BLAW

Elmer wrote a letter to his friend Fred offering to sell Fred an 80-acre farm for $200,000. After mailing the letter, Elmer learns that the farm is actually worth $300,000 and changes his mind about selling. Elmer has made a firm offer to Fred which cannot be revoked. Elmer can revoke his offer at any time prior to Fred's accepting it, because there is no consideration to keep it open. Elmer must keep the offer open, because this is an option contract. Elmer is promissorily estopped from revoking his offer to Fred.

Elmer can revoke his offer at any time prior to Fred's accepting it, because there is no consideration to keep it open.

Lyle offers to sell his house to Dennis for $50,000. Dennis responds, "I will pay you $50,000 for the house if you will repaint the second floor." This response could best be described as: :an acceptance. a counteroffer. a rejection. an invitation.

a counteroffer.

The UCC provides that a merchant is bound to keep a written offer open for a stated period but no longer than: Question 7 options:ten days.two months.three months.a reasonable time.

3 months

Which of the following contracts is covered by Article 2 of the Uniform Commercial Code? The sale of a house. The sale of a new car. An employment agreement. A sale of IBM stock.

The sale of a new car.

he way parties usually show mutual assent is by: Question 6 options:an offer by words or conduct and an acceptance by words or conduct.a proposal in words and an acceptance in words.an act exchanged for an act.an offer and a counteroffer.

offer by words or conduct and an acceptance

According to common law, informing someone of an intention to do an act or an intention to refrain from acting in a specified manner is considered to be: Question 10 options:an implied in fact contract.an express contract.a promise.a quasi contract.

promise

According to the UCC, an enforceable agreement involving the transfer of title of goods from a seller to a buyer for a price is called a(n): commercial contract. express contract. formal contract. sale.

sale.

Contracts are governed primarily by: state common law federal common law. statutory law. federal case law.

state common law

Which of the following is NOT always necessary in order for a valid contract to be formed? Mutual assent. Legality of purpose. A writing. Competent parties.

writing

Mary agrees to sew Georgia's prom dress for $50 plus costs. Georgia decides that she wants ruffles around the neck and calls Mary who says it will now cost $60. When Mary finishes the dress (with ruffles), Georgia must pay: Question 5 options:$50, since that is the original agreement.$50, since a modification must be in writing.$60, since the modified agreement is supported by additional consideration.$60, since any subsequent agreement is enforceable.

$60, since the modified agreement is supported by additional consideration.

A contract in which both parties exchange promises is a: voidable contract .bilateral contract. unilateral contract. quasi contract.

.bilateral contract.

Marilyn contracted with Bravo Builders to build an addition to her house for $15,000. After digging the foundation, Bravo decides that it will take more work and more concrete than it had originally thought and that it will need to charge an additional $5,000 for the job. Assuming Marilyn agrees, which of the following is correct? Question 4 options:Marilyn will have to pay $20,000.This is a contract under seal which is enforceable.This is a modification of a preexisting contract, which under common law must be supported by additional consideration on the part of Bravo Builders.This is the settlement of a disputed debt that requires no additional consideration on the part of Bravo Builders.

This is a modification of a preexisting contract, which under common law must be supported by additional consideration on the part of Bravo Builders.

Which of the following is correct with regard to consideration? Question 10 options:In a unilateral contract, a promise is exchanged for an act or forbearance to act.In a bilateral contract, there is an exchange of promises.Legal sufficiency is always related to adequacy of consideration.Two of the above, (a) and (b), are correct.

Two of the above, (a) and (b), are correct.

Roberto obtains an exclusive franchise to sell widgets for the Acme Widget Company. The exclusive franchise covers the entire State of Wisconsin for a period of three years. Question 6 options:The manufacturer is obligated to use his best efforts to supply the goods even if no such clause appears in the written franchise agreement.Roberto has an implied obligation to use his best efforts to promote the sale of the widgets.Under the UCC, such an agreement lacks consideration.Two of the above, (a) and (b).

Two of the above, (a) and (b).

Aunt Ellie promises her 21-year-old nephew, Robbie, that she will pay him $100 if he quits smoking for a month. If Robbie does, is there a binding contract? Question 2 options:No, because Robbie gave no benefit to Aunt Ellie.No, because Robbie did not suffer any detriment.Yes, because stopping smoking will benefit Robbie's health.Yes, because Robbie gave up a legal right.

Yes, because Robbie gave up a legal right.

An agreement of a seller to supply a buyer with all of the buyer's requirements for certain goods is known as: an output contract. a requirements contract. a firm offer. promissory estoppel.

a requirements contract

George has been declared incompetent by a court and is under the care of his sister. Unknown to his sister, George rents the 30,000-seat civic center for his birthday party. George's contract with the civic center can best be described as: a void contract. a quasi contract. a voidable contract. an enforceable contract.

a void contract

Which of the following are requisites for fraud in the inducement? Question 1 options:False representation of a fact that is material.Representation is made with knowledge of its falsity and the intention to deceive.The representation is justifiably relied on.All of the above.(a) and (b), but not (c).

all of the above

The mirror image rule applies to: :an offer. a rejection. an acceptance .a revocation.

an acceptance

The concept of consideration in contract law includes: that each party to a contract must unintentionally exchange a legal benefit or a legal detriment. an inducement to each party to make a return exchange. that each party take out an insurance bond if the possibility of damages are above $500. All of the above.

an inducement to each party to make a return exchange.

An obligation imposed by law where there has been no agreement or expression of assent by word or act on the part of either party involved is a(n): Question 8 options:implied in fact contract.express contract.void contract.quasi contract.

quasi

Which of the following would most likely be enforceable? Question 1 options:An agreement supported by past consideration.A substitute agreement to settle an disputed debt.A debt agreed to seven years ago in a state where the statute of limitations is six years.A promise following the rendering of services that is not supported by new consideration.

substitute agreement to settle an disputed

Caroline signs a contract to work as a sales rep for Incellmed Corporation for a period of two years. This contract is governed Article 2 of the UCC. state common law. federal statute. the law of quasi contract.

State common law.

Promissory estoppel is a contractual doctrine that includes which of the following considerations? The courts use the doctrine of promissory estoppel to enforce noncontractual promises. Under this doctrine the promisor reasonably expects that the promisee, in reliance on the promise, will be induced by the nature of the promise to take action or refrain from taking action, and the promisee does so. The courts will not, under any circumstance, enforce promises that do not include all four of the elements of contract. Both (a) and (b).

Both (a) and (b).

Which of the following are the two basic elements of consideration?

Bargained-for exchange and legal sufficiency.

Express contracts and implied contracts: are both genuine contracts. are equally enforceable. are not really contracts. Both (a) and (b).

Both (a) and (b).

Which of the following is/are not essential elements of a contract? Expiration date. Mutual assent. Consideration. Legality of object. Capacity.

Expiration date.

Able is involved in an automobile accident and is injured. While he is unconscious, the police call an ambulance which takes him to a hospital. Able is treated at the hospital and released a day later. The hospital sends him a bill for $2,500, which Able refuses to pay, claiming it is too high and he never consented to the treatment because he was unconscious. Able has entered into a unilateral contract with the hospital and therefore will have to pay the bill. Able will have to pay the bill, because this is a quasi contractual agreement. Able has entered into an implied in fact contract with the hospital. Able and the hospital have entered into a bilateral contract, the terms of which require that he pay the bill.

Able will have to pay the bill, because this is a quasi contractual agreement.

Contract law is significant in that it is basic to other fields of law such as: sales of personal property. commercial paper. secured transactions. All of the above.

All of the above.

Contracts that are implied in law: :are obligations imposed by law on grounds of justice and equity. are intended to prevent unjust enrichment.do not rest upon the assent of the contracting parties. All of the above.

All of the above.

To be effective, an offer must: be sufficiently definite and certain. be communicated to the offeree. manifest an intent to enter into a contract. All of the above. None of the above.

All of the above.

Samuel Tate enters into a contract with Bill Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, which term describes the type of contract in existence? Quasi contract. Executed contract. Illusory contract. Executory contract.

Executory contract.

Destruction of the subject matter has what effect on the offer? The offer is terminated. The offer is delayed until additional subject matter can be located. This creates an impossibility of fact that does not terminate the offer. The offer is merely delayed under the "Hardship Rule."

The offer is terminated.

Wayne helped Hank study all night for an important exam. After Hank got an "A" on the exam, he told Wayne, "I will give you $10 for helping me get a good grade." Wayne said, "Thanks, I'll take it." Question 3 options:There is no contract because there is no mutual assent.There is no contract because there is no valid consideration.There is no contract because $10 is reasonably inadequate consideration.There is a contract with sufficient consideration

There is no contract because there is no valid consideration.

Alice offers to sell her computer, monitor, and printer to Bradley for $300. Bradley says he will accept provided that Alice includes her word processing software. What is the status of their discussions? There is a valid contract for the computer, the monitor, the printer, and the software. There is no contract, because Bradley has made a counteroffer. There is no contract, because the time for delivery has not been decided. There is a valid contract for the computer, the monitor, and the printer, but not the software.

There is no contract, because the time for delivery has not been decided.

In addition to the four basic requirements of a contract, which of the following must also occur in order to have a valid contract? The agreement must always be in writing. There must be evidence of undue influence .There must be an absence of invalidating conduct and duress. An equitable remedy must be available in case of breach.

There must be an absence of invalidating conduct and duress.

Arthur mails an offer to Brian on June 15. Brian receives the offer on June 16. Arthur mails a revocation of the offer on June 17. Brian mails a letter of acceptance on June 18, and Arthur receives the acceptance on June 20. Brian receives the revocation on June 19. Was a contract formed? Yes, on June 16. Yes, on June 18. Yes, on June 20. No, the offer was revoked before acceptance.

Yes, on June 18.

ack moved from New Hampshire to Florida and decided to have an air conditioner installed in his car. After it was installed, Jack received a bill for $1,200. Jack called the dealer and told him he'd never heard of this service costing more than $500. They argued, but the dealer finally agreed to take $900. Is the agreement enforceable?

Yes, there is consideration for the modified amount.

A(n) ____________ contract is one in which the parties manifest assent in words. express implied executory formal

express

Which of the following is not generally required in order to have a valid contract? Question 9 options:Mutual assent.A lawful purpose.Fairness of the bargain.Parties who have contractual capacity.

fairness of the bargain

An offer, made by a merchant under the UCC, that is irrevocable even though no consideration is given to keep it open is known as a(n): option. firm offer. requirements contract. output contract.

firm offer.

Stan sends for a law school catalog from Ivory Towers University. According to the catalog, the law school applications are evaluated on the basis of undergraduate grades, standardized test scores, and references. Stan is a straight-A student, has high test scores and excellent references, but his application is rejected. Later he finds out that others with low grades and test scores were accepted based on their family connections and donations made to the University. If Stan followed all of the guidelines in the college catalog and sent in the required application fee which was accepted by the school: this is not a contract. this is a quasi contract. this is a valid contract, the terms of which are set forth in the college catalog. this is a voidable contract

this is a valid contract, the terms of which are set forth in the college catalog.