Test Bank For The Law of Contracts and the Uniform Commercial Code 2nd Edition by Pamela Tepper

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Test Bank For The Law of Contracts and the Uniform Commercial Code 2nd Edition by Pamela Tepper

Chapter 2 – Contract Basics: An Overview

TRUE/FALSE

1.The person who makes the promise is the promisee.

a. True

b. False

ANS: F PTS: 1

2.Consideration is a necessary element in a contract.

a. True

b. False

ANS: T PTS: 1

3.An express contract is one that is specifically stated.

a. True

b. False

ANS: T PTS: 1

4.An executory contract is a fully performed contract.

a. True

b. False

ANS: F PTS: 1

5.A void contract is one that may be avoided by one of the parties to the contract.

a. True

b. False

ANS: F PTS: 1

6.All contracts must have a formal seal to be legal and binding.

a. True

b. False

ANS: F PTS: 1

7.An informal contract may be oral or written.

a. True

b. False

ANS: T PTS: 1

8.Implied in fact contracts are inferred from the facts and circumstances surrounding the contract.

a. True

b. False

ANS: T PTS: 1

9.A distinguishing characteristic of bilateral and unilateral contracts is the method of exchange between the parties.

a. True

b. False

ANS: F PTS: 1

10.All contracts must be express and executed to be valid and binding on the parties.

a. True

b. False

ANS: F PTS: 1

MULTIPLE CHOICE

1.To have a binding contract, one necessary element is __________.

a.	Mutual assent	c.	a and b
b.	Capacity	d.	None of the above

ANS: C PTS: 1

2.The following is not an element of a contract __________.

a.	Signature	c.	Offer
b.	Legality	d.	Consideration

ANS: A PTS: 1

3.All contracts must be __________.

a.	Archaic	c.	In writing
b.	Legal	d.	Signed by the parties

ANS: B PTS: 1

4.A contract where there is an exchange of promises between the parties is __________.

a.	Unilateral	c.	All of the above
b.	Bilateral	d.	None of the above

ANS: B PTS: 1

5.A quasi contract is an __________.

a.	Implied in law contract	c.	Illegal contract
b.	Implied in fact contract	d.	Informal contract

ANS: A PTS: 1

6.A contract that has no legal effect is __________.

a.	Formal	c.	Valid
b.	Voidable	d.	Void

ANS: D PTS: 1

7.A formal contract may require __________.

a.	Seal	c.	All of the above
b.	Signatures	d.	None of the above

ANS: C PTS: 1

8.The statute that requires contracts to be in writing is __________.

a.	The statute of limitations	c.	UCITA
b.	The statute of frauds	d.	None of the above

ANS: B PTS: 1

9.Consideration can be __________.

a.	Money	c.	Services
b.	Property	d.	All of the above

ANS: D PTS: 1

10.The person that makes the offer is called the__________.

a.	Offeree	c.	Promisee
b.	Offeror	d.	Acceptor

ANS: B PTS: 1

MATCHING

a.	promisee
b.	valid contract
c.	contract
d.	executed contract
e.	quasi contract
f.	unilateral contract
g.	promisor
h.	void contract
i.	express contract
j.	capacity

1.A contract that has all the necessary elements.

2.An agreement between parties for value that is legally enforceable.

3.A contract that promotes fairness and justice.

4.A fully performed contract.

5.A contract that has no legal effect.

6.The legal ability to enter into a contract.

7.The person to whom the promise is made.

8.A contract that is specifically stated.

9.The person making the promise in a contract.

10.A contract where the act of performing is the acceptance.

1.ANS:BPTS:1

2.ANS:CPTS:1

3.ANS:EPTS:1

4.ANS:DPTS:1

5.ANS:HPTS:1

6.ANS:JPTS:1

7.ANS:APTS:1

8.ANS:IPTS:1

9.ANS:GPTS:1

10.ANS:FPTS:1

 

Chapter 3 – Formation of a Contract: Offer and Acceptance

TRUE/FALSE

1.An offer is a communication by the offeree to the offeror.

a. True

b. False

ANS: F PTS: 1

2.A preliminary negotiation always creates an offer.

a. True

b. False

ANS: F PTS: 1

3.The terms of an offer must always be definite.

a. True

b. False

ANS: T PTS: 1

4.An acceptance is the response by the offeree to the offeror.

a. True

b. False

ANS: T PTS: 1

5.The mailbox rule cannot be circumvented by the parties to a contract.

a. True

b. False

ANS: F PTS: 1

6.An acceptance can only be communicated in writing.

a. True

b. False

ANS: F PTS: 1

7.An offer can be terminated by the offeree’s rejection.

a. True

b. False

ANS: T PTS: 1

8.An acceptance cannot be terminated if an option is created.

a. True

b. False

ANS: T PTS: 1

9.Contracts cannot be terminated by operation of law.

a. True

b. False

ANS: F PTS: 1

10.Death of the offeror terminates the offer.

a. True

b. False

ANS: T PTS: 1

MULTIPLE CHOICE

1.An offeror communicates the __________.

a.	Acceptance	c.	The contract
b.	Offer	d.	The rejection

ANS: B PTS: 1

2.An offeror must always have __________.

a.	Negotiations	c.	Communications
b.	Intent	d.	Objectivity

ANS: B PTS: 1

3.To be definite, an offer must include, at least __________.

a.	The price	c.	The parties
b.	Subject matter	d.	All of the above

ANS: D PTS: 1

4.An offer must always be __________.

a.	Formal	c.	In writing
b.	Communicated	d.	None of the above

ANS: B PTS: 1

5.A solicitation is always __________.

a.	An offer	c.	None of the above
b.	A bait and switch	d.	All of the above

ANS: D PTS: 1

6.Under the mailbox rule, the acceptance is effective __________.

a.	Upon notice	c.	Upon receipt
b.	Upon communication	d.	Upon return

ANS: B PTS: 1

7.An acceptance may be __________.

a.	Written	c.	Implied
b.	Oral	d.	All of the above

ANS: D PTS: 1

8.A deviation from the Mirror Image Rule creates __________.

a.	Rejection	c.	Contract
b.	Acceptance	d.	Counteroffer

ANS: D PTS: 1

9.An option contract creates __________.

a.	An irrevocable offer	c.	A proposal
b.	A contract	d.	None of the above

ANS: A PTS: 1

10.A method of terminating an offer is __________.

a.	Rejection	c.	Counteroffer
b.	Death	d.	All of the above

ANS: D PTS: 1

MATCHING

a.	stipulation
b.	counteroffer
c.	offer
d.	option contract
e.	revocation
f.	acceptance
g.	mailbox rule
h.	rejection
i.	solicitation
j.	mirror image rule

1.Response by the offeree to the offeror of an intent to be bound to a contract.

2.Offeree’s nonacceptance of an offer.

3.Consideration paid for an irrevocable offer.

4.An offer communicated in the mail to the offeree when the acceptance is effective upon receipt.

5.Sets limitations on an acceptance.

6.A communication by the offeror to the offeree of an intent to be bound to a contract.

7.Withdrawal of an offer by the offeror.

8.An invitation to negotiate.

9.An offer and acceptance must be exact.

10.A new offer.

1.ANS:FPTS:1

2.ANS:HPTS:1

3.ANS:DPTS:1

4.ANS:GPTS:1

5.ANS:APTS:1

6.ANS:CPTS:1

7.ANS:EPTS:1

8.ANS:IPTS:1

9.ANS:JPTS:1

10.ANS:BPTS:1