Question 1

An agreement between two parties to perform an illegal act is a quasi-contract.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the following is true of quasi-contracts?

Accepted Answer

A)  It is an unenforceable contract. 
B)  It generally offends ethical principles. 
C)  It is always formed by an adult with a minor. 
D)  It prevents the unjust enrichment of a party. 
A)  It is an unenforceable contract. 
B)  It generally offends ethical principles. 
C)  It is always formed by an adult with a minor. 
D)  It prevents the unjust enrichment of a party. D

Question 3

The law states that a unilateral contract can be formed when performance is started.

Accepted Answer

A) True 
 B)False  False

Question 4

An enforceable contract is made by an adult with a minor. Which of the following is most likely to hold true in this case?

Accepted Answer

A)  The contract is enforceable against the adult but not against the minor. 
B)  The contract is enforceable against the minor but not against the adult. 
C)  The contract is not enforceable against either of the parties until the minor attains a majority. 
D)  The contract is enforceable against the adult only if the minor ratifies the contract. 
A)  The contract is enforceable against the adult but not against the minor. 
B)  The contract is enforceable against the minor but not against the adult. 
C)  The contract is not enforceable against either of the parties until the minor attains a majority. 
D)  The contract is enforceable against the adult only if the minor ratifies the contract.

Question 5

What is a contract? What are the five definite requirements that every contract must fulfill?

Accepted Answer

A contract can be defined as a legally e

Question 6

The legal term for one party benefiting unfairly at the expense of another is unjust enrichment.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following best describes the term "recognizance"?

Accepted Answer

A)  It refers to the conditions of a formal or simple contract that an adult signs with a minor. 
B)  It refers to the obligations that people enter into before a court to do an act required by law. 
C)  It refers to the penalties that a party faces if the party fails to honor the obligations of a contract. 
D)  It refers to negotiable instruments such as checks, notes, drafts, and certificates of deposit. 
A)  It refers to the conditions of a formal or simple contract that an adult signs with a minor. 
B)  It refers to the obligations that people enter into before a court to do an act required by law. 
C)  It refers to the penalties that a party faces if the party fails to honor the obligations of a contract. 
D)  It refers to negotiable instruments such as checks, notes, drafts, and certificates of deposit.

Question 8

The Uniform Commercial Code makes no distinction between contracts under seal and other written contracts for the sale of goods.

Accepted Answer

A) True 
 B)False

Question 9

One may have rights and obligations imposed by law even when no real contract exists.

Accepted Answer

A) True 
 B)False

Question 10

The failure of a party to perform the obligations assumed under a contract is known as a(n):

Accepted Answer

A)  intrinsic fraud. 
B)  misrepresentation. 
C)  negative pledge. 
D)  breach of contract. 
A)  intrinsic fraud. 
B)  misrepresentation. 
C)  negative pledge. 
D)  breach of contract.

Question 11

An agreement that does not meet all five of the requirements for a valid contract is known as an unenforceable contract.

Accepted Answer

A) True 
 B)False

Question 12

An executory contract is defined as:

Accepted Answer

A)  a contract that may be set aside or avoided by one of the parties. 
B)  a contract where the terms of the agreement are specified in words. 
C)  a contract that is required to be created in a special form or manner of creation. 
D)  a contract in which the terms have not been fully carried out by all parties. 
A)  a contract that may be set aside or avoided by one of the parties. 
B)  a contract where the terms of the agreement are specified in words. 
C)  a contract that is required to be created in a special form or manner of creation. 
D)  a contract in which the terms have not been fully carried out by all parties.

Question 13

Which of the following is true of unenforceable contracts?

Accepted Answer

A)  They are not valid contracts. 
B)  They are the same as voidable contracts. 
C)  They can be made enforceable by making a few changes to them. 
D)  They are contracts made for an unlawful purpose and the parties can be imprisoned. 
A)  They are not valid contracts. 
B)  They are the same as voidable contracts. 
C)  They can be made enforceable by making a few changes to them. 
D)  They are contracts made for an unlawful purpose and the parties can be imprisoned.

Question 14

A certificate of deposit is a negotiable instrument.

Accepted Answer

A) True 
 B)False

Question 15

All agreements are contracts.

Accepted Answer

A) True 
 B)False

Question 16

Informal contracts are also known as _____ contracts.

Accepted Answer

A)  express 
B)  implied 
C)  sealed 
D)  simple 
A)  express 
B)  implied 
C)  sealed 
D)  simple

Question 17

Which of the following is not a true contract and has been imposed by law in order to prevent one party benefiting unfairly at another's expense?

Accepted Answer

A)  A voidable contract 
B)  An informal contract 
C)  A quasicontract 
D)  A unilateral contract 
A)  A voidable contract 
B)  An informal contract 
C)  A quasicontract 
D)  A unilateral contract

Question 18

Ashley offers to pay $50 to Judy in return for babysitting Ashley's children over the weekend. Judy tells Ashley that she will think about it and convey her decision the next day.Which of the following is true in this case?

Accepted Answer

A)  A bilateral contract has been made between Ashley and Judy. 
B)  Judy has been unjustly enriched in this situation. 
C)  Only Ashley is under an enforceable obligation. 
D)  Judy has a duty to baby-sit the children. 
A)  A bilateral contract has been made between Ashley and Judy. 
B)  Judy has been unjustly enriched in this situation. 
C)  Only Ashley is under an enforceable obligation. 
D)  Judy has a duty to baby-sit the children.

Question 19

Only one party needs to give an agreement in order for a contract to be enforceable.

Accepted Answer

A) True 
 B)False

Question 20

When a contract is required to be sealed, a substitute for an actual seal may be used.

Accepted Answer

A) True 
 B)False

Exam 5: Nature and Classes of Contracts

An agreement between two parties to perform an illegal act is a quasi-contract.

Which of the following is true of quasi-contracts?

The law states that a unilateral contract can be formed when performance is started.

An enforceable contract is made by an adult with a minor. Which of the following is most likely to hold true in this case?

What is a contract? What are the five definite requirements that every contract must fulfill?

The legal term for one party benefiting unfairly at the expense of another is unjust enrichment.

Which of the following best describes the term "recognizance"?

The Uniform Commercial Code makes no distinction between contracts under seal and other written contracts for the sale of goods.

One may have rights and obligations imposed by law even when no real contract exists.

The failure of a party to perform the obligations assumed under a contract is known as a(n):

An agreement that does not meet all five of the requirements for a valid contract is known as an unenforceable contract.

An executory contract is defined as:

Which of the following is true of unenforceable contracts?

A certificate of deposit is a negotiable instrument.

All agreements are contracts.

Informal contracts are also known as _____ contracts.

Which of the following is not a true contract and has been imposed by law in order to prevent one party benefiting unfairly at another's expense?

Ashley offers to pay $50 to Judy in return for babysitting Ashley's children over the weekend. Judy tells Ashley that she will think about it and convey her decision the next day.Which of the following is true in this case?

Only one party needs to give an agreement in order for a contract to be enforceable.

When a contract is required to be sealed, a substitute for an actual seal may be used.

Introduction to Law

Courts and Court Procedure

Business Torts and Crimes

Government Regulation of Business

Offer and Acceptance

Capacity to Contract

Consideration

Defective Agreements

Illegal Agreements

Written Contracts

Third Parties and Contracts

Termination of Contracts

Nature of Personal Property

Special Bailments

Sales of Personal Property

Formalities of a Sale

Transfer of Title and Risk in Sales Con

Warranties, Product Liability, and Cons

Nature of Negotiable Instruments

Essentials of Negotiability

Promissory Notes and Drafts

Negotiation and Discharge

Liabilities of Parties and Holders in Due Course

Defenses

Nature and Creation of an Agency

Operation and Termination of an Agency

Employer and Employee Relations

Employees Rights

Labor Legislation

Introduction to Business Organization

Creation and Operation of a Partnership

Dissolution of a Partnership

Nature of a Corporation

Ownership of a Corporation

Management and Dissolution of a Corpora

Principles of Insurance

Types of Insurance

Security Devices

Bankruptcy

Nature of Real Property

Transfer of Real Property

Real Estate Mortgages

Landlord and Tenant

Wills, Inheritances, and Trusts

Filters