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

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