REVIEW QUESTIONS TRUE/FALSE QUESTIONS (CIRCLE THE CORRECT ANSWER) 1. T F The first step in the contract analysis is to determine the applicable law. 2. T F The second step in the contract analysis is to determine whether a contract has been formed. 3. T F The third step in the contract analysis is to determine the enforceability of the contract. 4. T F The fourth step in the contract analysis is to determine the plaintiff s allegation of the defendant s breach. 5. T F The fifth step in the contract analysis is to evaluate the defendant s response to the plaintiff s allegation of breach. 6. T F The sixth step in the contract analysis is to determine the plaintiff s remedies for the defendant s breach of contract. 7. T F The following is an offer for a unilateral contract: I promise to sell you my watch for your promise to pay $500. 8. T F The following is an offer for a bilateral contract: I promise to sell you my watch for your paying $500. 9. T F A bilateral contract has not just one consideration but has consideration for both the offeror s promise and the offeree s promise. 10. T F Both the offeror and the offeree may breach a unilateral contract. 11. T F In a bilateral contract, the offeror is both a promisor and promisee and the offeree is both a promisor and promisee. 12. T F In a unilateral contract, the offeror is both a promisor and promisee and the offeree is both a promisor and promisee. 13. T F In a bilateral contract, the breaching party may be either the offeror or offeree. 14. T F In a unilateral contract, the breaching party may only be the offeror. 15. T F A no breach compliance response is distinguished from the no breach excuse, no breach justification, and no breach terminated duty responses in that the no breach compliance response denies noncompliance with the terms of the contract while the other three responses admit noncompliance. 16. T F If a defendant in a breach of contract action responds to the plaintiff s allegation of breach by stating no breach justification, the defendant is saying my breach was justified by your breach.
17. T F Whether a defendant s breach in a breach of contract action is intentional or unintentional is irrelevant. 18. T F If the plaintiff succeeds in maintaining a breach of contract action against a defendant, the plaintiff may select among the expectation, reliance, and restitution remedies available in a breach of contract action. 19. T F Specific performance is always available as a remedy in a breach of contract action. FILL-IN-THE-BLANK QUESTIONS 1.. Determining the set of rules under which the alleged cause of action will be resolved. 2.. A manifestation of willingness to enter into a bargain, which justifies another person in understanding that his or her assent to that bargain is invited and will conclude the bargain. 3.. The party making the offer. 4.. The party receiving the offer. 5.. The shorthand phrase for an offer for a bilateral contract. 6.. The shorthand phrase for an offer for a unilateral contract. 7.. The shorthand phrase for the defendant s response: I am complying with the terms of the contract. 8.. The shorthand phrase for the defendant s response: contract, my nonperformance was excused, and therefore I have not breached the contract. 9.. The shorthand phrase for the defendant s response: contract, my nonperformance was justified by your breach of this contract, and therefore I have not breached the contract. 10.. The shorthand phrase for the defendant s response: contract, my duty to perform the contract has been terminated, and therefore I have not breached the contract. 11.. The shorthand phrase for the defendant s response: I admit I have breached the contract. 12. Protecting the nonbreaching party s places that party in as good a position as if both parties had fully performed the contract according to its terms. 13. Protecting the nonbreaching party s places that party in the position that he or she was in before relying on the other s promise. 14. Protecting the nonbreaching party s places the breaching party in the position he or she was in before receiving the benefit.
MULTIPLE-CHOICE QUESTIONS (CIRCLE ALL THE CORRECT ANSWERS) 1. Emma Smythe, a California sculptor, was hired by the City Council of New York City to create a sculpture for Central Park. The offer was sent by mail to Smythe in California. She accepted by mail. The preliminary work on the sculpture was to be done in California, the casting in Oregon, and the final assembly in New York. After Smythe completed the design, the City Council canceled the contract due to lack of funds. Identify the choice of law problem(s): (a) Whether the law of California, Oregon, or New York governs this transaction (b) Whether Article 2 of the UCC or the state s common law governs this transaction (c) Whether federal or state law governs this transaction (d) Whether CISG applies to this transaction (e) This transaction does not involve a choice of law problem. 2. A Florida Buyer purchased a video camera from a Vermont Seller through a shopping channel on cable TV. The Buyer did not leave his home in Florida but telephoned his order to a telephone number in Georgia. When the Buyer received shipment of the camera, it was packaged along with a written warranty. The writing, however, disclaimed all implied warranties. The camera proved to be defective. The defect was not within the written warranty but was within an implied warranty of merchantability, had it not been disclaimed. Identify the choice of law problem(s): (a) Whether the law of Florida, Georgia, or Vermont governs this transaction (b) Whether Article 2 of the UCC or the state s common law governs this transaction (c) Whether federal or state law governs this transaction (d) Whether CISG applies to this transaction (e) This transaction does not involve a choice of law problem. 3. What constitutes acceptance of an offer for a unilateral contract? (a) The offeree s promise (b) The offeree s promise to perform (c) The offeree s preparing to perform (d) The offeree s partial performance (e) The offeree s full performance 4. Bart Cartright purchased an automobile insurance policy from Guarantee Insurance Company. The policy covered damage to the vehicle due to collision but excluded damage due to natural disasters such as hail and flood. Cartright s automobile was heavily damaged by volcanic ash when Mt. St. Helens erupted. Cartright filed a claim with Guarantee, and Guarantee refused to pay. If Cartright sued Guarantee for breach of contract alleging that Guarantee breached the contract by not paying his claim, Guarantee would respond
5. Ronald Redcloud entered into a contract with Universal Publishers for his memoirs. Redcloud died when he had completed about half of the project. If Universal sued Redcloud s estate for breach of contract alleging that Redcloud had failed to deliver a completed manuscript, the estate would respond 6. Gotham University contracted with Educational Excellence, a consulting corporation, for a thorough study of the University. The contract provided that Educational would be paid a consulting fee and expenses. The contract provided that the consulting fee would be paid in four quarterly payments and the expenses would be paid monthly. After working on the project for four months (project expected to last about a year), Educational refused to continue because it had been paid neither the first quarterly payment nor its expenses for the past three months. If Gotham sued Educational for breach of contract alleging that Educational had breached by notifying Gotham that it would not complete the work, Gotham would respond 7.Mary Lou Webster was hired by Gotham University as an assistant professor. Dr. Webster was given a three-year contract that would be automatically renewed for another three years unless Dr. Webster desired not to have the contract renewed or the University had cause not to renew. The contract defined cause for nonrenewal. Dr. Webster s contract was not renewed after the initial three-year
term expired. The nonrenewal was not based on cause as was required by her contract. Four years after her nonrenewal, Dr. Webster brought a breach of contract action against Gotham University alleging that Gotham breached the contract by not offering her a new three-year contract and that its refusal was not based on cause. Gotham responded with the Statute of Limitations. Gotham s response is SHORT-ANSWER QUESTIONS 1. List the six steps in the Road Map for the law of contracts. 2. List four different settings in which a choice of law question may arise. 3. List the elements that constitute an offer for a bilateral contract. 4. Distinguish an offer for a bilateral contract from an offer for a unilateral contract. 5. Why does this text consider that a contract consists of two elements, an offer and an acceptance, rather than three elements, an offer, an acceptance, and consideration? 6. List the elements that constitute an acceptance for a bilateral contract. 7. List four events that could occur between the offer and the attempted acceptance that would render the attempted acceptance ineffective. 8. The legislature or the judiciary may seek to protect what three categories of policy grounds by precluding the enforcement of a contract? 9. After the plaintiff alleges that the defendant has breached the contract, the defendant s reply may be divided into what five responses?