quizzes

An offer is interpreted by the courts on a(n) ________ standard -judicial -subjective -objective -personal

objective

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

operation of law.

What has occurred if the original parties to a contract 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 from his or her obligations under the contract? -A substituted contract -A discharge by accord and satisfaction -An assignment -A novation

A novation

An "accord and satisfaction" is not enforceable if ________blank is involved. -full payment -promissory estoppel -an unliquidated debt -a liquidated debt

a liquidated debt

Marty is a football player and he has a contract to play for Team One for 6 months. Two months into his contract, Marty decides to switch to a different team because they pay more. In order to prevent Marty from playing with a different team for the remainder of the contract, Team One can obtain a(n)________ -assignment -delegation -injunction -novation

injunction

Which of the following requires that each party performs for the other at the same time? -Concurrent condition -Coexisting condition -Simultaneous condition -Express condition

Concurrent condition

An agreement presented on a take-it-or-leave it basis is referred to as a(n) ________blank contract. -quasi -adhesion -unilateral -bilateral

adhesion

Which of the following is not generally considered a material term in an offer? - parties -price -subject matter -the time the offer is to remain open

the time

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

The offer must always be in writing.

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

liquidated

Jorge offers to build Larry a garage for $20,000. The offer stated that acceptance in person was required. Within a reasonable time, Larry e-mailed Jorge his acceptance. Which of the following statements is true about this situation? - The acceptance by Larry will be presumed as an implied contract. - The agreement between Larry and Jorge will be valid but unenforceable. -Larry has not accepted the offer as required by the offeror, and there is no contract. - Larry has accepted the offer because an e-mail is a reasonable means of acceptance.

Larry has not accepted the offer as required by the offeror, and there is no contract.

Which term describes conditions that impair one party's understanding of a contract, as well as the integration of terms into a contract? -Procedural unconscionability -in pari delicto -Exculpatory -Substantive unconscionability

Procedural unconscionability

Which remedy usually requires that the seller or lessor deliver the particular goods identified in the contract? -Consequential damages -Specific performance -Liquidated damages -Compensatory damages

Specific performance

If a nonbreaching buyer seeks the remedy of "cover," the buyer must establish all but which of the following? -The buyer must purchase goods identical to the goods specified in the contract. -The buyer must pay a reasonable amount for substitute goods. -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.

Macon is offered a job by a reputable company in Boston. Macon quits his job in Chicago and moves to Boston along with his family. The first day he goes to work at the new company, he is told that there is no job for him. Macon can sue the employer under the theory of: -past consideration. -promissory legality. -consideration. -promissory estoppel.

promissory estoppel.

________blank 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. -Substantial -Contractual -Absolute -Conditional

substantial

Legal capacity is: -the mental ability of a person to understand his or her rights and obligations under a contract and comply with the terms. -the physical ability of a person to understand his or her rights and obligations under a contract and comply with the terms. -not required for a valid contract. -sufficient consideration to enter into a contract.

the mental ability of a person to understand his or her rights and obligations under a contract and comply with the terms.

In most states, a minor does not have the right to affirm which of the following contracts? -Education loan contract -Life insurance contract -Marriage contract -Car purchase contract

Car purchase contract

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

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

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

Past consideration is no consideration at all.

________blank occurs when one party makes a promise knowing the other party will reasonably rely on it, the other party does reasonably rely on it, and the only way to avoid injustice is to enforce the promise. -Forbearance -Promissory estoppel -A crime -A tort

Promissory estoppel

All but which of the following demonstrate an acceptance by the offeree? -The offeree makes a new offer to the offeror to continue negotiations which ultimately leads 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 return promise to the offeror.

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

Which of the following must occur when nonbreaching buyers or lessees obtain specific performance under the Uniform Commercial Code (UCC)? -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 pay the exact amount of damages the buyer or lessee sustained. -The sellers or lessors must deliver the goods identified in the contract.

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

Contracts may be terminated by agreement of the parties or by operation of law. All but which of the following are examples of a contract being terminated by agreement of the parties? -Accord and satisfaction -Novation -Mutual rescission -Tolling of the statute of limitations

Tolling of the statute of limitations

Wanda purchases a motorcycle from her friend, Leslie. She pays Leslie $8,000. Later, Wanda realizes that the motorcycle is worth less than $4,000. If Wanda plans to sue Leslie, which of the following statements applies? -Wanda can sue Leslie because the motorcycle was not worth the amount Wanda paid for it. -Leslie will be held guilty because her action is a breach of promissory estoppel. -Wanda cannot sue Leslie because the court seldom considers adequacy of consideration. -The court will hold Leslie not liable as she made a unilateral promise.

Wanda cannot sue Leslie because the court seldom considers adequacy of consideration.

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

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): -bilateral contract. -assignment. -unilateral contract. -bargained-for exchange.

bargained-for exchange.

Suppose that Brittany agrees to purchase Kathy's computer for $700. Brittany's payment of $700 is the ________blank that Kathy will receive for her computer -reciprocity -consideration -agreement -offer

consideration

Julio agrees to buy Sophia's computer for $1,000. However, Sophia tells Julio that she will only sell the computer to him if he pays $1,200. In this scenario, Sophia makes a(n): -collective bargain. -addendum. -reverse bid. -counter offer

counteroffer

The term ________blank refers to the fact that the agreement in question is so unfair that it is void of conscience. -subconscionable -unconscionable -conscionable -malconscionable

unconscionable

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

Material breach

Under the Uniform Commercial Code (UCC), which of the following statements is true of the remedies available to buyers and lessees when a seller or lessor breaches a sales contract? -Buyers and lessees can recover the goods identified in a contract if the seller or lessor becomes insolvent within 60 days after receiving the first payment due. -When buyers or lessees reject nonconforming goods, they only have the rights to cancel the contract and not seek any cure from the seller. -In order to obtain cover in a breach of contract by the seller or lessor, buyers or lessees should avoid purchasing goods that are substitutes. -Buyers or lessees are allowed to accept nonconforming goods and then seek monetary damages to give them the benefit of the bargain.

Buyers or lessees are allowed to accept nonconforming goods and then seek monetary damages to give them the benefit of the bargain.

George is planning to buy Karl's car for $10,000. He gives Karl $1,000 to keep the offer open for 30 days. Karl will deduct the $1,000 from the price of the car if George purchases the car within the 30 days. If George does not buy the car during that time, Karl will keep the $1,000 and may then offer the car to someone else. Which of the following contracts does this scenario best illustrate? - Option contract -Quasi-contract -Unenforceable contract -Implied contract

Option contract

The ________blank is the agreement while payment is the ________blank in an unliquidated debt. -consideration; satisfaction -satisfaction; agreement -contract; consideration -accord; satisfaction

accord; satisfaction

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: -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. -do not allow the seller to cancel the contract.

allow sellers to withhold delivery of goods.

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: -filing a claim for damages in court. -allowing the seller to withhold the goods. -canceling the contract. -reselling the goods.

canceling the contract.

Under the UCC, courts will uphold modifications or limitations to remedies unless the remedies fail in their ________ -convenience -practicality -essential purpose -principal cause

essential purpose

Restitution, as a primary equitable remedy for a breach of contract, is best described as -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. -the replacement of one of the parties to a contract. -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.

A revocation is effective ________ -only when orally communicated to the offeree -when the offeror places it in the mailbox -automatically -when the offeree receives it

when offeree recieves it

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 his or her demonstrated acceptance of the offer when negotiations began. - 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 how a reasonable person would interpret the offeror's words and actions.

Tate agrees that he owes a creditor $20,000, as the creditor claims. Tate explains to the creditor that he can only pay the bank $12,000 as full payment toward the money he owes. The creditor agrees to accept $12,000 from him. The following month, Tate receives a bill claiming that he still owes the creditor $8,000. Which of the following statements is true of this scenario? -Both Tate and the creditor can settle their dispute through an accord and satisfaction, as this is a case of an unliquidated debt. -Tate can sue the bank based on breach of promissory estoppel. -If Tate does not agree to pay the remaining $8,000, the creditor may sue Tate for the balance it believes is owed. -Tate cannot be sued by the creditor for nonpayment because of the different payment that has already been made by him.

If Tate does not agree to pay the remaining $8,000, the creditor may sue Tate for the balance it believes is owed.

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 is reasonable with regard time and location, 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 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 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

To justify recovery based on a quasi-contract, a plaintiff must prove all but which of the following elements? -The plaintiff had reasonably expected to be compensated for the benefit conferred on the defendant. -The defendant would be enriched by receiving the benefit that was the result of a unilateral mistake on behalf of the plaintiff. -The defendant would be unjustly enriched from receiving the benefit without compensating the plaintiff for it. -The plaintiff conferred a benefit on the defendant.

The defendant would be enriched by receiving the benefit that was the result of a unilateral mistake on behalf of the plaintiff.

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. -The contract will be voidable by the person suffering from dementia. -When someone has been appointed a guardian, that person's contracts are considered void. -The contract is valid.

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

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

When the contract is entered into by a minor

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

liquidated

Formation of a contract begins when the party initiating the contract, called the ________blank, makes an offer to another party, called the ________blank. -offeror; offeree -transferor; transferee -delegator; delegatee -grantor; grantee

offeror, offeree

When a court can void the illegal part of an agreement and enforce the rest if the terms represent the main purpose of the original agreement, it is a(n) ________blank contract. -unilateral -adhesion -quasi -severable

severable

If a person who suffers from a mental illness or defect still understands the nature of the contract and his or her obligations under the contract, which of the following will result? -The contract will be deemed void by the person who suffers from the mental illness or defect. -The court will have to approve the contract on behalf of the mentally ill person. -The contract will be considered valid. -The contract will be considered voidable by the party who is not mentally ill.

the contract will be considered valid

If a buyer breaches a sales contract and the seller decides to resell the goods, the seller can recover: -any out-of-pocket expense incurred. -the difference between the resale price and the contract price, plus incidental damages and minus expenses saved. -liquidated damages. -the difference between the original contract price and the profits made through resale.

the difference between the resale price and the contract price, plus incidental damages and minus expenses saved.