Question 1

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 is voidable at the option of the party who was misled by the misrepresentation, in this case, Betty, not Alice.

Question 2

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

In this agreement, Matt promises to pay $20, making him a promisor, and Lynn promises to mow the lawn, making her a promisor as well. Each party is also a promisee, as they are both receiving a promise from the other party.

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 contract in which both parties exchange promises.

Question 4

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

The court held that the performing party was entitled to recover under quantum meruit, which allows for the recovery of the reasonable value of services rendered when no express contract exists.

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 must pay Mike for the water pipe replacement because she implicitly consented by not objecting to the work when she was aware of it, and the replacement was necessary to comply with public regulations.

Question 6

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...

Question 7

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

The contract for employment is governed by state common law, as it involves services rather than the sale of goods, which would be covered by Article 2 of the UCC.

Question 8

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

A contract is formed when there is an offer, acceptance, and consideration. Brenda's statement of intent to buy the boat constitutes acceptance of James's offer, thus forming a contract.

Question 9

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 legal concept that requires each party in a contract to exchange something of value, which serves as an inducement for the other party to enter into the agreement.

Question 10

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

Since George has been declared incompetent by the court, he lacks the legal capacity to enter into a contract, making the contract void.

Question 11

The concept of consideration in contract law includes:
A) that each party to a contract must unintentionally exchange a legal benefit.
B) an inducement to each party to make a return exchange.
C) that each party takes out an insurance bond if the possibility of damages is above $500.
D) All of these.

Accepted Answer

Consideration in contract law refers to something of value exchanged between parties, serving as an inducement for entering into a contract. It does not require unintentional exchange or insurance bonds.

Question 12

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

Accepted Answer

A contract is a legally enforceable agreement between two or more parties with mutual obligations, recognized by law.

Question 13

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 is voidable if one party was induced to enter into it by a material misrepresentation of fact, allowing the deceived party to rescind the contract.

Question 14

Contracts are governed primarily by statute, including the UCC.

Accepted Answer

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

Question 15

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

Accepted Answer

Article 2 of the Uniform Commercial Code (UCC) covers the sale of goods, not services or intangible items like life insurance.

Question 16

A promisee is the person making a promise.

Accepted Answer

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

Question 17

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

Accepted Answer

A noncontractual promise can be enforceable under the doctrine of promissory estoppel if the promisee has justifiably relied on the promise to their detriment.

Question 18

An implied in fact contract is formed by conduct.

Accepted Answer

An implied-in-fact contract is created by the actions or conduct of the parties involved, rather than written or spoken words.

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

A valid contract requires an absence of invalidating conduct, such as fraud, duress, or undue influence, which could otherwise render the contract void or voidable.

Question 20

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 a unilateral contract because Ron made a promise in exchange for Mark's performance (landscaping the lawn), which Mark completed without needing to verbally accept the offer.

Quiz 9: Introduction to Contracts

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.

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.

A contract in which both parties exchange promises is a:

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.

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

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:

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:

The concept of consideration in contract law includes: