Commercial Transactions Exam 1
Exam Questions With 100% Verified
Answers
Contract -
correct answer ✅A promise for beach of which the law provides a
remedy; remedies - damages or obligation to fulfill promise
Common Law for all contracts except sales and leases which are
under UCC
Objective Theory of Contracts -
correct answer ✅Objective - apparent to everyone
Subjective - particular to one person
Look to objective circumstances to determine parties' subjective
intent
Contract Requirements -
correct answer ✅Agreement - offer and acceptance
Consideration -
Contractual Capacity
Legality
, Commercial Transactions Exam 1
Exam Questions With 100% Verified
Answers
Types of Contracts -
correct answer ✅Express - words (oral/written)
Implied - conduct creates and defines terms of the contract
Requirements: plaintiff furnished good or service, plaintiff expected
to be paid, defendant had chance to reject and did not
"Plain Meaning" Rule -
correct answer ✅No "extrinsic" evidence if meaning of contract
terms are unambiguous
If terms are ambiguous, court may admit extrinsic evidence
Damages -
correct answer ✅Compensatory - designed to compensate non
breaching party for loss of the bargain
Consequential - foreseeable losses
Punitive - punish or deter future conduct
Nominal - no financial loss
Exam Questions With 100% Verified
Answers
Contract -
correct answer ✅A promise for beach of which the law provides a
remedy; remedies - damages or obligation to fulfill promise
Common Law for all contracts except sales and leases which are
under UCC
Objective Theory of Contracts -
correct answer ✅Objective - apparent to everyone
Subjective - particular to one person
Look to objective circumstances to determine parties' subjective
intent
Contract Requirements -
correct answer ✅Agreement - offer and acceptance
Consideration -
Contractual Capacity
Legality
, Commercial Transactions Exam 1
Exam Questions With 100% Verified
Answers
Types of Contracts -
correct answer ✅Express - words (oral/written)
Implied - conduct creates and defines terms of the contract
Requirements: plaintiff furnished good or service, plaintiff expected
to be paid, defendant had chance to reject and did not
"Plain Meaning" Rule -
correct answer ✅No "extrinsic" evidence if meaning of contract
terms are unambiguous
If terms are ambiguous, court may admit extrinsic evidence
Damages -
correct answer ✅Compensatory - designed to compensate non
breaching party for loss of the bargain
Consequential - foreseeable losses
Punitive - punish or deter future conduct
Nominal - no financial loss
