Question 1

Ms.White hired Mr.Blue to steal from Ms.Yellow.Ms.White is upset with how everything turned out and wants to sue Mr.Blue for breach of contract.But the court will refuse to recognize the contract and subsequently a breach of it because it is a contract for an illegal activity.

Accepted Answer

Parties cannot contract for illegal activities.A court will not recognize or enforce such a contract.

Question 2

Article 2 of the UCC never applies to mixed goods-services contracts;instead,it treats them as pure service contracts.

Accepted Answer

The mere fact that title to Article 2 goods changes hands during a commercial transaction does not by that fact alone make the transaction a sale of goods.The mere fact that the parties' settlement agreement includes the transfer of personal property in its provisions does not make it a simple sale of goods.It is a mixed contract,similar to a mixed contract for the provision of both goods and services.It should therefore be analyzed as a mixed contract.

Question 3

The mutual agreement necessary to create an express contract is evidenced by writing.

Accepted Answer

In an express contract,the parties have directly stated the terms of their contract orally or in writing at the time the contract was formed.However,the mutual agreement necessary to create a contract may also be demonstrated by the conduct of the parties.

Question 4

If no Code rule applies to an issue regarding a sale of goods contract,the common law rules apply.

Accepted Answer

Article 2 of the UCC applies to contracts for the sale of goods,but it does not apply to contracts for the sale of real estate,services,and intangibles which are governed by the common law of contracts.

Question 5

Promissory estoppel protects reliance on a promise from one party to another.

Accepted Answer

Contracts are thought of as protecting agreements while promissory estoppel protects reliance on promises.

Question 6

Generally,the terms of a standardized contract are negotiable.

Accepted Answer

Frequently,the terms of standardized contracts are nonnegotiable.

Question 7

The UCC imposes a duty of good faith on the performance and enforcement of every contract it covers.

Accepted Answer

The drafters of the Code wanted to promote fair dealing and higher standards in the marketplace,so they imposed a duty of good faith in the performance and enforcement of every contract under the Code.

Question 8

The Uniform Commercial Code sufficiently addresses the concerns that parties have when contracts are made to create or distribute information.

Accepted Answer

The Uniform Commercial Code was designed to deal with sales of goods and may not sufficiently address the concerns that parties have when making contracts to create or distribute information.

Question 9

Not every promise is legal enforceable.

Accepted Answer

Not every promise is legally enforceable,the law of contracts sorts out what promises are enforceable and how they will be enforced.

Question 10

Pratt,owner of an appliance store,has a garage sale at his home where he sells old furniture and books.He sells a set of books to his neighbor,Stacey.Pratt is considered a merchant under Article 2 of the UCC in selling the books to Stacey.

Accepted Answer

The Code defines the term merchant on a case-by-case basis.If a person regularly deals in the kind of goods being sold,or pretends to have some special knowledge about the goods,or employed an agent in the sale who fits either of these two descriptions,that person is a merchant for the purposes of the contract in question.So,if you buy a used car from a used-car dealer,the dealer is a merchant for the purposes of your contract.But,if you buy a refrigerator from a used-car dealer,the dealer is probably not a merchant.

Question 11

Abby promises to pay Brian $50 if he mows her lawn.Brian does not promise to mow Abby's lawn;however,later that day,Brian completely and satisfactorily does mow Abby's lawn.This is an example of a unilateral contract.

Accepted Answer

In unilateral contracts,only one party makes a promise.

Question 12

Alan and Ben have a contract.Alan has performed 100 percent and Ben has performed 50 percent of it.This contract is now executory.

Accepted Answer

A contract is executed when all of the parties have fully performed their contractual duties,and it is executory until such duties have been fully performed.

Question 13

The rules promulgated by the Restatement (Second)of Contracts often resemble the rules created by Article 2 of the UCC.

Accepted Answer

Many Restatement (Second)provisions are almost identical to Code provisions.

Question 14

Contracts must always be in writing to be enforceable.

Accepted Answer

Unless the law specifically requires a certain kind of contract to be in writing,an oral contract that can be proven is as legally enforceable as a written one.

Question 15

Sometimes,Article 2 of the UCC holds merchants to standards different from the standards it applies to nonmerchants.

Accepted Answer

The Code recognizes that buyers tend to place more reliance on professional sellers and that professionals are generally more knowledgeable and better able to protect themselves than nonprofessionals.So,it distinguishes between merchants and nonmerchants by holding merchants to a higher standard in some cases.

Question 16

CISG applies only to sale of goods and commercial parties.

Accepted Answer

The United Nations Convention on Contracts for the International Sale of Goods,or CISG,applies only to sales of goods,not services,and only to commercial parties,not consumers.

Question 17

Speaking generally,a quasi-contract applies where there has been foreseeable reliance on an express promise.

Accepted Answer

The elements of promissory estoppel are a promise that the promisor should foresee is likely to induce reliance,reliance on the promise by the promisee,and injustice as a result of that reliance.

Question 18

A voidable contract creates no obligation and is not enforceable by any party.

Accepted Answer

Voidable contracts allow the victim to cancel their rights under the contract,but until that party does so,the other party is bound to the contract and has obligations.

Question 19

The essence of a contract is that it is a legally enforceable promise or set of promises.

Accepted Answer

The essence of a contract is that it is a legally enforceable promise or set of promises.In other words,when a set of promises has the status of contract,a person injured by a breach of that contract is entitled to call on the government (courts)to force the breaching party to honor the contract.

Question 20

When contracting,one party is entering into an agreement with the federal government to enforce behavior on another party.

Accepted Answer

Contracts are agreements between private parties,not with the government.Contracts let parties create a "private law."

Quiz 9: Introduction to Contracts