Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
40. Promissory estoppel is a contractual doctrine that includes the following considerations:
a. The courts use the doctrine of promissory estoppel to enforce unilateral promises.
b. Under this doctrine the promisor reasonably expects that the promisee, in reliance on the promise, will be
induced by the nature of the promise to take action or refrain from taking action and the promisee does so.
c. The courts will not, under any circumstance, enforce promises that do not include all four of the elements of
contract.
d. None of these apply to promissory estoppel.
41. Article 2 of the Uniform Commercial Code deals with what type of property?
a. Real
b. Personal
c. Intangible
d. Business
42. Steven intentionally makes a material misrepresentation of fact regarding his motorcycle to Thelma who agrees to
buy the motorcycle based upon the misrepresentation. This contract is:
a. void.
b. voidable.
c. executed.
d. unenforceable.
43. Brian makes a material misrepresentation of fact regarding his horse to Rosalind while out riding one day. Later that
day, Rosalind makes an offer to buy the horse. Brain accepts without correcting his earlier misrepresentation of fact.
In this case:
a. Brian may avoid the contract.
b. Rosalind may avoid the contract.
c. either or both Brian or Rosalind may avoid the contract.
d. neither Brian nor Rosalind may avoid the contract.
44. Tate enters into a contract with Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a
garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, which term describes the type of
contract in existence?
a. Quasi contract
b. Executed contract
c. Illusory contract
d. Executory contract
45. Which of the following is correct with regard to a contract?
a. All contracts must be in writing.
b. A person who deposits money in a bank account has entered into a contract with the bank.
c. A contract may be for a tortious purpose.
d. To be valid, a contract must be bilateral and cannot be unilateral.
46. According to the UCC, an enforceable agreement involving the transfer of title of goods from a seller to a buyer for
a price is called a(n):
a. commercial contract.
b. express contract.
c. formal contract.
d. sale.
47. Which of the following contracts is covered by Article 2 of the Uniform Commercial Code?
a. The sale of a house
b. The sale of a new car
c. An employment agreement
d. A sale of automobile insurance
48. Contract law is significant in that it is basic to other fields of law such as:
a. sales of personal property.
b. commercial paper.
c. secured transactions.
d. All of these.
49. Contracts that are implied in law:
a. are obligations imposed by law on grounds of justice and equity.
b. are intended to prevent unjust enrichment.
c. do not rest upon the assent of the contracting parties.
d. All of these.
50. Which of the following is characteristic of contract law during the twentieth century compared with contract law in
the nineteenth century?
a. Privity of contract gained in importance.
b. Many of the formalities of contract formation were relaxed.
c. Contract liability is absolute and escape from liability, once assumed, is rare.
d. There is a narrower view of contract damages.
51. Express contracts and implied contracts are:
a. both genuine contracts.
b. equally enforceable.
c. voidable for lack of capacity.
d. All of these.
52. A(n) contract is one in which the parties have manifested their agreement by oral or written language, or both.
a. express
b. implied
c. executory
d. formal
53. Which of the following is NOT always necessary in order for a valid contract to be formed?
a. Mutual assent
b. Legality of purpose
c. A writing
d. Competent parties
54. Sarah offers to pay Allison $150 if Allison will paint her apartment while she is out of town on vacation for two
weeks. Allison makes no promise but tells Sarah that she will think about it. While Sarah is out of town, Allison
paints the apartment. This is best described as a(n):
a. unilateral contract.
b. quasi contract.
c. implied in fact contract.
d. bilateral contract.
55. According to the Restatement, manifesting an intention to act or an intention to refrain from acting in a specified
manner is considered to be:
a. an implied in fact contract.
b. an express contract.
c. a promise.
d. a quasi contract.
56. One of the changes in contract law between the nineteenth century and the twentieth century is that in more recent
times:
a. contractual liability, once assumed, can rarely be escaped.
b. contract damages are viewed more narrowly and equitable remedies are no longer available.
c. privity of contract is required.
d. intended third-party beneficiaries may sue in their own right.
57. Which of the following is not generally required in order to have a valid contract?
a. Mutual assent
b. A lawful purpose
c. Fairness of the bargain
d. Parties who have contractual capacity
58. An obligation imposed by law where there has been no agreement or expression of assent by word or act on the part
of either party involved is a(n):
a. implied in fact contract.
b. express contract.
c. void contract.
d. quasi contract.
59. Abe is involved in an automobile accident and is injured. While he is unconscious, the police call an ambulance which
takes him to a hospital. Abe is treated at the hospital and released a day later. The hospital sends him a bill for
$2,400, which Abe refuses to pay, claiming it is too high and he never consented to the treatment because he was
unconscious. Abe:
a. has entered into a unilateral contract with the hospital and therefore will have to pay the bill.
b. has a quasi-contractual agreement with the hospital.
c. has entered into an implied in fact contract with the hospital.
d. and the hospital have entered into a bilateral contract, the terms of which require that he pay the bill.
60. Ken promises not to foreclose on a mortgage that he holds on an office complex that Christopher owns. In reliance
on this promise, Christopher expends $200,000 to remodel the complex. Which of the following is correct with regard
to Ken's promise?
a. Ken's promise not to foreclose is unsupported by consideration.
b. Ken's promise is noncontractual.
c. Ken's promise will be enforced against him based upon the doctrine of promissory estoppel.
d. All of these.
61. A valid contract may be unenforceable for which reason(s)?
a. Failure to satisfy the Statute of Frauds
b. Running of the Statute of Limitations
c. Lack of capacity
d. All of these reasons
62. Anna by mistake delivers to Bob a plain, unaddressed envelope containing $50 intended for Cora. Bob:
a. can keep the money.
b. is under a contractual obligation to return the money.
c. has a quasi-contractual obligation to return the money.
d. has an implied in fact obligation to return the money.
63. Sales of personal property are governed by Article of the Uniform Commercial Code (UCC).
a. 1
b. 2
c. 3
d. None of these.
64. A promise against public policy:
a. can be contractual.
b. is enforceable if the parties have capacity and mutual assent and they exchange consideration.
c. has no legal remedy available for breach.
d. must be in writing to be enforceable.
65. Which of the following is an informal contract?
a. A letter of credit.
b. A written contract for the sale of a 5-acre tract of land.
c. A check.
d. A recognizance.
66. Promissory estoppel is found in Section of the Restatement (Second) of Contracts.
a. 70
b. 80
c. 90
d. 100
67. List and discuss the essential elements of a contract.
68. Lance has a contract with Smith to resurface a driveway at the Smith residence. Lance by mistake stops at the
Jones residence and resurfaces Jones' driveway. Jones lives next door to Smith and knows that Lance is at the
wrong residence. Jones, however, says nothing and watches while Lance resurfaces his driveway. Is Jones under
any contractual obligation to pay Lance for resurfacing his driveway? Explain your answer.
69. What is a formal contract? How does a formal contract differ from an informal contract?
70. Discuss how the common law of contracts, Article 2 of the Uniform Commercial Code, and the Restatement of the
Law of Contracts combine to form the law of contracts. Is there a difference between how a court would regard
Article 2 of the UCC and the Restatement of the Law of Contracts? Why? Explain your answer.
71. What is the difference between a valid contract and a void contract?
72. Distinguish between: (a) express and implied contracts; (b) executed and executory contracts; and (c) bilateral and
unilateral contracts.
73. What is the doctrine of promissory estoppel and when is it used?
