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BUL 5810 – CONTRACTS Exam Questions
With Correct Answers
Which of the following contracts is covered by Article 2 of the Uniform Commercial Code?
- sale of a building
-sale of furniture
-an agreement to have a sidewalk shoveled
-a sale of stock in ABC, Inc - answer✔✔The sale of new furniture
Any property other than an interest in real property, is/are: - answer✔✔personal property
Which of the following is NOT always necessary in order for a valid contract to be formed?
-mutual assent
-legality of purpose
-a writing
-consideration - answer✔✔A writing
In order to have a valid contract, in addition to the four basic requirements of a contract, what
must also occur? - answer✔✔There must be an absence of invalidating conduct, such as duress
What is a requirement of an express contract? - answer✔✔The terms are stated in words
If both parties exchange promises, the contract is: - answer✔✔bilateral
When might a contract might be unenforceable? - answer✔✔If the statute of limitations has
passed
The doctrine of promissory estoppel: - answer✔✔is a doctrine that relies on justice not
contractual rights
Another name for a quasi contract is: - answer✔✔an implied in law contract
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Which of the following is required in order to recover in quasi contract? - answer✔✔Acceptance
or retention of a benefit conferred on the defendant by the plaintiff
Contracts that are implied in law are: - answer✔✔obligations imposed by law on grounds of
justice and equity
Molly signs a contract with a publishing company to edit text manuscripts. This contract is
governed by - answer✔✔state common law
Sally offers to sell her Business Law textbook from last semester to Bob for $50.00. Bob accepts
Sally's offer and tells her he will pay her on Friday when he gets his paycheck. A contract is
formed: - answer✔✔when Bob accepts Sally's offer
Aaron's boss offers to pay him $500 if he will pretend he is sick so that he does not have to show
up for jury duty, but will go to work instead. Aaron knows that this is against the law, but he
would rather be paid $500 from his boss than the $30 that the court will pay him for jury duty.
Aaron calls in sick and is excused from jury duty. This agreement between Aaron and his boss is:
- answer✔✔Not a contract
Sid makes a material representation of fact regarding his car to Barbara while out driving one
day. The next day, Barbara calls Sid and offers to buy his car. Sid accepts Barbara's offer without
correcting the misrepresentation of fact that he made the previous day. What is the effect of the
material representation on the agreement between Sid and Barbara? - answer✔✔Barbara may
avoid the contract
Bill enters into a contract with Harry. The terms are that Bill will build an addition to Harry's
home, replace the roof on Harry's garage, and make repave Harry's driveway in exchange for
Bill's payment to Harry of several thousand dollars once all of the projects have been completed.
If the driveway repavement has not yet been completed, but the addition and the roof have been
completed, which term describes the type of contract in existence? - answer✔✔Executory
Vince has lost his job and is having difficulty making ends meet. Last week, the bank
repossessed Vince's car. He is telling his neighbor Paul about his bad luck and Paul says he
wishes he could help Vince. Paul suggests that maybe Vince could have the old car sitting in
Paul's garage if Vince could get it to run. He ends the conversation by saying "Let me think
about it." The next day while Paul is at work, Vince goes into Paul's garage and begins working
on the old car. He gets it running and drives it out of Paul's garage and into Vince's driveway.
When Paul gets home from work, Vince shows Paul the car and asks him for the title to the car.
Paul tells Vince he had not made up his mind about whether or not he would give Vince the car.
Vince: - answer✔✔has no claim to the car because Paul did not make a promise
Daniel is a self-made millionaire, but he has been medically committed to a mental health
facility. A court also ordered Daniel's sister, Michelle, to preside over Daniel's business affairs.
Once inside the mental health facility, Daniel befriends his nurse, Amanda. One day, Amanda
tells Daniel about her invention to help identify stray dogs and cats. Daniel was so impressed by
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Amanda's invention that he offers to buy it for $500,000. Amanda accepts Daniel's offer. Did
Daniel and Amanda form a contract? - answer✔✔No because Daniel lack the capacity to
contract
Mary induces James to enter into a contract. James subsequently discovers that Mary
intentionally misrepresented the terms of their contract. Upon this discovery, James tells Mary
that he will not perform his promise under the contract. If Mary sues James for breach of
contract, will Mary win? - answer✔✔No, because Mary induced James into the contract by
fraudulent misrepresentations, which makes the contract voidable.
Susie told Kelly, "If you wash my car, I promise to pay you $20." Kelly does not reply. This
exchange is an example of: - answer✔✔Unilateral contract
Sonny promises Maria not to foreclose for a period of six months on a mortgage that Sonny
owns on Maria's real property. Relying on this promise, Maria begins to build a home on the
land. If Sonny forecloses in two months, can Maria seek to enforce Sonny's promise? -
answer✔✔Yes, Sonny made a non-contractual promise and Maria reasonably relied on such
promise and began building a home on the land.
Sergio buys an LED television from The Television Superstore in Sacramento, California. What
law governs this transaction? - answer✔✔Uniform Commercial Code (UCC)
Joe sends for a MBA catalog from State University. According to the catalog, the MBA
applications are evaluated on the basis of undergraduate grades, GMAT (the appropriate
standardized test) scores, and references. Joe has a 3.1 GPA, scores very well on the GMAT, and
has excellent references. Based on the criteria listed in the catalog, Joe applies and pays the $100
application fee. His application is rejected. Later he finds out that others with low grades and test
scores were accepted based on their family connections with the University. If Joe followed all
of the guidelines in the college catalog and paid the required application fee, then according to
the court in Steinberg v. Chicago Medical School: - answer✔✔There is a valid contract
Joe sends for a MBA catalog from State University. According to the catalog, the MBA
applications are evaluated on the basis of undergraduate grades, GMAT (the appropriate
standardized test) scores, references, and other factors that the University, in its discretion,
believes will enhance the standing of the University. Joe has a 3.1 GPA, scores very well on the
GMAT, and has excellent references. Based on the criteria listed in the catalog, Joe applies and
pays the $100 application fee. His application is rejected. Later he finds out that others with low
grades and test scores were accepted based on their family connections with the University. If
Joe followed all of the guidelines in the college catalog and paid the required application fee,
then according to the court in Steinberg v. Chicago Medical School: - answer✔✔There is a valid
contract, but there has been no breach of that contract by the University or by Joe.
Joe takes his car into the repair shop to have his tires realigned. While he is waiting for his car,
he sees the repairmen take his car to the area where they change the car's oil. Joe says nothing as
he is hoping he can get a free oil change. Joe watches while the oil in his car is changed. The car
