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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.
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2. To have a constructive or implied contract will depend upon judicial discretion
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3. Chronic alcoholism may reach the level of mental illness
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4. Meeting of the minds is an objective standard
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5. The UCC is federal law and therefore does not need to be enacted by state law.
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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.
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7. The court will traditionally review the adequacy of the consideration
____
8. An offer will only remain open for a reasonable period of time
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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 3rd 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
c. is only required when stated in the
contract
d. is not required
limit the risk of the breaching party
____ 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
b. All illegality will void a contract
c. You cannot use a bribe to make an
enforceable 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
c. a contract to buy a house
services
b. a contract for the sale of goods for the
d. all of the above
price of $500
____ 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 c. Jim relied upon Jack's statement.
color.
b. Jim knew that the mileage was more
d. Jack's statement occurred after the
than 12,000 miles.
sale.
____ 47. All of the following statements refer to an element of fraud except:
a. the defendant desired to obtain a
c. the defendant knew that the statement
was false or was recklessly indifferent
regarding its truth.
financial benefit.
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
d. All of the above
the trade
____ 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
Contract Law Final Exam Version C
Answer Section
TRUE/FALSE
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MULTIPLE CHOICE
26.
27.
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B
B
B
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C
D
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B
B
C
C
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A
C
C
D
B
D
D
C
A
D
B
A
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