Question 1

Which of the following is NOT always necessary in order for a valid contract to be formed?

Accepted Answer

A writing is not always necessary for a valid contract to be formed. Contracts can be made orally or through behavior, and in some cases, a writing may not be required by law. However, for certain types of contracts (such as contracts for the sale of goods over a certain dollar amount), a writing may be required under the Statute of Frauds.

Question 2

The concept of consideration in contract law includes:

Accepted Answer

Consideration in contract law refers to something of value that is exchanged between the parties involved in the contract. It serves as the inducement or reason for each party to enter into the contract, making promises enforceable. Choices A and C do not accurately describe the concept of consideration.

Question 3

According to the UCC, an enforceable agreement involving the transfer of title of goods from a seller to a buyer for a price is called a(n):

Accepted Answer

The UCC defines a sale as the transfer of title, or ownership, of goods from a seller to a buyer for a price. Therefore, the correct answer is D) sale. Choices A, B, and C are incorrect because they do not accurately describe the specific type of agreement defined by the UCC.

Question 4

A(n) __________ contract is one in which the terms have been definitely and specifically stated and agreed upon.

Accepted Answer

An express contract is one where the terms are clearly stated and agreed upon by the parties, either orally or in writing.

Question 5

June offers to sell her RV to Cecil for $13,000. Cecil says he will apply for a loan and will buy the RV within a week. A contract is formed:

Accepted Answer

A contract is formed when there is an offer, acceptance, and consideration. Cecil's statement of intent to buy the RV constitutes acceptance of June's offer, forming a contract.

Question 6

Sarah offers to pay Allison $150 if Allison will paint her apartment while she is out of town on vacation for two weeks. Allison makes no promise but tells Sarah that she will think about it. While Sarah is out of town, Allison paints the apartment. This is best described as:

Accepted Answer

This situation describes a unilateral contract, where one party, Sarah, makes a promise in exchange for a performance (painting the apartment) by the other party, Allison. Allison's act of painting the apartment constitutes acceptance of the offer, thus completing the contract.

Question 7

Which of the following contracts is covered by Article 2 of the Uniform Commercial Code?

Accepted Answer

Article 2 of the Uniform Commercial Code applies to contracts for the sale of goods. Goods are defined as tangible, movable personal property. Therefore, the sale of a new car falls under Article 2. The sale of a house would not be covered because it is considered real property, not personal property. An employment agreement and the sale of automobile insurance are not contracts for the sale of goods, so they would not be covered under Article 2.

Question 8

Stan sends for a law school catalog from Ivory Towers University. According to the catalog, the law school applications are evaluated on the basis of undergraduate grades, standardized test scores, and references. Stan, who is a straight-A student, has high test scores and excellent references, applies and pays the $100 application fee. His application is rejected. Later he finds out that others with low grades and test scores were accepted based on their family connections and donations made to the University. If Stan followed all of the guidelines in the college catalog and paid the required application fee, then according to the court in Steinberg v. Chicago Medical School :

Accepted Answer

The court in Steinberg v. Chicago Medical School ruled that a valid contract existed because the school bound itself to honor the obligations set forth in the college catalog, implying that applicants who met the stated criteria and paid the application fee had a contractual relationship with the school based on those terms.

Question 9

Chet makes a material misrepresentation of fact regarding his horse to Rosalind while out riding one day. Later that day, Rosalind makes an offer to buy the horse which Chet accepts, without correcting his earlier misrepresentation of fact. In this case:

Accepted Answer

Rosalind may avoid the contract because Chet's material misrepresentation of fact about the horse could be considered fraudulent or misleading, giving Rosalind grounds to rescind the contract.

Question 10

Able is involved in an automobile accident and is injured. While he is unconscious, the police call an ambulance which takes him to a hospital. Able is treated at the hospital and released a day later. The hospital sends him a bill for $4,500, which Able refuses to pay, claiming it is too high and he never consented to the treatment because he was unconscious. Able:

Accepted Answer

A quasi-contractual agreement is recognized in situations where one party would be unjustly enriched at the expense of another if they were allowed to refuse payment for a service or benefit they received, especially in emergency situations where explicit consent cannot be given due to the circumstances, such as being unconscious.

Question 11

Contracts that are implied in law:

Accepted Answer

Contracts implied in law, also known as quasi-contracts, are not actual contracts but are obligations imposed by law to prevent unjust enrichment. They do not require the assent of the contracting parties, as they are constructed by the court to ensure fairness and equity.

Question 12

Samuel Tate enters into a contract with Bill Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, which term describes the type of contract in existence?

Accepted Answer

An executory contract is one in which some future act or obligation remains to be performed according to its terms. Since the doghouse has not yet been built, the contract between Samuel Tate and Bill Smith is not fully executed, making it an executory contract.

Question 13

Express contracts and implied in fact contracts are:

Accepted Answer

Express contracts and implied in fact contracts are both considered genuine contracts. An express contract is one where the terms are stated explicitly by the parties, either orally or in writing. An implied in fact contract, on the other hand, is one where the agreement is inferred from the actions or conduct of the parties, indicating their intention to be bound. Both types are recognized and enforceable by law, though their formation differs.

Question 14

An obligation imposed by law where there has been no agreement or expression of assent by word or act on the part of either party involved is a(n):

Accepted Answer

The described obligation is a quasi contract, which is not an actual contract but rather a legal remedy to prevent unjust enrichment. It is created by a court to impose an obligation on a party who has received a benefit without having an agreement or express assent with another party.

Question 15

A change in contract law between the nineteenth and twentieth centuries was:

Accepted Answer

During the transition from the nineteenth to the twentieth centuries, there was a general trend towards relaxing the requirements for contract formation, making it easier for agreements to be considered legally binding without adhering to strict formalities. This shift aimed to better accommodate the realities of business practices and the needs of a growing and more dynamic economy.

Question 16

Steven makes a material misrepresentation of fact regarding his motorcycle to Huong who agrees to buy the motorcycle based upon the misrepresentation. This contract is:

Accepted Answer

A contract is voidable if one party to the contract has made a material misrepresentation of fact upon which the other party has relied to their detriment. In this case, since Steven made a material misrepresentation regarding the motorcycle to Huong, who agreed to buy it based on that misrepresentation, Huong has the right to void the contract.

Question 17

Adonia and Merv enter a contract for the sale of a computer. If Merv breaches the contract and Adonia waits until the time specified in the statute of limitations has passed, the contract is now:

Accepted Answer

When the statute of limitations on a contract has expired, the contract becomes unenforceable. This means that while the contract itself remains valid, the law will no longer support legal action to enforce it.

Question 18

Which of the following is not generally required in order to have a valid contract?

Accepted Answer

While fairness of the bargain is always desirable, it is not generally required for a contract to be considered valid. The essential elements required for a valid contract are mutual assent, a lawful purpose, and parties who have contractual capacity.

Question 19

When one party performs an action to the benefit of the other, even if a contract has not been effectively made, a court may rule that the performing party was entitled to recoup the reasonable value of the services rendered under:

Accepted Answer

Quantum meruit is a legal principle that allows a party to recover the reasonable value of services provided when no formal contract exists, but where services were rendered under circumstances where payment is expected. It is used to prevent unjust enrichment.

Question 20

Quasi contracts are used to provide a remedy when the parties enter into a(n):

Accepted Answer

Quasi contracts are not actual contracts but are a legal construct used by courts to prevent unjust enrichment when no actual contract exists, such as in the case of a void contract.

Quiz 9: Introduction to Contracts