Contract Law Final Exam

Rachel Debner

PART I
TRUE OR FALSE QUESTIONS 60 TOTAL POINTS Write in TRUE OR FALSE OR T or F At the End
of or Under Each Question 42 TOTAL QUESTIONS WITH ANY 40 CREDITED QUESTIONS
Each Credited Question Equals 1.5 Points (1.5 x 40 = 60) Any 2 Unanswered or Incorrectly
Answered Questions Will Be Discarded


Historical Development
1. TRUE/FALSE. In Iowa, a court may enforce a contract evidenced by either a signature or
seal.

False
2. TRUE/FALSE. A case in common law has traditionally relied upon a jury to serve as the
fact finder subject to oversight by a judge while a case in equity has relied upon only upon a
finding by a judge.

True
3. TRUE/FALSE. The Uniform Law Commission is the entity primarily responsible for
drafting the Restatement 2nd of Contracts for enactment by the states.
Consumer Protection Statutes

False
4. TRUE OR FALSE. The UCC, Art. 2, is a consumer protection statute. Remember our
discussion regarding Monopoly.

False
5. TRUE/FALSE. A consumer protection statute usually authorizes a merchant of consumer
goods to raise the affirmative defense of disclosure against a buyer who breaches their
contract.

False

Sources of Law
6. TRUE OR FALSE. The doctrine of promissory estoppel is used to enforce a promise for a
gift which would otherwise be unenforceable under contract law because it is not
supported by consideration.

True

7. TRUE OR FALSE. Generally, the Iowa Code contains all the statutes of the state of Iowa
that are in effect.

, True


Formation
8. TRUE OR FALSE. Under the UCC, Art. 2, a buyer, who is a merchant, may send a
purchase order to a seller, who also is a merchant, and in exchange the seller may send the
buyer an order form with additional terms. If the parties begin performance without the
buyer objecting to the additional terms, the seller’s additional terms become part of
contract.

True
9. TRUE/FALSE. A conditional promise is a promise that must be satisfied by the
performance of the party making the promise regardless of whether a return promise is
satisfied by the other party.

False
10. TRUE OR FALSE. A condition precedent may refer to an event that must occur before a
party’s performance is due (other than a lapse of time).

True
11. TRUE OR FALSE. A party’s performance may be expressly conditioned upon approval by
an independent third party as long as the third party is acting in good faith.
True

12. TRUE OR FALSE. A contract cannot be formed by the parties conduct (performances) if
they have not formalized their bargain in writing.

False

13. TRUE OR FALSE. Under both the Rest. 2nd of Contracts and the UCC, Art. 2, a contract
may be supported by consideration in the form of a pre-existing duty.

False


Modification
14. TRUE OR FALSE. Under the Rest. 2nd of Contracts an agreement modifying a contract
needs no consideration to be binding if the agreement is made in good faith.

True
15. TRUE OR FALSE. Under the UCC, Art. 2, a signed agreement that excludes the
possibility of modification may nevertheless be waived by a party which in effect removes
an obligation to perform by the other party.