Exam 5: An Introduction to Contracts

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?

Matt purchases a car for his son from an auto dealership.A week later,his son discovers a defect that renders the car unsafe.The defect is one that a court would consider to be a breach of contract.What legal recourse is available to remedy this problem?

It is important for a business person to know when simple communications crystalize into legal obligations.

Which of the following is a requirement in order to have a legally enforceable agreement?

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 best describes the relationship between bargaining power and the law of contract?

With respect to the relationship that exists between contractual parties,what is meant by the phrase "meeting of the minds"?

What is the primary benefit of contract law to business?

It is a legal assumption in contract law that parties to a contract are able to look out for their own interests.

How should a manufacturer try to salvage its reputation after it has been discovered to have knowingly produced and sold a defective product to the public?

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.

Countdown Events made what looks like an offer to Roxy Theatre group to provide online ticketing services to Roxy in exchange for a share of ticket proceeds.Roxy has now accepted the offer.Countdown now insists it was only exploring a possible business relationship and did not intend to make an offer to Roxy.How will a court resolve this dispute?

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?

Courts will take into account the impact on the long-term relationship between the parties when applying contract law principles.

What types of employees should a company's head of risk management choose when putting together a negotiating team?

The law applies the principle of equality of bargaining power even though usually one party has an advantage over the other.

Which statement best describes written contracts?

Every contract is subject to the same set of mandatory rules.

Do all contracts have to be in writing in order to be legally enforceable? What are the advantages of putting your contract in writing?