Q&A Hero

Q: Ashburn had a big ranch in Georgia. One day Pamela stated, "I'd like to buy your sheep for $50. They're so cute!" to which Ashburn immediately replied, "Sure. That's a deal!" This cannot be enforced as a contract because of lack of: A. consideration. B. definiteness. C. communication to offeree. D. present intent to contract.

Q: Abby orally offers to sell Carl 100 premium-grade fountain pens but neglects to state the price. Such pens typically sell for $1 each. Carl orally accepts. Immediately thereafter, Abby tries to back out of the deal. At this point in time, which of the following is most likely to be true? A. There is no offer and no contract because the offer is indefinite. B. There is no offer and no contract because the offer must be in writing. C. There is a contract, if the parties intended to make a contract and there is a reasonably certain basis for giving an appropriate remedy. D. There is a contract, because the offer contained all material terms.

Q: According to the classical contract law, courts are: A. contract makers. B. contract breakers. C. contract enforcers. D. contract negotiators.

Q: Which of the following is the first step in the contract formation process? A. Signing the agreement B. An offer in definite terms C. Selection of partners D. Drafting the agreement

Q: To distinguish an offer, courts first look at: A. the communication to the offeree. B. the definiteness of terms. C. the present intent to contract. D. a description of the parties involved.

Q: What does "present intent to contract" mean? A. Intent to enter the contract upon acceptance B. Intent to negotiate in case of rejection of offer C. Intent to set contractual conditions D. Intent to engage more than one partner in the deal

Q: The offeror's death automatically terminates an offer, but the offeree's death does not.

Q: Ms. Pink offers to landscape Mr. Green's yard for $100. Mr. Green is planning to say yes but before he has a chance to communicate with Ms. Pink he receives a text message from Ms. Pink indicating she has rescinded her offer due to her being too busy. Ms. Pink has effectively revoked her offer.

Q: Bob offers to sell his bike to Sue for $100, and promises to keep his offer open for five days. Sue thanks him and leaves. At this point, Bob still has the power to revoke his offer.

Q: Offers that fail to provide a specific time for acceptance are invalid because they are deemed to be indefinite.

Q: A revocation is effective at the time it is dispatched by the offeror.

Q: A firm's offer for the sale of goods requires consideration to be given in exchange for the offeror's promise to keep the offer open.

Q: The offeror is said to be the "master of the offer." This means that offerors have the power to determine the terms and conditions under which they are bound to a contract.

Q: An advertisement offering a reward for the return of lost property is usually treated as an offer for a unilateral contract.

Q: Sellers at a public auction are treated as makers of an invitation to offer.

Q: Mr. Green is a general contractor and is accepting bids from subcontractors for the building of a new hotel. Mr. Blue submits a bid for his work associated with the project. Mr. Green placed an offer which Mr. Blue accepted with his bid.

Q: In order to meet the requirements to form a contract the parties must have a future intent to agree and form a contract.

Q: Mr. Blue and Mr. Green are in negotiations for a regular delivery of newspapers to Mr. Blue's business. Mr. Blue did not formally announce his acceptance to the offer. But when Mr. Green sent a shipment of newspapers as had been agree, Mr. Blue accepted the shipment and paid for them. According to the UCC Mr. Blue and Mr. Green have an enforceable contract.

Q: Generally speaking, advertisements are considered to be offers.

Q: All terms of contracts, even "fine-print" terms of standard form contracts, are always part of the parties' deal and binding on them, because parties have an obligation to read their contracts and are assumed to have done so.

Q: If a term is left open in a sale of goods contract, that open term or "gap" can be filled by inserting a presumption found in the UCC's "gap-filling" rules.

Q: The UCC often creates contractual liability in situations where no contract would have resulted at common law.

Q: An offer is the first step in the contract formation process.

Q: Generally speaking, the UCC's rules for the definiteness of an offer make it easier to form a contract than traditional common law rules.

Q: John, a house painter, enters into a contract with Robert under which he promises to paint Robert's house for which Robert promises to pay $1,000 at the completion of work. John mistakenly paints Mary's house next door. Mary returns from vacation, surprised to see her house beautifully painted. John asks Mary to pay for the work. Mary refuses. Under what theory may John attempt to recover from Mary? Will he be successful? Explain.

Q: The three requirements for a valid offer are: present intent to contract, definiteness, and communication to the offeree.

Q: Strictly speaking, a contract has nothing to do with the personal intent of the parties.

Q: Courts look at parties' outward manifestations of intent as a requirement to enforce a contract. This is called the subjective standard of intent.

Q: Why was the emergence of large corporations so important in shaping the 20th century contract law?

Q: Why are 20th century contract law rules so often fuzzy and discretionary rather than precise and rigid? The basic reason is the perceived need for government intervention and, more importantly, intervention in a complex social environment in which one situation differs from another. How can anyone frame precise, technical rules to deal equitably with situations that cannot readily be foreseen and that almost certainly should be dealt with differently? Thus, we get fuzzy rules that enable courts to decide according to the equities of the individual case.

Q: What is the main difference between a void contract and a voidable contract? Give examples of each.

Q: Is the installation of a battery in an automobile subject to Article 2 of the UCC or to the common law of contracts? Why?

Q: Which of the following is true regarding promissory estoppel? A. It requires reasonable reliance on the promisor's promise. B. It requires a written promise. C. It requires consideration. D. It applies only when one party is a merchant.

Q: A fundamental difference between a promissory estoppel and traditional contract principles is that a promissory estoppel protects: A. reliance. B. bargains. C. agreements. D. consideration.

Q: What is the term for being equitably prevented from raising a legal defense? A. Quid pro quo B. Estoppel C. Breach of Contract D. International Subsidy Agent

Q: 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? A. Yes, because the play slip should be proof enough to substantiate her claim on the prize money. B. Yes, because this is a good faith claim and the Lottery office should accept Amy's play slip as proof of her winning the lottery. C. No, because Amy had made a mistake in losing the original ticket. D. No, because the rules of the contract prescribed the ticket must be shown to claim the money. Amy had accepted that rule when she entered into the contract and thus she is now precluded from claiming the prize money.

Q: 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? A. Promissory estoppel B. Duty of good faith C. Executory contract D. Quasi-contract

Q: A. Mark may recover his moving expenses under the doctrine of promissory estoppel. B. The Firm breached its express contract with Mark by terminating him. C. The Employment Policy Manual is part of the implied contract between Mark and The Firm. D. The Firm may recover Mark's salary under the doctrine of quasi-contract. There is an implied contract between the firm and Mark. Since Mark violated the contract, the company can terminate his services.

Q: 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? A. The dentist can recover under quasi-contract. B. The dentist cannot recover under an implied contract theory. C. The dentist can recover under the doctrine of promissory estoppel. D. The dentist cannot recover because there was no express contract here.

Q: How have the drafters of the Code tried to promote fair dealing and higher standards in the marketplace? A. By applying stringent technicalities to contracts. B. By recognizing void contracts. C. By discriminating between merchants and nonmerchants. D. By imposing the doctrine of good faith.

Q: The Code empowers courts to deal fairly with a contract that is grossly unfair or one-sided by recognizing the concept of: A. good faith. B. unconscionable contract. C. quasi-contract. D. implied contract.

Q: Why does Article 2 hold merchants to a higher standard than nonmerchants? A. Because buyers tend to place more reliance on merchants. B. Because merchants are not required to observe reasonable commercial standards of fair dealing. C. Because the Code gives more weightage to technical requirements such as consideration. D. Because the Code does not recognize the concept of an unconscionable contract between a merchant and a buyer.

Q: Why do the Restatements of Contracts not have the force of law? A. It was the product of a private organization. B. It had conflicting perspectives. C. It was deemed significantly inferior to the common law. D. It was deemed significantly inferior to the UCC.

Q: What bodies of law govern contracts in the United State? A. Article 2 of the UCC B. Common law related to contracts C. The United Nations Declaration on Human Rights D. Both A & B

Q: What is the test frequently used to determine "hybrid" contracts? A. Determining the value of the contract. B. Determining the party to benefit. C. Determine which element predominates. D. Determining the validity of the contract.

Q: Which of the following is NOT covered by Article 2 of the UCC? A. Vehicles B. Appliances C. Stocks D. Books

Q: 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? A. The contract rules of the UCC apply, because the contract included the sale of goods. B. The contract rules of the UCC apply, because the predominant purpose of the contract was sale of goods. C. The contract rules of the common law apply, because the contract included services, which are governed by the common law. D. The contract rules of the common law apply, because all contracts are governed by the common law.

Q: The UCC differs from the common law of contracts in that the UCC: A. is less concerned with technical rules. B. deals with the sale of intangibles. C. deals with service contracts. D. is less concerned with the "good faith" doctrine.

Q: The CISG: A. provides uniformity for transactions among contracting parties in different states in the United States. B. applies only to consumers, not commercial parties. C. applies only to services, not sales of goods. D. does not have provisions to cover every contract problem that might occur.

Q: Article 2 of the UCC does NOT apply to a sale of: A. baseball bats. B. harvested wheat. C. corporate stock. D. a new car.

Q: 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? A. Article 2 of the UCC applies because Alana is a merchant. B. Article 2 of the UCC applies because a shotgun is a movable thing. C. Article 2 of the UCC does not apply because Alana is not a merchant with respect to shotguns. D. Article 2 of the UCC does not apply because Jose is not a merchant.

Q: What type of transactions are governed by the Uniform Commercial Code? A. Contracts for the sale of goods. B. Contracts for services. C. Contracts for the sale of land. D. Any commercial contract, whether for goods, services, or land.

Q: Dawson entered into a contract with Jensen for the sale of Dawson's boat. Which set of legal rules governs this transaction? A. Contract rules of the common law B. Contract rules of the Uniform Commercial Code C. Equity rules that ensure fairness in transactions D. Marine law

Q: Greg signed a contract to work as an auto-parts manager for Jones Chevrolet. This contract is governed by: A. Article 2 of the UCC. B. state common law. C. the doctrine of promissory estoppel. D. the law of quasi-contract.

Q: 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? A. The contract is voidable, and is enforceable till Mr. Blue cancels it B. The contract is void since it attempts to contract for services that are illegal C. The contract is valid and enforceable D. The contract will be valid if registered with the Secretary of State

Q: Which is the only state to have adopted the Uniform Commercial Code (UCC) only partially? A. Arizona B. Connecticut C. Louisiana D. Wisconsin

Q: An executed contract is one that has been: A. terminated by operation of law. B. terminated by the parties' voluntary agreement. C. fully performed by one or both parties. D. fully performed by both parties.

Q: A contract whose formation is induced by duress is an example of a contract that is: A. void. B. voidable. C. unenforceable. D. executory.

Q: A void contract is: A. a contract that one or both parties can cancel at their convenience. B. a contract, even though the courts will not enforce it. C. an agreement that creates no legal obligations. D. created by operation of law rather than by the agreement of the parties.

Q: 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? A. The contract is voidable, and is enforceable till Joe Jr. cancels it. B. The contract is void and unenforceable. C. The contract is enforceable and valid. D. If the contract is registered with the Secretary of State's office it will become enforceable.

Q: Aaron promises to sell his boat to Matt, and Matt promises to buy it from Aaron. What type of contract is this? A. A unilateral contract B. A quasi-contract C. A bilateral contract D. A promissory estoppel contract

Q: A contract is _____ when all of the parties have fully performed their contractual duties. A. void B. executed C. contingent D. ineffective

Q: A contract in which the parties have not yet fully performed their obligations is called a(n): A. executed contract. B. executory contract. C. quasi-contract. D. bilateral contract.

Q: An oral contract that is covered by the statute of frauds is: A. voidable. B. void. C. unenforceable. D. executory.

Q: A contract in which one or more of the parties have the legal right to cancel their obligations under the contract is called a(n): A. void contract. B. valid contract. C. voidable contract. D. unenforceable contract.

Q: Which of the following contracts are agreements that create no legal obligations and for which no remedy is given? A. Valid contracts B. Unenforceable contracts C. Void contracts D. Voidable contracts

Q: When the surrounding facts and circumstances indicate that an agreement has in fact been reached, a(n) _____ has been created. A. implied contract B. quasi-contract C. void contract D. unenforceable contract

Q: Calvin tells Sara that he will sell her his car for $5,000. Sara agrees. The exchange is to take place in 10 days. The contract between Calvin and Sara is now: A. unilateral, executory, and valid. B. bilateral, executed, and voidable. C. bilateral, executory, and express. D. bilateral, executory, and implied.

Q: 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: A. bilateral and executed. B. bilateral and executory. C. unilateral and executed. D. unilateral and executory.

Q: An otherwise valid contract whose enforcement is barred by the applicable contract statute of limitations is an example of a(n): A. voidable contract. B. quasi-contract. C. bilateral contract. D. unenforceable contract.

Q: 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? A. Yes, because Pat was offering his friend professional consultation. B. Yes, because there is a valid contract formed, since Jimmy had sought Pat's advice. C. No, because it was a friendly advice and not an actual contract. D. No, because Pat never entered into an oral contract and only written contracts are enforceable.

Q: 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: A. clickwrap contracts. B. shrinkwrap contracts. C. click-off contracts. D. unenforceable contracts.

Q: Contracts are typically between one party and who? A. The federal government B. The state government C. Another private party D. An international agency on commerce

Q: Which of the following is NOT a basic element of a contract? A. Offer B. Consideration C. Capacity D. Goods

Q: To qualify as a contract, a set of promises must be based on a voluntary agreement, which is made up of an offer and a(n) _____ of that offer. A. understanding B. writing C. assumption D. acceptance

Q: A contract must be between parties who have _____ to contract. A. knowledge B. capacity C. resources D. intention

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

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

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

Q: Which of the following statements about standardized form contracts is false? A. Frequently, the terms of standardized contracts are negotiable. B. They are used both online and offline. C. They are contracts that are preprinted by one party and presented to the other party for signing. D. In most situations, the party who drafts and presents the standardized contract is the party who has the most bargaining power in the transaction.