Question 1

A bilateral contract comes into existence at the moment promises are exchanged.

Accepted Answer

A) True 
 B)False

Question 2

Informal contracts are usually based on their sub-stance rather than their form.

Accepted Answer

A) True 
 B)False

Question 3

Ed,a businessperson,is a friend of Fran,the owner of a Percolated Coffee & Baked Goods store. Every day,Ed spends five minutes in Fran's store,looking at the goods and usually buying one or two cinnamon buns or bagels. One afternoon,Ed goes into the store,looks at the items,and picks up a $1 chocolate brownie. Ed waves the brownie at Fran without saying a word and walks out. Is there a con-tract? If so,how would it be classified in terms of formation,perform-ance,and enforceability?

Accepted Answer

The objective theory of contracts is the

Question 4

The person who makes a promise is the promisee.

Accepted Answer

A) True 
 B)False

Question 5

Robin claims that her contract with Stroud for tennis lessons is voidable. If their contract is avoided

Accepted Answer

A) both parties are released from it. 
B) both parties must fully perform their obligations under it. 
C) a wholly different contract is agreed to. 
D) a wholly different contract is imposed "as if" the parties had agreed. 
A) both parties are released from it. 
B) both parties must fully perform their obligations under it. 
C) a wholly different contract is agreed to. 
D) a wholly different contract is imposed "as if" the parties had agreed.

Question 6

A letter-of-credit agreement between Rural Feed Corporation and Soybean Farms,Inc.,requires Rural Feed's bank to pay Soybean Farms on receipt of invoices. This is a letter of credit,which is

Accepted Answer

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

Question 7

Wilson buys a lottery ticket at his local gas station. Wilson has accepted an offer for

Accepted Answer

A) abilateral contract. 
B) aunilateral contract. 
C) avoid contract. 
D) anunenforceable contract. 
A) abilateral contract. 
B) aunilateral contract. 
C) avoid contract. 
D) anunenforceable contract.

Question 8

Cody signs and returns a letter from Dora,referring to Dora's Bar-D Ranch and its price. When Cody attempts to complete the deal,Dora re-fuses,claiming that they have no con-tract. Cody claims they do. What standard determines whether these parties have a contract?

Accepted Answer

The objective theory of contracts is the

Question 9

An executed contract is one that has been fully performed.

Accepted Answer

A) True 
 B)False

Question 10

An express contract mustbe in writing.

Accepted Answer

A) True 
 B)False

Question 11

Jonathon promises to pay child support and alimony to his ex-wife every month after their divorce. Jonathon has

Accepted Answer

A) only a moral obligation to do keep his promise. 
B) only a legal obligation to keep his promise. 
C) both a legal and a moral obligation to keep his promise. 
D) no obligation to keep his promise. 
A) only a moral obligation to do keep his promise. 
B) only a legal obligation to keep his promise. 
C) both a legal and a moral obligation to keep his promise. 
D) no obligation to keep his promise.

Question 12

Sunny enters into a contract with Trey to act as his personal sports trainer. If a dispute later arises and the contract contains un-clear terms,the rules of contract interpretation will give effect to

Accepted Answer

A) the parties' intent as expressed in their 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 as expressed in their 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 13

On behalf of the rock group Uno,their manager Thalia agrees to a performance in Seaside Amphitheatre on July 4. Rex,acting for Seaside,sends a written copy of the agreement to Thalia to be signed. If Thalia signs the copy,the parties will have

Accepted Answer

A) an express contract. 
B) an implied contract. 
C) an implied-in-law contract. 
D) no contract. 
A) an express contract. 
B) an implied contract. 
C) an implied-in-law contract. 
D) no contract.

Question 14

If a contract term is ambiguous,a court can consider outside evidence.

Accepted Answer

A) True 
 B)False

Question 15

Expert Pavers,Inc.,contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay.The requirements of this,and any other,contract do not include

Accepted Answer

A) consideration. 
B) capacity. 
C) legality. 
D) practicality. 
A) consideration. 
B) capacity. 
C) legality. 
D) practicality.

Question 16

Francie drives into Gage's Auto Service and asks Hong,a Gage's employee,to replace a tire on Francie's car. After Hong replaces the tire,but before Francie pays for it,any contract between Francie and Gage's is

Accepted Answer

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

Question 17

A check is a formal contract.

Accepted Answer

A) True 
 B)False

Question 18

Every contract involves at least three parties.

Accepted Answer

A) True 
 B)False

Question 19

An executed contract is one that has been fully performed.

Accepted Answer

A) True 
 B)False

Question 20

Rough Water Fishing Trips,LLC,and Schafer enter into a contract for the delivery of a used freshwater fishing boat. Until the goods are delivered and paid for,these parties have

Accepted Answer

A) an executory contract. 
B) no contract. 
C) a quasi contract. 
D) an executed contract. 
A) an executory contract. 
B) no contract. 
C) a quasi contract. 
D) an executed contract.

Exam 10: Nature and Classification

A bilateral contract comes into existence at the moment promises are exchanged.

Informal contracts are usually based on their sub-stance rather than their form.

The person who makes a promise is the promisee.

Robin claims that her contract with Stroud for tennis lessons is voidable. If their contract is avoided

A letter-of-credit agreement between Rural Feed Corporation and Soybean Farms,Inc.,requires Rural Feed's bank to pay Soybean Farms on receipt of invoices. This is a letter of credit,which is

Wilson buys a lottery ticket at his local gas station. Wilson has accepted an offer for

Cody signs and returns a letter from Dora,referring to Dora's Bar-D Ranch and its price. When Cody attempts to complete the deal,Dora re-fuses,claiming that they have no con-tract. Cody claims they do. What standard determines whether these parties have a contract?

An executed contract is one that has been fully performed.

An express contract mustbe in writing.

Jonathon promises to pay child support and alimony to his ex-wife every month after their divorce. Jonathon has

Sunny enters into a contract with Trey to act as his personal sports trainer. If a dispute later arises and the contract contains un-clear terms,the rules of contract interpretation will give effect to

On behalf of the rock group Uno,their manager Thalia agrees to a performance in Seaside Amphitheatre on July 4. Rex,acting for Seaside,sends a written copy of the agreement to Thalia to be signed. If Thalia signs the copy,the parties will have

If a contract term is ambiguous,a court can consider outside evidence.

Expert Pavers,Inc.,contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay.The requirements of this,and any other,contract do not include

Francie drives into Gage's Auto Service and asks Hong,a Gage's employee,to replace a tire on Francie's car. After Hong replaces the tire,but before Francie pays for it,any contract between Francie and Gage's is

A check is a formal contract.

Every contract involves at least three parties.

An executed contract is one that has been fully performed.

Rough Water Fishing Trips,LLC,and Schafer enter into a contract for the delivery of a used freshwater fishing boat. Until the goods are delivered and paid for,these parties have

The Legal Environment

Constitutional Law

Courts and Alternative Dispute Resolution

Tort Law

Product Liability

Intellectual Property Rights

Internet Law, social Media, and Privacy

Criminal Law and Cyber Crime

Business Ethics

Agreement

Consideration

Capacity and Legality

Voluntary Consent

The Statute of Fraudswriting Requirement

Performance and Discharge

Breach and Remedies

Third Party Rights

International Law in a Global Economy

The Formation of Sales and Lease Contracts

Title and Risk of Loss

Performance and Breach of Sales and Lease Contracts

Negotiable Instruments

Banking in the Digital Age

Security Interests and Creditors Rights

Bankruptcy

Agency Relationships in Business

Employment, immigration, and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

All Forms of Partnership

Limited Liability Companies and Special Business Forms

Corporate Formation and Financing

Corporate Directors, officers, and Shareholders

Corporate Mergers, takeovers, and Termination

Investor Protection, insider Trading, and Corporate Governance

Administrative Law

Antitrust Law and Promoting Competition

Consumer and Environmental Law

Liability of Accountants and Other Professionals

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance, wills, and Trusts

Filters