Question 1

When a contract is authenticated by the affixing of a seal, the contract will be enforceable even when it lacks

Accepted Answer

A)  an acceptance. 
B)  contractual intention. 
C)  consideration. 
D)  a promissory basis. 
E)  an offer. 
A)  an acceptance. 
B)  contractual intention. 
C)  consideration. 
D)  a promissory basis. 
E)  an offer. C

Question 2

An intention to create legal relations exists if

Accepted Answer

A)  the court examines the facts and determines that the parties intended to enter into legal relations. 
B)  a reasonable person would believe that the parties intended to be bound by the contract. 
C)  there is an offer, acceptance and consideration. 
D)  the parties have capacity to enter into a contract. 
E)  the promisor and the promisee have identified all the consideration involved in the contract. 
A)  the court examines the facts and determines that the parties intended to enter into legal relations. 
B)  a reasonable person would believe that the parties intended to be bound by the contract. 
C)  there is an offer, acceptance and consideration. 
D)  the parties have capacity to enter into a contract. 
E)  the promisor and the promisee have identified all the consideration involved in the contract. B

Question 3

On March 1, Al agrees to sell Barb his house for $250,000. Barb pays a deposit of $15,000, and they agree that title will transfer and the price will be paid on April 30. The agreement is signed by both parties under seal. What is the consideration on Barb's part?

Accepted Answer

A)  quantum meruit 
B)  there is no consideration 
C)  the deposit of $15,000 
D)  the promise to pay the $250,000 
E)  the seal 
A)  quantum meruit 
B)  there is no consideration 
C)  the deposit of $15,000 
D)  the promise to pay the $250,000 
E)  the seal D

Question 4

Banks ensure that contracts are binding by affixing seals to them after they are signed.

Accepted Answer

A) True 
 B)False

Question 5

Quantum meruit is

Accepted Answer

A)  the amount of money that a person is entitled to be paid under the terms of a contract. 
B)  the amount of compensation that a person is entitled to be paid if a party breaches a contract. 
C)  the amount that a person merits to be paid for services or goods provided to the person who requests them. 
D)  the amount of compensation to which a party is entitled for losses flowing indirectly from a breach of contract. 
E)  the extent of the loss that a person incurs from a breach of contract. 
A)  the amount of money that a person is entitled to be paid under the terms of a contract. 
B)  the amount of compensation that a person is entitled to be paid if a party breaches a contract. 
C)  the amount that a person merits to be paid for services or goods provided to the person who requests them. 
D)  the amount of compensation to which a party is entitled for losses flowing indirectly from a breach of contract. 
E)  the extent of the loss that a person incurs from a breach of contract.

Question 6

A promise that is made without bargaining for or accepting anything in return is a

Accepted Answer

A)  covenant. 
B)  consideration. 
C)  quantum meruit. 
D)  gratuitous promise. 
E)  promissory estoppel. 
A)  covenant. 
B)  consideration. 
C)  quantum meruit. 
D)  gratuitous promise. 
E)  promissory estoppel.

Question 7

When a contract is sealed,

Accepted Answer

A)  a party indicates his or her intention to be bound by the terms because a breach of contract could result. 
B)  the document is tightly closed. 
C)  the document may be used as evidence in court proceedings. 
D)  a party indicates his or her intention to be bound by the terms of a contract even though the promisee may not have provided consideration to support the promise. 
E)  the promisor swears an affidavit that the contents of the document are true. 
A)  a party indicates his or her intention to be bound by the terms because a breach of contract could result. 
B)  the document is tightly closed. 
C)  the document may be used as evidence in court proceedings. 
D)  a party indicates his or her intention to be bound by the terms of a contract even though the promisee may not have provided consideration to support the promise. 
E)  the promisor swears an affidavit that the contents of the document are true.

Question 8

The principle of injurious reliance is

Accepted Answer

A)  the contractual relationship that arises between an injured party and the person or persons on whom this injured party relies. 
B)  the personal injury that is suffered by persons who are involved in contractual situations. 
C)  the loss or harm that is suffered by a promisee, who, to his or her detriment relies on a gratuitous promise. 
D)  the injury that a person in a contractual relationship suffers when there is a breach of contract. 
E)  is the amount of compensation that is awarded to a party where there is a breach of contract. 
A)  the contractual relationship that arises between an injured party and the person or persons on whom this injured party relies. 
B)  the personal injury that is suffered by persons who are involved in contractual situations. 
C)  the loss or harm that is suffered by a promisee, who, to his or her detriment relies on a gratuitous promise. 
D)  the injury that a person in a contractual relationship suffers when there is a breach of contract. 
E)  is the amount of compensation that is awarded to a party where there is a breach of contract.

Question 9

Injurious reliance and equitable estoppel are two sides of the same coin. Explain.

Accepted Answer

The US principle of injurious reliance,

Question 10

The use of a seal to make a promise binding does not do away with the need for the other elements of a valid contract. Explain.

Accepted Answer

Where a contract is made under seal, the

Question 11

Consideration is

Accepted Answer

A)  the offer that is made to another. 
B)  the price that is paid for the promise of another. 
C)  a special kind of acceptance. 
D)  a special kind of gratuitous promise. 
E)  the acceptance of an offer. 
A)  the offer that is made to another. 
B)  the price that is paid for the promise of another. 
C)  a special kind of acceptance. 
D)  a special kind of gratuitous promise. 
E)  the acceptance of an offer.

Question 12

Why is a promise to perform a pre- existing legal duty not consideration?

Accepted Answer

A person who owes a pre- existing legal

Question 13

James does some work for Jim. Jim refuses to pay in the grounds that not all the work was done. Jack takes Jim to court and the judge says Jack is entitled to a quantum meruit. This means that

Accepted Answer

A)  Jim must pay a reasonable amount for the services rendered. 
B)  Jack is entitled to his expenses. 
C)  a dispute regarding the price should be resolved by arbitration. 
D)  a price will be fixed for the work done. 
E)  the parties will agree on the appropriate price. 
A)  Jim must pay a reasonable amount for the services rendered. 
B)  Jack is entitled to his expenses. 
C)  a dispute regarding the price should be resolved by arbitration. 
D)  a price will be fixed for the work done. 
E)  the parties will agree on the appropriate price.

Question 14

Quantum meruit does not refer to the reasonable amount that a person merits for goods and services provided.

Accepted Answer

A) True 
 B)False

Question 15

What is a gratuitous promise? Can such a promise support a contract?

Accepted Answer

A gratuitous promise that is made withou

Question 16

The moral duty on the party of a promisor to perform his promise is called

Accepted Answer

A)  injurious reliance. 
B)  consideration. 
C)  civic duty. 
D)  moral cause. 
E)  estoppel. 
A)  injurious reliance. 
B)  consideration. 
C)  civic duty. 
D)  moral cause. 
E)  estoppel.

Question 17

Motive is irrelevant to consideration. Explain.

Accepted Answer

Consideration is the price that one pers

Question 18

A document made under seal, does not require consideration.

Accepted Answer

A) True 
 B)False

Question 19

Is it possible for a person to enter into an enforceable contract without receiving any benefit from the agreement?

Accepted Answer

It is possible for a person to enter int

Question 20

What is a gratuitous promise?

Accepted Answer

A promise

Exam 6: Formation of a Contract: Consideration, and Intention to Create Legal Relations

When a contract is authenticated by the affixing of a seal, the contract will be enforceable even when it lacks

An intention to create legal relations exists if

On March 1, Al agrees to sell Barb his house for $250,000. Barb pays a deposit of $15,000, and they agree that title will transfer and the price will be paid on April 30. The agreement is signed by both parties under seal. What is the consideration on Barb's part?

Banks ensure that contracts are binding by affixing seals to them after they are signed.

Quantum meruit is

A promise that is made without bargaining for or accepting anything in return is a

When a contract is sealed,

The principle of injurious reliance is

Injurious reliance and equitable estoppel are two sides of the same coin. Explain.

The use of a seal to make a promise binding does not do away with the need for the other elements of a valid contract. Explain.

Consideration is

Why is a promise to perform a pre- existing legal duty not consideration?

James does some work for Jim. Jim refuses to pay in the grounds that not all the work was done. Jack takes Jim to court and the judge says Jack is entitled to a quantum meruit. This means that

Quantum meruit does not refer to the reasonable amount that a person merits for goods and services provided.

What is a gratuitous promise? Can such a promise support a contract?

The moral duty on the party of a promisor to perform his promise is called

Motive is irrelevant to consideration. Explain.

A document made under seal, does not require consideration.

Is it possible for a person to enter into an enforceable contract without receiving any benefit from the agreement?

What is a gratuitous promise?

Law and Society

The Machinery of Justice

The Law of Torts

Professional Liability

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Impeached: Mistake

Grounds Upon Which a Contract May Be Impeached: Misrepresentation, Undue Influence, and Duress

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

The Effect of Breach

Remedies for Breach

Sale of Goods

Leasing and Bailment

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

The Internal Affairs of Corporations

The External Responsibilities of a Corporation

Secured Transactions

Creditors Rights

Government Regulation of Business

International Business Transactions

Electronic Commerce

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