Question 1

A course of performance is the conduct that occurs under the terms of a particular agreement.

Accepted Answer

A course of performance refers to the actual conduct that occurs under a particular agreement, as opposed to the terms of the agreement itself.

Question 2

Generally, acceptance of an offer to lease goods may be made in any reasonable manner and by any reasonable means.

Accepted Answer

Acceptance of a lease offer can be made through various means and methods as long as they are reasonable.

Question 3

If a nonmerchant-seller's offer expressly conditions acceptance on a nonmerchant-buyer's agreement to the terms of the offer, the buyer's positive response is an acceptance even if it contains additional terms.

Accepted Answer

This is known as the "mirror image" rule, where the acceptance must be an unconditional and unequivocal acceptance of the terms of the offer. However, if a nonmerchant-buyer adds additional terms, it becomes a "counteroffer" and may result in a rejection of the original offer.

Question 4

A contract for the sale of minerals is considered to be a contract for the sale of goods if the severance is to be made by the seller.

Accepted Answer

According to the Uniform Commercial Code (UCC), a contract for the sale of minerals is considered a contract for the sale of goods if the seller is responsible for the severance (i.e. extraction or removal) of the minerals from the ground.

Question 5

A firm offer by a merchant may be oral.

Accepted Answer

The answer of A firm offer by a merchant may...

Question 6

All oral contracts are enforceable under the UCC.

Accepted Answer

While the UCC generally recognizes and enforces oral contracts, there are certain situations in which written contracts are required to be enforceable, such as contracts involving the sale of goods over $500. Additionally, some states may have their own laws regarding the enforceability of oral contracts.

Question 7

Under the UCC, prompt shipment of goods is considered an acceptance of an offer to buy the goods.

Accepted Answer

Under the UCC, prompt shipment or delivery of goods by a seller is considered an acceptance of an offer to buy the goods. This is known as the "shipment of goods" rule.

Question 8

Real estate transactions are always governed by Article 2 of the UCC.

Accepted Answer

Real estate transactions are not governed by Article 2 of the UCC (Uniform Commercial Code). Instead, they are governed by real property law and/or common law. Article 2 of the UCC deals with the sale of goods.

Question 9

The UCC imposes some different rules on merchants.

Accepted Answer

The UCC has different rules for merchants than for non-merchants. These rules relate to issues such as warranties, delivery, and payment options.

Question 10

In most situations involving sales, rights and liabilities are determined by who has the title to the goods.

Accepted Answer

The answer of In most situations involving sales, rights and...

Question 11

A court can refuse to enforce a contract that the court deems to have been unconscionable at the time it was made.

Accepted Answer

A court can refuse to enforce a contract if it was unconscionable (unfair or oppressive) at the time it was made, as it goes against public policy.

Question 12

Under the UCC, parties to sales and lease contracts are not free to establish whatever terms they wish.

Accepted Answer

The answer of Under the UCC, parties to sales and...

Question 13

Article 2 of the UCC covers any transaction that creates a lease of goods.

Accepted Answer

The answer of Article 2 of the UCC covers any...

Question 14

Under the UCC, an agreement modifying a contract needs no consideration to be binding.

Accepted Answer

The UCC recognizes that parties to a contract may need to modify certain terms and allows for modifications without requiring new consideration as long as the modification is made in good faith. This is known as the "firm offer" rule. However, any modification must still satisfy other requirements for a contract, such as offer, acceptance, and consideration, unless it falls under one of the UCC's exceptions.

Question 15

If there is no definite period stated, a firm offer by a merchant is irrevocable without the necessity of consideration for up to six months.

Accepted Answer

The answer of If there is no definite period stated,...

Question 16

Under the UCC, if a contract is unilateral, the offeror must be notified of the offeree's performance.

Accepted Answer

Under the UCC, if a contract is unilateral and requires performance by the offeree, the offeror must be notified of the offeree's performance to complete the contract. This notification is essential to ensure that the offeror is aware of the offeree's completion of the obligation and is ready to fulfill their own obligations under the contract. Failure to provide such notice may result in the offeror's inability to enforce the contract.

Question 17

For an item to be characterized as a "good" under the UCC, it must be intangible.

Accepted Answer

To be characterized as a "good" under the UCC, an item must be tangible, meaning it can be touched or physically possessed. Intangible items, such as intellectual property or services, fall under a different category of the UCC.

Question 18

A merchant is a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods being purchased or sold.

Accepted Answer

This is the definition of a merchant as per the Uniform Commercial Code (UCC).

Question 19

The UCC requires that the mirror image rule be followed for all acceptances.

Accepted Answer

The UCC allows for acceptance as long as it is not conditioned on the offeror's agreement to additional or different terms. This is known as the "battle of the forms" and is governed by UCC §2-207. The mirror image rule is not necessarily required in these cases.

Question 20

Identification, risk of loss, and insurable interest are all concepts that are involved in determining the rights and liabilities of parties to a contract.

Accepted Answer

Identification, risk of loss, and insurable interest are all important concepts in contract law, particularly in the context of insurance contracts. Identifying the specific object or property being insured is important to prevent confusion or disputes over coverage. The risk of loss refers to who is responsible for any damage or loss that occurs to the insured property. And insurable interest requires that the insured have a financial stake or ownership interest in the property being insured. Each of these concepts helps to determine the rights and liabilities of the parties involved in an insurance contract.

Quiz 15: The Formation of Sales and Lease Contracts