Contracts allow a free society to __.
- create order out of disorder
Contracts function as a symbol of __ in modern society. - individual freedom
The purpose of contracts is __. - to encourage the exchange of goods and services between people
Select the true statement about the Restatement of the Law of Contracts. - It clarified and simplified the case law that had developed around contract
disputes by the early twentieth century.
Select the true statement about the Convention on Contracts for the
International Sale of Goods (CISG). - Parties to a contract may mutually agree to follow the CISG rather than the
Uniform Commercial Code (UCC).
Why was the Uniform Commercial Code (UCC) created? - To standardize contract laws between states to assist in commercial trade
regarding the sale or lease of goods
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Riya writes an email promising to sell her car to Manish for $500, and Manish
replies that he will pay Riya on the 24th of the month. On the 24th, Manish pays
Riya and she gives him the title to the car.
Manish and Riya have a(n) __. - executed contract
After your surgery, you tell me that you can’t walk your dog anymore. You ask me
to walk your dog for $50 a week, and I agree. This Monday, I began walking your
dog.
We have a(n) __. - bilateral contract
The local police station offers a $1,000 reward for anyone who can provide
information about a robbery at a gas station. Mason calls the police with a tip that
leads to the arrest of the thief.
Mason and the police have a(n) __. - unilateral contract
The contractual element of agreement requires __. - mutual assent between persons
A contract with consideration from only one party __. - may be enforceable under promissory estoppel
The contractual element of consideration means that __. - each party to a contract must give and receive value
A contract is always rendered unenforceable when __. - the subject or purpose of the contract is illegal
A contract is usually rendered unenforceable when __. - one party’s assent to the contract occurs because of a threat of physical
force
A contract is always voidable when __. - one party to the contract is not of a legal age
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A purpose of the Statute of Frauds is to __. - designate the kinds of contracts that must be in writing to be valid and
enforceable
A purpose of the Statute of Frauds is to __. - prevent one party from falsely claiming that a contract was formed in
certain areas of exchange
A purpose of the Statute of Frauds is to __. - make certain contracts unenforceable if they are only in oral form
Unit 2, Challenge 2
When an exterminator is hired to rid a home of termites and fails to do so,
extensive damage is done by the insects to the home’s deck. The exterminator is
required to pay for the necessary repairs.
This is an example of which type of monetary award? - Consequential damages
Lisa promises Ophelia a 5% return on her investment if Ophelia gives her $1,000
to invest. Little does Ophelia know, Lisa has no intention of investing the money.
Instead, Lisa spends the money to pay off a prior gambling debt. A court requires
Lisa to return the $1,000 to Ophelia.
This is an example of which type of monetary award? - Restitution
A store owner receives reimbursement for the difference in price of a product that
the seller could not deliver.
This is an example of which type of monetary award? - Compensatory damages
Which of the following people would likely be issued an order for specific
performance or an injunction, rather than a monetary award? - Chris signs a written agreement to buy a one-of-a-kind antique sports car
from Pete for $65,000. When Pete later refuses to sell the car to Chris, Chris files
suit against Pete for breach of contract.
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Which of the following people would likely be issued an order for specific
performance or an injunction, rather than a monetary award? - Lee signs a contract to purchase the last remaining beachfront plot of land
in his town from Ursula. Ursula then decides she will keep the land and build a
house for herself on it. Lee files suit against Ursula for breach of contract.
Which of the following people would likely be issued an order for specific
performance or an injunction, rather than a monetary award? - Alicia, an artist, has a signed contract with one of her patrons that promises
them the right of first refusal for any sculpture she completes. When she finishes
her latest sculpture, she wants to sell it to another friend for $75,000 instead. The
patron sues Alicia for breach of contract.
Select the example that is inconsistent with the provisions of the UCC for
contract remedies for a seller’s breach of contract. - An appliance manufacturer’s sales contract gives buyers a maximum of six
months to raise any concerns relating to breach of contract.
Select the example that is inconsistent with the provisions of the UCC for
contract remedies for a seller’s breach of contract. - A toy company sells a defective rocket launcher that injures a young boy.
The sales contract excludes responsibility for all consequential damages related to
the sale of its products, so the company only agrees to refund the cost of the
defective toy.
Select the example that is inconsistent with the provisions of the UCC for
contract remedies for a seller’s breach of contract. - In its sales contract, a car dealership specifies that there is no remedy for
the buyer if the dealership delivers the correct make and model of car, but in the
wrong color.
Cynthia orders 100 shirts priced at $4.99 each for her screenprinting business
from Juan, a shirt supplier. Cynthia is not insolvent, but after she receives the first
box (which contains 50 shirts), she decides she has enough and will not accept
delivery of the second box of 50 shirts.
What remedy does Juan have in this scenario? - Juan can resell the remaining 50 shirts to another buyer, upon which time
he is entitled to recover the difference between his contract price with Cynthia and
the contract price with the new buyer, plus any incidental costs incurred.
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Jackson signs a written contract to purchase a custom sofa for his new home. The
custom sofa is designed to fit perfectly in his living room. While the sofa is being
built, Jackson notifies the manufacturer that he is insolvent and can no longer
fulfill his end of the contract.
What remedy does the manufacturer have in this scenario? - Assuming that the sofa would be of little or no value on resale to another
buyer, the manufacturer should immediately cease production and sue Jackson for
the contract price, less any expenses saved by stopping production.
Cynthia signs a written contract for 100 shirts priced at $4.99 each for her
screenprinting business from Juan, a shirt supplier. After Cynthia receives the first
box (which contains 50 shirts), she decides she has enough and tells Juan she will
not accept delivery of the second box of 50 shirts. The second box is already in
transit and will be delivered by the postal service tomorrow.
What remedy does Juan have in this scenario? - Juan may stop delivery of the box by the post office, who must
immediately return the goods to him instead of delivering them to Cynthia.
Heidi purchases an original work by one of her favorite sculptors from an art
dealer for $8,000. After three months of waiting for the sculpture to be delivered,
Heidi discovers that the art dealer sold the sculpture to another buyer for $10,000
after her contract was signed.
