EXAM PAPER 2026 COMPLETE TEST
QUESTIONS AND SOLUTIONS
⫸ Uniform Commercial Code (UCC) - The most successful attempt to
have states adopt a uniform law
Purpose is to simplify, clarify, and modernize the laws governing
commercial transactions
⫸ Goods - Tangible (touchable), movable personal property
⫸ Bilateral Contract - Promise in exchange for a promise
Involves promisor and promisee
Usually made to a specific person
Acceptance, then performance later
Binding even when promise hasn't been fulfilled yet
Ex) work order to paint house
⫸ Unilateral Contract - Promise in exchange for an action
Made to the whole world
Acceptance and performance happen at the same time
Not binding until action has been done
Ex) lost dog poster and reward
,⫸ Express Contracts - A contract in which parties show their agreement
in words
⫸ Implied-in-fact Contracts - A legally enforceable agreement inferred
from the circumstances and conduct of the parties
⫸ Implied-in-law Contract - A quasi-contract; not a true contract
Legal fiction that the courts use to prevent unjust enrichment and
wrongdoing
Courts permit the person who conferred a benefit to recover the
reasonable value of that benefit
Nonetheless, the elements of a true contract are not present
⫸ Quasi-contract - An implied-in-law contract; not a true contract
Legal fiction that the courts use to prevent unjust enrichment and
wrongdoing
Courts permit the person who conferred a benefit to recover the
reasonable value of that benefit
Nonetheless, the elements of a true contract are not present
⫸ Enforceable Contract - A contract that can be enforced in court
⫸ Unenforceable Contract - A contract that cannot be enforced in court
, ⫸ Valid Contract - A contract that contains all of the proper elements of
a contract
⫸ Void Contract - A contract that is empty, having no legal force;
ineffectual, unenforceable
Ex) drug sale, killer-for-hire
⫸ In Pari Delicto - The parties to an illegal contract are equally at fault
⫸ Voidable Contract - Capable of being declared a nullity, though
otherwise valid
Party taken advantage of can avoid contract; other party cannot
⫸ Executed Contract - A contract that is fully accomplished or
performed, leaving nothing unfulfilled
⫸ Executory Contract - An agreement that is not completed
Remains this state until the performance required in a contract is
completed
⫸ Offer - A contractual communication that contains a specific promise
and a specific demand
Definite, present intent to be bound to a contract