Chapter 9

Aaron promises to sell his boat to Matt, and Matt promises to buy it from Aaron. What type of contact is this

A bilateral contract

Calvin tells Sara that he will sell her his car for $5000 . Sara agrees , the exchange is to take place in 10 days. The contract between Calvin and Sara is now

Bilateral, executory, express

A contract must be between parties who have __ to contract

Capacity

A contract in which the parties have not yet fully performed their obligations is called

Executory contract

Which of the following statements about standardized form contracts is false?

Frequently, the terms of standardized contracts are negotiable

Which of the following is NOT a basic element of a contract?

Goods

When the surrounding facts and circumstances indicate that an agreement has in fact been reached a ___ has been created

Implied

Which is the only state to have adopted Uniform Commercial Code only partially

Louisiana

Jimmy and Pat had a long-standing professional relationship. In 2001, Jimmy's business began experiencing financial strain. The two friends discussed Jimmy's personal problems and financial difficulties, and Pat was concerned about his friend's depressed mental state. In 2003, Pat flew from Atlanta to New York to meet Jimmy. Prior to Pat's flight, Jimmy's employee had faxed copies of various construction contracts and correspondence relating to Jimmy's controversial projects for Pat to review. In late 2005, Pat billed Jimmy for a $40,000 balance that Jimmy owed on the alleged oral contract. In a letter to Pat, Jimmy stated: "I have paid you plenty and will not pay you any more. I have not called for any professional advice since then." Pat filed suit against Jimmy for breach of contract. Will Pat succeed?

No, because it was a friendly advice and not an actual contract

Mr. Green enters into a contract with Mr. Blue who is a crab fisherman. Mr. Green and Mr. Blue know that Mr. Blue has already caught the number of crabs allowed for the season. But Mr. Green and Mr. Blue agree to a contract to exceed the quota. What is the status of the contract between Mr. Green and Mr. Blue?

The contract is void since it attempts to contract for services that are illegal

Mr. White enters into a contract to sell a car to Joe Jr. who is 15 years old and is considered a minor in the state where he lives. What is the status of the contract that Mr. White and Joe Jr. entered into?

The contract is voidable and is enforceable till Joe Jr cancels it

An otherwise valid contract whose enforcement is barred by the applicable contract statute of limitations is an example of

Unenforceable contract

Which of the following contracts are agreements that create no legal obligations and for which no remedy is given

Void contracts

To qualify as a contract, set of promises must be based on a voluntary agreement, which is made up of an offer and ___ of that offer

acceptance

A void contract is

an agreement that creates no legal obligations

Contracts are typically between one party and who?

another private party

Alana who runs a flower shop sells jose a shotgun. jose is unemployed , and alana has never before sold a firearm in her life. which of the following is true?

article 2 of the UCC applies because a shotgun is a movable thing

why does article 2 hold merchants to a higher standard than nonmerchants

because buyers tend to place more reliance on merchants

what bodies of law govern contracts in the united states

both a and b - article 2 of UCC and common law related to contracts

How have the drafters of the Code tried to promote fair dealing and higher standards in the marketplace

by imposing the doctrine of good faith

Ann wants to download the Adobe Acrobat software from the Internet. Prior to downloading, a standardized online contract appears on the screen that requires her to click on an icon indicating agreement, before she can proceed in the program. Such contracts are called:

clickwrap

dawson entered into a contract with Jensen for the sale of Dawsons boat. which set of legal rules governs this transactioni

contract rules of the uniform commercial code

what type of transactions are governed by the uniform commerical code

contracts for the sale of goods

Article 2 of the UCC does not apply to a sale of

corporate stock

what is the test frequently used to determine hybrid contracts

determine which element predominates

The CISG

does not have provisions to cover every contract problem that might occur

what is the term for being equitably prevented from raising a legal defense

estoppel

A contract is___- when all of the parties have fully performed their contractual duties

executed

Article 2 of the UCC never applies to mixed goods-services contracts; instead, it treats them as pure service contracts.

false

Pratt, owner of an appliance store, has a garage sale at his home where he sells old furniture and books. He sells a set of books to his neighbor, Stacey. Pratt is considered a merchant under Article 2 of the UCC in selling the books to Stacey.

false

Speaking generally, a quasi-contract applies where there has been foreseeable reliance on an express promise.

false

a voidable contract creates no obligation and is not enforceable by any party

false

contracts must always be in writing to be enforceable

false

generally the terms of a standardized contract are negotiable

false

the mutual agreement necessary to create an express contract is eveidenced by writintg

false

the uniform commercial code suffienclty addreses the conerns that parties have when contacts are made to create or distirbute info

false

when contracting, one party is entering into an agreement with the federal goverment to enforce behavior on another party

false

An executed contract is one that has been

full performed by both parties

the UCC differs from the common law of contracts in that the UCC

is less concerned with technical rules

which of the following is true regarding promissory estoppel

it requires reasonable reliance on the promisors promise

why do the restatements of contracts not have the force of law

it was the product of a private organization

Amy bought Mississippi State Lottery tickets. Several days later, she learned that someone had won the lottery but that the winner had not yet come forward. She searched for her ticket to see if she had selected the winning numbers, but was unable to find it. Although the lottery ticket was gone, Amy still possessed the play slip she had used when she purchased the ticket. She checked the numbers on the play slip and discovered that she had the winning numbers for the lottery. Reasoning that the play slip would satisfy the Lottery office, Amy laid her claim. The Lottery Office took the position that Amy needed to produce the actual winning ticket as per the rules, and hence denied her claim. Amy sued the Lottery Office for breach of contract and unjust enrichment. Will she succeed?

no, becuase the rules of the contract prescribed the ticket must be shaown to claim the moeny. amy had accepted that rule when she entered into the contract and thus she is now precluded claiming the prize money

Fun Foods fraudulently induces Holly to buy a household products franchise by grossly misstating the average revenues of its franchisees. She discovers the misrepresentation after she has resold some products that she has received but before she has paid Fun Foods for the products. Holly wants to cancel the franchise contract on the basis of the fraud. What is the remedy available to her?

quasi contract

Greg signed a contract to work as an auto parts manager for Jones Chevrolet. This contract is goverened by

state common law

which of the following is NOT covered by Article 2 of the UCC

stocks

Linda wanted to replace the old carpet in her home. She entered into a contract with Carpet Co., for the purchase and installation of a new carpet. The price of the carpet was $3,000 and the cost of the labor to install the carpet was $150. Later, Linda became dissatisfied with this transaction and now wants to sue Carpet Co. Linda wants to apply the contract rules of the UCC, but Carpet Co., wants to apply the contract rules of the common law. Which source of law should govern this case?

the contract rules of the UCC apply because the predominant purpose of the contract was sale of goods

James goes to a dentist to have a tooth extracted. James never signs a written contract for this service, and he and the dentist never made an oral agreement either. Later, the dentist bills James who refuses to pay. The dentist sues James. Which of the following is true?

the dentist can recover under quasi-contract

Mark, an attorney, accepts an offer for an attorney position at The Firm. Prior to Mitch's first day at work, Harold, a managing partner, sends Mark an Employment Policy Manual which contains policies regarding attendance and confidentiality. Harold includes a note advising Mark to carefully review the manual as he would be expected to adhere to its policies. During his first week at The Firm, Mark is seen leaving the office at noon with copies of files tucked under his arm. He is also observed giving the copied files to a man not associated with The Firm. At the end of the week, Mark is terminated for violating the terms of the Employment Policy Manual. Which of the following is true?

the employment policy manual is part of the implied contract between mark and the firm

Abby promises to pay Brian $50 if he mows her lawn. Brian does not promise to mow Abby's lawn; however, later that day, Brian completely and satisfactorily does mow Abby's lawn. This is an example of a unilateral contract. TRUE

true

CISG apples only to sale of goods and commercial parties

true

Ms. White hired Mr. Blue to steal from Ms. Yellow. Ms. White is upset with how everything turned out and wants to sue Mr. Blue for breach of contract. But the court will refuse to recognize the contract and subsequently a breach of it because it is a contract for an illegal activity. TRUE

true

Promissory estoppel protects reliance on a promise from one party to another.

true

Sometimes, Article 2 of the UCC holds merchants to standards different from the standards it applies to nonmerchants.

true

The essence of a contract is that it is a legally enforceable promise or set of promises

true

The rules promulgated by the Restatement (Second) of Contracts often resemble the rules created by Article 2 of the UCC.

true

alan and ben ahve a contract. alan has performed 100 percent and Ben has performec 50 percent. this contract is now executory

true

if no code rule applies to an issue regarding a sale of goods contract the common law rules apply

true

not every promise is legal enforceable

true

the UCC imposes aduty of good faith on performance and enrocement of every contract

true

the code empowers courts to deal fairly with a contract that is grossly unfair or one sided by recognizing the concept of

unconscionable contract

An oral contract that is covered by the statute of frauds is

unenforceable

Reggie went to the Napa Valley Harvest Festival, when he stopped at Tracy's booth where she was selling paintings of vineyards. Reggie admired a painting of vineyards, which did not appear to be for sale. Reggie said to Tracy, "I will give you $200 if you give me that painting right now." Tracy said nothing in response, but she gave Reggie the painting, and Reggie gave her $200 in cash. This is an example of a contract that is now:

unilateral and executed

A contract in which one or more of the parties have the legal right to cancel their obligations under the contact is called

void able contract

A contract whose formation is induced by duress is an example of a contract that is

voidable