Introduction and Classification

Question 1

Define “contract.”

Answer 1

An agreement supported by consideration between two
or more persons with competent capacity for a legal
purpose

Question 2

Common law is developed by what?

Answer 2

Judicial decisions on contracts

Question 3

T/F Common law requires more details and precision that does UCC Article 2.

Answer 3

T

Question 4

T/F UCC Article 2 requires less detail than common law.

Answer 4

T

Question 5

UCC Article 2 applies to contracts when they involve what?

Answer 5

Sale of goods

Question 6

What are blended contracts?

Answer 6

Contracts that involve both the sale of goods and providing services.

Question 7

UCC or common law? A burglar alarm system involves the purchase of alarms, wire, and monitors.
However, the buyer wants the alarm installed and functioning.

Answer 7

Common law

Question 8

UCC or common law? If the school district contracts to

purchase rebound books.

Answer 8

UCC

Question 9

Common law applies to what?

Answer 9

1. Service and real estate contracts

Question 10

UCC or common law? A contract for the sale of a home.

Answer 10

Common law (real estate)

Question 11

UCC or common law? A contract hiring a real estate broker.

Answer 11

Common law (services)

Question 12

UCC or common law? A contract for the sale of a mobile home by a manufacturer.

Answer 12

UCC

Question 13

Define “express contract.”

Answer 13

A contract formed wholly by oral and/or written words.

Question 14

Define “implied or implied-in-fact contract.”

Answer 14

A contract formed at least in part based on the conduct

of the parties

Question 15

Define “quasi-contract
or implied-in-law
contract.”

Answer 15

A contract imposed by the courts or by law when some performance has gone forward, even though there is no express or implied contract. (unjust enrichment).

Question 16

Define “bilateral contact.”

Answer 16

A promise in exchange for a promise

Question 17

Define “unilateral contract.”

Answer 17

A promise in exchange for an act.

Question 18

Define “executed contract.”

Answer 18

A contract that is fully performed by both sides

Question 19

Define “executory contract.”

Answer 19

A contract not fully performed by both sides

Question 20

Define “partially executed contract.”

Answer 20

A contract that has been performed in part. One side has performed
the contractual obligation.

Question 21

Define “valid contract.”

Answer 21

A contract that has been legally formed and meets the necessary requirements for
formation.

Question 22

Define “void contract.”

Answer 22

A contract that lacks a legal purpose or is in violation of the law.

Question 23

Define “voidable contract.”

Answer 23

A valid contract formed under false pretenses. The party affected by fraud is protected.

Question 24

Define “unenforceable contract.”

Answer 24

A valid contract that cannot be enforced because of a statutory or legal defense such a contract must be formed in writing like real estate.