Questions asked in class for ACCT 324

The equitable remedy under the Common Law of contracts requiring the seller to perform under the contract is called ________.

Full performance Total performance SPECIFIC PERFORMANCE none

According to UCC 2-102, the UCC applies to the sale of...

Goods

All of the following contracts must be in writing except...?

Services

A(n) _______ is best described as an order either forcing a person to do something or prohibiting a person from doing something. -delegation -novation -injunction -assignment

injunction

Smith took her moped to 'Moped For Repairs'. A salesperson at Moped sold Smiths moped to Byars. Byars paid fair value and didn't know the moped was actually owned by Smith, GC moped. Who has the best title of the Moped?

Byars

Contract damages intended to put the non-breaching party in position they would have been had the breaching party performed are called __________ damages.

Compensatory

Jason agrees to buy Sara's car for $10,000. However, Sara tells Jason that she will only sell the car to him if he pays $12,000. In this scenario, Sara makes a(n) -collective bargain. -counteroffer. -addendum. -reverse bid.

Counteroffer

T/F- A person who enters into a contract as a minor enters into a voidable contract and always has the right to void the contract by exercising their power of disaffirmance?

False

When, after reaching the age of majority, the former minor takes some action consistent with the intent to ratify the contract. -Express ratification -Implied ratification -Unilateral agreement -Implied agreement

Implied ratification

A(n) _______ damages clause in a contract is one that identifies a remedy before a breach occurs. -equitable -projected -hypothetical -liquidated

Liquidated

Under the UCC, which of the following statements regarding liquidated damages is accurate? -Liquidated damages are unconstitutional in some jurisdictions. -Liquidated damages may be identified after the breach of a sales contract occurs by the parties. -Liquidated damages may be awarded by the court based upon evidence of out-of-pockets damages. -Liquidated damages must be identified before the breach occurs by the parties.

Liquidated damages must be identified before the breach occurs by the parties.

_______ occurs when a party to a contract unjustifiably fails to substantially perform his obligations under the contract. -Material breach -Substantial performance -Accord and satisfaction -Novation

Material breach

Macon is planning to buy Kevin's car for $15,000. He gives Kevin $1,500 to keep the offer open for 30 days. Kevin will deduct the $1,500 from the price of the car if Macon purchases the car within the 30 days. If Macon does not buy the car during that time, Kevin will keep the $1,500 and may then offer the car to someone else. Which of the following contracts does this scenario best illustrate? -Unenforceable contract -Option contract -Quasi-contract -Implied contract

Option contract

Which one of the following terms is required to be stated in a UCC contract?

Parties Price Quantity Quality

With regard to the enforceability of a present promise, which of the following is an accurate statement regarding past consideration? -Past consideration is equitable consideration to support the enforceability of a present promise. -Past consideration is sufficient consideration to support the enforceability of a present promise. -Past consideration is conditional consideration to support the enforceability of a present promise. -Past consideration is no consideration at all.

Past consideration is no consideration at all.

Which of the following statements most accurately reflects the preexisting duty rule? -Consideration given before a promise is made is not good consideration. -Performance of a duty you are obligated to do under the law is not good consideration. -Performance of an act in exchange for a promise is not good consideration. -An illusory promise is no promise at all.

Performance of a duty you are obligated to do under the law is not good consideration.

_______ performance occurs when nearly all of the terms of the agreement have been completed, the obligor has made a good faith effort to complete all of the terms of the agreement, and no "willful departure" from the terms of the agreement has occurred. -Contractual -Substantial -Conditional -Absolute

Substantial

If a nonbreaching buyer seeks the remedy of "cover," the buyer must establish all but which of the following? -The buyer must pay a reasonable amount for substitute goods. -The buyer must purchase goods identical to the goods specified in the contract. -The buyer must demonstrate good faith in obtaining substitute goods. -The buyer must act without unreasonable delay in purchasing the substitute goods.

The buyer must purchase goods identical to the goods specified in the contract.

How is an offeror's intent to be bound by an agreement demonstrated? -The courts determine an offeror's intent based upon what that person's subjective principles are. -The courts determine an offeror's intent based upon how a reasonable person would interpret the offeror's words and actions. -The courts determine an offeror's intent based upon what the offeror's belief was at the time negotiations began. -The courts determine an offeror's intent based upon his or her demonstrated acceptance of the offer when negotiations began.

The courts determine an offeror's intent based upon how a reasonable person would interpret the offeror's words and actions.

When a minor enters into a contract, the minor has which of the following rights? -The minor may disaffirm part of the contract before reaching the age of majority and then ratify the remaining provisions of the contract after reaching the age of majority.minor can choose to disaffirm only a portion of the contract. -The minor has a right to ratify the contract before reaching the age of majority if the adult party agrees. -The minor has the right to disaffirm the contract only after reaching the age of majority. -The minor has the right to disaffirm the contract before or within a reasonable time of reaching the age of majority.

The minor has the right to disaffirm the contract before or within a reasonable time of reaching the age of majority.

An offer must include all but which of the following elements? -The offer must be communicated to the offeree. -The offer must always be in writing. -The offeror must demonstrate a serious intent by the offeror to be bound by the offer -The offer must contain reasonably definite and certain terms

The offer must always be in writing.

All but which of the following demonstrate an acceptance by the offeree? -The offeree makes a return promise to the offeror. -The offeree makes a new offer to the offeror to continue negotiations which ultimately lead to a contract. -The offeree demonstrates acceptance by completing an action the offer requires. -The offeree performs an act the offeror requests.

The offeree makes a new offer to the offeror to continue negotiations which ultimately lead to a contract.

Under common law, if the offeree's acceptance with terms that are not identical to the offeror's terms, then which of the following is true? -The parties have a contract because the offeree accepted substantially all of the offeror's terms. -The offeree's attempted acceptance is considered a counteroffer rather than an acceptance. -A contract will exist if the material terms of the agreement are largely the same. -The parties have a contract because they both agree in principle on the terms of the agreement.

The offeree's attempted acceptance is considered a counteroffer rather than an acceptance.

Which of the following must occur when nonbreaching buyers or lessees obtain specific performance under the Uniform Commercial Code (UCC)? -The sellers or lesser must pay the exact amount of damages the buyer or lessee sustained. -The sellers or lessors must deliver the goods identified in the contract. -The buyers or lessees will be able to recover an amount equal exactly to their monetary losses. -The buyers or lessees will receive the precise goods ordered in addition to the specific amount of monetary losses they incurred due to the breach.

The sellers or lessors must deliver the goods identified in the contract.

T/F- Courts must find an agreement, consideration, capacity, legal assent, and compliance with the statute of frauds to rule a contract void.

True

When a trusted dominant party exerts pressure on a non-dominant party to enter into a contract that overwhelmingly benefits the dominant party, courts will likely find that __________ played a role in thereby making the contract _________.

Undue influence; voidable

All of the following are types of contracts except...

Valid Void Voidable VARIFIED

A contract entered into by a person who is adjudicated intoxicated is defined as what type of contract?

Void

When a buyer of a good writes a bad check to someone who has good title, the buyer receives __________ title.

Voidable

If someone suffering from dementia has been appointed a guardian, which of the following is true regarding that person's ability to enter into a contract? -If the guardian ratifies the contract entered into by the person with dementia, the contract is considered valid. -When someone has been appointed a guardian, that person's contracts are considered void. -Because dementia affects people intermittently, the contract will be voidable by the person suffering from dementia. When the contract is entered into by a person under the age of majority. -Provided the court approves the contract the person with dementia entered into, the contract is considered valid.

When someone has been appointed a guardian, that person's contracts are considered void.

Sections 2-716(1) and 2A-521(1) under the Uniform Commercial Code (UCC) allow nonbreaching buyers and lessees to seek the remedy of specific performance when -a breach of contract occurs due to commercial impracticality. -the seller is proven to be insolvent. -the goods purchased are commodity goods. -a remedy at law is inadequate.

a remedy at law is inadequate.

An offer and __________ form an agreement.

acceptance

An agreement in which a party is given an offer without the right to negotiate its terms is called a(n) _______ contract. -unilateral -adhesion -quasi -bilateral

adhesion

An offer and acceptance form an...

agreement

When a buyer breaches a sales or lease contract before the seller has delivered the goods, Sections 2-703(a) and 2A-523(1)(c) of the Uniform Commercial Code -allow sellers to withhold delivery of goods. -do not allow the seller to cancel the contract. -revoke the legal capacity of the buyer to enter into contracts. -do not consider the breach as a violation of contract laws.

allow sellers to withhold delivery of goods.

Implied conditions are those conditions which _______. -are explicitly stated in the terms of the agreement -are not explicitly stated in the contract but are inferred from the nature and language of the contract -the parties determine based upon an accord and satisfaction -the parties may choose to enforce before their obligations to perform under the contract arises

are not explicitly stated in the contract but are inferred from the nature and language of the contract

Consideration can be anything, as long as it is the product of a(n) _______. -assignment. -unilateral contract. -bilateral contract. -bargained-for exchange.

bargained-for exchange.

Maya, a wedding planner, had agreed to use purple orchids for Janet's wedding. However, due to an embargo against the country from where the flowers were to be imported, Maya could not fulfill her promise. In this scenario, the contract between Maya and Janet may be discharged on the basis of -novation. -commercial impracticability. -objective impossibility. -condition subsequent.

commercial impracticability.

Suppose that Hannah agrees to purchase Rachel's computer for $500. Hannah's payment of $500 is the _______ that Rachel will receive for her car. -agreement -offer -reciprocity -consideration

consideration

A minor is said to have _____ contractual capacity.

limited

Damages specified in the parties' contract are known as _______ damages. -liquidated -nominal -non-liquidated -substituted

liquidated

A valid offer includes: -expressions of possible interest by the offeror. -vague and ambiguous proposals. -offers communicated by the offeror to the offeree's agent. -preliminary negotiations and advertisements.

offers communicated by the offeror to the offeree's agent.

If a buyer decides to terminate a contract because the seller changes the price of the contract without the knowledge of the buyer, then the contract is discharged by -mutual rescission. -condition precedent. -novation. -operation of law.

operation of law.

The remedy of _______ performance usually requires that the seller or lessor deliver the particular goods identified in the contract. -specific -speculative -definitive -demonstrable

specific

When the obligations of a contract are terminated by a future event, that future event is referred to as a condition _______. -successive -precedent -subsequent -preceding

subsequent

Restitution, as a primary equitable remedy for a breach of contract, is best described as -an order for the breaching party to perform a new duty as a substitution to an old duty. -the return of any property given up under the contract. -the replacement of one of the parties to a contract. -an order requiring the breaching party to pay some predetermined amount of money to the injured party.

the return of any property given up under the contract.

If a party to a contract asks for an additional amount of money and agrees to do more work than the contract requires, the result is that the promise -becomes a part of the party's preexisting duty. -to do the extra work is an illusory promise. -becomes an option contract. -to do the extra work is valid consideration.

to do the extra work is valid consideration.

T/F- Courts will not enforce a contract, common law or UCC, that the statue of frauds requires to be in writing that was not put in writing.

False

T/F- UCC and Common Law of contracts are laws that govern the same contracts.

False

T/F- Courts that require complete performance for a party to be discharged from further contract obligations?

False; Not complete, Substantial

Felipe, Adam, and Shirley are neighbors. Felipe overhears Adam's offer to sell an antique clock to Shirley for $3,000. Under these circumstances, -Felipe accepts the original offer made to Shirley when he accepts to buy the clock from Adam for $3,000. -Adam cannot make a new offer to sell the clock for $3,500 to Felipe. -Felipe makes a new offer to Adam when he offers to buy the clock for $3,000. -Shirley cannot make a counteroffer to Adam to buy the clock for $2,500.

Felipe makes a new offer to Adam when he offers to buy the clock for $3,000.

Covenants not to compete in conjunction with the sale of a business are generally enforceable if which of the following conditions are met? -Provided the covenant not to compete allows the seller of the business to open a new business within the same county, the covenant will be enforceable. -Provided the covenant not to compete also involves a covenant not to compete for future employment, the covenant will be enforceable. -Provided the covenant not to compete does not prohibit the seller of the business from opening a new business within one year, the covenant will be enforceable. -Provided the covenant not to compete is reasonable with regard time and location, the covenant will be enforceable.

Provided the covenant not to compete is reasonable with regard time and location, the covenant will be enforceable.

When is a contract voidable? -When the contract is entered into by a minor. -When the contract is entered into by an intoxicated person who understands his or her contractual obligations. -When the contract is entered into by an emancipated minor. -When the contract is entered into by a person adjudicated insane.

When the contract is entered into by a minor.

Which of the following conditions would terminate an offer, even if the offeree does not know of the terminating event? -When the offeree has begun performance of the action necessary to accept a unilateral offer. -When the offeror and the offeree are in an option contract that is still valid. -When the offeror loses the legal capacity to enter into a contract. -When the offeror decides to revoke the offer made to the offeree.

When the offeror loses the legal capacity to enter into a contract.

When a party attempts to ratify an agreement right after reaching the age of majority, there is a(n) -contract of adhesion. -implied ratification. -consent. -contract of adhesion.

implied ratification.

According to the Uniform Commercial Code (UCC), the remedy of last resort available to sellers and lessors in the case of breach of a sales contract is -reselling the goods. -allowing the seller to withhold the goods. -canceling the contract. -filing a claim for damages in court.

canceling the contract.

A "severable" contract is also known as a _______ contract. -divisible -void -voidable -exculpatory

divisible

When parties agree that a debt is owed and the amount of that debt, then that debt is considered to be _______. -unliquidated -liquidated -unilateral -bilateral

liquidated

Laurens, Inc. contracted with GSP, LLC to widen a four-lane road to a six-lane road for ten miles. When Laurens, Inc. and GSP, LLC drafted the contract, the agreement contained a provision that if either party breached the contract, that party was liable to pay $10 million dollars to the nonbreaching party. This scenario is an example of _______. -pre-existing damages -punitive damages -liquidated damages. -equitable damages

liquidated damages.

When there is no dispute over the amount of debt or existence of debt, it is referred to as a _______. -venture debt. -liquidated debt. -subordinated debt. -good debt.

liquidated debt.

Consequential damages include _______, as long as such damages are not too speculative. -lost profits -property loss -losses avoided -incidental damages

lost profits

The terms of an acceptance that reflect the terms of an offer are known as the _______ rule. -transmissions -mirror-image -near-privity -mailbox

mirror-image

In a(n) _______, the original parties and a third party all agree that the third party will replace one of the original parties and that the original party will then be discharged. -mutual rescission -accord and satisfaction -novation -substituted contract

novation

If the parties dispute either the existence of a debt or the amount of a debt, that debt is called a(n) _______ debt. -liquidated -substituted -unliquidated -non-valid

unliquidated

In a(n) _______ debt, the parties either disagree about whether money is owed or dispute the amount. -liquidated -unliquidated -illiquid -fluid

unliquidated

When a debt is _______, the parties may enter into a(n) _______. -liquidated; civic satisfaction -unliquidated; accord and satisfaction -unliquidated; civic satisfaction -liquidated; accord and satisfaction

unliquidated; accord and satisfaction

If a person has been adjudicated insane and has a guardian appointed, any contract the person attempts to enter into is -valid. -voidable. -void. -unilateral.

void.

When an agreement is deemed illegal, courts will label the contract -conscionable. -exculpatory. -void. -voidable.

void.