TAMUSA BLAW HW 7
The bargained-for exchange or what each party gets in exchange for his or her promise under a contract is known as: _______.
consideration
A promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty is known as a(n) _______.
contract
Rob promised Rupert that he would paint the inside of his house for $5,000. Rupert agrees to Rob's offer. If Rob fails to perform, a court could enforce the promise or award damages to Rupert. The enforceable promises between Rob and Rupert are known as a(n): _______.
contract
The four types of formal contracts are: _______.
contracts under seal, recognizance, letters of credit and negotiable instruments
The legal ability to enter a contract is known as: ________.
contractual capacity
An employment contract that restricts what an employee may do after leaving a company is known as a(n): _______.
covenant not to compete
Lack of proper ______ is a contractual ______ meaning it was not in proper written manner. (Check TWO correct answers)
defense form
Sometimes a contract appears to be _______ because all four elements of a contract are present, but one of the parties may have a(n) _______ to its enforcement.
defense legally binding
Stella told Jozsef that if he would pick up her mail when she was on vacation, she would pay him $30. Jozsef did as he promised and was paid $30. Since all of the terms were fully executed, this contract has been fully: _______.
executed
When a contract has been fully performed, we call it a(n): _______.
executed contract.
A contract is ______ if some of the terms have not yet been performed. (Choose the BEST answer)
executory
A contract that has yet to be performed is known as a(n): _______.
executory contract
The terms of ______ contracts are all clearly set forth in either written or spoken terms.
express
Susan contracted with the owner of a local clothing shop to sell her knitted hats and gloves. All terms -- delivery date, quantity, selling price, etc., -- were clearly specified. When terms are clearly specified in the contract, this is known as a(n): _______.
express contract
Negotiable instruments are an example of ______ contracts.
formal
When there are requirements to the manner and look of a contract, then it is considered a(n) ______ contract.
formal
Contracts that have a special form or must be created in a specific manner are known as a(n): _______.
formal contracts
Sometimes the offeror convinces the offeree to accept the offer using improper means, such as fraud. If any party does not enter freely into the contract it is said to lack
genuine assent.
In a conflicting versions of a contract, a(n) ________ contract will prevail over a typed contract.
handwritten
Darla was experiencing a great deal of pain. The pain was so bad that she went to the emergency room where she underwent emergency surgery for the removal of her appendix. The kind of contract that requires her to pay for the services she received, even though there was no prior negotiation of payment, is known as a(n): _______.
implied contract
When a court determines that there was a contract between two parties in a situation where there was no opportunity to negotiate payment, the contract between the parties is known as a(n): _______.
implied contract
Ed and two of his friends created a lawn service business. All the neighbors knew of the business and several of them had used the service in the past. Ann, a neighbor of Ed's, was aware of the service and knew how much Ed charged for cutting the lawns of the various neighbors. One day, she was complaining to Ed that she was tired of cutting her own grass. Ed asked her if she would like him to cut her grass. Ann did not say a word, but smiled at the suggestion. Ed proceeded to cut Ann's lawn and then asked Ann for payment. Ann refused, saying that she had not formed a contract with Ed. The matter went to court and the court found that there was a contract and Ann must pay Ed. The court said that any reasonable person would have expected payment as Ed had expected. Such a contract is known as a(n)
implied-in-fact contract.
Quasi-contracts are sometimes called: _______.
implied-in-law contracts
A couple of painters came to the door offering to paint the house numbers on the homeowner's curb for $10. Barbara answered the door and the painters made their offer. Barbara did not say anything at all, but watched the painters paint her house number on her curb. When they came to the door for their $10, she refused, telling them that she had never formally agreed to their price. If a court requires Barbara to pay the painters the $10, this would be called recovery: _______.
in quasi-contract
If recovery can be obtained when (1) a benefit is conferred by the plaintiff upon the defendant, (2) the defendant has knowledge of the benefit that is being bestowed upon her, and (3) the defense retains the benefits under circumstances in which it would be unjust to do so without payment, then that recovery is known as recovery: _______.
in quasi-contract
Agreement Capacity Consideration Legal object The legal ability to enter into a contract Something of legal value that is given for the bargained-for exchange A voluntary and sincere offer and the acceptance of the terms of a contract Contract must be for a legal purpose and not against public policy
Agreement matches A voluntary and sincere offer and the acceptance of the terms of a contract A voluntary and sincere offer and the acceptance of the terms of a contract Capacity Capacity matches The legal ability to enter into a contract The legal ability to enter into a contract Consideration Consideration matches Something of legal value that is given for the bargained-for exchange Something of legal value that is given for the bargained-for exchange Legal object Legal object matches Contract must be for a legal purpose and not against public policy Contract must be for a legal purpose and not against public policy
Sybil and Mary had drawn up a contract about Sybil selling some dresses to Mary. The original contract was handwritten. It was then copied to a printed form. However, one of the terms was in conflict with the original handwritten contract. A judge would use the rules of interpretation and say that the prevailing term would be
in the handwritten contract.
If a contract is for the sale of goods, the law that governs the contract is: _______.
Article 2 of the UCC, which governs contracts for the sale of goods
If a contract is for the sale of goods, the part of the UCC that governs the contract is: _______.
Article 2, which governs contracts for the sale of goods
There are two defenses to the enforcement of a contract even if all of the essential elements of a contract are present: _______ and _______.
lack of proper form lack of genuine assent
If multiple interpretations are possible, the court should adopt the interpretation that makes the contract: _______. (Choose ALL that apply) lawful, operative, definite, reasonable, and capable of being carried out. lawful reasonable definite operative capable of being defended in court
lawful reasonable definite operative
_____ refers to the legal ability to enter into a binding agreement.
Contractual capacity
A(n) ______ not to _______ restricts what an employee may do after leaving a company. (Choose TWO best answers)
Covenant Compete
An agreement by the issuer to pay another party a sum of money on receipt of an invoice and other documents is called a(n): _______.
letter of credit
An unconditional written promise to pay the holder a specific sum of money on demand or at a certain time is known as a(n) _______.
negotiable instrument
When discussing the objective theory of contracts, the ______ of the parties to a contract is determined by _______ words and behavior.
objective intent
The ______ theory of contracts means we base the existence of a contract on how a(n) _______ person would interpret the contract.
objective reasonable
Knowing the proper classification is important -- whether the contract is bilateral or unilateral -- because it determines when the: _______.
offeree is legally bound to perform
If multiple interpretations are possible, the court should adopt the interpretation that makes the contract: _______. (Choose ALL that apply) lawful, operative, definite, reasonable, and capable of being carried out. operative lawful reasonable definite capable of being defended in court
operative lawful reasonable definite
A contract for land was under scrutiny in the court. There appeared to be a disagreement as to what the term "corner property" actually meant. If the court only looks at the words and they are clear and unambiguous, and the court will only interpret the terms using the agreement itself, the court is said to use the: _______.
plain-meaning rule of interpretation
.One of the best known rules of contract interpretation states that if a writing, or a term in question, appears to be plain and unambiguous on its face, we must determine its meaning from just the four corners of the document, without resorting to outside evidence and give the words their ordinary meaning. This rule is known as the
plain-meaning rule.
One of the best known rules of contract interpretation states that if a writing, or a term in question, appears to be plain and unambiguous on its face, we must determine its meaning from just the four corners of the document, without resorting to outside evidence and give the words their ordinary meaning. This rule is known as the
plain-meaning rule.
One defense against the enforcement of a contract is if there is a lack of a writing (if one is required). This defense is known as a lack of: ______.
proper form
In order to prevent one party from being unjustly enriched at the expense of another party, the courts impose contractual obligations on one of the parties as if that party had entered into a contract. This is known as a(n): _______.
quasi-contract
If multiple interpretations are possible, the court should adopt the interpretation that makes the contract: _______. (Choose ALL that apply) lawful, operative, definite, reasonable, and capable of being carried out. reasonable lawful definite operative capable of being defended in court
reasonable lawful definite operative
Bart had to post $500 bond to ensure that he would show up for his trial in two months. This kind of contract is known as a(n): _______.
recognizance
A(n) _____ is a(n) ______ when a person acknowledges in court that they will perform an act or pay a price. (Check TWO best answers) simple contract recognizance bond letter of credit
recognizance bond
To find that there is an implied contract or an implied-in-fact contract, the court must deem that (1) the plaintiff provided some property or service to the defendant, (2) the plaintiff expected to be paid for such property or service, and (3) the defendant had an opportunity to
reject the property or service, but did not.
The concept that comes to mind most often when people think about a formal contract is a contract under: _______.
seal
A contract that does not require any formalities in making the contract is known as a(n): _______.
simple contract
If a contract involves the sale of goods, it is governed by the Uniform Commercial Code (UCC). All other contracts are governed by: _______.
the common law
A rule of contract interpretation is that the judge should interpret an ambiguous contract against the interests of: _______.
the drafter of the contract
Basing the existence of a contract on the parties' outward manifestations of intent and basing the interpretation of that intent on how a reasonable person would interpret it is known as: ________.
the objective theory of contracts
In determining whether the parties objectively intended to enter into a contract, the courts look at _______ and _______ and do not try to figure out what they might have been secretly intending. (Click ALL that apply) their actions their words the common law their behavior
their actions their words their behavior
In determining whether the parties objectively intended to enter into a contract, the courts look at _______ and _______ and do not try to figure out what they might have been secretly intending. (Click ALL that apply) their behavior their actions the common law their words
their behavior their actions their words
A contract before the court needed interpretation. The contract contained many technical words. A general rule in interpreting technical terms is that the court should interpret technical words as
they are usually understood by persons in the profession.
Justin had contracted with Acme Construction Company to build a huge chicken coop adjacent to his house. Acme discovered that if they built the chicken coop, they would be violating the local zoning laws. Acme refused to perform the contract. The court also refused to make Acme honor the contract, since to do so would mean they had to order Acme to violate the zoning laws. Such a contract is considered to be: _______.
unenforceable
A contract where the object of the contract is illegal or against public policy is: _______.
unenforceable by the courts
All contracts are either bilateral or: _______.
unilateral
In a(n) ______ contract, the offeror wants the offeree to do something, not to promise to do something.
unilateral
Lucy put up a poster advertising a $25 reward for the return of her lost dog. This is an example of a(n): _______.
unilateral contract
Jack and Jill entered into a contract with Farmer Dell to fetch pails of water from his well to the barn. For each pail of water they delivered down the hill and to the barn, they were to be paid $10 per pail. The contract specified that they were to work five days a week for a whole month. During the last week, Farmer Dell failed to pay Jack and Jill. The matter went to court, and the court ordered Farmer Dell to pay Jack and Jill because the contract was: _______.
valid
When a contract has all of the required elements and is enforceable, it is known as a(n): _______.
valid contract
A(n) ______ contract is not a contract at all, and either its object if illegal or it has some defect so serious that it is not a contract.
void
Don put out a contract to a hit man to knock off a business competitor. This kind of contract would be defined as a(n): _______.
void contract
A contract is ______ if one or both parties has the ability to either withdraw from the contract or enforce it.
voidable
Under a(n) ______ contract, one or both parties can withdraw from the contract.
voidable
______, ______, ______ or misrepresentation are examples of a lack of genuine assent. (Check ALL that apply)
Fraud Undue influence Duress
Multiple Choice Question The authors of the Uniform Commercial Code (UCC) are the: _______.
National Commissioners on Uniform State Laws and the American Law Institute
The authors of the Uniform Commercial Code (UCC) are the: _______.
National Commissioners on Uniform State Laws and the American Law Institute
Charlie offers Aaron $5,000 for some medical marijuana which is legal in the state. Aaron agrees, but the following day, the state legislature passes a law which basically makes any sale of marijuana, even for medicinal purposes, illegal. Does Aaron have to perform the contract?
No, because the object of the contract is no longer legal.
The _______ brought together legal scholars to create the original ______ of the Law, Contracts.
Restatement American Law Institute (ALI)
As a general rule, a revocation is effective: _______.
Restatement of the Law, Contracts
______ terms to a contract will be interpreted as understood by persons in the profession using the contract.
Technical
True or false: A judge should interpret a contract so as to give effect to the parties' intentions at the time they entered into the contract. True
True Rationale: One of the general rules of interpreting contracts is that a judge should interpret the terms of the contract in light of the parties' intentions at the time of the writing of the contract.
______ instruments are _______ written promises to pay the holder a specific sum of money on demand.
Unconditional Negotiable
______ instruments are _______ written promises to pay the holder a specific sum of money on demand. Unconditional Promissory Negotiable Reasonable
Unconditional Negotiable
The ______ Commercial Code governs letters of _______. Uniform negotiability International credit
Uniform credit
Martin sold his coffee makers to Edwin, a coffee store owner. The law that would govern this contract for the sale of goods is the: _______.
Uniform Commercial Code
The National Conference of Commissioners on Uniform State Laws and the American Law Institute drafted a set of commercial laws that could be applicable to all states. This effort was called the: _______.
Uniform Commercial Code
Virge tells Ken, "I will buy your coin collection for $100." Based on this scenario, match the individuals (in the left column) with the corresponding terms (in the right column). Virge The offeror Ken 2 of 2 Ken The offeree
Virge - The Offeror Ken - The Offeree
Michael was the head of a construction company. Meghan owned a piece of property, and she offered Michael $500,000 to construct a shopping mall on the property. Michael agreed and went to the zoning commission to purchase the required building permits. He was told that Meghan's property was not zoned for commercial enterprises. Michael went back to Meghan and returned her money, saying he couldn't fulfill the contract because it lacked: _______.
a legal object
The theory of ______ of contracts means that, to be enforceable, a contract cannot be either illegal or _______. (Choose TWO best answers)
against public policy legal object
A court will interpret a contract with _______ against the interests of the ______. (Choose TWO best answers)
ambiguity drafter
Suppose Kathy makes an offer to Sandy to buy his antique clock for $1,000. Sandy accepts Kathy's offer, and the result is known as: _______.
an agreement
If a contract is not a formal contract, it is considered to be: _______.
an informal contract
A judge has to decide how to interpret a contract that was a bit ambiguous in its terms. One general rule of interpretation is that the terms should reflect the intentions of the parties: _______.
at the time the contract was made
A contract was under review because it had multiple interpretations of its terms. According to a general rule of contract interpretation, the judge should recognize the interpretation that makes the contract lawful, operative, definite, reasonable, and capable of: _______.
being carried out
Candy was bidding on a piece of jewelry that was for sale on eBay. At the end of the bidding process, Candy was the highest bidder, so in exchange for her promise to pay, the seller will send her the merchandise. This kind of contract is known as a(n): _______.
bilateral contract
The type of contract in which the offeror wants a promise from the offeree to form a binding contract is called a(n): _______.
bilateral contract
A(n) _____ is a(n) ______ when a person acknowledges in court that they will perform an act or pay a price. (Check TWO best answers)
bond recognizance
Alyssa was a severe schizophrenic who had to be institutionalized. Alyssa's cousin, Marlene, told Alyssa that she would buy her house for $10,000. Alyssa agreed and Marlene gave her the $10,000. Just as she was going to take possession of the house, Alyssa's brother stepped in and claimed that there was no contract between Alyssa and Marlene. The matter went to court and the court agreed with Alyssa's brother, stating that there was no contract due to one missing element. The missing element is: _______.
capacity
The law of contracts is primarily ______ law.
common
The law of contracts is made up mainly from: _______.
common law
All contracts interpreted by United States law are either governed by the: _______ or _______. Uniform Commercial Code or common law.
common law UCC
The most important sources of contract law are the: _______. (Check ALL that apply) UCITA common law UCC CISG
common law UCC CISG
The two sources of law governing contracts are the: _______.
common law and the Uniform Commercial Code (UCC)
Generally, today contracts do not require that contracts be under seal. However, ten states still allow a contract without ________ to be enforced if it is under seal.
consideration
Liza and Maryann were at a flea market. Liza had an antique vase that caught Maryann's eye. Maryann said to Liza that she would give Liza the antique necklace she had in exchange for the vase. Liza agreed. The antique vase and the antique necklace are called: _______.
consideration