Question 1

The element of intent is of prime importance in determining whether a contract has been formed.

Accepted Answer

A) True 
 B)False

Question 2

Home & Barn Construction, Inc., contracts with Idyll Farms to build a new dairy barn on Idyll's property for which Idyll agrees to pay.The elements of this, and any other, contract include

Accepted Answer

A)  the parties' capability. 
B)  consideration. 
C)  necessity of purpose. 
D)  theprice. 
A)  the parties' capability. 
B)  consideration. 
C)  necessity of purpose. 
D)  theprice.

Question 3

Lucy agrees to work for Mung Manufacturing, Ltd., as a Chinese/ English/ French translator. In determining whether a contract has been formed, an element of prime importance is

Accepted Answer

A)  the parties' intent. 
B)  Mung's base of operations. 
C)  the duration of the work. 
D)  Lucy's language capabilities. 
A)  the parties' intent. 
B)  Mung's base of operations. 
C)  the duration of the work. 
D)  Lucy's language capabilities.

Question 4

Peter offers to pay Quik Delivery (QD) $50 if it picks up and delivers to him a package of business documents from Rico within 30 minutes. QD can ac-cept the offer only by meeting the deadline. If QD performs as directed, these parties will have

Accepted Answer

A)  a bilateral contract. 
B)  a trilateral contract. 
C)  a unilateral contract. 
D)  no contract. 
A)  a bilateral contract. 
B)  a trilateral contract. 
C)  a unilateral contract. 
D)  no contract.

Question 5

Jim tells Dana that he will take her out to lunch on Thursday. Jim has made Dana

Accepted Answer

A) aprediction. 
B) apromise. 
C) abilateral contract. 
D) avoid contract. 
A) aprediction. 
B) apromise. 
C) abilateral contract. 
D) avoid contract.

Question 6

Randy promises to give Stewart her iPod in exchange for Stewart's promise to pay Randy $50. This bilateral contract was created when

Accepted Answer

A)  Randy offered to sell her iPod to Stewart. 
B)  Randy decided to sell her iPod. 
C)  Stewart promised to pay Randy $50. 
D)  Stewart became aware that Randy was willing to sell her iPod. 
A)  Randy offered to sell her iPod to Stewart. 
B)  Randy decided to sell her iPod. 
C)  Stewart promised to pay Randy $50. 
D)  Stewart became aware that Randy was willing to sell her iPod.

Question 7

Bo signs a lease with Capri Apartments to lease a studio apartment for the next year for $650 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.

Question 8

One of the requirements of a valid contract is an adequate price.

Accepted Answer

A) True 
 B)False

Question 9

Lana applies for a firefighter's job with Metro City, which responds with a letter setting an appointment for a medical exam. The letter also states that it is "an employment offer conditioned on the applicant passing the exam." This letter is

Accepted Answer

A)  a bilateral contract that Lana accepted by applying for the job. 
B)  a quasi contract on which Lana can rely for employment. 
C)  a unilateral contract that Lana can accept by passing the exam. 
D)  no contract. 
A)  a bilateral contract that Lana accepted by applying for the job. 
B)  a quasi contract on which Lana can rely for employment. 
C)  a unilateral contract that Lana can accept by passing the exam. 
D)  no contract.

Question 10

An unenforceable contract is one that cannot be enforced because of cer-tain legal defenses against it.

Accepted Answer

A) True 
 B)False

Question 11

An executed contract is one that has been fully performed.

Accepted Answer

A) True 
 B)False

Question 12

A unilateral contract is formed at the moment when the contract is performed.

Accepted Answer

A) True 
 B)False

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

An express contract mustbe in writing.

Accepted Answer

A) True 
 B)False

Question 15

Smith & Jones, Accountants, agrees to perform an audit for Brick & Mortar Stores, Inc. Whether or not this agreement meets all of the requirements of a contract, the parties are likely to follow the rules of contract law because they

Accepted Answer

A) want to avoid potential disputes. 
B) are conscious of those rules. 
C) arenot conscious of those rules. 
D) have a moral obligation to do so. 
A) want to avoid potential disputes. 
B) are conscious of those rules. 
C) arenot conscious of those rules. 
D) have a moral obligation to do so.

Question 16

Omar asserts that a deal he entered into with Patty to sponsor and host a motivational conference for independent sales representatives is an unenforce-able contract. Defenses to the enforcement of a contract include

Accepted Answer

A)  a desire not to perform. 
B)  insufficient capital. 
C)  preliminary indications of unsatisfactory results. 
D)  the lack of a party's voluntary consent. 
A)  a desire not to perform. 
B)  insufficient capital. 
C)  preliminary indications of unsatisfactory results. 
D)  the lack of a party's voluntary consent.

Question 17

InTown Delivery Service promises to deliver a certain couch to Kurt, who promises to pay for the service. If InTown does not perform, it may be required to

Accepted Answer

A)  do nothing. 
B)  make another promise. 
C)  pay money damages. 
D)  perform a different service. 
A)  do nothing. 
B)  make another promise. 
C)  pay money damages. 
D)  perform a different service.

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

A court will normally interpret the language of a contract according to what the parties claim their intent was when they made it.

Accepted Answer

A) True 
 B)False

Question 20

In contract law, intent is determined by the subjective theory of contracts.

Accepted Answer

A) True 
 B)False

Exam 10: Nature and Classification

The element of intent is of prime importance in determining whether a contract has been formed.

Home & Barn Construction, Inc., contracts with Idyll Farms to build a new dairy barn on Idyll's property for which Idyll agrees to pay.The elements of this, and any other, contract include

Lucy agrees to work for Mung Manufacturing, Ltd., as a Chinese/ English/ French translator. In determining whether a contract has been formed, an element of prime importance is

Peter offers to pay Quik Delivery (QD) $50 if it picks up and delivers to him a package of business documents from Rico within 30 minutes. QD can ac-cept the offer only by meeting the deadline. If QD performs as directed, these parties will have

Jim tells Dana that he will take her out to lunch on Thursday. Jim has made Dana

Randy promises to give Stewart her iPod in exchange for Stewart's promise to pay Randy $50. This bilateral contract was created when

Bo signs a lease with Capri Apartments to lease a studio apartment for the next year for $650 per month. Daisy signs on Capri's behalf. Bo and Capri have

One of the requirements of a valid contract is an adequate price.

Lana applies for a firefighter's job with Metro City, which responds with a letter setting an appointment for a medical exam. The letter also states that it is "an employment offer conditioned on the applicant passing the exam." This letter is

An unenforceable contract is one that cannot be enforced because of cer-tain legal defenses against it.

An executed contract is one that has been fully performed.

A unilateral contract is formed at the moment when the contract is performed.

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

An express contract mustbe in writing.

Smith & Jones, Accountants, agrees to perform an audit for Brick & Mortar Stores, Inc. Whether or not this agreement meets all of the requirements of a contract, the parties are likely to follow the rules of contract law because they

Omar asserts that a deal he entered into with Patty to sponsor and host a motivational conference for independent sales representatives is an unenforce-able contract. Defenses to the enforcement of a contract include

InTown Delivery Service promises to deliver a certain couch to Kurt, who promises to pay for the service. If InTown does not perform, it may be required to

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

A court will normally interpret the language of a contract according to what the parties claim their intent was when they made it.

In contract law, intent is determined by the subjective theory of contracts.

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