COMMERCIAL LAW CHAPTER 9

Promissory estoppel is a contractual doctrine that includes which of the following considerations?

Both (a) and (b). A. The courts use the doctrine of promissory estoppel to enforce noncontractual promises. B. 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.

Express contracts and implied contracts:

Both (a) and (b). A. are both genuine contracts. B. are equally enforceable.

Which of the following is a(n) obligation imposed by law to avoid injustice?

Both (a) and (c). A. A contract implied in law. B. A quasi contract.

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):

SALE

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:

a promise

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.

Contract law is significant in that it is basic to other fields of law such as A. sales of personal property b. commercial property c. secured transactions d. all of the above

all of the above

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

an inducement to each party to make a return exchange.

A contract in which both parties exchange promises is a:

bilateral contract.

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):

implied in fact contract

Caroline signs a contract to work as a sales rep for Incellmed Corporation for a period of two years. This contract is governed by:

state common law

Contracts are governed primarily by:

state common law.

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, then:

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

Sarah offers to pay Allison $150 if Allison will paint her apartment while she is out of town on vacation for two weeks. Allison makes no promise but tells Sarah that she will think about it. While Sarah is out of town, Allison paints the apartment. This is best described as:

unilateral contract.

James offers to sell his fishing boat to Brenda for $3,000. Brenda says she will apply for a loan and will buy the boat within a week. A contract is formed: A. when Brenda tells James she will buy the boat. B. when Brenda gets the money from the credit union. C. when Brenda applies for the loan at the credit union. D. only when James gets the $3,000.

when Brenda tells James she will buy the boat.

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

All of the above.

Which of the following is NOT always necessary in order for a valid contract to be formed?

A writing.

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. Question 8 options:

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

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

Fairness of the bargain.

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

EXPRESS

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?

Executory contract.

Which of the following is/are not essential elements of a contract?

Expiration date.

Which of the following contracts is covered by Article 2 of the Uniform Commercial Code?

The sale of a new car.

In addition to the four basic requirements of a contract, which of the following must also occur in order to have a valid contract?

There must be an absence of invalidating conduct and duress.

The requirement that each party to a contract must intentionally exchange something of value as an inducement to the other party to make a return exchange is known as:

mutual assent