BUL 5810 Exam 3 (Practice Questions)
Contracts are primarily governed by the Uniform Commercial Code. - answer False
The difference between an express contract and an implied in fact contract is the
manner in
which assent is manifested. - answer True
A negotiable instrument, such as a check, is not a formal contract. - answer False
A quasi contract is another name for an oral contract. - answer False
During the twentieth century it became harder to enter into a contract as well as to get
out of
one. - answer False
"I promise to pay you $100 if you will promise to fix my car next month." This is an offer
for a
unilateral contract. - answer False
A contract for the sale of a copyright is governed by Article 2 of the Uniform Commercial
Code. - answer False
Maria posted several signs in the neighborhood offering $50 for the return of her lost
cat. Dave
calls to get a description of the cat and tells Maria, "I'll look for your cat." A contract is
formed by
Dave's call to Maria - answerFalse
All written contracts are considered to be formal contracts. - answerFalse
If a person who has been declared incompetent by the courts enters into an agreement,
that
agreement is void, because it does not meet all the requirements of a binding contract. -
answerTrue
The Restatement is not law, but is highly persuasive in the courts. - answerTrue
Each party to a contract must intentionally exchange a legal benefit or incur a legal
detriment as
an inducement to the other party to make a return exchange. - answerTrue
,There are two principal types of contracts: commercial contracts between a business
and a
customer and personal contracts between two individuals. - answerFalse
There are two principal types of contracts: commercial contracts between a business
and a
customer and personal contracts between two individuals. - answerTrue
Quasi contract is another name for a contract that is implied in fact. - answerFalse
Article 2 of the Uniform Commercial Codes does not apply to the sale of services. -
answerTrue
A valid contract is one that meets all of the requirements of a binding contract. -
answerTrue
The Restatement defines a contract as "a promise or set of promises for the breach of
which the
law gives a remedy, or the performance of which the law in some way recognizes as a
duty." - answerTrue
A non contractual promise may be enforceable where there has been justifiable reliance
on the promise. - answerTrue
Edie says to Jeff, "If you will mow my lawn, I will give you fifteen dollars." Under these
facts, no contract is formed until Jeff finishes mowing the lawn. - answerTrue
A contract to sell life insurance is covered by Article 2 of the Uniform Commercial Code.
- answerFalse
Alice makes a material misrepresentation of fact to Lila, and based upon the
misrepresentation, Lila enters into a contract. Lila now realizes she was deceived and
wants to get
out of the contract. This contract is voidable at Lila's option. - answerTrue
Ann makes a material misrepresentation of fact to Brian, and based upon the
misrepresentation,
Brian enters into a contract. Ann now thinks that the contract is not fair to her. This
contract is
voidable at Ann's option. - answerFalse
Mike, the owner of a yogurt shop, orders 500 quarts of yogurt from his supplier. Nothing,
however, is said by either party about the price or method of payment. The supplier
ships the yogurt
as ordered. Since this is a contract implied in fact, Mike must pay his supplier for the
yogurt. - answerTrue
,Common law relating to the formation of contracts has little relevance in the business
world
today. - answerFalse
An implied in fact contract is formed by the conduct. - answerTrue
Ron says to Matt, "If you design and landscape my front lawn by the time I return from
Paris
next month, I will pay you $5,000." Matt does not respond but has the landscaping done
by the time
Ron returns. This is an example of a unilateral contract. - answerTrue
If a contract is not clearly unilateral or bilateral, the courts presume that the parties
intended a
unilateral contract. - answerFalse
The common law "mirror image" rule applies to an offer and the acceptance of that offer
in a
contract for the sale of goods.
(A) True
(B) False - answerFalse
If no time limit is stated, an offer will not terminate until both parties agree.
(A) True
(B) False - answerFalse
If Bill tells Sara that he will give her two days to decide if she wants to buy his car, he
cannot sell
it to anyone else during that time.
(A) True
(B) False - answerFalse
If a promisor intends her promise as a joke, whether or not the promisee as a
reasonable person
should understand it to be such, the promise is not an offer.
(A) True
(B) False - answerFalse
Ron offers to sell Pete his stamp collection. Pete gives Ron $10 to induce him to keep
his offer
open for a week. If Ron decides on day four of the week that he really does not want to
sell to Pete,
he can revoke his offer without fear of a breach of contract lawsuit being filed against
him.
(A) True
, (B) False - answerFalse
In general, an acceptance is effective upon dispatch.
(A) True
(B) False - answerTrue
George offered to paint Catherine's barn for $4,000. Catherine said she would accept
the offer if
George would paint the woodshed, too. At this point, they have made a valid and
enforceable
contract.
(A) True
(B) False - answerFalse
Under the UCC, an acceptance must always be identical to an offer for a valid contract
to be
formed.
(A) True
(B) False - answerFalse
A contract exists when an offer has been accepted.
(A) True
(B) False - answerTrue
Both the Code and the Restatement provide that, unless the offer or circumstances
indicate
otherwise, an authorized means of accepting an offer is any reasonable means of
communication.
(A) True
(B) False - answerTrue
If the offer specifies it MUST be accepted by telegram, a letter will not be a valid means
of
acceptance. - answerTrue
If an offer states that a reply must be received by a certain date, the contract is formed
at the
time the offeree sends or dispatches the acceptance.
(A) True
(B) False - answerFalse
Silence can never be an acceptance.
(A) True
(B) False - answerFalse
An auctioneer is the offeror and each bid is a counteroffer until a final bid is accepted.
Contracts are primarily governed by the Uniform Commercial Code. - answer False
The difference between an express contract and an implied in fact contract is the
manner in
which assent is manifested. - answer True
A negotiable instrument, such as a check, is not a formal contract. - answer False
A quasi contract is another name for an oral contract. - answer False
During the twentieth century it became harder to enter into a contract as well as to get
out of
one. - answer False
"I promise to pay you $100 if you will promise to fix my car next month." This is an offer
for a
unilateral contract. - answer False
A contract for the sale of a copyright is governed by Article 2 of the Uniform Commercial
Code. - answer False
Maria posted several signs in the neighborhood offering $50 for the return of her lost
cat. Dave
calls to get a description of the cat and tells Maria, "I'll look for your cat." A contract is
formed by
Dave's call to Maria - answerFalse
All written contracts are considered to be formal contracts. - answerFalse
If a person who has been declared incompetent by the courts enters into an agreement,
that
agreement is void, because it does not meet all the requirements of a binding contract. -
answerTrue
The Restatement is not law, but is highly persuasive in the courts. - answerTrue
Each party to a contract must intentionally exchange a legal benefit or incur a legal
detriment as
an inducement to the other party to make a return exchange. - answerTrue
,There are two principal types of contracts: commercial contracts between a business
and a
customer and personal contracts between two individuals. - answerFalse
There are two principal types of contracts: commercial contracts between a business
and a
customer and personal contracts between two individuals. - answerTrue
Quasi contract is another name for a contract that is implied in fact. - answerFalse
Article 2 of the Uniform Commercial Codes does not apply to the sale of services. -
answerTrue
A valid contract is one that meets all of the requirements of a binding contract. -
answerTrue
The Restatement defines a contract as "a promise or set of promises for the breach of
which the
law gives a remedy, or the performance of which the law in some way recognizes as a
duty." - answerTrue
A non contractual promise may be enforceable where there has been justifiable reliance
on the promise. - answerTrue
Edie says to Jeff, "If you will mow my lawn, I will give you fifteen dollars." Under these
facts, no contract is formed until Jeff finishes mowing the lawn. - answerTrue
A contract to sell life insurance is covered by Article 2 of the Uniform Commercial Code.
- answerFalse
Alice makes a material misrepresentation of fact to Lila, and based upon the
misrepresentation, Lila enters into a contract. Lila now realizes she was deceived and
wants to get
out of the contract. This contract is voidable at Lila's option. - answerTrue
Ann makes a material misrepresentation of fact to Brian, and based upon the
misrepresentation,
Brian enters into a contract. Ann now thinks that the contract is not fair to her. This
contract is
voidable at Ann's option. - answerFalse
Mike, the owner of a yogurt shop, orders 500 quarts of yogurt from his supplier. Nothing,
however, is said by either party about the price or method of payment. The supplier
ships the yogurt
as ordered. Since this is a contract implied in fact, Mike must pay his supplier for the
yogurt. - answerTrue
,Common law relating to the formation of contracts has little relevance in the business
world
today. - answerFalse
An implied in fact contract is formed by the conduct. - answerTrue
Ron says to Matt, "If you design and landscape my front lawn by the time I return from
Paris
next month, I will pay you $5,000." Matt does not respond but has the landscaping done
by the time
Ron returns. This is an example of a unilateral contract. - answerTrue
If a contract is not clearly unilateral or bilateral, the courts presume that the parties
intended a
unilateral contract. - answerFalse
The common law "mirror image" rule applies to an offer and the acceptance of that offer
in a
contract for the sale of goods.
(A) True
(B) False - answerFalse
If no time limit is stated, an offer will not terminate until both parties agree.
(A) True
(B) False - answerFalse
If Bill tells Sara that he will give her two days to decide if she wants to buy his car, he
cannot sell
it to anyone else during that time.
(A) True
(B) False - answerFalse
If a promisor intends her promise as a joke, whether or not the promisee as a
reasonable person
should understand it to be such, the promise is not an offer.
(A) True
(B) False - answerFalse
Ron offers to sell Pete his stamp collection. Pete gives Ron $10 to induce him to keep
his offer
open for a week. If Ron decides on day four of the week that he really does not want to
sell to Pete,
he can revoke his offer without fear of a breach of contract lawsuit being filed against
him.
(A) True
, (B) False - answerFalse
In general, an acceptance is effective upon dispatch.
(A) True
(B) False - answerTrue
George offered to paint Catherine's barn for $4,000. Catherine said she would accept
the offer if
George would paint the woodshed, too. At this point, they have made a valid and
enforceable
contract.
(A) True
(B) False - answerFalse
Under the UCC, an acceptance must always be identical to an offer for a valid contract
to be
formed.
(A) True
(B) False - answerFalse
A contract exists when an offer has been accepted.
(A) True
(B) False - answerTrue
Both the Code and the Restatement provide that, unless the offer or circumstances
indicate
otherwise, an authorized means of accepting an offer is any reasonable means of
communication.
(A) True
(B) False - answerTrue
If the offer specifies it MUST be accepted by telegram, a letter will not be a valid means
of
acceptance. - answerTrue
If an offer states that a reply must be received by a certain date, the contract is formed
at the
time the offeree sends or dispatches the acceptance.
(A) True
(B) False - answerFalse
Silence can never be an acceptance.
(A) True
(B) False - answerFalse
An auctioneer is the offeror and each bid is a counteroffer until a final bid is accepted.
