Question 1

According to the mailbox rule,a deposited acceptance creates a binding contract even if there is a revocation in the mail.

Accepted Answer

A) True 
 B)False  True

Question 2

The doctrine of quasi-contracts is predominantly based on a(n)

Accepted Answer

A)  reciprocal contract. 
B)  implied-in-law contract. 
C)  express contract. 
D)  bilateral contract. 
E)  unilateral contract. 
A)  reciprocal contract. 
B)  implied-in-law contract. 
C)  express contract. 
D)  bilateral contract. 
E)  unilateral contract. B

Question 3

What is a collateral promise?

Accepted Answer

A collateral promise is a secondary or conditional promise.Such a commitment arises when one person,a business shareholder for example,promises to repay the loan of the corporation if and only when that organization does not make payments.This collateral promise usually arises at a time different from the original obligation.Suppose the corporation borrows money from a bank and later finds it is having trouble making payments on time.To avoid the bank's calling the entire loan in default,the shareholder may promise to pay if the corporation does not.This promise by the shareholder is of a collateral nature and must be in writing to be enforced by the bank.

Question 4

A unilateral contract is an agreement containing mutual promises.

Accepted Answer

A) True 
 B)False

Question 5

Madison promises Grace $10 if Grace collects her dry cleaning for her.This is an example of a(n)______ contract.

Accepted Answer

A)  bilateral 
B)  unilateral 
C)  voidable 
D)  void 
E)  unenforceable 
A)  bilateral 
B)  unilateral 
C)  voidable 
D)  void 
E)  unenforceable

Question 6

A(n)______ is an agreement when one party has the right to withdraw from the promise made without incurring any legal liability.

Accepted Answer

A)  executed contract 
B)  voidable contract 
C)  void contract 
D)  implied-in-fact contract 
E)  reciprocal contract 
A)  executed contract 
B)  voidable contract 
C)  void contract 
D)  implied-in-fact contract 
E)  reciprocal contract

Question 7

Fred takes Betty to dinner at a very expensive and exclusive restaurant.The menu does not mention the prices.The server takes their order and both Fred and Betty enjoy the meal immensely.When the bill arrives,Fred refuses to pay because the menu had no prices and because he and the server never engaged in language indicating an offer and acceptance.The server said,"Are you ready to order?" and when Fred said "Yes," the server merely asked,"What may I get you tonight?" In the context of this scenario,which of the following statements is true?

Accepted Answer

A)  Fred must pay based on an implied-in-fact contract theory. 
B)  Fred must pay based on a promissory estoppel theory. 
C)  Fred must pay based on an express contract theory. 
D)  Fred is correct because no contract was formed. 
E)  Fred is correct because he and the server entered into an agreement without a written document. 
A)  Fred must pay based on an implied-in-fact contract theory. 
B)  Fred must pay based on a promissory estoppel theory. 
C)  Fred must pay based on an express contract theory. 
D)  Fred is correct because no contract was formed. 
E)  Fred is correct because he and the server entered into an agreement without a written document.

Question 8

Which of the following is an exception to the statute-of-frauds requirement that sale-of-goods contracts be in writing?

Accepted Answer

A)  a contract involving goods that are worth at least $500 
B)  a contract involving the sale of land 
C)  a contract for goods for which payment has been made 
D)  a contract for a service that lasts for 5 years 
E)  a collateral promise to pay another's debt 
A)  a contract involving goods that are worth at least $500 
B)  a contract involving the sale of land 
C)  a contract for goods for which payment has been made 
D)  a contract for a service that lasts for 5 years 
E)  a collateral promise to pay another's debt

Question 9

The remedy of quasi-contract generally applies only when

Accepted Answer

A)  there are more than three parties in a contractual agreement. 
B)  no actual contract exists to cover the dispute. 
C)  the contract is bilateral in nature. 
D)  no more than two parties expressly discuss the terms of their agreement. 
E)  implied warranties are included in a contract. 
A)  there are more than three parties in a contractual agreement. 
B)  no actual contract exists to cover the dispute. 
C)  the contract is bilateral in nature. 
D)  no more than two parties expressly discuss the terms of their agreement. 
E)  implied warranties are included in a contract.

Question 10

What is the mirror image rule?

Accepted Answer

For an acceptance to create a binding co

Question 11

Wright Corp.,a footwear manufacturer,sends an offer by fax to Dilsur Retailers Inc.to sell 100,000 pairs of shoes at $150 each and mentions that it will hold the offer open for Dilsur for two months.Four months after receiving Wright's offer,Dilsur faxes an acceptance.However,by this time,Wright has already entered a contract with another retailer.Discuss the situation.

Accepted Answer

The offer by Wright Corp.is an example o

Question 12

The deposited acceptance rule is also known as the ______.

Accepted Answer

A)  mirror image rule 
B)  mailbox rule 
C)  unilateral rule 
D)  bilateral rule 
E)  negotiation rule 
A)  mirror image rule 
B)  mailbox rule 
C)  unilateral rule 
D)  bilateral rule 
E)  negotiation rule

Question 13

A party who makes a unilateral mistake can void the contract.

Accepted Answer

A) True 
 B)False

Question 14

How are sales of interests in land covered by the statute of frauds?

Accepted Answer

Sales of interests in land are common co

Question 15

In the context of contracts formed by interactions of parties,which of the following arises from the conduct of the parties rather than from words?

Accepted Answer

A)  express contracts 
B)  implied-in-fact contracts 
C)  executed contracts 
D)  void contracts 
E)  adhesion contracts 
A)  express contracts 
B)  implied-in-fact contracts 
C)  executed contracts 
D)  void contracts 
E)  adhesion contracts

Question 16

Sam goes to a supermarket and fills his cart with food items,thereby pushing it up to a checkout line.Discuss the type of contract Sam and the supermarket have.

Accepted Answer

The parties have an implied-in-fact cont

Question 17

A(n)______ is one in which the promised terms of the contract are discussed by the parties.

Accepted Answer

A)  express contract 
B)  reciprocal contract 
C)  implied contract 
D)  bilateral contract 
E)  unilateral contract 
A)  express contract 
B)  reciprocal contract 
C)  implied contract 
D)  bilateral contract 
E)  unilateral contract

Question 18

The ultimate purpose of a contract is the creation of an agreement that courts will order parties to perform or to pay consequences for the failure of performance.When courts uphold the validity of such promises,the resulting agreement is a(n)______.

Accepted Answer

A)  absolute contract 
B)  differentiated contract 
C)  void contract 
D)  relative contract 
E)  enforceable contract 
A)  absolute contract 
B)  differentiated contract 
C)  void contract 
D)  relative contract 
E)  enforceable contract

Question 19

What is fraud and what are the specific elements required to establish fraud?

Accepted Answer

Fraud involves an intentional misstateme

Question 20

Which of the following statements is true about contract laws?

Accepted Answer

A)  Their application is confined to formally written documents. 
B)  They must be formal in order to be valid. 
C)  They enable private agreements to be legally enforceable. 
D)  They are applicable to all business dealings that are against public policy too. 
E)  They are invalid in instances that involve implied "promises." 
A)  Their application is confined to formally written documents. 
B)  They must be formal in order to be valid. 
C)  They enable private agreements to be legally enforceable. 
D)  They are applicable to all business dealings that are against public policy too. 
E)  They are invalid in instances that involve implied "promises."

According to the mailbox rule,a deposited acceptance creates a binding contract even if there is a revocation in the mail.

The doctrine of quasi-contracts is predominantly based on a(n)

What is a collateral promise?

A unilateral contract is an agreement containing mutual promises.

Madison promises Grace $10 if Grace collects her dry cleaning for her.This is an example of a(n)______ contract.

A(n)______ is an agreement when one party has the right to withdraw from the promise made without incurring any legal liability.

Which of the following is an exception to the statute-of-frauds requirement that sale-of-goods contracts be in writing?

The remedy of quasi-contract generally applies only when

What is the mirror image rule?

The deposited acceptance rule is also known as the ______.

A party who makes a unilateral mistake can void the contract.

How are sales of interests in land covered by the statute of frauds?

In the context of contracts formed by interactions of parties,which of the following arises from the conduct of the parties rather than from words?

Sam goes to a supermarket and fills his cart with food items,thereby pushing it up to a checkout line.Discuss the type of contract Sam and the supermarket have.

A(n)______ is one in which the promised terms of the contract are discussed by the parties.

The ultimate purpose of a contract is the creation of an agreement that courts will order parties to perform or to pay consequences for the failure of performance.When courts uphold the validity of such promises,the resulting agreement is a(n)______.

What is fraud and what are the specific elements required to establish fraud?

Which of the following statements is true about contract laws?

Law As a Foundation for Business

The Role of Ethics in Decision Making

The Court System

Litigation

Alternative Dispute Resolution

The Constitution

The Property System

Contractual Performance and Breach

Torts Affecting Business

Intellectual Property

International Law

Criminal Law and Business

Business Organizations

The Regulatory Process

Regulating Competitionantitrust Laws

Financial and Securities Regulations

Regulations Protecting Consumer Purchases, privacy, and Financial Activities

Environmental Regulation

Discrimination in Employment

Employment Laws

Labormanagement Relationship

Filters

Exam 8: Contract Formation

According to the mailbox rule,a deposited acceptance creates a binding contract even if there is a revocation in the mail.

The doctrine of quasi-contracts is predominantly based on a(n)

What is a collateral promise?

A unilateral contract is an agreement containing mutual promises.

Madison promises Grace $10 if Grace collects her dry cleaning for her.This is an example of a(n)______ contract.

A(n)______ is an agreement when one party has the right to withdraw from the promise made without incurring any legal liability.

Which of the following is an exception to the statute-of-frauds requirement that sale-of-goods contracts be in writing?

The remedy of quasi-contract generally applies only when

What is the mirror image rule?

The deposited acceptance rule is also known as the ______.

A party who makes a unilateral mistake can void the contract.

How are sales of interests in land covered by the statute of frauds?

In the context of contracts formed by interactions of parties,which of the following arises from the conduct of the parties rather than from words?

Sam goes to a supermarket and fills his cart with food items,thereby pushing it up to a checkout line.Discuss the type of contract Sam and the supermarket have.

A(n)______ is one in which the promised terms of the contract are discussed by the parties.

The ultimate purpose of a contract is the creation of an agreement that courts will order parties to perform or to pay consequences for the failure of performance.When courts uphold the validity of such promises,the resulting agreement is a(n)______.

What is fraud and what are the specific elements required to establish fraud?

Which of the following statements is true about contract laws?

Law As a Foundation for Business

The Role of Ethics in Decision Making

The Court System

Litigation

Alternative Dispute Resolution

The Constitution

The Property System

Contractual Performance and Breach

Torts Affecting Business

Intellectual Property

International Law

Criminal Law and Business

Business Organizations

The Regulatory Process

Regulating Competitionantitrust Laws

Financial and Securities Regulations

Regulations Protecting Consumer Purchases, privacy, and Financial Activities

Environmental Regulation

Discrimination in Employment

Employment Laws

Labormanagement Relationship

Filters