Exam 12: Nature and Classes of Contracts: Contracting on the Internet

An express contract is one in which the agreement is shown by the acts and conduct of the parties.

Negotiable instruments are examples of formal contracts.

When a contract sets a price for services rendered, a plaintiff cannot sue for reasonable value.

A recognizance is an agreement by which one party admits or recognizes that a specified sum of money is owed to another party.

An executory contract is:

With regard to a unilateral contract, the offeree does not accept the offer by express agreement, but rather by performance.

The principle behind the quasi contract is to prevent unjust enrichment.

An offer of a reward for the arrest and conviction of a criminal is an example of a:

A contract is essentially an agreement that creates an obligation.

An offer may be made only to a specific person.

Negotiable instruments are:

A right of __________ refusal is the right of a party to meet the terms of a proposed contract before it is executed, such as a real estate purchase agreement.

A reward offered to the public for the return of lost property is not considered an offer.

A legally binding agreement that can be rejected at the option of one of the parties is called a(n):

Only the parties who signed the original contract can have rights with respect to that contract.

An implied contract is shown by:

A bilateral contract consists of a:

An executory contract is an agreement by which something remains to be done by one or both parties.

A contract of record arises when the accountant of one of the parties has made an entry of the contract in the business record of that party.

The Martin family owned a home that was badly in need of repair. Mrs. Martin worked outside the home and Mr. Martin took care of the household responsibilities and cared for the two young Martin children. One day, Mrs. Martin left for work and a home repair crew drove up and began to put aluminum siding on the Martin house. Mr. Martin telephoned his wife, told her, and inquired about whether she had hired the workers. When the Martins realized that they never had ordered this work done, Mr. Martin sneaked out the back with the children. He later met his wife at work and they returned home for dinner. By that time, the entire front of the house had been aluminum-sided. The foreman asked, "Mr. and Mrs. Wolf, how do you like the job?" The Martins replied that they loved the job, but the Wolfs lived next door. When it became clear that the repair crew had made an error, the foreman insisted that the Martins had to pay. a. Decide the case, and explain the reason(s) for your decision. b. Decide the case, assuming that the Martins were away on vacation when the improvements were made, and then returned home to discover the improvements.