Question 1

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

Accepted Answer

Article 2 of the Uniform Commercial Code deals with the sale of goods, which includes any tangible, movable property. Fabric, automobiles, computers, furniture, and paper clips all fall under this category and are therefore governed by Article 2.

Question 2

When Myrtle comes home from work one evening,she finds that her yard has been mowed and trimmed.Later,a man comes to collect for the yard work done.Myrtle refuses to pay for the work since she has never seen the man before and did not hire him to do her yard work.Which of the following answers is most accurate?
A) This is an implied,unilateral contract and she must pay the price requested by the man.
B) This is an express,voidable contract that either party may avoid.
C) The court would order Myrtle to pay the reasonable value of the yard work because of the benefit conferred on her.
D) Myrtle would not have to pay for the yard work.

Accepted Answer

Myrtle did not request or agree to the yard work beforehand, so she is not obligated to pay for unsolicited services.

Question 3

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.

Accepted Answer

An executory contract is a contract that is not yet fully performed by either party. In this case, Mary agreeing to pay for the TV in 30 days means that the contract is still in progress and is therefore executory.

Question 4

The common law governs contracts for:
A) services.
B) real estate.
C) employment.
D) All of the above.

Accepted Answer

The common law governs contracts for services, real estate, and employment, along with many other types of contracts. Therefore, option D, "All of the above," is the correct answer.

Question 5

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.

Accepted Answer

Alex made a promise of reward for finding his lost watch and Kate found and returned the watch after hearing about the reward. This constitutes an enforceable unilateral contract where Kate fulfilled the condition of the contract by finding and returning the watch, and Alex is obligated to pay the promised reward.

Question 6

In seeking to determine whether there is a meeting of the minds,the courts look to how a reasonable person would objectively view the language or actions of the parties.

Accepted Answer

The principle of objective intent states that the courts look to the reasonable interpretation of the language or actions by a reasonable person to determine whether there is a meeting of the minds. Therefore, the answer is true.

Question 7

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

Accepted Answer

For a contract to be enforceable, there must be an offer by one party and an acceptance of that offer by the other party.

Question 8

All oral contracts are quasi-contracts until they are completely executed.

Accepted Answer

All oral contracts are not quasi-contracts. Quasi-contracts arise when there is no formal agreement between the parties, but one party benefits at the expense of another. Therefore, the statement is false.

Question 9

On Monday,Harry puts an offer in the mail to Sally to sell his guitar for $50.Monday night when jamming with his buddies,he decides he will really miss his old guitar and has second thoughts about selling it.Tuesday morning he puts a revocation in the mail informing Sally he has changed his mind and the guitar is no longer for sale.The revocation is effective on Tuesday morning.

Accepted Answer

The revocation is effective only when it is received by Sally, not when it is sent.

Question 10

A counteroffer is a rejection of the original offer.

Accepted Answer

A counteroffer is a response that rejects the original offer and proposes different terms.

Question 11

Strawly Corp.runs an "adult bookstore" in Metro City,leasing the building from MegaCorp. Then,Metro City passes an ordinance prohibiting the sales of the types of merchandise found in "adult bookstores." Strawly is still bound to the contract.

Accepted Answer

The answer of Strawly Corp.runs an "adult bookstore" in Metro...

Question 12

Jerry offers to shovel the snow from Ben's driveway for $35.Ben replies "OK." This is an example of:
A) an implied,unilateral contract.
B) an express,unilateral contract.
C) an implied,bilateral contract.
D) an express,bilateral contract.

Accepted Answer

This is an express, bilateral contract because there was an offer (Jerry's offer to shovel the snow) and acceptance (Ben's reply of "OK"), and both parties agreed to perform an action (Jerry shoveling the snow and Ben paying $35) in exchange for each other's promises.

Question 13

A valid contract can legally be voided by either party.

Accepted Answer

A valid contract can only be voided in certain situations, such as if it was fraudulently entered into, if one party lacked capacity to enter into the contract, or if the terms of the contract are illegal or against public policy. However, either party cannot simply void a valid contract on a whim.

Question 14

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.

Accepted Answer

The contract is fully executed because both parties have fulfilled their obligations: Lucy delivered the chocolates and Rick paid for them.

Question 15

If the offer does not specify a type of acceptance,the offeree must accept within three day and must do so in writing.

Accepted Answer

If the offer does not specify a type of acceptance, then the offeree has a reasonable amount of time to accept, and it can be done orally or in writing, unless the offeror specifies otherwise.

Question 16

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.

Accepted Answer

This is an example of an express, bilateral, executed contract. It is express because the terms are clearly stated and communicated between the parties, bilateral because it involves a promise for a promise (Valerie's promise to pay and Teresa's promise to clean), and executed because both parties have fulfilled their obligations (Teresa cleaned the house and Valerie paid the $75).

Question 17

Under a contract,Danielle is required to paint a room with paint chosen by the homeowners,the Flynns.After Danielle paints the room according to the contract requirements,her duties under the contract are discharged.

Accepted Answer

Once Danielle has fulfilled her obligation of painting the room with the paint chosen by the Flynns, she has met the requirements of the contract and is no longer obligated to perform any further duties under it. This is known as discharge of the contract.

Question 18

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

Accepted Answer

Promissory estoppel is a doctrine used by courts to enforce promises that were made without the creation of a formal contract. Therefore, if promissory estoppel is being used, it means that there is not an enforceable contract present.

Question 19

Some of the elements of a contract are agreement,consideration,legality,and capacity.

Accepted Answer

These are indeed the four essential elements of a contract.

Question 20

One purpose of contract law is to make business matters more predictable.

Accepted Answer

Contract law provides rules and regulations for the formation, performance, and enforcement of agreements between parties. By establishing clear expectations and obligations, contract law aims to make business matters more predictable and reduce the likelihood of disputes or misunderstandings.

Quiz 9: Introduction to Contracts