Which of the following contracts is covered by Article 2 of the Uniform Commercial Code?

• The sale of a building.

• The sale of new furniture.

• An agreement to have the sidewalk shoveled.

• A sale of stock in ABC, Inc.

Answer explanation

Article 2 of the Uniform Commercial Code (UCC) covers the sale of goods, which includes tangible and movable items like furniture. The other options (the sale of a building, an agreement to shovel the sidewalk, and the sale of stock) involve real estate, services, or securities, which are not governed by Article 2 of the UCC.

Any property other than an interest in real property, is/are:

• tangible property.

• intangible property.

• goods.

• personal property.

Answer explanation

"Personal property" refers to any property other than real property (land or buildings). It includes both tangible property (physical items like furniture) and intangible property (non-physical assets like stocks or patents).

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 explanation

A writing is not always necessary for a valid contract. Many contracts can be oral and still be legally enforceable, as long as they meet the other requirements for contract formation (mutual assent, legality of purpose, and consideration). However, certain types of contracts, such as those involving real estate or those that fall under the Statute of Frauds, must be in writing.

In order to have a valid contract, in addition to the four basic requirements of a contract, which of the following must also occur?

• The consideration that one party is giving the other must be of the same value as the consideration that is being received.

• There must be the sale of goods from one party to another.

• There must be an absence of invalidating conduct, such as duress.

• Both parties must already have performed (done what they promised to do).

Answer explanation

In addition to the basic requirements (mutual assent, consideration, legality of purpose, and capacity), a contract must be free from invalidating factors such as duress, undue influence, fraud, or mistake. If such conduct is present, it can render the contract void or voidable. The other options are not required for a contract to be valid.

What is a requirement of an express contract?

• It is written and signed.

• It is based on the conduct of the parties.

• The terms are stated in words.

• It consists of a promise in exchange for an act.

Answer explanation

An express contract is one where the terms are clearly stated, either orally or in writing. It is not required to be written and signed, and it is not based on conduct — that would describe an implied contract. A promise in exchange for an act describes a unilateral contract, not necessarily an express contract.

If both parties exchange promises, the contract is:

• bilateral.

• void.

• implied.

• executed.

Answer explanation

A bilateral contract is formed when both parties exchange promises, meaning each party makes a commitment to do something. In contrast, a unilateral contract involves one party making a promise in exchange for the other party performing an act. The other options do not describe the situation of mutual promises.

When might a contract might be unenforceable?

• If the purpose of the contract was to commit a tort.

• If one party has not yet performed, but the other party has fully performed.

• If the statute of limitations has passed.

• If the parties could not reach an agreement.

Answer explanation

A contract is unenforceable if the statute of limitations (the legal time limit to enforce the contract) has expired or if its purpose is illegal, such as committing a tort.
A performance by one party with the other still obligated to perform can be a valid and enforceable contract.
If the parties could not reach an agreement it indicates no contract was formed in the first place, so enforceability is not relevant.

The doctrine of promissory estoppel:

• is a doctrine enforcing contractual promises.

• applies even if the promisor should not have expected the promisee to rely on the promise.

• applies even if the promisee does not rely on the promise.

• is a doctrine that relies on justice and not contractual rights.

Answer explanation

The doctrine of promissory estoppel is an equitable doctrine that enforces a promise when the promisee has reasonably relied on it to their detriment, even in the absence of a formal contract. It focuses on fairness and preventing injustice, rather than enforcing contractual rights. Other options are incorrect because promissory estoppel only applies if the promisor should have reasonably expected the promisee to rely on the promise and the promisee actually relied on it.

Another name for a quasi contract is:

• promissory estoppels.

• an implied in fact contract.

• an implied in law contract.

• an unenforceable contract.

Answer explanation

A quasi contract (also known as an implied in law contract) is a legal concept where the court imposes a contract-like obligation on a party to prevent unjust enrichment, even though no actual contract exists between the parties. It is not based on the parties' intentions or agreements, unlike an implied in fact contract, which is based on the conduct of the parties. Promissory estoppel and unenforceable contracts are separate legal concepts.

Which of the following is required in order to recover in quasi contract?

• An implied or express promise

• A valid contract

• Acceptance or retention of a benefit conferred on the defendant by the plaintiff

• A voidable contract

Answer explanation

In a quasi contract, recovery is based on the principle of unjust enrichment. The plaintiff must show that they conferred a benefit on the defendant, and the defendant accepted or retained that benefit, making it unjust for the defendant not to pay for it. Quasi contracts do not require an express or implied promise, a valid contract, or a voidable contract.