Question 1

A contract is considered to be unequivocal even when a term is susceptible to more than one interpretation.

Accepted Answer

A) True 
 B)False

Question 2

A check is an informal contract.

Accepted Answer

A) True 
 B)False

Question 3

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have

Accepted Answer

A) no contract. 
B) an express contract. 
C) an implied contract. 
D) a quasi contract. 
A) no contract. 
B) an express contract. 
C) an implied contract. 
D) a quasi contract.

Question 4

On behalf of the jazz group Fusion, their manager Gabe agrees to a performance in Hilltop Amphitheatre on July 4. Gabe and Hilltop sign a written copy of the agreement. These parties have

Accepted Answer

A) an express contract. 
B) an implied contract. 
C) a quasi contract. 
D) no contract. 
A) an express contract. 
B) an implied contract. 
C) a quasi contract. 
D) no contract.

Question 5

A promisee has the right to expect or demand that something will or will not happen in the future.

Accepted Answer

A) True 
 B)False

Question 6

A contract that only one of the parties can enforce in a court is not valid.

Accepted Answer

A) True 
 B)False

Question 7

Cheri drives into Domestic Auto Service and asks to have a tire replaced on her car. Domestic replaces the tire. Before Cheri pays for it, any contract between them is

Accepted Answer

A) executed. 
B) executory. 
C) void. 
D) unenforceable. 
A) executed. 
B) executory. 
C) void. 
D) unenforceable.

Question 8

Fay offers to pay Grey $50 for a tennis lesson for Hetty. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have

Accepted Answer

A) a bilateral contract. 
B) a third-party contract. 
C) a unilateral contract. 
D) no contract. 
A) a bilateral contract. 
B) a third-party contract. 
C) a unilateral contract. 
D) no contract.

Question 9

Darcy enters into a contract with Event Center Inc. to use its venue for a business meeting. If an ambiguity appears in the contract that outside evidence does not make clear, it will most likely be

Accepted Answer

A) interpreted against the party responsible for creating it. 
B) struck from the deal. 
C) construed according to the court's discretion. 
D) applied in favor of the party who drafted the contract. 
A) interpreted against the party responsible for creating it. 
B) struck from the deal. 
C) construed according to the court's discretion. 
D) applied in favor of the party who drafted the contract.

Question 10

Sui enters into a contract with Trey to act as a personal sports trainer. If a dispute later arises over the parties' promises, the court will interpret the contract according to

Accepted Answer

A) the parties' intent at the time they entered into the contract. 
B) what the promisor claims was the parties' intent. 
C) what the promisee claims was the parties' intent. 
D) what the parties now agree they intended. 
A) the parties' intent at the time they entered into the contract. 
B) what the promisor claims was the parties' intent. 
C) what the promisee claims was the parties' intent. 
D) what the parties now agree they intended.

Question 11

A letter-of-credit agreement between Rural Grain Corporation and Soy Farm Inc. requires Rural's bank to pay Soy on receipt of invoices. This is

Accepted Answer

A) a formal contract. 
B) an informal contract. 
C) an implied contract. 
D) a quasi contract. 
A) a formal contract. 
B) an informal contract. 
C) an implied contract. 
D) a quasi contract.

Question 12

Laz is a friend of Maya, the owner of Nuevo Dias, a coffee kiosk. Every day, Laz spends five minutes at the kiosk, looking at the goods and usually buying one or two cinnamon buns or bagels. One morning, Laz looks at the items, and picks up a one-dollar donut. He waves the donut at Maya without saying a word and walks on. Is there a contract? If so, how would it be classified in terms of formation, performance, and enforceability?

Accepted Answer

The facts presented here indicate the pr

Question 13

Marketing Inc. offers to create a campaign to increase N'Ice Cream Inc.'s online business. N'Ice agrees to pay for the service. These parties have

Accepted Answer

A) no contract. 
B) an express contract. 
C) an implied contract. 
D) a quasi contract. 
A) no contract. 
B) an express contract. 
C) an implied contract. 
D) a quasi contract.

Question 14

Pavers Inc. contracts with a QuikStop store to repave the store's parking lot for a certain price. To be enforceable, this contract must include an element of

Accepted Answer

A) consideration. 
B) acceptability. 
C) achievability. 
D) practicality. 
A) consideration. 
B) acceptability. 
C) achievability. 
D) practicality.

Question 15

Odette, a certified public accountant, agrees to perform an audit for Personnel Inc. These parties are most likely to follow the rules of contract law in order to

Accepted Answer

A) avoid potential disputes. 
B) acquire business acumen. 
C) obtain confidential information. 
D) satisfy a moral obligation. 
A) avoid potential disputes. 
B) acquire business acumen. 
C) obtain confidential information. 
D) satisfy a moral obligation.

Question 16

An executed contract is one that has been fully performed by both parties to it.

Accepted Answer

A) True 
 B)False

Question 17

By supplying procedures for enforcing private agreements, contract law provides an essential condition for the existence of a market economy.

Accepted Answer

A) True 
 B)False

Question 18

Contracts relating to real estate are governed by the common law.

Accepted Answer

A) True 
 B)False

Question 19

The terms of service that a person agrees to before loading an app on a phone are not truly legally binding.

Accepted Answer

A) True 
 B)False

Question 20

Bo signs a lease with Capri Properties to lease a studio apartment for the next year for $850 per month. Daisy signs on Capri's behalf. Bo and Capri have

Accepted Answer

A) no contract. 
B) an express contract. 
C) an implied contract. 
D) a simple contract. 
A) no contract. 
B) an express contract. 
C) an implied contract. 
D) a simple contract.

Exam 11: Nature and Terminology

A contract is considered to be unequivocal even when a term is susceptible to more than one interpretation.

A check is an informal contract.

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have

On behalf of the jazz group Fusion, their manager Gabe agrees to a performance in Hilltop Amphitheatre on July 4. Gabe and Hilltop sign a written copy of the agreement. These parties have

A promisee has the right to expect or demand that something will or will not happen in the future.

A contract that only one of the parties can enforce in a court is not valid.

Cheri drives into Domestic Auto Service and asks to have a tire replaced on her car. Domestic replaces the tire. Before Cheri pays for it, any contract between them is

Fay offers to pay Grey $50 for a tennis lesson for Hetty. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have

Darcy enters into a contract with Event Center Inc. to use its venue for a business meeting. If an ambiguity appears in the contract that outside evidence does not make clear, it will most likely be

Sui enters into a contract with Trey to act as a personal sports trainer. If a dispute later arises over the parties' promises, the court will interpret the contract according to

A letter-of-credit agreement between Rural Grain Corporation and Soy Farm Inc. requires Rural's bank to pay Soy on receipt of invoices. This is

Marketing Inc. offers to create a campaign to increase N'Ice Cream Inc.'s online business. N'Ice agrees to pay for the service. These parties have

Pavers Inc. contracts with a QuikStop store to repave the store's parking lot for a certain price. To be enforceable, this contract must include an element of

Odette, a certified public accountant, agrees to perform an audit for Personnel Inc. These parties are most likely to follow the rules of contract law in order to

An executed contract is one that has been fully performed by both parties to it.

By supplying procedures for enforcing private agreements, contract law provides an essential condition for the existence of a market economy.

Contracts relating to real estate are governed by the common law.

The terms of service that a person agrees to before loading an app on a phone are not truly legally binding.

Bo signs a lease with Capri Properties to lease a studio apartment for the next year for $850 per month. Daisy signs on Capri's behalf. Bo and Capri have

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