Question 1

Matt says to Lynn,"If you will mow my lawn,I will give you $20." Lynn replies,"O.K." Under these facts,each party is a promisor and each party is a promisee.

Accepted Answer

Both Matt and Lynn are making promises to each other. Matt promises to give Lynn $20 if she mows his lawn and Lynn promises to mow his lawn. Therefore, each party is a promisor (making a promise) and a promisee (receiving a promise).

Question 2

Contracts are governed primarily by statute,including the UCC.

Accepted Answer

The answer of Contracts are governed primarily by statute,including the...

Question 3

A contract in which both parties exchange promises is a:
A)voidable contract.
B)bilateral contract.
C)unilateral contract.
D)quasi contract.

Accepted Answer

A bilateral contract is a type of contract in which both parties exchange promises. Each party is obligated to perform their promise to the other party. This is different from a unilateral contract where only one party makes a promise and the other party can accept the promise by performing a specific action. A voidable contract is a contract that can be canceled or voided by one or both parties for legal reasons. A quasi contract is not a real contract but a legal remedy used to prevent unjust enrichment.

Question 4

Promissory estoppel is a contractual doctrine that includes which of the following considerations?
A)The courts use the doctrine of promissory estoppel to enforce noncontractual promises.
B)Under this doctrine, the promisor reasonably expects that the promisee, in reliance on the promise, will be induced by the promise to take action or refrain from taking action and the promisee does so.
C)The courts will not, under any circumstance, enforce promises that do not include all four of the elements of contract.
D)Both (a) and (b).

Accepted Answer

Promissory estoppel is a doctrine that is applied by the courts to enforce noncontractual promises. Under this doctrine, the promisor must expect that the promisee, in reliance on the promise, will be induced by the promise to take action or refrain from taking action, and the promisee must do so. This doctrine is used as an exception to the requirement that a contract must have all four of its elements to be enforceable. Therefore, choice (a) and choice (b) are the correct considerations for promissory estoppel. Choice (c) is incorrect because the doctrine of promissory estoppel is applied in situations where a contract has not been formed, and therefore not all four of the elements of a contract are present.

Question 5

Mike,a plumbing contractor,was hired to correct a stoppage in the sewer line at Sarah's house.During his work,he discovered numerous leaks in a rusty,defective water pipe that ran parallel with the sewer line.To meet public regulations,the water pipe had to be replaced either then or later,when the yard would have to be redug.Mike replaced the water pipe and Sarah inspected the work daily and did not object to the extra work.When Mike finished,Sarah refused to pay for the water pipe replacement since that was not what she originally hired Mike to do and she had never specifically agreed to that work.Sarah must pay Mike for his labor and materials costs for both the sewer and water line repair.

Accepted Answer

Sarah inspected the work daily and did not object to the extra work, therefore it can be implied that she agreed to the additional work and must pay for it.

Question 6

Ron says to Mark,"If you design and landscape my front lawn by the time I return from Paris next month,I will pay you $5,000." Mark does not respond but has the landscaping done by the time Ron returns.This is an example of a unilateral contract.

Accepted Answer

This is an example of a unilateral contract because Ron has made a promise to pay Mark if he performs a certain action (designing and landscaping his lawn). Mark does not have to accept this offer, but if he does and fulfills the action, Ron is obligated to pay him the agreed-upon amount.

Question 7

The court in the Weichert Co.Realtors v.Ryan case held that the performing party was entitled to recoup the reasonable value of the services rendered under:
A)an express contract.
B)quantum meruit.
C)promissory estoppel.
D)Article 2 of the UCC.

Accepted Answer

Quantum meruit is a legal theory that allows a party to recover the reasonable value of services provided even if there was no express contract. In this case, the court held that since the plaintiff, Weichert Co. Realtors, had rendered valuable services to the defendant, Ryan, and expected to be compensated, they were entitled to recover under the doctrine of quantum meruit.

Question 8

The Weichert Co.Realtors v.Ryan case found that the parties formed an express contract by mutually manifesting assent to the essential terms.

Accepted Answer

The answer of The Weichert Co.Realtors v.Ryan case found that...

Question 9

A promisee is the person making a promise.

Accepted Answer

A promisee is actually the person to whom a promise is made, not the person making the promise. The person making the promise is called the promisor.

Question 10

A noncontractual promise may be enforceable where there has been justifiable reliance on the promise.

Accepted Answer

This is known as promissory estoppel, where a promise made without a contract can be enforced if the promisee acted upon it and suffered a detriment as a result of that reliance.

Question 11

Caroline signs a contract to work as a sales rep for Incellmed Corporation for a period of two years.This contract is governed by:
A)Article 2 of the UCC.
B)state common law.
C)federal statute.
D)the law of quasi contract.

Accepted Answer

Since the contract is a specific agreement between Caroline and Incellmed Corporation, it is likely governed by state common law rather than federal statute or the UCC (which primarily governs the sale of goods). The concept of quasi contract, where there is no actual agreement but the court imposes one to prevent unjust enrichment, does not apply here as there is an actual contract in place.

Question 12

An implied in fact contract is formed by conduct.

Accepted Answer

An implied in fact contract is created through the behavior or actions of the parties involved, rather than through written or verbal communication.

Question 13

James offers to sell his fishing boat to Brenda for $3,000.Brenda says she will apply for a loan and will buy the boat within a week.A contract is formed:
A)when Brenda tells James she will buy the boat.
B)when Brenda gets the money from the credit union.
C)when Brenda applies for the loan at the credit union.
D)only when James gets the $3,000.

Accepted Answer

The contract is formed when Brenda tells James she will buy the boat. This is because both parties have expressed their intention to enter into an agreement and have come to a mutual understanding of the terms of the sale. The fact that Brenda needs to apply for a loan or obtain the money for the sale does not affect the formation of the contract.

Question 14

Alice makes a material misrepresentation of fact to Betty,and based upon the misrepresentation,Betty enters into a contract.Alice now thinks that the contract is not fair to her.This contract is voidable at Alice's option.

Accepted Answer

A contract induced by fraud (material misrepresentation of fact) is voidable at the option of the innocent party, not the party who made the misrepresentation. Alice cannot void the contract simply because she thinks it is not fair to her.

Question 15

A contract to sell life insurance is covered by Article 2 of the Uniform Commercial Code.

Accepted Answer

Life insurance is not considered a "good" or "property" that can be bought or sold in the traditional sense, and therefore is not covered by Article 2 of the Uniform Commercial Code. Instead, life insurance contracts are governed by state insurance law.

Question 16

A contract is a binding agreement that the courts will enforce.

Accepted Answer

A contract is a legally binding agreement between two or more parties and if one party breaches the agreement, the other party has legal remedies available to enforce the contract.

Question 17

The requirement that each party to a contract must intentionally exchange something of value as an inducement to the other party to make a return exchange is known as:
A)mutual assent.
B)consideration.
C)legality of object.
D)contractual capacity.

Accepted Answer

Consideration is the exchange of something valuable between parties to a contract. This distinguishes a contract from a gift, which is a one-sided transaction. Mutual assent, legality of object, and contractual capacity are also important elements of a valid contract, but they do not specifically address the exchange of value that is required for consideration.

Question 18

George has been declared incompetent by the court and is under the care of his sister.Unknown to his sister,George rents the 10,000-seat civic center for his birthday party.George's contract to rent the civic center is best described as:
A)a void contract.
B)a quasi contract.
C)a voidable contract.
D)an enforceable contract.

Accepted Answer

George has been declared incompetent by the court, which means he lacks the legal capacity to enter into a contract. Therefore, any contract he enters into is considered void from the beginning. His sister also lacks the authority to approve such contracts on his behalf.

Question 19

In addition to the four basic requirements of a contract,which of the following must also occur in order to have a valid contract?
A)The agreement must always be in writing.
B)There must be evidence of undue influence.
C)There must be an absence of invalidating conduct.
D)A legal remedy must be available for there to be a breach.

Accepted Answer

In addition to the four basic requirements of a contract (offer, acceptance, consideration, and mutual intent), there must also be an absence of invalidating conduct, such as fraud, duress, or mistake. The agreement does not always have to be in writing, evidence of undue influence is not necessary for a valid contract, and the availability of a legal remedy is not a requirement for the formation of a contract.

Question 20

Alice makes a material misrepresentation of fact to Betty,and based upon the misrepresentation,Betty enters into a contract.Betty now realizes she was deceived and wants to get out of the contract.This contract is voidable at Betty's option.

Accepted Answer

A contract can be voidable if one of the parties was misled by a material misrepresentation of fact made by the other party. In this case, Betty was deceived by Alice's misrepresentation, and therefore Betty is entitled to avoid the contract at her option.

Quiz 9: Introduction to Contracts

Matt says to Lynn,"If you will mow my lawn,I will give you $20." Lynn replies,"O.K." Under these facts,each party is a promisor and each party is a promisee.

Contracts are governed primarily by statute,including the UCC.

A contract in which both parties exchange promises is a:

Promissory estoppel is a contractual doctrine that includes which of the following considerations?

Ron says to Mark,"If you design and landscape my front lawn by the time I return from Paris next month,I will pay you $5,000." Mark does not respond but has the landscaping done by the time Ron returns.This is an example of a unilateral contract.

The court in the Weichert Co.Realtors v.Ryan case held that the performing party was entitled to recoup the reasonable value of the services rendered under:

The Weichert Co.Realtors v.Ryan case found that the parties formed an express contract by mutually manifesting assent to the essential terms.

A promisee is the person making a promise.

A noncontractual promise may be enforceable where there has been justifiable reliance on the promise.

Caroline signs a contract to work as a sales rep for Incellmed Corporation for a period of two years.This contract is governed by:

An implied in fact contract is formed by conduct.

James offers to sell his fishing boat to Brenda for $3,000.Brenda says she will apply for a loan and will buy the boat within a week.A contract is formed:

Alice makes a material misrepresentation of fact to Betty,and based upon the misrepresentation,Betty enters into a contract.Alice now thinks that the contract is not fair to her.This contract is voidable at Alice's option.

A contract to sell life insurance is covered by Article 2 of the Uniform Commercial Code.

A contract is a binding agreement that the courts will enforce.

The requirement that each party to a contract must intentionally exchange something of value as an inducement to the other party to make a return exchange is known as:

George has been declared incompetent by the court and is under the care of his sister.Unknown to his sister,George rents the 10,000-seat civic center for his birthday party.George's contract to rent the civic center is best described as:

In addition to the four basic requirements of a contract,which of the following must also occur in order to have a valid contract?

Alice makes a material misrepresentation of fact to Betty,and based upon the misrepresentation,Betty enters into a contract.Betty now realizes she was deceived and wants to get out of the contract.This contract is voidable at Betty's option.