MIE 305 FINAL EXAM WITH CORRECT
QUESTIONS AND ANSWERS 2025
Contract - CORRECT-ANSWERSa promise or set of promises supported by the exchange of
bargained-for consideration for the breach of which the law gives a remedy, or the
performance of which the law recognizes as an enforceable duty. "a promise or set of promises
that are enforceable in court." primarily state based common law
contract elements - CORRECT-ANSWERS-Agreement: the parties agree to the exchange of
legal detriment as to each other
-Bargained-for consideration: exchange of value, including their detriment, for purpose of K
-Freely entered: the parties' volitionally (knowingly, with capacity) enter the K
-Legal purpose: the subject of the contract is legal, and doesn't violate public policy.
uniform commercial code (UCC) - CORRECT-ANSWERS-standardize commercial transactions
in goods across all states. limited in scope, but does change some important CL contract rules.
Falls back on CL when there isn't an answer to a problem. deals with all phases which may
ordinarily arise in the handling of a commercial transaction from start to finish. rejects the
mirror-image rule
,-changes tend to reflect a preference toward less formal good faith dealings rather than
formality.
-purpose: to harmonize the law of contracts in sales of goods between states so that the
interstate market for goods is stable and predictable. all 50 states have adopted at least part of
the UCC. only applies in transactions for goods (not services, not realty), and only where one
or both parties to a K are merchants.
Bilateral contract - CORRECT-ANSWERStwo promises; each party is both a promisor and a
promisee, enforceable at the moment of exchange. ex) "My company will buy 10,000 widgets
from your firm at $6 each, deliverable within 30 days" "Agreed"
Unilateral contract - CORRECT-ANSWERSa promise for an act; a promisor makes an
enforceable promise in exchange for an act, but the promise is not legally enforceable
until/unless the act is performed. it may be directed at any party of the promisor's choice, or
generally to any actor. ex) "I will give you $1000, Bob, if you'll paint my house within the next
30 days." alternatively. "My kingdom for a horse!" (Richard III was making a unilateral offer to
anyone with a horse to spare)
,Express - CORRECT-ANSWERSthe agreement is "spelled out" specifically, either in writing or
orally
implied in fact - CORRECT-ANSWERS1- P furnished good/service
2- P expected payment, D knew or should have known this
3- D had an opportunity to pay and did not (doctor/dentist appt.)
implied in Law (Quasi-K) - CORRECT-ANSWERSnot true K! uses quantum meruit to avoid
injustice at equity. a term used to describe a factual situation involving a duty that does not
arise out of an actual contract and, in essence, is associated with a remedy designed to promote
justice and fairness.
enforceability - CORRECT-ANSWERSValid agreements: partially or completely enforceable
agreement
Void agreements: not valid from the start; misnomer, because it is never a contract. subjects
are typically involve illegal acts or other acts statutorily declared "void as to public policy"
Voidable agreements: valid from the start, but a party may declare an intent not to perform and
it is not a breach; may be honored by the parties at their discretion, but one party may
, renounce the obligations. (ex. minors; K's involving fraud (incapacitated party may void, other
party must honor until so declared))
mental incapacity and intoxication - CORRECT-ANSWERSnot automatic outs. second
restatement of contracts requires an understanding of the degree of incapacity of the promisor.
with intoxication, party must be so intoxicated as to not understand the nature of the
transactions and promisee must know or have reason to know of promisor's condition.
executed contract - CORRECT-ANSWERSthe term used to mean that the performances of a
contract have been completed
executory contract - CORRECT-ANSWERSuntil the performance required in a contract is
completed, it is said to be executory as to that part not performed.
objective theory of contracts - CORRECT-ANSWERSmodern standard analytical tool for US
courts.
a contract and its precise terms will be determined objectively by the words, acts, behavior of
the parties in case of dispute-no "meeting of the minds" stuff, because you can also have a
misunderstanding over whether minds actually met, and on what terms.
QUESTIONS AND ANSWERS 2025
Contract - CORRECT-ANSWERSa promise or set of promises supported by the exchange of
bargained-for consideration for the breach of which the law gives a remedy, or the
performance of which the law recognizes as an enforceable duty. "a promise or set of promises
that are enforceable in court." primarily state based common law
contract elements - CORRECT-ANSWERS-Agreement: the parties agree to the exchange of
legal detriment as to each other
-Bargained-for consideration: exchange of value, including their detriment, for purpose of K
-Freely entered: the parties' volitionally (knowingly, with capacity) enter the K
-Legal purpose: the subject of the contract is legal, and doesn't violate public policy.
uniform commercial code (UCC) - CORRECT-ANSWERS-standardize commercial transactions
in goods across all states. limited in scope, but does change some important CL contract rules.
Falls back on CL when there isn't an answer to a problem. deals with all phases which may
ordinarily arise in the handling of a commercial transaction from start to finish. rejects the
mirror-image rule
,-changes tend to reflect a preference toward less formal good faith dealings rather than
formality.
-purpose: to harmonize the law of contracts in sales of goods between states so that the
interstate market for goods is stable and predictable. all 50 states have adopted at least part of
the UCC. only applies in transactions for goods (not services, not realty), and only where one
or both parties to a K are merchants.
Bilateral contract - CORRECT-ANSWERStwo promises; each party is both a promisor and a
promisee, enforceable at the moment of exchange. ex) "My company will buy 10,000 widgets
from your firm at $6 each, deliverable within 30 days" "Agreed"
Unilateral contract - CORRECT-ANSWERSa promise for an act; a promisor makes an
enforceable promise in exchange for an act, but the promise is not legally enforceable
until/unless the act is performed. it may be directed at any party of the promisor's choice, or
generally to any actor. ex) "I will give you $1000, Bob, if you'll paint my house within the next
30 days." alternatively. "My kingdom for a horse!" (Richard III was making a unilateral offer to
anyone with a horse to spare)
,Express - CORRECT-ANSWERSthe agreement is "spelled out" specifically, either in writing or
orally
implied in fact - CORRECT-ANSWERS1- P furnished good/service
2- P expected payment, D knew or should have known this
3- D had an opportunity to pay and did not (doctor/dentist appt.)
implied in Law (Quasi-K) - CORRECT-ANSWERSnot true K! uses quantum meruit to avoid
injustice at equity. a term used to describe a factual situation involving a duty that does not
arise out of an actual contract and, in essence, is associated with a remedy designed to promote
justice and fairness.
enforceability - CORRECT-ANSWERSValid agreements: partially or completely enforceable
agreement
Void agreements: not valid from the start; misnomer, because it is never a contract. subjects
are typically involve illegal acts or other acts statutorily declared "void as to public policy"
Voidable agreements: valid from the start, but a party may declare an intent not to perform and
it is not a breach; may be honored by the parties at their discretion, but one party may
, renounce the obligations. (ex. minors; K's involving fraud (incapacitated party may void, other
party must honor until so declared))
mental incapacity and intoxication - CORRECT-ANSWERSnot automatic outs. second
restatement of contracts requires an understanding of the degree of incapacity of the promisor.
with intoxication, party must be so intoxicated as to not understand the nature of the
transactions and promisee must know or have reason to know of promisor's condition.
executed contract - CORRECT-ANSWERSthe term used to mean that the performances of a
contract have been completed
executory contract - CORRECT-ANSWERSuntil the performance required in a contract is
completed, it is said to be executory as to that part not performed.
objective theory of contracts - CORRECT-ANSWERSmodern standard analytical tool for US
courts.
a contract and its precise terms will be determined objectively by the words, acts, behavior of
the parties in case of dispute-no "meeting of the minds" stuff, because you can also have a
misunderstanding over whether minds actually met, and on what terms.
