Intro to Contracts

Question 1

True/False: One purpose of contract law is to make business matters more predictable

Answer 1

True

Question 2

True/False: The elements of a contract are agreement, consideration, legality, and capacity.

Answer 2

True

Question 3

True/False: Paid surrogacy contracts are viewed by the legislative majority in all states as immoral and illegal.

Answer 3

False

Question 4

True/False: Robert offers to buy a car from Jane for $400. Jane must accept this offer in order to form an enforceable contract.

Answer 4

True

Question 5

True/False: Strawly Corp. wants to sell land which has toxic waste underground. It may shift all the responsibility for environmental cleanup to the buyer by including such a provision in the sales contract.

Answer 5

False

Question 6

True/False: Contracts for the sale of fabric, automobiles, computers, furniture, and paper clips would all be governed by Article 2 of the Uniform Commercial Code.

Answer 6

True

Question 7

True/False: A valid contract can legally be voided by either party.

Answer 7

False

Question 8

True/False: Lucy and Rick sign a contract in which Lucy agrees to deliver 10 boxes of chocolates in exchange for Rick’s promise to pay $5 per box. Lucy delivers the candy. Rick pays for the goods. This contract is fully executory.

Answer 8

False

Question 9

True/False: A quasi-contract is the same as an oral contract.

Answer 9

False

Question 10

True/False: Mary goes into Honest Harry’s Electronics and purchases a TV. Mary agrees to pay for the TV in 30 days on the store’s “30 days same as cash” plan. This is an executory contract.

Answer 10

True

Question 11

True/False: Valerie promises Teresa that she will pay Teresa $75 if Teresa will clean Valerie’s house by noon on Saturday. If Teresa cleans the house by noon on Saturday and Valerie pays the $75, then this is an implied, bilateral, executory contract.

Answer 11

False

Question 12

True/False: Upon the recommendation of a friend, Hope hires Joey to rewire her kitchen and he completes the work within the time agreed. Then Hope finds out that Joey is not a licensed electrician, and she refuses to pay him for the work. A court will enforce the agreement because otherwise Hope would be unjustly enriched.

Answer 12

False

Question 13

True/False: When promissory estoppel is used by the courts, it is because there is NOT an enforceable contract present.

Answer 13

True

Question 14

True/False: Under a contract, Danielle is required to make a set of draperies out of fabric chosen by the homeowners, the Flynns. After Danielle makes the draperies according to the contract requirements, her duties under the contract are discharged.

Answer 14

True

Question 15

True/False: Alex promises to pay $100 to anyone who finds his lost watch. Kate finds and returns the watch to Alex after hearing of the reward money. Alex and Kate have an enforceable unilateral contract.

Answer 15

True

Question 16

Jerry offers to shovel the snow from Ben’s driveway for $35. Ben replies “OK.” This is an example of:

Answer 16

AN EXPRESS, BILATERAL CONTRACT

Question 17

The common law governs contracts for:

Answer 17

SERVICES, RealEstate,Employment

Question 18

As English judges were developing the common law of contracts in the twelfth and thirteenth centuries:

Answer 18

PROMISES WERE FOUND NOT BINDING UNLESS WRITTEN AND SEALED

Question 19

Miles purchased a lawnmower with an attached warning that said, “The manufacturer is not responsible in the case of an injury caused by the lawnmower.” If Miles is injured because of a defect in the mower and sues the lawnmower manufacturer, he will most likely:

Answer 19

WIN, AS THIS WARNING WOULD BE UNENFORCEABLE

Question 20

Mike made the following offer to Mick: “I will pay you $500 if you agree to paint my house.” Mick replied that he would. At this point, the contract is an:

Answer 20

EXECUTORY, BILATERAL, EXPRESS CONTRACT

Question 21

What is not required to establish promissory estoppel?

Answer 21

A PROMISE MADE BY THE PLAINTIFF IN RESPONSE TO THE DEFENDANT’S PROMISE

Question 22

One of the factors leading courts away from a laissez-faire approach to contract law was:

Answer 22

A CHANGE IN RELATIVE BARGAINING POWER BTWN PARTIES TO CONTRACTS

Question 23

Shelly offers to sell Jane goods both parties know are stolen. Jane accepts the offer, and agrees to pay for the goods. Later, Jane refuses to accept or pay for the goods. If Shelly sues Jane for breach of contract, what is the probable result?

Answer 23

THE LAW WOULD NOT ENFORCE JANE’S PROMISE AS IT DOES NOT HAVE A LAWFUL PURPOSE

Question 24

Larry goes to his barber who has cut his hair for the past several years. The barber proceeds to cut his hair as they talk about the most recent snow storm to hit the area. This is an example of a:

Answer 24

UNILATERAL, IMPLIED CONTRACT

Question 25

Robert, a minor, buys a stereo from Jane for $200. State law allows a minor to disaffirm contracts within a reasonable time after turning 18. Robert disaffirms the contract the day after turning 18 and returns the stereo.

Answer 25

THIS CONTRACT WAS A VOIDABLE CONTRACT, ROBERT CAN DISAFFIRM

Question 26

Patty is a poor college student struggling to work and keep up with her studies. Fred, her uncle, promises to pay Patty support of $200 per month for the next six months. Although Fred didn't ask her to, she quits her current job in order to devote full time to her studies for the next six months. Fred makes one payment and then stops with no explanation. If Patty sues, what is the likely result?

Answer 26

PATTY MAY WIN UNDER THE DOCTRINE OF PROMISSORY ESTOPPEL

Question 27

Noncompetition agreements are:

Answer 27

MORE COMMON TODAY THAN THEY WERE IN THE PAST, ALTHOUGH POLICY ISSUES THEY RAISED IN THE 1700s HAVE NEVER GONE AWAY

Question 28

The basic distinction between a bilateral contract and a unilateral contract is

Answer 28

ONLY ONE PROMISE IS INVOLVED IN A UNILATERAL CONTRACT

Question 29

The courts will find an implied contract when:

Answer 29

CONDUCT OF THE PARTIES INDICATES THEY INTENDED AN AGREEMENT

Question 30

Courts may award damages called “quantum meruit”:

Answer 30

ALL OF THE ABOVE

Question 31

On January 16, Deb offers to sell her waterbed to Colleen for $600. Colleen accepts and agrees to pay Deb $600 on January 27. Which of the following is correct?

Answer 31

ON JANUARY 16, THE CONTRACT WAS EXECUTORY

Question 32

An express contract:

Answer 32

HAS BOTH PARTIES SETTING FORTH THEIR INTENTIONS

Question 33

Which of the following represents a unilateral offer?

Answer 33

“I WILL PAY YOU 50 IF YOU MOW MY LAWN”

Question 34

Walter enters a dentist office and points to a damaged tooth. The dentist, Matt, treats the tooth. If Walter refused to pay and Matt sued:

Answer 34

MATT WOULD WIN; THIS IS AN IMPLIED CONTRACT

Question 35

Jennifer has offered to sell her computer for $1750 to Jack. She tells Jack that the computer is only six months old but, in fact, the computer is three years old, and Jennifer wants to unload the lemon. Jack agrees to buy the computer based on Jennifer's representations. This contract is:

Answer 35

A VOIDABLE CONTRACT, ONE THAT JACK CAN VOID

Question 36

Which of the following types of property would be goods under the Uniform Commercial Code?

Answer 36

A COMPUTER

Question 37

John enters into a contract to paint Chad's house. When Chad decides on a color, John will buy the paint and paint the house for the price of $2,500. This contract is governed by:

Answer 37

THE COMMON LAW OF CONTRACTS GOVERNS BC THE PREDOMINANT FACTOR OF THE CONTRACT IS FOR THE SALE OF SERVICES AND NOT GOODS

Question 38

Zena enters into a contract with Steeley Company to purchase a washer and dryer. She doesn’t understand the financing terms, but signs the agreement anyway because she needs the appliances. The financing terms are very unfavorable to Zena, and she is unable to make all of her payments when they are due. Steeley sues. The court would:

Answer 38

BE EXERCISING JUDICIAL RESTRAINT IF IT REQUEIRES ZENA TO PAY AS SHE PROMISED, EVIN IF THE AGREEMENT WAS UNFAIR AND UNWISE

Question 39

Contracts that do not arise from mutual agreement but are created by courts to avoid unjust enrichment are:

Answer 39

QUASI-CONTRACTS