Contract Law Final Exam Version C True/False Indicate whether the statement is true or false. 1. Compliance and excuse are valid defenses to a breach of contract action. 2. To have a constructive or implied contract will depend upon judicial discretion 3. Chronic alcoholism may reach the level of mental illness 4. Meeting of the minds is an objective standard 5. The UCC is federal law and therefore does not need to be enacted by state law. 6. In a multistate transaction, if the parties do not include a choice of law provision in the majority of states will look to see which state has the most significant contacts or relationship with the transaction. 7. The court will traditionally review the adequacy of the consideration 8. An offer will only remain open for a reasonable period of time 9. When a contract is formed for a promise in exchange for a performance you have a bilateral contract 10. When looking into the correct forum the court will not consider the hardship to a party 11. Consideration is valid when it is based upon a preexisting duty 12. Latent ambiguity deals with something that is apparent from its face 13. If a contract involves both goods and services, the UCC will not apply 14. If a contract is silent as to choice of law the court will look solely at the place of the making 15. Preemption is a rule of law to determine which state law preempts the other states law. 16. The seller is not able to bid in an auction without reserve 17. Consideration is the price that is paid by the offeree
18. The general rule followed in most states is that an advertisement is not an offer but merely an invitation to bargain 19. Once the offer is made the offeror cannot limit the party who can accept it 20. When a party makes an offer it remains open till it is revoked 21. The Court s always honor the choice of law designation in a contract 22. The UCC must be enacted by the state for it to become the law of that state. 23. All state s procedural laws are the same. 24. Unconscionability is a principle of the common law and not the UCC 25. Misrepresentation like fraud requires specific intent Multiple Choice Identify the choice that best completes the statement or answers the question. 26. Reliance remedies give a. what was given less what was received c. what was expected b. a reasonable value for what was given d. full damages 27. Tortious Interference is a concept that involves a. a party to the contract c. a beneficiary to the contract b. a 3 rd Party d. governmental involvement in the contract 28. Mitigation of damages a. requires the breaching party to find a method of replacement b. requires the non-breaching party to limit the risk of the breaching party c. is only required when stated in the contract d. is not required 29. An ambiguity that is apparent on its face is a. Latent c. Neither patent of latent b. Patent d. Can be either patent or latent
30. A mistake in a basic assumption of fact occurs when: a. the contract was drafted in error c. the contract was drafted without the advice of counsel b. the parties agree on the contract terms d. the parties believe they are contracting for different things 31. For a transaction to be held invalid due to fraud a. A false statement is required c. Reliance is not required b. The false fact need not be material d. All of the above are true 32. A minor cannot avoid a contract that has been: a. completed c. ratified. b. signed. d. disallowed by the court. 33. Bob tell James that he will sell him his truck for $10,000 is an example of a. an illusory promise c. a bilateral contract b. an indefinite promise d. a unilateral contract 34. Liquidated damages are a. designed to punish c. fix the amount of damages b. assure at least some form of damages d. provide attorney fees 35. Which of the following statements is false: a. A contract may be void in its entirety even if the illegality is only a provision in the contract c. You cannot use a bribe to make an enforceable contract b. All illegality will void a contract d. A covenant not to compete can be an illegal provision 36. Unconscionability requires a. an unequal bargaining power c. a lack of knowledge b. a grossly unequal bargaining power d. Both A & B 37. A contract that is deemed to be too harsh or oppressive to one of the contractual parties may be unenforceable under the concept of: a. illegal coercion. c. unconscionability.
b. unilateral influence. d. oppressive confrontation. 38. The Statute of Frauds a. is part of the UCC c. is state law b. is federal law d. requires employment contracts to be in writing 39. Expectation remedies include: a. expectation damages c. nominal damages b. punitive damages d. reliance damages 40. The following may be consideration for the promisor s promise: a. a peppercorn c. Both A & B b. barter d. Neither A nor B 41. An advertisement in a local newspaper: a. is an offer c. may be an offer if it has all the elements of an offer b. can be an offer if it is not misleading d. is not an offer 42. Which of the following contracts must be in writing to be enforceable? a. a three-year contract to provide services b. a contract for the sale of goods for the price of $500 c. a contract to buy a house d. all of the above 43. Which of the following statements are offers? a. What will you take for your car? c. I will give you $1,500 for your car when I am ready. b. I will give you $1,500 for your car. d. I promise to pay you $2,000 for saving my life. 44. Restitution is a. an equitable remedy c. Used for a implied or quasi contract b. Arises out of a contract d. Both A & C 45. When one party has performed and the other party is released a is created
a. Indemnification c. Justification b. Statute of Frauds d. Gift 46. Jack sells Jim a used car that Jack falsely described as having been driven only 12,000 miles. Fraud has occurred if: a. Jim bought the car solely because of its color. b. Jim knew that the mileage was more than 12,000 miles. c. Jim relied upon Jack's statement. d. Jack's statement occurred after the sale. 47. All of the following statements refer to an element of fraud except: a. the defendant desired to obtain a financial benefit. c. the defendant knew that the statement was false or was recklessly indifferent regarding its truth. b. the defendant made a false statement. d. the defendant intended that the other party would rely on the false statement of the defendant. 48. In interpreting a contract the courts will look at it a. based upon the parties to the contract c. based upon a reasonable layperson b. based upon a reasonable person from the trade d. All of the above 49. When the plaintiff cannot prove damages, which of the following is/are awarded: a. General damages c. Special damages b. Nominal damages d. Liquidated damages 50. The statute of frauds applies to the following a. Goods c. Leases b. Services d. All of the above