has been adopted by all states except Louisiana, which has adopted only part of the code. -Although it originated in the United States, the UCC has been adopted by the vast majority of industrialized and post-industrialized countries. -The most obvious purpose of the UCC is to cover commercial transactions between buyers and sellers that take place within a particular state. -The main purpose of the UCC is to enable private parties to enter into non-commercial transactions not subject to tariffs and other governmental restrictions.
A The biggest reform of contract law has resulted from the adoption of the Uniform Commercial Code (UCC) by all the states (except Louisiana, which has adopted only part of the Code). The drafters of the Uniform Commercial Code (UCC) had several purposes in mind, including promoting fair dealing and higher standards of behavior in the marketplace. The most obvious purpose was to establish a uniform law to govern commercial transactions that often take place across state lines. Despite the intentions of the drafters, complete uniformity has not been achieved.
The parties to a contract can always terminate their old contract and enter into a new one by mutual agreement, even if the obligations of one party remain the same while the obligations of the other party are increased. This substitution of a new contract for an old one is known as a __________. novation declaration against interest voluntary dismissal promissory estoppel
A The parties to a contract can always terminate their old contract and enter into a new one by mutual agreement, called a novation, even if the obligations of one party remain the same while the obligations of the other party are increased. In examining such agreements, courts require clear and convincing evidence that the termination of the old contract and the creation of the new one are free of any elements of coercion or fraud.
The means used by an offeror to communicate the offer is: the impliedly authorized means for accepting unless the circumstances indicate otherwise. always the offeror's particular trade usage in communication, as it impliedly authorizes a given means of acceptance. the only authorized means of communication for accepting. the impliedly authorized means for accepting regardless of circumstances.
A Under traditional contract principles, 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.
A person who has made an offer, the __________, has given the party to whom he or she has made the offer, the __________, the power to create a binding contract by accepting. principal; agent offeror; offeree offeree; offeror agent; principal
B An offer is the manifestation of a willingness to enter into a contract if the other person agrees to the terms. If there is no offer, there is nothing to accept, and a contract cannot be created. A person who has made an offer, the offeror, has given the party to whom he or she has made the offer, the offeree, the power to create a binding contract by accepting.
Suppose that James, a farmer, leaves three bushels of peaches with Alman, the owner of a grocery store. James says, "Look these over. If you want them, they're $25 a bushel." Alman sells the peaches to his customers. By treating them as if he owned them, Alman has __________ James's offer. expressly accepted impliedly accepted subrogated superseded
B An offeree may expressly accept the offer, or he may impliedly accept by doing something that objectively indicates agreement. In the subject case, by selling the peaches to his customers, Alman has impliedly accepted James's offer.
Composition agreements are: made in a way that allows the promisor to decide whether to perform the promise. 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. generally treated as non-binding on the parties to the agreement, since doing so appears to be contrary to the general rule on liquidated debts. agreements entered into when someone promises not to file a legal suit in exchange for a promise to pay a certain sum of money or some other consideration.
B Compositions 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, in full satisfaction of their claims. They are generally treated as binding on the parties to the agreement, despite the fact that doing so appears to be contrary to the general rule on liquidated debts.
Mike D'Arruda, the owner of Preferable Purchase Electronics, Inc., orders 100 stereo receivers from Sandy Talley, a salesperson for Dulcet Sound Manufacturing Company. Mike has made a promise to pay for the receivers in exchange for Dulcet Sound's promise to deliver them. This is a(n) __________ contract. unilateral bilateral quasi implied
B In a bilateral contract, both parties make a promise. In the subject case, if Mike D'Arruda, the owner of Preferable Purchase Electronics, Inc., orders 100 stereo receivers from Sandy Talley, a salesperson for Dulcet Sound Manufacturing Company, Mike has made a promise to pay for the receivers in exchange for Dulcet Sound's promise to deliver them. This is a bilateral contract.
In determining whether the offeree accepted the offer, the court looks for the offeree's __________ intent to contract. future present subjective potential
B In determining whether the offeree accepted the offer, the court looks for the offeree's present intent to contract. The court looks for the same present intent to contract on the part of the offeree that it earlier looked for on the part of the offeror.
The doctrine of promissory estoppel does NOT require: injustice as a result of reliance. consideration. significant reliance on a promise. a promise.
B Promissory estoppel requires a promise that the promisor should foresee is likely to induce reliance, significant reliance on the promise by the promisee, and injustice as a result of reliance. If any one of these three elements is missing, estoppel does not apply.
Maya makes an agreement with Ravi for Ravi to steal Professor Hussain's laptop computer. The agreement between Maya and Ravi is __________. voidable void valid unenforceable
B The void contract lacks one or more of the basic requirements for a contract. Such an agreement has no legal force or effect. In this scenario, stealing a laptop computer is illegal, and therefore, such an agreement would be considered void.
The doctrine of promissory estoppel: protects bargains, not reliance. protects reliance, not bargains. makes a contract unenforceable. does not make a promise enforceable.
B To recognize promissory estoppel, most courts require: (1) a promise that the promisor should foresee is likely to induce reliance; (2) significant reliance on the promise by the promisee; and (3) injustice as a result of reliance. Promissory estoppel is fundamentally different from traditional contract theory since it protects reliance, not bargains.
Website advertisements for the sale of goods or services are generally considered as: quasi contracts. invitations to buyers to make an offer conditional offers. offers.
B Websites, like newspaper advertisements, are generally treated as invitations to buyers to make an offer rather than as offers themselves. Thus, when a computer user orders goods or services he finds advertised on a website, the user is offering to buy the goods or services at the advertised terms. The website owner is then free to either accept or reject his offer.
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 __________. substantial performance; forbearance the Statute of Frauds; the applicable statute of limitations estoppel; public policy criminal law; civil law
C A promise to make a gift for a charitable or educational purpose is unenforceable unless and until the institution to which the promise was made incurs obligations by relying on the promise. This exception is usually justified on the basis of either estoppel or public policy.
Suppose that Iverson makes an offer to sell his dining room table to Betty for $400 and says to her, "If you do not object within five days, we have a contract." The five days comes and goes, and Betty does not object. Is there a contract between Iverson and Betty for the dining room table? Yes, unless Betty has purchased another dining room table within the five-day period No, unless both Iverson and Betty are of the age of majority No Yes
C Because the basis of contract law is the voluntary agreement of the parties, the law generally requires some affirmative indication of assent from offerees before it binds them to the terms of an offer. This generally means that an offeror is not allowed to word his or her offer so that the offeree must act to avoid being bound to a contract. In the subject case, Betty has not indicated an affirmative intent to be bound by the terms of the offer; in other words, she has not assented. Mere silence on the part of the offeree is generally not acceptance.
Which of the following is true regarding legal value? Legal value is the same as monetary value. Legal value requires monetary value and the performance of an accompanying act. Legal value is not the same as, and does not require, monetary value. Legal value requires monetary value and an accompanying promise.
C Consideration can have legal value in one of two ways. 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. If the promisee agrees not to do something he or she has a legal right to do in exchange for the promisor's promise, that also provides legal value. Legal value is not the same as, and does not require, monetary value.
If Kate promises a stereo system to Uli, which of the following is true regarding consideration? Kate's promise gives rise to a unilateral contract. Kate's promise constitutes forbearance. Uli will not be able to enforce Kate's promise if he has not done anything in return. Uli must perform an act in return for Kate's promise.
C Courts generally do not enforce a promise against the person who made it (the promisor) unless the person the promise was made to (the promisee) has given up something in exchange for the promise. In effect, the requirement of consideration requires a promise to pay the "price" the promisor asked for in order to gain the right to enforce the promisor's promise. In the given scenario, Uli will not be able to enforce Kate's promise if he has not done anything in return.
Past consideration is sometimes accepted for __________. official duties performance of a unilateral contract moral obligations legal obligations
C Courts generally hold that past consideration is not consideration. However, some courts and legislatures have created an exception to the past consideration rule for moral obligations. These cases usually contain promises made by a promisor to pay for board and lodging previously provided to a needy relative or a very close friend, or a promise to pay the debts of a relative.
An offeree may accept an offer within a reasonable time and by any reasonable means of communication if the: written offer is lost in transit. parties are dealing over the telephone. offer merely suggests a method or place of communication. offeror suggests a method or a place of communication in the offer.
C If an offer merely suggests a method or place of communication or is silent on these points, the offeree may accept within a reasonable time by any reasonable means of communication. The offeror may specify (stipulate) in the offer the time, place, or method of communicating acceptance. In such a case, the offeree must comply fully with the offeror's stipulations.
Patricia runs an advertisement in the local newspaper offering a $500 reward for the return of her lost Snowshoe cat, Dexter. Patricia has made a promise to pay the person who performs the act of returning Dexter. This is a(n) __________ contract. implied bilateral unilateral quasi
C In a unilateral contract, only one of the parties makes a promise. The other party performs an act in exchange for that promise. In the subject case, Patricia ran an advertisement in the local newspaper offering a $500 reward for the return of her lost Snowshoe cat, Dexter. Patricia has made a promise to pay the person who performs the act of returning Dexter. This is a unilateral contract.
Which of the following is true about auctions? The auctioneer acts as an agent for the bidders. According to the Uniform Commercial Code (UCC), all auctions must be conducted without reserve. Bidders are treated as offerors, making offers the seller is free to either accept or reject. The seller is required to accept the final offer when the auction is advertised as being "with reserve."
C Sellers at auctions are generally held to be making an invitation to offer. Bidders at such auctions are treated as offerors, making offers the seller is free to either accept or reject.
The basic thing courts require for the creation of an offer is __________ on the part of the offeror. an invitation to negotiate an acceptance a present intent to contract a future intent to contract
C The basic thing the courts require for the creation of an offer is a present intent to contract on the part of the offeror. The two main things a court looks for in answering this question are how definite the supposed offer is and whether the offeror has communicated it to the offeree.
According to the Uniform Commercial Code (UCC), the "reasonableness" standard: requires that jurors use their subjective opinions to determine whether a contract for the sale of goods exists, and whether justice dictates that it be enforced. refers to the factual or status incapacity of one or more contracting parties. is a practical standard used to gauge what people really do in the marketplace. is a theoretical concept based on the "reasonable person" standard of tort law.
C The drafters of the Uniform Commercial Code (UCC) sought to create practical rules to deal with what people actually do in today's marketplace. This "reasonableness" standard is different from the hypothetical "reasonable person" standard used in tort law. A court that tries to decide what is reasonable under the UCC is more likely to be concerned with what people really do in the marketplace than with what a nonexistent reasonable person would do.
To create acceptance to an offer for a bilateral contract, __________. an offeree must perform the act requested by the offeror silence will never constitute acceptance of an offer acceptance must always be properly communicated to the offeror an offeror is allowed to word his or her offer so that the offeree will be bound to the contract
C To accept an offer for a unilateral contract, where a promise is exchanged for an act, the offeree must perform the act requested by the offeror. In order to accept all other offers, however, the offeree must make the requested promise. The general rule is that such promises must be communicated in order to be effective and create a contract.
Which of the following is true regarding Article 2 of the Uniform Commercial Code (UCC)? It applies to bonds, information, and other intangibles. It applies to contracts for the sale of real estate or stocks. It does not apply to contracts for the sale of goods. It does not apply to contracts for the provision of services.
D Article 2 of the Uniform Commercial Code (UCC) does not apply to service contracts. This can cause confusion because, while contracts for employment or other services are clearly not covered, many contracts involve elements of both goods and services.
If S. Win Dell, a professor at State University, charges extra fees for students to take a regularly scheduled class, it would not qualify as consideration because such an act: constitutes forbearance. gives rise to a unilateral contract, and such contracts are unenforceable in an education setting. is prohibited by the promissory estoppel doctrine. violates the preexisting duty rule.
D As a general rule, performing or agreeing to perform a preexisting duty is not consideration. Public officials obviously are bound to perform their official duties, so promises made by public officials to perform these duties are not consideration. In the subject case, Professor Dell had a preexisting duty to teach his regularly-scheduled classes for the tuition rate and fees established by State University.
Rudy asked Harun to detail his brand-new sports car by painting flames on the side of the vehicle. After the parties signed a contract and after Harun had already started to paint, Rudy decided that he also wanted Harun to install a new stereo system in the car at the same cost and modified the contract likewise. Harun painted the flames on the side of the vehicle as originally agreed but did not install a new stereo. Rudy refuses to pay the originally agreed- upon price. If Harun sues Rudy for the contract price, he will win because: Harun's act was not a preexisting duty and therefore had no legal value. Rudy's promise was unenforceable. The existing contract was rendered void with the addition of the new provision. Rudy's modification was unenforceable due to lack of consideration.
D By far the greatest number of preexisting duty cases involve contractual duties. These cases usually occur when the parties attempt to modify an existing contract but no new consideration is furnished to support the agreement to modify. In this case, if Rudy had promised to pay an extra amount to Harun for the modification of the new stereo system, his promise to pay more would have been enforceable. Harun, in that case, would have done something he had no legal duty to do in exchange for Rudy's promise.
The manager of Mack's Bar sent Olive Outlet an order for 200 cases of olives to be shipped "as soon as possible." The day Olive Outlet receives Mack's order, it ships the olives. Later that day, Mack's manager phones Olive Outlet and tries to revoke his offer. Under these circumstances: Mack's Bar cannot revoke, since the olives will spoil if they are shipped back. Mack's Bar can revoke based on principles of promissory estoppel. Mack's Bar can revoke because the acceptance had not been received. Mack's Bar cannot revoke because a contract was created when Outlet shipped the olives.
D In the given scenario, Mack's Bar cannot revoke because a contract was created when Olive Outlet shipped the olives. The Code specifically says 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.
Bill downloaded an antivirus software from the Internet. According to the Uniform Commercial Code (UCC), the software is __________. a good intangible real property tangible personal property a service
D Software download is considered a service under the Uniform Commercial Code (UCC). Initially, the drafters of the Uniform Commercial Code considered adding a new section to the Code to address "information contracts." However, the drafters abandoned this effort and amended the definition of "goods" to exclude information. This means that a transaction such as software downloaded from the Internet would not qualify as a good.
When compared to traditional contract law, the Uniform Commercial Code (UCC): -gives more evidentiary weight to the technical requirements of a contract such as offer, acceptance, and consideration. -is less concerned with recognizing the reasonable expectations of contracting parties. -applies an inflexible standard to the recognition of a contract's existence and its enforcement. -is more likely to find that the parties have a contract.
D The Uniform Commercial Code (UCC) is more concerned with rewarding people's legitimate expectations than with technical rules, so it is generally more flexible than traditional contract law. A court that applies the UCC is more likely to find the parties had a contract than a court that applies contract law.
Generally, a promise to discharge a(n) __________ debt for part payment of the debt at or after its due date is unenforceable due to lack of __________. unliquidated; present value unliquidated; consideration liquidated; present value liquidated; consideration
D The general rule is that a promise to discharge a liquidated debt for part payment of the debt at or after its due date is unenforceable due to lack of consideration.
Which of the following is true regarding current judicial interpretations of contract law? Modern courts do not have the legal authority to control private-party contracts. Courts today have entirely shifted their emphasis from protecting consumers and workers to protecting business and promoting industrialization. Modern courts are not willing to consider defenses based on inequality of bargaining power between the parties. Courts today tend to view with great suspicion attempts by manufacturers to limit their responsibility for product defects.
D The legal system began to respond to the changes in our way of life, changing contract law in the process. Many important contractual relationships that had earlier been left to private bargaining began to be controlled to some degree by legislation. Many courts also began to shift their emphasis from protecting business and promoting industrialization to protecting consumers and workers. Most modern courts also tend to view with great suspicion attempts by manufacturers to limit their responsibility for their products by contract.
Kamal places an advertisement in the local newspaper stating "$500 reward for the return of my gold ring." Mira finds the ring and returns it to Kamal, but he refuses to pay her the $500. Which of the following is true regarding this case? Mira may not recover the money because she did not contact Kamal before she began her search. As Mira did not pay Kamal to keep the offer open, he is free to revoke the offer and not pay her anything. As the advertisement was merely a solicitation of offers, there was no contract until Kamal accepted Mira's offer to find the ring. Mira accepted the advertisement as an offer for a unilateral contract by returning the ring; therefore, Kamal must pay her the $500.
D The promissory estoppel doctrine is often used to prevent unfairness in unilateral contract offer withdrawals. The general rule that the offeror can revoke an offer at any time prior to acceptance causes special problems when the offer is for a unilateral contract. If the offeror benefited from the offeree's attempted performance, some courts may allow the offeror to revoke but require him or her to pay the offeree the reasonable value of the performance under a quasi contract theory. Since the above case is a unilateral contract, Kamal cannot revoke the offer and is bound to pay the $500 to Mira.
Which of the following is true about the modification of an existing contract under the Uniform Commercial Code (UCC)? If the price of the goods in a modified agreement is $500 or more, the modification is unenforceable. There is no legal prohibition against agreements that result from coercion. Agreements to modify contracts for the sale of goods need consideration to be binding. There is no duty to agree to a modification.
D There is no duty under the Uniform Commercial Code (UCC) to agree to modify an existing contract for the sale of goods. However, if the parties agree to do so, the modification needs no consideration to be binding (2-209[1]).
Which of the following basic requirements must be met for an offer to sell goods to be a firm offer? It must contain assurances that it will be revocable. It must have been made orally. It can be valid for up to, but not exceeding, thirty (30) days. The offeror must be a merchant.
D For an offer to sell goods to be a firm offer, it must meet three basic requirements: 1. It must have been made in a signed writing (no oral firm offers). 2. The offeror must be a merchant. 3. It must contain assurances that it will be held open (some indication that it will not be revoked). Firm offers are irrevocable for the period of time stated in the offer. If none is stated, they are irrevocable for a reasonable time, as determined by the circumstances of the case. The limit on the period of irrevocability for firm offers is three months, regardless of what the terms of the offer may indicate.
T/F If the consideration given by the contracting parties has legal value, courts generally do not concern themselves with whether the parties received any actual value in exchange for their promises or whether the promises or performances exchanged were of relatively equal value.
True
T/F The biggest reform of contract law has resulted from the adoption of the Uniform Commercial Code (UCC).
True
T/F Where means of acceptance are authorized but not required, any attempt by the offeree to accept by nonauthorized means is not effective until the acceptance is actually received by the offeror.
True
T/F A contract is executory if it has not been fully performed.
True
T/F A firm offer cannot be revoked if the offeror promises to hold the offer open, even if the offeree gave no consideration for the promise.
True
T/F A person who has made an offer has given the party to whom he or she has made the offer the power to create a binding contract by accepting.
True
T/F Because the basis of contract law is the voluntary agreement of the parties, the law generally requires some affirmative indication of assent from an offeree before it binds the offeree to the terms of an offer.
True
T/F If the offer does not state a time for acceptance, it is valid for a "reasonable time," which depends on the circumstances surrounding the offer.
True
T/F If there is no offer, there is nothing to accept, and a contract cannot be created.
True
T/F In some cases, the doctrine of promissory estoppel prevents offerors from revoking their offers.
True