CONCEPT REVIEW:

Contracts lie at the heart of many of our social interactions and certainly are central to many business dealings.Contracts are legally enforceable promises.To qualify as a contract, the promises, supported by consideration, must build a voluntary agreement (between parties who have capacity) to do something that is legal. In some circumstances the promises must be written.

1)Which of the following items is required to build a legally enforceable contract?

a)An agreement.

b)All of these are required to build a legally enforceable contract.

c)Parties that have capacity.

d)Parties that enter into the agreement voluntarily.

e)Consideration..

2)How does a bilateral contract differ from a unilateral contract?

a)Unilateral contracts are written by one party and signed by the other.

b)In unilateral contracts, only one party makes a promise.

c)Bilateral contracts require at least one party to be freely entering into the contract.

d)Unilateral contracts do not require both parties to have capacity.

e)Bilateral contracts do not require a signed writing.

3)Valid contracts are________________________.

a)contracts that meet all legal requirements for a binding contract

b)contracts that create no legal obligations and for which no remedy will be given

c)contracts in which one or more of the parties have the legal right to cancel their obligations under the contract

d)contracts that are induced by either fraud or duress

e)contracts that meet the basic legal requirements for a contract but may not be enforceable because of some other legal rule

4)What types of contracts does the Uniform Commercial Code govern?

a)Contracts for the exchange of services.

b)Contracts for the sale of houses.

c)Contracts for the sale of real property.

d)Contracts for the sale of car repair services.

e)Contracts for the sale of goods.

5)If the Uniform Commercial Code (UCC) does not govern a contract, what law does govern?

a)Products liability law.

b)Agency law.

c)Intellectual property law.

d)Common law of contracts.

e)Tort law.