Question 1

The courts will find an implied contract when
A)justice demands it.
B)conduct of the parties indicates they intended an agreement.
C)there is promissory estoppel.
D)there is undue influence.

Accepted Answer

An implied contract exists when the conduct of the parties indicates an agreement, even if there is no explicit agreement in writing or verbally. Justice, promissory estoppel, and undue influence are legal principles that may be relevant in contract cases, but they do not necessarily lead to the finding of an implied contract.

Question 2

Dick offers to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the offer, lightning strikes the car and it is totally destroyed. Which of the following is true?
A)Jane can still accept the offer and John must find a 1955 Thunderbird to sell.
B)The offer is terminated by law.
C)Dick can still revoke his offer so long as he does so before Jane accepts.
D)Jane can still accept the offer. She will be entitled to the insurance proceeds.

Accepted Answer

The offer is terminated by law due to the destruction of the subject matter. The destruction of the car extinguishes the offer and creates a situation known as impossibility of performance, making it legally impossible to sell the car.

Question 3

Which of the following is an example of an implied contract?
A)Alberto visits his physician to be treated for a sinus infection. They do not discuss payment, but the following week Alberto receives a bill from his physician for services rendered.
B)Midori offers to sell a necklace to Patricia for $50; Patricia agrees to pay $50 for the necklace.
C)Amy tells her neighbor Tom, "If you rake up my leaves, I'll bake you a batch of brownies." Tom accepts the offer.
D)Miguel wants to purchase his first home. When he found the perfect place, he signed a contract for purchase and closed on the home within a month.

Accepted Answer

An implied contract is one in which the terms are not explicitly stated but the actions of the parties involved suggest that they have agreed to certain terms. In this case, Alberto receiving a bill after visiting his physician implies that he is agreeing to pay for the services rendered.

Question 4

John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby. Prince Charming came in last, much to John's frustration and embarrassment. John exclaims in a loud voice, "I'm selling that horse to the first person who hands me $100!" John has
A)made an offer to anyone within hearing distance and will be bound by his offer to the first person who produces $100.
B)made a firm offer and will be bound by his offer for a reasonable period of time.
C)made an acceptance to the first person who can produce $100.
D)not made an offer because under the circumstances a reasonable person would not conclude that John had intent to make an offer.

Accepted Answer

John's statement could be seen as an expression of frustration, rather than a genuine offer to sell the horse. As such, it is not clear that a reasonable person would interpret his statement as an offer to sell the horse for $100. Therefore, John has not made an offer.

Question 5

Bob signed an agreement with Joe under which Bob agreed to purchase all the hay that Joe grew during the coming growing season. This contract will be
A)unenforceable due to its vagueness.
B)unenforceable due to the difficulty of devising an appropriate remedy for a breach.
C)enforceable as long as both parties act in good faith and Bob doesn't suddenly demand more hay than what was reasonably estimated.
D)unenforceable unless state real estate law makes an exception.

Accepted Answer

This contract is enforceable as long as both parties act in good faith and Bob doesn't suddenly demand more hay than what was reasonably estimated. The contract may be considered valid as long as it is not too vague, and the parties involved act reasonably and in good faith. Additionally, if the contract is breached, an appropriate remedy can be devised by the court. State real estate law may not necessarily apply in this situation.

Question 6

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,
A)Walter would win as there was no contract.
B)Walter would win because of the UCC.
C)Matt would win; this is an implied contract.
D)Matt would win in quantum meruit .

Accepted Answer

The answer of Walter enters a dentist office and points...

Question 7

Noah tells Ivy he is willing to sell his comic book collection to her for $100. Ivy says no, she would rather save her money to buy a new cell phone. What just happened?
A)termination by expiration
B)termination by rejection
C)termination by revocation
D)termination by operation of law

Accepted Answer

Termination by rejection occurs when the offeree (Ivy) rejects the offer made by the offeror (Noah), which terminates the offer. This is different from termination by expiration, which occurs when the offeror sets a deadline for the offer and it expires if the offeree does not accept by that deadline. Termination by revocation occurs when the offeror takes back the offer before the offeree accepts. Termination by operation of law occurs when the subject matter of the offer becomes illegal, the offeror or offeree dies or becomes incapacitated, or if the contract is impossible to perform.

Question 8

Collector Carl displays his beer can collection at the local swap meet. Mary sees the collection and is interested in buying it. Carl says he will sell the collection for $1,500. Mary says she really likes the collection but is only willing to pay $1,000. Which of the following is correct?
A)Mary's counteroffer terminates Carl's offer of $1,500.
B)If Carl rejects Mary's counteroffer, she can still accept Carl's offer of $1,500.
C)Neither offer is valid. Who would ever pay $1,000 or $1,500 for a beer can collection?
D)Mary's offer is an option contract and she cannot revoke the offer.

Accepted Answer

Mary's counteroffer terminates Carl's original offer of $1,500. This means that if Carl rejects Mary's offer of $1,000, he cannot then come back and accept his original offer of $1,500. If Carl wants to accept Mary's offer, he must do so before Mary revokes it or makes another counteroffer.

Question 9

If an offer specifies no time limit in which to accept,
A)the offeree has 30 days to respond.
B)the offeree has 10 days to respond.
C)the offer is not valid and therefore it does not matter when the offeree responds.
D)the offeree has a reasonable period during which to accept.

Accepted Answer

If an offer specifies no time limit in which to accept, the offeree has a reasonable period during which to accept. This means that the offeree should respond within a reasonable time frame, which depends on the circumstances surrounding the offer.

Question 10

Which of the following types of property would be considered "goods" under the Uniform Commercial Code?
A)a promissory note
B)a stock
C)a patent
D)a computer

Accepted Answer

Goods refer to tangible, movable personal property. The other options are not goods under the Uniform Commercial Code: a promissory note is a written promise to pay a debt, a stock is a share of ownership in a company (which is not tangible personal property), and a patent is a type of intellectual property. A computer is tangible, movable personal property, and therefore falls under the definition of goods.

Question 11

Jaime offered to buy Kevin's bike. Jamie is the
A)offeree.
B)offeror.
C)mortgagor.
D)trustee.

Accepted Answer

Jamie is the offeror because he is the one making the offer to buy Kevin's bike.

Question 12

Madison purchases several 50-pound bags of mulch at the local gardening store. An employee carries the bags of mulch to Madison's truck and loads them into the back for her. Will Article 2 of the UCC govern the contract in this situation?
A)No, this is a mixed contract because Madison is paying for both goods and labor.
B)Yes, because the primary purpose of this contract is the sale of goods.
C)No, this is an express contract because both parties explicitly state their intentions.
D)Yes, because Article 2 of the UCC governs all bilateral contracts.

Accepted Answer

The contract in this situation involves the purchase and sale of goods (50-pound bags of mulch), making it a clear example of a transaction falling under the scope of Article 2 of the UCC. The fact that an employee assists with loading the bags of mulch does not change the fact that the primary purpose of the contract is the sale of goods. Therefore, Choice B is the correct answer.

Question 13

What type of contract is a possible remedy for an injured plaintiff in a case with no valid contract, when the plaintiff can show benefit to the defendant, reasonable expectation of payment, and unjust enrichment?
A)an express contract
B)an implied contract
C)a quasi-contract
D)a unilateral contract

Accepted Answer

A quasi-contract, also known as an implied-in-law contract, is a legal remedy imposed by the court to prevent unjust enrichment of a defendant at the expense of a plaintiff. It is not a true contract, but rather a legal fiction created to prevent the defendant from retaining a benefit received from the plaintiff without compensating them. In a case where there is no valid contract between the parties, but the plaintiff can demonstrate that the defendant was enriched at their expense, the court may impose a quasi-contractual obligation on the defendant to pay the plaintiff a reasonable amount for the benefit received.

Question 14

An express contract
A)must be in writing.
B)may be inferred by the conduct of the parties involved.
C)has both parties setting forth their intentions.
D)is not valid in many states.

Accepted Answer

An express contract is a written or verbal agreement in which both parties set forth their intentions. It does not necessarily have to be in writing but can also be inferred by the conduct of the parties. Express contracts are valid and enforceable in all states.

Question 15

The intent of the offeror to extend an offer to the offeree is generally determined by reference to
A)the beliefs of the offeror.
B)the subjective intention of the offeror.
C)the assumptions of the offeror.
D)the words and conduct of the offeror.

Accepted Answer

The intent of the offeror to extend an offer to the offeree is generally determined by reference to the words and conduct of the offeror. In other words, it is based on the objective understanding of what the offeror said or did, rather than their subjective beliefs or assumptions. This allows for a clear and consistent understanding of when an offer has been made and accepted.

Question 16

Which of the following represents a unilateral offer?
A)"I will pay you $50 if you mow my lawn."
B)"I will pay you $50 if you promise to trim that tree."
C)"I will pay you $50 for your CD player."
D)"I will pay you $50 for your backpack."

Accepted Answer

A unilateral offer is an offer that can only be accepted by performance. In this case, the offeror is offering $50 for the offeree to mow their lawn, which is a performance that can be done to accept the offer. The other options involve promises or offers to sell something, which are not unilateral offers.

Question 17

Jennifer has offered to sell her laptop computer for $500 to Jack. She tells Jack that the computer is only six months old but, in fact, it 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
A)a void agreement because of the fraud involved.
B)a voidable contract, one that Jack can void.
C)a voidable contract, because it is unilateral.
D)a void contract because of the UCC.

Accepted Answer

This is a voidable contract because Jennifer made a fraudulent misrepresentation about the age of the computer. Jack can choose to void the contract based on this misrepresentation.

Question 18

Courts may award damages called quantum meruit , which means
A)"as much as he deserves."
B)"to the letter of the law."
C)"let the buyer beware."
D)"something for something."

Accepted Answer

Quantum meruit is a Latin term that means "as much as he deserves." This refers to the compensation awarded by courts when a contract has not been fulfilled but the defendant received some benefit from the plaintiff's work or services. The court will determine how much the defendant should compensate the plaintiff based on the fair value of their work or services.

Question 19

An agreement in which parties intend to form a valid bargain, but a court declares that some rule of law prevents enforcing it is called
A)a void agreement.
B)a voidable contract.
C)an unenforceable agreement.
D)a quasi-contract.

Accepted Answer

An unenforceable agreement is one in which the parties intend to form a valid contract, but some legal rule prevents its enforcement. This differs from a void agreement, in which no legal contract was ever formed, and a voidable contract, in which one party has the ability to avoid the contract. A quasi-contract is not a true contract, but rather a legal fiction applied by courts to prevent unjust enrichment.

Question 20

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales' business,
A)the contract may indicate a method for determining the price, without stating a definite price.
B)Morales and Rolfes must depend on the UCC's gap-filler provisions to determine a price since the fuel is a "good" covered by Article 2 of the UCC.
C)the contract price must remain the same for the entire three-year contractual period.
D)their contractual requirements regarding definiteness would be the same under the UCC and the common law.

Accepted Answer

The UCC allows parties to include a method for determining price in a contract without specifying a definite price. This is known as an open price term and is allowed under Article 2 of the UCC. Therefore, Morales and Rolfes may negotiate a method for determining the price of the fuel without specifying a definite price in the contract.

Quiz 10: Introduction to Contracts

The courts will find an implied contract when

Dick offers to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the offer, lightning strikes the car and it is totally destroyed. Which of the following is true?

Which of the following is an example of an implied contract?

John owns a thoroughbred horse named Prince Charming that just ran in the Kentucky Derby. Prince Charming came in last, much to John's frustration and embarrassment. John exclaims in a loud voice, "I'm selling that horse to the first person who hands me $100!" John has

Bob signed an agreement with Joe under which Bob agreed to purchase all the hay that Joe grew during the coming growing season. This contract will be

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,

Noah tells Ivy he is willing to sell his comic book collection to her for $100. Ivy says no, she would rather save her money to buy a new cell phone. What just happened?

Collector Carl displays his beer can collection at the local swap meet. Mary sees the collection and is interested in buying it. Carl says he will sell the collection for $1,500. Mary says she really likes the collection but is only willing to pay $1,000. Which of the following is correct?

If an offer specifies no time limit in which to accept,

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

Jaime offered to buy Kevin's bike. Jamie is the

Madison purchases several 50-pound bags of mulch at the local gardening store. An employee carries the bags of mulch to Madison's truck and loads them into the back for her. Will Article 2 of the UCC govern the contract in this situation?

What type of contract is a possible remedy for an injured plaintiff in a case with no valid contract, when the plaintiff can show benefit to the defendant, reasonable expectation of payment, and unjust enrichment?

An express contract

The intent of the offeror to extend an offer to the offeree is generally determined by reference to

Which of the following represents a unilateral offer?

Jennifer has offered to sell her laptop computer for $500 to Jack. She tells Jack that the computer is only six months old but, in fact, it 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

Courts may award damages called quantum meruit , which means

An agreement in which parties intend to form a valid bargain, but a court declares that some rule of law prevents enforcing it is called

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales' business,