Ch. 9
what are the 2 main sources of contract law?
1. Uniform Commercial Code (UCC) 2. case law
___ is defined as bargained-for exchange
Consideration
_____ contracts are not actually contracts.
Quasi-
___ are not actually contracts.
Quasi-contracts
The ______ governs letters of credit
UCC
Which is a type of formal contract according to the Restatement (Second) of Contracts?
a contract under seal
Under ______, the terms of an offer must be definite and certain
common law
A _____ is a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty
contract
A written contract is an example of a ____ contract.
formal
A bond used as bail in a criminal case is which type of contract?
formal contract
The terms of an offer must be definite and certain, meaning that all of the ______ terms must be included
material
The ____ rule says that the terms of the acceptance must mirror the terms of the offer.
mirror-image
Contracts are interpreted using a(n) _____ standard, meaning that the courts are concerned with only the party's outward manifestation of his or her intent.
objective
Contracts are interpreted using a(n) ______ standard, meaning that the courts are concerned with only a party's outward manifestations of his or her intent
objective
A(n) _____ is an indication of the willingness of the offeror to enter into a contract
offer
Who makes an offer?
offeror
Which of the following is NOT a recognized way to terminate an offer?
rejection by the offeror (it is rejection by the offeree)
Which of the following is *not* a recognized way to terminate an offer?
revocation by the offeree
The Restatement of Law is a...
statement of the law
If the subject matter of an offer is destroyed, the offer is ___.
terminated immediately
If an offeror dies, the offer _____
terminates immediately
If an offeror dies, the offer _____.
terminates immediately
A convenient way to research contract law is to reference _____.
the Restatement (Second) of the Law of Contracts
Which of the following is NOT a source of contract law?
the Universal Contracts Code
Under _____, the term of an offer must be definite and certain
the common law
A ______ contract is one that contains all of the legal elements of a contract
valid
A(n) _____ contract is one that contains all of the legal elements of a contract.
valid
As a general rule, a ______ contract is one that will be enforced
valid
In an auction _____, the seller is merely expressing an intent to receive offers.
with reserve
In an auction ______, the seller is merely expressing an intent to receive offers.
with reserve
Certain contracts require a ___, and if there is none, the agreement will not be enforced.
writing
Which of the following are sources of contract law?
- Case Law and - The Uniform Commercial Code
A lack of genuine assent can result from what 4 things?
1. undue influence 2. fraud 3. duress 4. misrepresentation
In terms of contracts for the sale of goods transactions, Uniform Commercial Code Section ___ significantly modified the mirror-image rule.
2-207
In terms of contracts for the sale of goods transactions, Uniform Commercial Code Section ______ significantly modified the mirror-image rule
2-207
How many states have adopted the Uniform Commercial Code?
50
Which of the following is an inaccurate statement regarding communication of acceptance to the offeror?
An acceptance must be communicated in writing in order for it to be effective.
Which of the following is an accurate statement regarding an expression of possible interest in an exchanged?
An expression of possible interest in an exchange is not an offer
Which of the following is an accurate statement regarding an expression of possible interest in an exchange?
An expression of possible interest in an exchange is not an offer.
what is an accurate statement regarding an expression of possible interest in an exchange?
An expression of possible interest in an exchange is not an offer.
Which of the following is an accurate statement regarding an invitation to negotiate?
An invitation to negotiate is not an offer
The law of contracts is primarily _______________ law.
Common
_____ is what each party gets in exchange for his or her promise under the contract.
Consideration
Which of the following refers to the legal ability to enter into a binding agreement?
Contractual Capacity
___ is a term applied to a contract in which all of the terms have been fully performed.
Executed
_____ is a term applied to a contract in which all of the terms have been fully performed.
Executed
The term ___ applies to a contract in which not all of the terms have been fully performed.
Executory
_____ contracts are those that have a special form or must be created in a specific manner.
Formal
Which of the following is a WRONG statement regarding communication of acceptance?
If no means of communicating an acceptance is specified, it is mandatory for an acceptance to be in writing.
___ contracts arise not from words but from the conduct of the parties.
Implied
_____ contracts arise not from words but from the conduct of the parties.
Implied
Which of the following is an *incorrect* statement regarding a contract under seal?
In order for a contract to be enforced, it must be under seal.
____ are called simple because no formalities are required in making them.
Informal contracts
_____ are called simple because no formalities are required in making them.
Informal contracts
Under which of the following circumstances can an advertisement constitute an offer?
It appears from the advertisement's wording that the store intended to make an offer.
A ____ is an agreement by a person or institution that issues it to pay a sum of money on receipt of an invoice and other documents.
Letter of credit
Who makes an offer?
Offeror
Which of the following is an accurate statement if an offer is directed to a specific offeree?
Only the offeree to whom the offer was directed can accept the offer.
A(n) ___ is an agreement whereby an offeree gives the offeror a piece of consideration in exchange for the offeror's agreement to hold the offer open for a specified period of time.
Option contract
Which of the following is an accurate statement regarding rejection of an offer?
Rejection of an offer terminates the offer
What is the general rule regarding whether silence constitutes acceptance?
Silence does not constitute acceptance
Which of the following is *true* regarding whether silence constitutes the acceptance of an offer?
Silence does not constitute acceptance
If an offeror becomes incapacitated, the offer is ____.
Terminated immediately
If an offeror dies, the offer ___.
Terminates immediately
what is a situation where a valid contract may be unenforceable?
The applicable statute of limitations for the breach of a contract has expired
Which of the following is a situation where a valid contract may be unenforceable?
The applicable statute of limitations period has expired
Which of the following is an element of an offer under common law?
The intent to be bound by an acceptance
According to the Restatements of Contracts, which of the following is *not* a circumstance under which silence can constitute acceptance of an offer?
The offeree does not believe that silence constitutes acceptance and does not manifest an intent to be bound by contract
According to the Restatement of Contracts, which of the following is NOT a circumstance under which silence can constitute acceptance?
The offeree does not believe that silence constitutes acceptance and does not manifest an intent to be bound by contract.
According to the Restatement of Contracts, which of the following is not a circumstance under which silence can constitute acceptance of an offer?
The offeree does not believe that silence constitutes acceptance and does not manifest an intent to be bound by contract.
According to UCC Section 2-207, which of the following is NOT a requirement for an offeree to include in an acceptance terms that are additional to or different from the terms of the offer?
The subject contract does not contain any express or implied warranties
The ___ governs letters of credit.
Uniform Commercial Code
The ______ is a statutory source of contract law in the United States applicable to transactions involving the sale of goods
Uniform Commercial Code (UCC)
When a contract is ___, either its object is illegal or it has some defect that is so serious that it is not a contract.
Void
If nothing is said to the contrary in the terms of an auction, the auction is presumed to be ____.
With reserve
In an auction ___, the seller is treated as making an offer to accept the highest bid.
Without reserve
Which of the following is a type of formal contract according to the Restatement (Second) of Contracts?
a contract under seal
Most common unilateral contract offer
a reward
Suppose a rejection is dispatched, but before it is received, the acceptance is communicated to the offeror. In such a case, ____.
a valid contract has been formed because the rejection is not effective until it is received
Suppose a rejection is dispatched, but before it is received, the acceptance is communicated to the offeror. In such a case, _____
a valid contract has been formed because the rejection is not effective until it is received
Suppose a rejection is dispatched, but before it is received, the acceptance is communicated to the offeror. In such a case, _____.
a valid contract has been formed because the rejection is not effective until it is received
A lack of genuine assent can result from all but which of the following?
acceptance
In an offer, the offeror must manifest an intent to be bound by the offeree's ______
acceptance
what is an indication of the willingness of the offeree to consent to the terms of the offer?
acceptance
If the offeror does not specify a time period that an offer will be valid, the offer terminates ___.
after a reasonable period of time
If the offeror does not specify a time period that the offer will be valid, the offer terminates _____.
after a reasonable period of time
A(n) ______ consists of an offer and acceptance
agreement
The first element of a contract is the _____
agreement
what consists of an offer and an acceptance?
agreement
what is a letter of credit?
an agreement by the person or institution that issues a letter to pay a sum of money on receipt of an invoice and other documents
In which of the following auctions must the seller accept the highest bid?
an auction without reserve
Which of the following is not a type of formal contract according to the Restatement (Second) of Contracts?
an implied-in-law contract
A lack of genuine ______ in a contract means the contract was not entered into freely by one or more parties
assent
Which is considered to be a legally binding offer?
auctions without reserve
A(n) _____ contract is commonly defined as a promise in exchange for a promise
bilateral
If the offeror wants a promise from the offeree to form a binding contract, the contract is what?
bilateral
Contractual _____ is the legal ability to enter into a binding agreement
capacity
According to the common law, which of the following is a required element of an offer?
communication of the offer to the offeree
what is defined as the bargained-for exchange?
consideration
Which is NOT a required element for the valid acceptance of an offer?
contemporaneous acceptance of the contractual terms
what is a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty
contract
When people hear the term formal contract, what often comes to mind is a(n) ___.
contract under seal
When people hear the term formal contract, what often comes to mind is a(n) _____.
contract under seal
When people hear the term formal contract, what often comes to mind is a(n) ______
contract under seal
What term refers to the legal ability to enter into a binding agreement?
contractual capacity
all contracts can be classified as what?
either bilateral or unilateral.
To say that a contract is ______ means that the contract cannot be enforced by the courts because of an applicable law.
enforceable
Once all the terms of a contract have been fully performed, the contract is ______
executed
The term _____ applies to a contract in which not all of the terms have been fully performed.
executory
The term ______ applies to a contract in which not all of the terms have been fully performed
executory
The terms of a(n) ______ contract are clearly set forth in either written or spoken words
express
Which of the following types of contract is clearly set forth in either written or spoken words?
express
Which of the following types of contracts is clearly set forth in either written or spoken words?
express contract
______ contracts are those that have a special form or must be created in a specific manner.
formal
If you have a dental emergency and your dentist pulls your severely infected tooth without prior negotiation about payment, or even any mention of payment, you have a(n) ______ contract for the payment of his services
implied
If you have a dental emergency and your dentist pulls your severely infected tooth without prior negotiation about payment, or even any mention of payment, you have a(n) ______ contract for the payment of his services.
implied
what kind of contracts arise not from words but from the conduct of the parties?
implied
Which is NOT a type of formal contract according to the Restatement (Second) of Contracts?
implied-in-law contract
As a general rule, an advertisement ___.
is an invitation to make an offer
As a general rule, an advertisement _____
is an invitation to make an offer
A _____ is an agreement by a person or institution that issues it to pay a sum of money on receipt of an invoice and other documents.
letter of credit
Which is a required element for the valid acceptance of an offer?
manifestation of intent by the offeree to be bound by the acceptance
Which of the following is a required element for a valid acceptance?
manifestation of intent by the offeree to be bound by the acceptance
Which of the following is a required element for the valid acceptance of an offer?
manifestation of intent by the offeree to be bound by the acceptance
The ______ rule says that the terms of an acceptance must mirror the terms of an offer.
mirror-image
A ___ is a written document signed by a person who makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument.
negotiable instrument
A ____ is a written document signed by a person who makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument.
negotiable instrument
A ______ is a written document signed by a person who makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument
negotiable instrument
According to the mirror-image rule, if the terms of the acceptance of an offer do not mirror the terms of the offer, ______
no contract is formed
A contract must have a legal _____.
object
A contract must have a legal...
object
The _____ must be communicated to the offeree or to the offeree's agent.
offer
what is an indication of the willingness of the offeror to enter into a contract?
offer
What are the two essential elements of an agreement?
offer and acceptance
In terms of acceptance, a(n) _____ can manifest contractual intent by either performance or a return promise.
offeree
Who accepts the terms of an offer?
offeree
The _____ is said to be the master of his or her offer.
offeror
Under the common law, the agreement in a contract begins when ___.
one party, the offeror, makes an offer to another party, the offeree
Under the common law, the agreement in a contract begins when ____
one party, the offeror, makes an offer to another party, the offeree
A(n) ______ is an agreement whereby an offeree gives the offeror a piece of consideration in exchange for the offeror's agreement to hold the offer open for a specified period of time
option contract
A(n) ______ 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 a specified period of time.
option contract
Identify the ways an offeree can manifest his or her intent to enter into a contract
performance or return promise
According to the mailbox rule, the acceptance of an offer is valid when it is ___.
placed in the mailbox
According to the mailbox rule, an acceptance is valid when it is ____.
placed in the mailbox.
A contract is a set of legally enforceable...
promises
According to the mailbox rule, the acceptance of an offer is valid when it is _____
put in a mailbox
A bond used as bail in a criminal case is an example of a(n) _____.
recognizance
A bond used as bail in a criminal case is an example of a(n) ______
recognizance
A(n) ___ arises when a party acknowledges in court that he or she will perform some specified act and/or pay a price on failure to do so.
recognizance
A(n) _____ arises when a party acknowledges in court that he or she will perform some specified act and/or pay a price on failure to do so.
recognizance
A(n) ______ arises when a party acknowledges in court that he or she will perform some specified act and/or pay a price on failure to do so
recognizance
According to the common law, which of the following is NOT a required element of an offer?
revocation of the offer by the offeror
According to the common law, which of the following is not a required element of an offer?
revocation of the offer by the offeror
If the subject matter of an offer is destroyed, the offer ______
terminates immediately
If the subject matter of the offer is destroyed, the offer _____;
terminates immediately
A convenient way to research contract law is to reference
the Restatement (Second) of the Law of Contracts
If the acceptance of an offer is receive after a rejection is received, ___.
the acceptance is not valid because the rejection terminated the offer
Who accepts the terms of the offer?
the offeree
Who makes an offer?
the offeror
The most common unilateral contract offer is a(n)
the reward
According to UCC Section 2-207, which of the following is not a requirement for an offeree to include in an offer's acceptance terms that are additional to or different from the terms of the offer?
the subject contract does not contain any express or implied warranties.
To say that a contract is _____ means that the contract cannot be enforced by the courts because of an applicable law.
unenforceable
______ are called simple because no formalities are required in making them
unformal contracts
In a(n) _____ the offeror wants a performance to form the contract.
unilateral
when the offeror wants a performance to form a contract, the contract is what?
unilateral
In a ___, the offeror wants a performance to form the contract
unilateral contract
Which must exist for a quasi contract to be enforced by the courts?
unjust enrichment
When a contract is _____, either its object is illegal or it has some defect that is so serious that it is not a contract.
void
A contract is _____ if one or both of the parties can either withdraw from the contract or enforce it
voidable
Which of the following refers to a situation where one or both parties can either withdraw from a contract or enforce it?
voidable contract
According to the mailbox rule, a revocation by traditional letter is effective _____.
when received by the offeree
Certain contracts require a(n) ______, and if there is none, the agreement will not be enforced
writing
To say that a contract lacks the proper form typically means it lacks a(n) ___.
writing
To say that a contract lacks the proper form typically means it lacks a(n) ____.
writing
