Question 1

A promise that neither confers any benefit on the promisee nor subjects the promisor to any detriment is an illusory promise

Accepted Answer

A) True 
 B)False

Question 2

Void means the same thing as voidable in contract law.

Accepted Answer

A) True 
 B)False

Question 3

If a new law of general application indirectly affects a government contract,making the government's performance impossible,the ________ will protect the government in a subsequent suit for breach of contract.

Accepted Answer

A)  sovereign acts doctrine 
B)  discretionary acts doctrine 
C)  ministerial acts theory 
D)  legislatively enacted principle 
A)  sovereign acts doctrine 
B)  discretionary acts doctrine 
C)  ministerial acts theory 
D)  legislatively enacted principle

Question 4

________ damages compensate a party for losses that occur as a foreseeable result of the breach.

Accepted Answer

A)  Quantum meruit 
B)  Reliance 
C)  Restitution 
D)  Consequential 
A)  Quantum meruit 
B)  Reliance 
C)  Restitution 
D)  Consequential

Question 5

In certain cases a court may order specific performance rather than monetary damages.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is not one of the basic elements for formation of a valid contract?

Accepted Answer

A)  Consideration 
B)  Promissory estoppel 
C)  An offer and acceptance 
D)  A legal purpose 
A)  Consideration 
B)  Promissory estoppel 
C)  An offer and acceptance 
D)  A legal purpose

Question 7

List the elements necessary for the doctrine of promissory estoppel to be applied.

Accepted Answer

Promissory estoppel applies if

Question 8

Which of the following does not generally make a contract voidable?

Accepted Answer

A)  Fraud 
B)  Duress 
C)  Unilateral mistake of fact 
D)  Misrepresentation 
A)  Fraud 
B)  Duress 
C)  Unilateral mistake of fact 
D)  Misrepresentation

Question 9

Most advertisements are treated as invitations to negotiate,not offers.

Accepted Answer

A) True 
 B)False

Question 10

Jack is an accountant who works for the firm of Readum & Weep.Jack was approached by Ima Phool,who represents one of Readum's competitors,Numbers R Us.Jack was offered a substantial raise to leave his company and work for Numbers.When Jack's boss heard this he called him in and said,"If you agree to stay with us for at least five years,I promise that next year you will receive a promotion with a 50% raise,and a 5-year contract." Jack turned down the offer and stayed with Readum.Nine months later Jack was dismissed due to corporate downsizing.Can Jack legally enforce his boss's promise? What theory or theories would Jack use? Discuss fully.

Accepted Answer

Jack would say that there was a valid of

Question 11

Describe the three standard measures as listed in the text that courts have developed to measure monetary damages in contract cases.Explain how each would be measured.

Accepted Answer

The three standard measures are expectat

Question 12

Which of the following is true regarding acceptance?

Accepted Answer

A)  In the absence of a provision in an offer regarding how acceptance is to be made, acceptance is effective upon dispatch into a mailbox. 
B)  Acceptance is never effective until it is received. 
C)  An offeror may not by law specify that an offer can be accepted only by facsimile to a stated fax number and that the acceptance is not effective until actually received. 
D)  An offeror may revoke an offer so long as the revocation is made before an acceptance is received. 
A)  In the absence of a provision in an offer regarding how acceptance is to be made, acceptance is effective upon dispatch into a mailbox. 
B)  Acceptance is never effective until it is received. 
C)  An offeror may not by law specify that an offer can be accepted only by facsimile to a stated fax number and that the acceptance is not effective until actually received. 
D)  An offeror may revoke an offer so long as the revocation is made before an acceptance is received.

Question 13

Under traditional common law,the acceptance must be the ________ of the offer.

Accepted Answer

A)  essential terms 
B)  consideration 
C)  understanding 
D)  mirror image 
A)  essential terms 
B)  consideration 
C)  understanding 
D)  mirror image

Question 14

An illegal contract is generally considered a voidable contract.

Accepted Answer

A) True 
 B)False

Question 15

If the promisee entered into the contract in order to discharge a duty he or she owed the third party,then the third party is a(n)________ beneficiary.

Accepted Answer

A)  express 
B)  implied 
C)  creditor 
D)  donee 
A)  express 
B)  implied 
C)  creditor 
D)  donee

Question 16

Contract law is based on which of the following?

Accepted Answer

A)  Case law 
B)  Statutes 
C)  Tradition 
D)  All the responses are correct 
A)  Case law 
B)  Statutes 
C)  Tradition 
D)  All the responses are correct

Question 17

Under the doctrine of ________,a court may invalidate an agreement if one party had sufficient influence and power over the other as to make genuine assent impossible.

Accepted Answer

A)  fraud 
B)  mistake 
C)  undue influence 
D)  detrimental reliance 
A)  fraud 
B)  mistake 
C)  undue influence 
D)  detrimental reliance

Question 18

Fact Pattern 7-2
Hester offers to sell her house to Frank for $250,000. Frank says that he would like to think about it, and Hester says that is fine. The next day, Martha, Hester's friend, says that she will give Hester $240,000 for the house. Hester really likes Martha more than Frank and signs a contract to sell the house to Martha. Later that day Hester sees Frank walking up her driveway. She immediately opens the window and yells "I revoke the offer on the house" before Frank says anything. Frank replies that he accepts the offer and expects to purchase the home. Frank tells Hester that while he has not yet taken steps to sell his own home or get a loan, he feels confident that there will be no problem with those matters and he is a ready, willing, and able buyer.
-Refer to fact pattern 7-2. Which of the following is true regarding whether Hester's attempted revocation was effective?

Accepted Answer

A)  It was effective because Hester had left the offer open the amount of time required by law regardless of whether she revoked before Frank could accept. 
B)  It was effective because Hester issued the revocation before Frank could accept. 
C)  It was ineffective because the amount paid by Martha was less than the offer to Frank. 
D)  It was ineffective because Hester attempted the revocation at too early a point in time. 
A)  It was effective because Hester had left the offer open the amount of time required by law regardless of whether she revoked before Frank could accept. 
B)  It was effective because Hester issued the revocation before Frank could accept. 
C)  It was ineffective because the amount paid by Martha was less than the offer to Frank. 
D)  It was ineffective because Hester attempted the revocation at too early a point in time.

Question 19

Commercial transactions involving the sale of goods,movable personal property,are governed by which of the following?

Accepted Answer

A)  Article 2 of the Uniform Commercial Code 
B)  Articles 1-3 of the Uniform Sale of Goods Code 
C)  Article 1 of the Federal Sales Code 
D)  Article 1 of the Uniform Credit Code 
A)  Article 2 of the Uniform Commercial Code 
B)  Articles 1-3 of the Uniform Sale of Goods Code 
C)  Article 1 of the Federal Sales Code 
D)  Article 1 of the Uniform Credit Code

Question 20

To develop rules for behavior,civil law countries rely primarily on civil codes,or statutes,rather than on case-by-case common law.

Accepted Answer

A) True 
 B)False

Exam 7: Contracts

A promise that neither confers any benefit on the promisee nor subjects the promisor to any detriment is an illusory promise

Void means the same thing as voidable in contract law.

If a new law of general application indirectly affects a government contract,making the government's performance impossible,the ________ will protect the government in a subsequent suit for breach of contract.

________ damages compensate a party for losses that occur as a foreseeable result of the breach.

In certain cases a court may order specific performance rather than monetary damages.

Which of the following is not one of the basic elements for formation of a valid contract?

List the elements necessary for the doctrine of promissory estoppel to be applied.

Which of the following does not generally make a contract voidable?

Most advertisements are treated as invitations to negotiate,not offers.

Describe the three standard measures as listed in the text that courts have developed to measure monetary damages in contract cases.Explain how each would be measured.

Which of the following is true regarding acceptance?

Under traditional common law,the acceptance must be the ________ of the offer.

An illegal contract is generally considered a voidable contract.

If the promisee entered into the contract in order to discharge a duty he or she owed the third party,then the third party is a(n)________ beneficiary.

Contract law is based on which of the following?

Under the doctrine of ________,a court may invalidate an agreement if one party had sufficient influence and power over the other as to make genuine assent impossible.

Commercial transactions involving the sale of goods,movable personal property,are governed by which of the following?

To develop rules for behavior,civil law countries rely primarily on civil codes,or statutes,rather than on case-by-case common law.

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