Exam 5: An Introduction to Contracts

Juha agreed to hire Zen Home Builders Ltd.(Zen)to construct his new home.Juha,Zen,and their lawyers met to review and sign a contract that provided for specific types of environmentally safe construction materials to be used.In many instances,Zen failed to use the stipulated "green" construction materials.What would a court,faced with determining a resolution to the ensuing dispute,rely on the existence of to establish the existence of the contract?

Which of the following best explains the requirement that "contracts must be supported by mutual consideration"?

Which of the following statements is true regarding legally enforceable contracts?

With respect to what the terms contained in a negotiated formal contract should ultimately be representative of,each parties' reasonable expectations will most likely be founded on which of the following?

Which of the following statements regarding written contracts is correct?

In order for a court to recognize a contract as a binding agreement between the contracting parties,there must be clear evidence of each party having given something of value in exchange for receiving something of value.

Which of the following is a defining characteristic of the principle of equality of bargaining power?

What is the primary source of law used by the courts when deciding contract law disputes?

An alternative to a contract is a casual understanding between the parties.Explain the disadvantages of casual understandings and outline the advantages of ensuring a business understanding is formalized by a contract.

Identify and briefly describe the necessary elements that must be present in order for a court to recognize a contract as a legally binding agreement.

A large greenhouse grower that wants to source a suitable organic liquid fertilizer contacts Organics.The grower is willing to pay a premium price for Organics's product.Accepting the order would mean Organics will not be able to completely fill existing orders to its current customers.Organics desires the new business but wants to maintain its existing customer base.Which of the following strategies should Organics use to solve this problem?

Two accomplished software developers want to combine their talents on a lucrative project offered by a large document storage firm.The developers will have their agreed roles and responsibilities incorporated into a formal contract to be prepared by their respective lawyers.Which of the following is a valid representation of the legal significance of the relationship between the parties that will be evidenced by the contract?

The purchase of stationery supplies from a retailer for cash,without an invoice or a receipt being provided in return,is an example of which of the following?

The principle of equality of bargaining power follows the rationale that parties should be able to rely on contractual commitments.

Identify and briefly describe the objectives that owners and managers should keep in mind when dealing with a customer who is attempting to expand or restrict an existing contract.

Contract law ensures that all parties concerned may rely on the terms included in the contract.

Which of the following is an example of an alternative method of dealing with a breach of contract,rather than starting a lawsuit?

Which of the following is a good reason to use a contract as opposed to having a casual understanding?

Goto Supplies Ltd.has determined that,because of increased production costs,it will actually lose money if it fulfills its contract to supply parts to Nova Manufacturing Inc.and is considering breaching the contract.What term used to describe the type of contract breach Goto is contemplating?