BUL 5810 Study Guide Exam with
Accurate/Verified Answers 2026
Edition.
Contracts are primarily governed by the Uniform Commercial Code. - Answer False
The difference between an express contract and an implied in fact contract is the manner in
which assent is manifested. - Answer True
A negotiable instrument, such as a check, is not a formal contract. - Answer False
A quasi contract is another name for an oral contract. - Answer False
During the twentieth century it became harder to enter into a contract as well as to get out of
one. - Answer False
"I promise to pay you $100 if you will promise to fix my car next month." This is an offer for a
unilateral contract. - Answer False
A contract for the sale of a copyright is governed by Article 2 of the Uniform Commercial Code. -
Answer False
Maria posted several signs in the neighborhood offering $50 for the return of her lost cat. Dave
calls to get a description of the cat and tells Maria, "I'll look for your cat." A contract is formed
by
Dave's call to Maria - Answer False
Malaki has a contract to purchase a new smartphone. The law governing this contract is Article
2
of the UCC. - Answer True
All written contracts are considered to be formal contracts. - Answer False
If a person who has been declared incompetent by the courts enters into an agreement, that
agreement is void, because it does not meet all the requirements of a binding contract. -
Answer True
,A contract to sell five acres of land is governed by Article 2 of the UCC. - Answer False
The Restatement is not law, but is highly persuasive in the courts. - Answer True
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. - Answer True
There are two principal types of contracts: commercial contracts between a business and a
customer and personal contracts between two individuals. - Answer False
There are two principal types of contracts: commercial contracts between a business and a
customer and personal contracts between two individuals. - Answer True
Quasi contract is another name for a contract that is implied in fact. - Answer False
Article 2 of the Uniform Commercial Codes does not apply to the sale of services. - Answer
True
The usual method of showing the mutual assent necessary to create a contract is by offer and
acceptance. - Answer True
A valid contract is one that meets all of the requirements of a binding contract. - Answer True
The Restatement defines a contract as "a promise or set of promises for the breach of which the
law gives a remedy, or the performance of which the law in some way recognizes as a duty." -
Answer True
A non contractual promise may be enforceable where there has been justifiable reliance on the
promise. - Answer True
Edie says to Jeff, "If you will mow my lawn, I will give you fifteen dollars." Under these facts, no
contract is formed until Jeff finishes mowing the lawn. - Answer True
A contract to sell life insurance is covered by Article 2 of the Uniform Commercial Code. -
Answer False
,Alice makes a material misrepresentation of fact to Lila, and based upon the
misrepresentation, Lila enters into a contract. Lila now realizes she was deceived and wants to
get
out of the contract. This contract is voidable at Lila's option. - Answer True
Ann makes a material misrepresentation of fact to Brian, and based upon the
misrepresentation,
Brian enters into a contract. Ann now thinks that the contract is not fair to her. This contract is
voidable at Ann's option. - Answer False
Mike, the owner of a yogurt shop, orders 500 quarts of yogurt from his supplier. Nothing,
however, is said by either party about the price or method of payment. The supplier ships the
yogurt
as ordered. Since this is a contract implied in fact, Mike must pay his supplier for the yogurt. -
Answer True
Amendments to Article 2 of the UCC were promulgated in 2003 to reflect developments in the
law and business practices and to accommodate electronic commerce. - Answer True
Common law relating to the formation of contracts has little relevance in the business world
today. - Answer False
An implied in fact contract is formed by the conduct. - Answer True
Ron says to Matt, "If you design and landscape my front lawn by the time I return from Paris
next month, I will pay you $5,000." Matt does not respond but has the landscaping done by the
time
Ron returns. This is an example of a unilateral contract. - Answer True
If a contract is not clearly unilateral or bilateral, the courts presume that the parties intended a
unilateral contract. - Answer False
The Uniform Commercial Code would be applied in which of the following situations?
(A) A contract for landscape services
(B) A contract for sale of patent rights
(C) A contract for the purchase of farmland
, (D) A contract to buy living room furniture - Answer D A contract to buy living room furniture
Lee has been declared incompetent by the court and is under the care of his sister. Without his
sister's knowledge, Lee rents the 30,000-seat civic center for his birthday party. Lee's contract to
rent the civic center is best described as a:
(A) valid contract.
(B) voidable contract.
(C) void contract.
(D) quasi contract. - Answer C void contract
A contract in which both parties exchange promises is a:
(A) voidable contract.
(B) bilateral contract.
(C) unilateral contract.
(D) quasi contract - Answer (B) bilateral contract.
Caroline signs a contract to work as a sales rep for Incellmed Corporation for a period of two
years. This contract is governed by:
(A) Article 2 of the UCC.
(B) state common law.
(C) federal statute.
(D) the law of quasi contract. - Answer B - state common law
Contract law:
(A) has seen little change during the nineteenth and twentieth centuries.
(B) has experienced an expansion of the absolute freedom of contract during the twentieth
century.
(C) today usually recognizes contractual obligations whenever the parties manifest an intent to
be
bound.
(D) requires privity between parties seeking to enforce contractual rights. - Answer (C) today
usually recognizes contractual obligations whenever the parties manifest an intent to be bound.
Any property other than an interest in real property is:
(A) goods.
(B) personal property.
Accurate/Verified Answers 2026
Edition.
Contracts are primarily governed by the Uniform Commercial Code. - Answer False
The difference between an express contract and an implied in fact contract is the manner in
which assent is manifested. - Answer True
A negotiable instrument, such as a check, is not a formal contract. - Answer False
A quasi contract is another name for an oral contract. - Answer False
During the twentieth century it became harder to enter into a contract as well as to get out of
one. - Answer False
"I promise to pay you $100 if you will promise to fix my car next month." This is an offer for a
unilateral contract. - Answer False
A contract for the sale of a copyright is governed by Article 2 of the Uniform Commercial Code. -
Answer False
Maria posted several signs in the neighborhood offering $50 for the return of her lost cat. Dave
calls to get a description of the cat and tells Maria, "I'll look for your cat." A contract is formed
by
Dave's call to Maria - Answer False
Malaki has a contract to purchase a new smartphone. The law governing this contract is Article
2
of the UCC. - Answer True
All written contracts are considered to be formal contracts. - Answer False
If a person who has been declared incompetent by the courts enters into an agreement, that
agreement is void, because it does not meet all the requirements of a binding contract. -
Answer True
,A contract to sell five acres of land is governed by Article 2 of the UCC. - Answer False
The Restatement is not law, but is highly persuasive in the courts. - Answer True
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. - Answer True
There are two principal types of contracts: commercial contracts between a business and a
customer and personal contracts between two individuals. - Answer False
There are two principal types of contracts: commercial contracts between a business and a
customer and personal contracts between two individuals. - Answer True
Quasi contract is another name for a contract that is implied in fact. - Answer False
Article 2 of the Uniform Commercial Codes does not apply to the sale of services. - Answer
True
The usual method of showing the mutual assent necessary to create a contract is by offer and
acceptance. - Answer True
A valid contract is one that meets all of the requirements of a binding contract. - Answer True
The Restatement defines a contract as "a promise or set of promises for the breach of which the
law gives a remedy, or the performance of which the law in some way recognizes as a duty." -
Answer True
A non contractual promise may be enforceable where there has been justifiable reliance on the
promise. - Answer True
Edie says to Jeff, "If you will mow my lawn, I will give you fifteen dollars." Under these facts, no
contract is formed until Jeff finishes mowing the lawn. - Answer True
A contract to sell life insurance is covered by Article 2 of the Uniform Commercial Code. -
Answer False
,Alice makes a material misrepresentation of fact to Lila, and based upon the
misrepresentation, Lila enters into a contract. Lila now realizes she was deceived and wants to
get
out of the contract. This contract is voidable at Lila's option. - Answer True
Ann makes a material misrepresentation of fact to Brian, and based upon the
misrepresentation,
Brian enters into a contract. Ann now thinks that the contract is not fair to her. This contract is
voidable at Ann's option. - Answer False
Mike, the owner of a yogurt shop, orders 500 quarts of yogurt from his supplier. Nothing,
however, is said by either party about the price or method of payment. The supplier ships the
yogurt
as ordered. Since this is a contract implied in fact, Mike must pay his supplier for the yogurt. -
Answer True
Amendments to Article 2 of the UCC were promulgated in 2003 to reflect developments in the
law and business practices and to accommodate electronic commerce. - Answer True
Common law relating to the formation of contracts has little relevance in the business world
today. - Answer False
An implied in fact contract is formed by the conduct. - Answer True
Ron says to Matt, "If you design and landscape my front lawn by the time I return from Paris
next month, I will pay you $5,000." Matt does not respond but has the landscaping done by the
time
Ron returns. This is an example of a unilateral contract. - Answer True
If a contract is not clearly unilateral or bilateral, the courts presume that the parties intended a
unilateral contract. - Answer False
The Uniform Commercial Code would be applied in which of the following situations?
(A) A contract for landscape services
(B) A contract for sale of patent rights
(C) A contract for the purchase of farmland
, (D) A contract to buy living room furniture - Answer D A contract to buy living room furniture
Lee has been declared incompetent by the court and is under the care of his sister. Without his
sister's knowledge, Lee rents the 30,000-seat civic center for his birthday party. Lee's contract to
rent the civic center is best described as a:
(A) valid contract.
(B) voidable contract.
(C) void contract.
(D) quasi contract. - Answer C void contract
A contract in which both parties exchange promises is a:
(A) voidable contract.
(B) bilateral contract.
(C) unilateral contract.
(D) quasi contract - Answer (B) bilateral contract.
Caroline signs a contract to work as a sales rep for Incellmed Corporation for a period of two
years. This contract is governed by:
(A) Article 2 of the UCC.
(B) state common law.
(C) federal statute.
(D) the law of quasi contract. - Answer B - state common law
Contract law:
(A) has seen little change during the nineteenth and twentieth centuries.
(B) has experienced an expansion of the absolute freedom of contract during the twentieth
century.
(C) today usually recognizes contractual obligations whenever the parties manifest an intent to
be
bound.
(D) requires privity between parties seeking to enforce contractual rights. - Answer (C) today
usually recognizes contractual obligations whenever the parties manifest an intent to be bound.
Any property other than an interest in real property is:
(A) goods.
(B) personal property.
