BUL 5810 EXAM 3 QUESTIONS & ANSWERS
Most contracts are governed primarily by State ___________ ______, including
contracts involving employment, services, insurance, real property (land and anything
attached to it), patents, and copyrights. - Answer -common law
Article 2 of the UCC governs the: - Answer -sale of goods
"Sale" is defined as: - Answer -the transfer of title from seller to buyer.
Goods are defined as: - Answer -tangible personal property (personal property is all
property other than an interest in land)
International Contracts involve additional issues beyond those in domestic contracts,
such as: - Answer -differences in language, legal systems, and currency.
T or F: The United Nations Convention on Contracts for the International Sales of
Goods (CISG) governs all contracts for international sales of goods between parties
located in different nations that have ratified the CISG. - Answer -True
What is a contract? - Answer -A binding agreement that the courts will enforce.
Failure to perform a contractual obligation properly is known as a: - Answer -breach
The parties to a contract must manifest by words or conduct that they have agreed to
enter into a contract; this is known as: - Answer -Mutual Assent
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; this is
according to the principle of: - Answer -consideration.
T or F: The purpose of a contract may be criminal, tortious, or otherwise against public
policy. - Answer -False
An obligation not based on a contract that is imposed to avoid injustice is known as: -
Answer -a quasi contract or restitution.
What are the requirements for quasi contracts/restitution? - Answer -A court will impose
a quasi contract or restitution when (1) the plaintiff confers a benefit upon the defendant,
(2) the defendant knows or appreciates the benefit, and (3) the defendant's retention of
the benefit is inequitable.
What remedy is available for quasi contracts/restitution? - Answer -The plaintiff
recovers the reasonable value of the benefit she conferred upon the defendant.
, The parties to a contract must have contractual ________________. - Answer -
capacity
An express contract is: - Answer -an agreement that is stated in words, either orally or
in writing.
An implied (in fact) contract is: - Answer -a contract in which the agreement of the
parties is inferred from their conduct.
A contract in which both parties exchange promises is called a: - Answer -bilateral
contract
A contract in which only one party makes a promise, and that promise is exchanged for
an act or a forbearance to act, is called a: - Answer -unilateral contract
A valid contract is one that: - Answer -meets all of the requirements of a binding
contract.
A void contract is no contract at all and has no: - Answer -legal effect
A contract capable of being made void is known as: - Answer -voidable
A contract for the breach of which the law provides no remedy is a(n): - Answer -
unenforceable contract
An executed contract: - Answer -is a contract that has been fully performed by all of the
parties.
A contract that has yet to be fully performed is a(n): - Answer -executory contract
A __________ ________________ is an agreement that is legally binding because of
its particular form or mode of expression. - Answer -formal contract
All contracts other than formal contracts are: - Answer -informal contracts
Promissory Estoppel is: - Answer -a doctrine enforcing some noncontractual promises.
What are the requirements to qualify under Promissory Estoppel? - Answer -A promise
made under circumstances that should lead the promisor reasonably to expect that the
promise would induce the promisee to take definite and substantial action and the
promisee does take such action.
What is the remedy associated with Promissory Estoppel? - Answer -A court will
enforce the promise to the extent necessary to avoid injustice.
Most contracts are governed primarily by State ___________ ______, including
contracts involving employment, services, insurance, real property (land and anything
attached to it), patents, and copyrights. - Answer -common law
Article 2 of the UCC governs the: - Answer -sale of goods
"Sale" is defined as: - Answer -the transfer of title from seller to buyer.
Goods are defined as: - Answer -tangible personal property (personal property is all
property other than an interest in land)
International Contracts involve additional issues beyond those in domestic contracts,
such as: - Answer -differences in language, legal systems, and currency.
T or F: The United Nations Convention on Contracts for the International Sales of
Goods (CISG) governs all contracts for international sales of goods between parties
located in different nations that have ratified the CISG. - Answer -True
What is a contract? - Answer -A binding agreement that the courts will enforce.
Failure to perform a contractual obligation properly is known as a: - Answer -breach
The parties to a contract must manifest by words or conduct that they have agreed to
enter into a contract; this is known as: - Answer -Mutual Assent
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; this is
according to the principle of: - Answer -consideration.
T or F: The purpose of a contract may be criminal, tortious, or otherwise against public
policy. - Answer -False
An obligation not based on a contract that is imposed to avoid injustice is known as: -
Answer -a quasi contract or restitution.
What are the requirements for quasi contracts/restitution? - Answer -A court will impose
a quasi contract or restitution when (1) the plaintiff confers a benefit upon the defendant,
(2) the defendant knows or appreciates the benefit, and (3) the defendant's retention of
the benefit is inequitable.
What remedy is available for quasi contracts/restitution? - Answer -The plaintiff
recovers the reasonable value of the benefit she conferred upon the defendant.
, The parties to a contract must have contractual ________________. - Answer -
capacity
An express contract is: - Answer -an agreement that is stated in words, either orally or
in writing.
An implied (in fact) contract is: - Answer -a contract in which the agreement of the
parties is inferred from their conduct.
A contract in which both parties exchange promises is called a: - Answer -bilateral
contract
A contract in which only one party makes a promise, and that promise is exchanged for
an act or a forbearance to act, is called a: - Answer -unilateral contract
A valid contract is one that: - Answer -meets all of the requirements of a binding
contract.
A void contract is no contract at all and has no: - Answer -legal effect
A contract capable of being made void is known as: - Answer -voidable
A contract for the breach of which the law provides no remedy is a(n): - Answer -
unenforceable contract
An executed contract: - Answer -is a contract that has been fully performed by all of the
parties.
A contract that has yet to be fully performed is a(n): - Answer -executory contract
A __________ ________________ is an agreement that is legally binding because of
its particular form or mode of expression. - Answer -formal contract
All contracts other than formal contracts are: - Answer -informal contracts
Promissory Estoppel is: - Answer -a doctrine enforcing some noncontractual promises.
What are the requirements to qualify under Promissory Estoppel? - Answer -A promise
made under circumstances that should lead the promisor reasonably to expect that the
promise would induce the promisee to take definite and substantial action and the
promisee does take such action.
What is the remedy associated with Promissory Estoppel? - Answer -A court will
enforce the promise to the extent necessary to avoid injustice.
