BUL 5832 Exam 2 Questions and
Answers
Common Law of Contracts - Answer-Judge-made law that applies to all contracts made in the US and
specifically over employment, real estate, sale of services, licensing, and insurance
UCC - Answer-State law generally adopted by all the states and governs the sale of goods, negotiable
instruments, and secured transactions
CISG - Answer-Governs contracts with foreign nations about international sales
Law of usury (state) - Answer-Cannot charge unfair interest rates
Magnuson-Moss Warranty Law (federal) - Answer-requires manufacturers and sellers of consumer
products to provide consumers with clear and detailed information about warranty coverage
Breach of contract/warranty - Answer-legal cause of action and a type of civil wrong, in which a binding
agreement or bargained-for exchange is not honored by one or more of the parties to the contract by
non-performance or interference with the other party's performance
Expectancy damages - Answer-Damages recoverable from a breach of contract by the non-breaching
party. An award of expectation damages protects the injured party's interest in realizing the value of the
expectancy that was created by the promise of the other party.
,Loss of profits and incidental costs
Promissory estoppel - Answer-1. promise made by a party
2. other party reasonably relied on the promise
3. damages/out-of-pocket expenses
Reliance damages - Answer-The measure of compensation given to a person who suffered an economic
harm for acting in reliance on a party who failed to fulfill their obligation
Unjust enrichment (quasi-contract) - Answer-when one person is enriched at the expense of another in
circumstances that the law sees as unjust
Restitution damages - Answer-party who received unjust enrichment has to repay the value of the
enrichment
4 requirements for enforceable contracts - Answer-1. agreement
2. consideration
3. capacity
4. legality
Mutual assent - Answer-agreement between two parties that intend to form a contract
general intent - Answer-so long as parties' intentions was to enter into a contract, courts will often try
to salvage one
Definiteness requirement - Answer-agreement on all material terms
, implied terms - Answer-words or provisions that a court assumes were intended to be included in a
contract
Mixed sales contract - Answer-Has common law, UCC, and/or CISG elements
predominant part test - Answer-A test for determining whether a mixed contract for goods and services
is subject to Article 2 the Uniform Commercial Code
Battle of the forms - Answer-situation in which one business firm makes an offer in the form of a pre-
printed form contract and the offeree responds with its own form contract. At common law, any
discrepancy between the forms would prevent the offeree's response from operating as an acceptance.
If the offeror is a consumer, additional terms do not enter the contract unless material additions and
acceptance is made conditional on assent to additional terms.
UCC Section 2-207 - Answer-provides that a definite and seasonable expression of acceptance or a
written confirmation which is sent within a reasonable time operates as an acceptance even though it
states terms additional to or different from those offered or agreed upon. Terms cannot materially alter
the contract
Unilateral contract - Answer-created by an offer than can only be accepted by performance
Bilateral contract - Answer-reciprocal arrangement between two parties by which each promises to
perform an act in exchange for the other party's act
implied contract - Answer-agreement created by actions of the parties involved, but it is not written or
spoken
Answers
Common Law of Contracts - Answer-Judge-made law that applies to all contracts made in the US and
specifically over employment, real estate, sale of services, licensing, and insurance
UCC - Answer-State law generally adopted by all the states and governs the sale of goods, negotiable
instruments, and secured transactions
CISG - Answer-Governs contracts with foreign nations about international sales
Law of usury (state) - Answer-Cannot charge unfair interest rates
Magnuson-Moss Warranty Law (federal) - Answer-requires manufacturers and sellers of consumer
products to provide consumers with clear and detailed information about warranty coverage
Breach of contract/warranty - Answer-legal cause of action and a type of civil wrong, in which a binding
agreement or bargained-for exchange is not honored by one or more of the parties to the contract by
non-performance or interference with the other party's performance
Expectancy damages - Answer-Damages recoverable from a breach of contract by the non-breaching
party. An award of expectation damages protects the injured party's interest in realizing the value of the
expectancy that was created by the promise of the other party.
,Loss of profits and incidental costs
Promissory estoppel - Answer-1. promise made by a party
2. other party reasonably relied on the promise
3. damages/out-of-pocket expenses
Reliance damages - Answer-The measure of compensation given to a person who suffered an economic
harm for acting in reliance on a party who failed to fulfill their obligation
Unjust enrichment (quasi-contract) - Answer-when one person is enriched at the expense of another in
circumstances that the law sees as unjust
Restitution damages - Answer-party who received unjust enrichment has to repay the value of the
enrichment
4 requirements for enforceable contracts - Answer-1. agreement
2. consideration
3. capacity
4. legality
Mutual assent - Answer-agreement between two parties that intend to form a contract
general intent - Answer-so long as parties' intentions was to enter into a contract, courts will often try
to salvage one
Definiteness requirement - Answer-agreement on all material terms
, implied terms - Answer-words or provisions that a court assumes were intended to be included in a
contract
Mixed sales contract - Answer-Has common law, UCC, and/or CISG elements
predominant part test - Answer-A test for determining whether a mixed contract for goods and services
is subject to Article 2 the Uniform Commercial Code
Battle of the forms - Answer-situation in which one business firm makes an offer in the form of a pre-
printed form contract and the offeree responds with its own form contract. At common law, any
discrepancy between the forms would prevent the offeree's response from operating as an acceptance.
If the offeror is a consumer, additional terms do not enter the contract unless material additions and
acceptance is made conditional on assent to additional terms.
UCC Section 2-207 - Answer-provides that a definite and seasonable expression of acceptance or a
written confirmation which is sent within a reasonable time operates as an acceptance even though it
states terms additional to or different from those offered or agreed upon. Terms cannot materially alter
the contract
Unilateral contract - Answer-created by an offer than can only be accepted by performance
Bilateral contract - Answer-reciprocal arrangement between two parties by which each promises to
perform an act in exchange for the other party's act
implied contract - Answer-agreement created by actions of the parties involved, but it is not written or
spoken
