LAW OF CONTRACT FINAL EXAM 2026/2027
WITH ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS
|CURRENTLY TESTING QUESTIONS AND
SOLUTIONS|NEWEST |BRAND NEW
VERSION|JUST RELEASED!!
A contract to be performed over a period of greater than one year must be in writing. The time
starts running from the date of the signing of the agreement.
True
Even if the parties have fully performed, partially performed or made a substantial beginning in
performance, the Court will find that there is no contract if a writing is required by the Statute.
False
The UCC governs all contracts for the sale of goods between merchants and non-merchants.
False
Under the Statute of Frauds, the executor's promise to pay the debts of the decedent from his
or her own resources must be in writing.
True
Under Contract Law, a Condition is an absolute unconditional promise to perform.
False
Under Contract Law, a Covenant is the timing element for performance of the promise.
False
A Condition is a fact or event, the happening or non-happening of which creates or extinguishes
an absolute duty to perform.
1|Page
,True
A Condition Precedent is a condition that must occur before the contractual promise becomes
operative and enforceable.
True
A Condition Subsequent is a condition that extinguishes a previous absolute duty to perform.
True
A Condition Concurrent occurs when the mutual performances of the parties are capable of
simultaneous execution.
True
Rules of Construction are the guidelines that the courts use to interpret contractual provisions.
True
The Parole Evidence Rule provides that once a contract is reduced to writing, the written
document prevails.
True
The UCC is a model act designed to make commercial transactions and mercantile law uniform
among all of the states.
True
Parties whose transactions come within the law are not allowed to vary the terms of the UCC to
further their own commercial interests.
False
Because it is meant to further commerce, the UCC is to be interpreted liberally.
True
2|Page
,There are three obligations on all parties who come within the purview of the UCC: perform in
good faith, in a reasonable time, and according to custom and usage.
True
Under the UCC, contracts for the sale of goods need not be in writing.
False
Goods are defined as things that are existing and moveable.
True
The UCC governs all contracts for the sale of goods between merchants.
True
When there is a battle of the forms, the Court will find that earliest agreement between the
parties prevails.
False
Under the UCC, a warranty will attach to the goods sold and provides that the product is exactly
as ordered, that it is fit for its intended use, and the seller has good title to pass to the buyer.
True
An express warranty can be created by a specific promise, a description in a catalog, or by a
sample or model.
True
The risk of loss while goods are in transit always rests with the seller and title never transfers to
the buyer until the goods are received.
False
Under the UCC, express and implied warranties apply to leased goods.
True
3|Page
, To create a valid security interest in goods, the parties must execute a security agreement, the
security agreement must attach to the goods, and the agreement must be perfected.
True
A purchase money security agreement is also known as a floating lien.
False
The filing of a financing statement with the appropriate state authority creates a valid security
interest.
True
In the event of default under the terms of a perfected security interest, the creditor with a
purchase money security interest has priority over other claimants.
True
In a third party beneficiary contract, the parties intend to benefit some outside third person.
True
If the desire to benefit some outside person comes about after the contract already exists, it is
considered a third party beneficiary contract.
False
Promisor describes the party who entered into the contract intending to benefit the third
person. Promisee describes the person conveying the consideration to the third person.
False
Should a third person benefit secondarily from the contract, that person is known as an
incidental beneficiary.
True
4|Page
WITH ACTUAL CORRECT QUESTIONS AND
VERIFIED DETAILED ANSWERS
|CURRENTLY TESTING QUESTIONS AND
SOLUTIONS|NEWEST |BRAND NEW
VERSION|JUST RELEASED!!
A contract to be performed over a period of greater than one year must be in writing. The time
starts running from the date of the signing of the agreement.
True
Even if the parties have fully performed, partially performed or made a substantial beginning in
performance, the Court will find that there is no contract if a writing is required by the Statute.
False
The UCC governs all contracts for the sale of goods between merchants and non-merchants.
False
Under the Statute of Frauds, the executor's promise to pay the debts of the decedent from his
or her own resources must be in writing.
True
Under Contract Law, a Condition is an absolute unconditional promise to perform.
False
Under Contract Law, a Covenant is the timing element for performance of the promise.
False
A Condition is a fact or event, the happening or non-happening of which creates or extinguishes
an absolute duty to perform.
1|Page
,True
A Condition Precedent is a condition that must occur before the contractual promise becomes
operative and enforceable.
True
A Condition Subsequent is a condition that extinguishes a previous absolute duty to perform.
True
A Condition Concurrent occurs when the mutual performances of the parties are capable of
simultaneous execution.
True
Rules of Construction are the guidelines that the courts use to interpret contractual provisions.
True
The Parole Evidence Rule provides that once a contract is reduced to writing, the written
document prevails.
True
The UCC is a model act designed to make commercial transactions and mercantile law uniform
among all of the states.
True
Parties whose transactions come within the law are not allowed to vary the terms of the UCC to
further their own commercial interests.
False
Because it is meant to further commerce, the UCC is to be interpreted liberally.
True
2|Page
,There are three obligations on all parties who come within the purview of the UCC: perform in
good faith, in a reasonable time, and according to custom and usage.
True
Under the UCC, contracts for the sale of goods need not be in writing.
False
Goods are defined as things that are existing and moveable.
True
The UCC governs all contracts for the sale of goods between merchants.
True
When there is a battle of the forms, the Court will find that earliest agreement between the
parties prevails.
False
Under the UCC, a warranty will attach to the goods sold and provides that the product is exactly
as ordered, that it is fit for its intended use, and the seller has good title to pass to the buyer.
True
An express warranty can be created by a specific promise, a description in a catalog, or by a
sample or model.
True
The risk of loss while goods are in transit always rests with the seller and title never transfers to
the buyer until the goods are received.
False
Under the UCC, express and implied warranties apply to leased goods.
True
3|Page
, To create a valid security interest in goods, the parties must execute a security agreement, the
security agreement must attach to the goods, and the agreement must be perfected.
True
A purchase money security agreement is also known as a floating lien.
False
The filing of a financing statement with the appropriate state authority creates a valid security
interest.
True
In the event of default under the terms of a perfected security interest, the creditor with a
purchase money security interest has priority over other claimants.
True
In a third party beneficiary contract, the parties intend to benefit some outside third person.
True
If the desire to benefit some outside person comes about after the contract already exists, it is
considered a third party beneficiary contract.
False
Promisor describes the party who entered into the contract intending to benefit the third
person. Promisee describes the person conveying the consideration to the third person.
False
Should a third person benefit secondarily from the contract, that person is known as an
incidental beneficiary.
True
4|Page
