Chapter 9: Introduction To Contracts

Question 1

Uniform Commercial Code (UCC)

Answer 1

Article 2 of the UCC governs the sales of goods.

Question 2

Sale

Answer 2

The transfer of title from seller to buyer.

Question 3

Goods

Answer 3

Tangible personal property.

Question 4

Personal property

Answer 4

Property other than an interest in land.

Question 5

Common law

Answer 5

Most contracts are primarily governed by state common law, including contracts involving employment, services, insurance, real property, patents, and copyrights.

Question 6

Real property

Answer 6

Land and anything attached to it., Including buildings, as well as any right, privilege, or power in the real property, including leases, mortgages, options, and easements.

Question 7

Contract

Answer 7

Binding agreement that the courts will enforce.

Question 8

Breach

Answer 8

Failure to properly perform a contractual obligation.

Question 9

Requirements of a contract:

Answer 9

1. Mutual assent
2. Consideration
3. Legality of object
4. Capacity

Question 10

Implied in fact contract

Answer 10

Contract in which agreement of the parties is inferred from their conduct.

Question 11

Express contract

Answer 11

Agreement of parties that is stated in words either in writing or orally.

Question 12

Bilateral contract

Answer 12

Contract in which both parties exchange promises.

Question 13

Promisor

Answer 13

Person makes a promise.

Question 14

Promisee

Answer 14

Person to whom a promise is made.

Question 15

Unilateral contract

Answer 15

Contract in which only one party makes a promise.

Question 16

Valid contract

Answer 16

Contract that meets all of the requirements of a binding contract.

Question 17

Void contract

Answer 17

An agreement without legal effect.

Question 18

Voidable contract

Answer 18

Contract capable of being made void.

Question 19

Unenforceable contract

Answer 19

Contract for the breach of which the law does not provide a remedy.

Question 20

Executed contract

Answer 20

Contract fully performed by all of the parties.

Question 21

Executory contract

Answer 21

Contracts not fully performed.

Question 22

Promissory estoppel

Answer 22

Doctrine in forcing non-contractual promises for which there have been justifiable reliance on the promise and justice requires enforcement.

Question 23

Quasi contract or restitution

Answer 23

Obligation not based upon a contract that is imposed to avoid injustice.

Also called an implied in law contract.

The plaintiff recovers the reasonable value of the benefit she conferred upon the defendant.

Question 24

Mutual Assent

Answer 24

The parties to a contract must manifest by words or can conduct that they have agreed to enter into a contract.

Question 25

Consideration

Answer 25

Each party to a contract must intentionally exchange a legal benefit or incur a legal detriment as an inducement to the other party to make a return exchange.

Question 26

Legality of object

Answer 26

The purpose of a contract must not be criminal, tortious, or otherwise against public policy.

Question 27

Capacity

Answer 27

The parties to a contract must have contractual capacity.