EOB test 5
_____ is a clause that prohibits parties from transferring the rights conveyed by a contract to another party.
Restriction on assignment
_____ is a remedy that requires complete performance in a breach, rather than, or in addition to, monetary damages.
Specific performance
_____ is a standard of performance in a contract that requires perfect performance.
Strict performance
Identify the standard for service contracts, which means that the performing party acted in good faith and conveyed enough benefit of the contract to the other party so that the other party can use it for its intended purpose and that the defects arising under the contract may be remedied by money damages.
Substantial performance
_____ are elements of contracts that specify important matters, such as quantity, price, and time for performance.
Terms
Which of the following requires certain contracts to be in writing and signed by the defendant to be enforceable against the defendant?
The Statute of Frauds
Which of the following requires certain types of contracts to be in writing to be enforceable?
The Statute of Frauds
Which of the following statements about the Uniform Commercial Code (UCC) is true?
The UCC seeks to provide uniformity to contracts law among the different states
Identify the correct statement about common-law contracts
The acceptance must be precisely the same as the offer
_____ is an affirmative defense that can be raised by a defendant to argue that the complaint is being brought too late, by law, to do anything about it.
The statute of limitations
A duty to mitigate is a duty placed on a party injured by breach, requiring that party to avoid damages by making reasonable efforts.
True
A liquidated damages clause allows parties to set the amount of damages in the event of breach
True
A mandatory arbitration clause is very common in employment contracts.
True
All fifty states have adopted some version of the Uniform Commercial Code.
True
An advertisement is an example of an invitation to bargain
True
Bankruptcy discharge is a permanent legal excuse from performance.
True
Common law governs contracts for services and also contracts not otherwise governed by the Uniform Commercial Code.
True
Contracts statutes of limitations range from three to ten years.
True
Exculpatory clauses are frequently employed when risk of injury exists.
True
In a common-law contract, if consideration does not firmly commit the parties to the deal, then consideration will fail.
True
In common-law contracts, the acceptance must be precisely the same as the offer.
True
Performance to the standard of personal satisfaction can be enforced if the contract expressly requires it
True
Quantum meruit is the name for damages awarded in quasi-contract cases.
True
Revocation is the retraction of an offer before it is accepted.
True
Specific performance is required in contracts for land.
True
The Uniform Commercial Code is not a law until state legislatures adopt it as law.
True
The duties imposed on a party may be transferred to another party by delegation, unless the contract expressly restricts delegation.
True
Unconscionability is a defense used when a contract contains markedly unfair terms against the party with less bargaining power than the party who created the terms and induced the other party to sign it.
True
When a legally enforceable promise is broken, the injured party can seek damages.
True
When a party fails to perform under the terms of the contract without a legally justifiable reason, the party is said to be in breach of the contract.
True
Which of the following is used as a defense when a contract contains markedly unfair terms against the party with less bargaining power or sophistication than the party who created the terms and induced the other party to sign it?
Unconscionability
_____ is a defense to contract performance, and implies that the party had no other reasonable alternative but to enter into the contract.
Unconscionability
Commercial impracticability is:
a defense that can be used when fulfilling a contract has become extraordinarily difficult or unfair for one party
A(n) _____ clause commonly exists in contracts where periodic payments are contemplated by the agreement.
acceleration
Advertisements are:
an example of an invitation to bargain
The rights conveyed by a contract may be transferred to another party by:
assignment
A(n) _____ is an order by the court to stop all collection activities of prepetition debts owed by a debtor in bankruptcy.
automatic stay
A(n) _____ clause is an express limitation on potential or actual liability arising under the subject matter of the contract.
exculpatory
In common-law, _____ refers to offer, acceptance, and consideration.
formation
With reference to contract formation problems, if the Uniform Commercial Code is the relevant type of law:
formation is much simpler than in common law
In contracts governed by the Uniform Commercial Code, _____ can be inserted into a contract when those terms are not definite and certain.
gap fillers
The Uniform Commercial Code article 2:
governs contracts between a merchant and the sale of goods
Fred offers to sell his scooter to Dan for $400. Dan agrees to buy the scooter for $400, if he does not find one that he likes more. This is an example of a(n):
illusory promise
If a contract concerns an illegal subject matter and a court will not step in to such a contract to enforce its promises, it is an example of _____ as a defense to performance.
impossibility
Any contract with a minor is voidable by the minor under the _____ doctrine.
infancy
When a party invites others to make offers to buy, it is a(n):
invitation to bargain
A counteroffer:
is a rejection of an offer
Misrepresentation:
is when a party makes a false statement that induces the other party to enter into the contract
In common-law contracts, the acceptance must be a(n) _____ of the offer to constitute valid acceptance.
mirror image
A contract clause that restricts competition for a specified period of time, within a certain geographic area, and for specified activities is known as a(n):
noncompete clause
A(n) _____ is an agreement that transfers all rights and duties to a new party to the contract and releases the previous party from any further obligation arising from the original contract.
novation
Mistake is:
rarely a successful defense to contract
The retraction of an offer before it is accepted is a:
revocation
A material breach in a service contract is most directly associated with:
substantial performance
A minor breach is when the party has:
substantially performed but has not strictly performed
Identify the correct statement about contracts.
A contract represents mutual assent to a bargained-for exchange between parties.
Identify the term that describes discrepancies between contract terms that would be fatal in common-law contract formation.
Battle of the forms
_____ means that the party had no other reasonable alternative but to enter into the contract.
Duress
A material breach in a service contract is when the party has substantially performed but has not strictly performed.
False
A minor who enters into a contract with a party who has capacity may not void the contract.
False
A unilateral contract is one in which the accepting party may only accept through a promise.
False
A voidable contract means that a contract does not exist at all.
False
Acceptance and consideration together form mutual assent.
False
An equitable remedy cannot substitute for consideration when detrimental reliance is found.
False
An illusory promise can constitute valid consideration.
False
An integrated agreement means that any statements made before the parties signed the contract are part of the contract.
False
Article 8 of the Uniform Commercial Code governs contracts between a merchant and the sale of goods.
False
For common-law contracts, the primary issue is whether the parties intended to enter into a binding agreement.
False
In civil law, contract formation refers to offer, acceptance, and consideration.
False
In delegation and in assignment, the original contracting party is "off the hook" if it transfers its rights to another party.
False
Performance means that parties to a contract have fulfilled their duties under the contract.
False
Quantity, prices, and delivery dates can be "filled in" by the Uniform Commercial Code gap fillers and they can be inserted into a contract when those terms are not definite.
False
Restrictions on ability to contract may be external, such as those imposed by clauses like noncompete agreements.
False
Since "warranty" is an essential term that cannot be "filled in" by the Uniform Commercial Code, it must be specified in the contract for it to be binding.
False
Someone who suffers from a temporary cognitive defect cannot disaffirm a contract.
False
Strict performance is a standard of performance in a contract that means that the performance under the contract is scrutinized subjectively.
False
The Statute of Frauds requires all types of contracts to be in writing to be enforceable.
False
The two primary sources of law that govern contracts in the United States are the common law and the civil law.
False
Which of the following is a promise the law requires in all contracts, regardless of whether the parties state it or not?
Implied covenant of good faith and fair dealing
Which of the following statements best describes a quasi-contract?
It is a type of equitable remedy that may be imposed on parties to avoid unjust enrichment to one party at the expense of the other
Which of the following is true about a unilateral contract?
It is one in which the accepting party may only accept through an action
_____ is a type of equitable remedy imposed on parties to avoid injustice, when one party detrimentally relied on another's promise.
Promissory estoppel
_____ is a type of equitable remedy that may be imposed on parties to avoid injustice, when one party detrimentally relied on another party's promise.
Promissory estoppel
Which of the following terms cannot be "filled in" by the Uniform Commercial Code gap fillers?
Quantity
_____ is the name for damages awarded in quasi-contract cases, which means "as much as is deserved."
Quantum meruit
Which of the following is an objective standard based on reasonableness in a contract against which actions are measured to determine sufficiency?
Reasonable person standard
If the subject matter of a contract or the terms of the contract are illegal, then the contract may be _____ at the outset.
void
In common-law contract formation, _____ refers to a contract that is not valid on its face because it suffers from some fatal flaw.
void
In common-law contract formation, a(n) _____ contract refers to the status of a contract that may be terminated due to some defect.
voidable
Frustration of purpose is:
when the contract has become essentially worthless to one party, though the event giving rise to that state was unknown to both parties to the contract at formation.
_____ is a standard of performance in a contract that means that the performance under the contract is scrutinized subjectively, either by a party to the contract or by a third-party beneficiary specified in the contract.
Personal satisfaction standard
Identify the correct statement about common-law contracts
All common-law contracts must contain valid consideration
In common law, which of the following together form mutual assent?
Offer and acceptance
_____ refers to any statements or actions that are not captured within the four corners of the contract
Parol evidence
Matt promises to pay Ted $100 in exchange for Ted's promise to paint Matt's house. This is an example of a(n):
bilateral contract
Merchants frequently use _____ language in their individual purchase orders and invoices.
boilerplate
In the common law of contracts, _____ is a bargained-for exchange.
consideration
A _____ is a legally enforceable promise.
contract
In common law, _____ gives the power of acceptance to another party and includes the agreement's essential elements, which must be definite and certain.
offer
_____ means undertaking the legal duties imposed on us by the terms of the contract.
performance
