Question 1

A person who discusses the terms of a purchase with a salesperson,pays cash for it,and takes the item with him,is making an unenforceable written contract.

Accepted Answer

A) True 
 B)False  False

Question 2

Contracts can be created for:

Accepted Answer

A)  only one specific purpose. 
B)  one or two purposes. 
C)  only for agreements that involve monetary transactions. 
D)  any number of purposes. 
A)  only one specific purpose. 
B)  one or two purposes. 
C)  only for agreements that involve monetary transactions. 
D)  any number of purposes. D

Question 3

A contract in which some future act or obligation remains to be performed under its terms is known as a(n):

Accepted Answer

A)  executed contract. 
B)  statutory contract. 
C)  contingent contract. 
D)  executory contract. 
A)  executed contract. 
B)  statutory contract. 
C)  contingent contract. 
D)  executory contract. D

Question 4

The seal on a formal contract may consist of simply the word "Seal" or "L.S." The "L.S." stands for:

Accepted Answer

A)  locus standi. 
B)  locus sigilli. 
C)  locus soliloquies. 
D)  locus signia. 
A)  locus standi. 
B)  locus sigilli. 
C)  locus soliloquies. 
D)  locus signia.

Question 5

A legally enforceable contract:

Accepted Answer

A)  must not violate the law. 
B)  can be void. 
C)  may contain a malafide intention. 
D)  need not be valid. 
A)  must not violate the law. 
B)  can be void. 
C)  may contain a malafide intention. 
D)  need not be valid.

Question 6

A contract must show mutual agreement,which is also referred to as "a meeting of the minds."

Accepted Answer

A) True 
 B)False

Question 7

When a customer asks a merchant to deliver an article to his home with no mention of payment,the buyer implies that he or she will pay the market price of the article when it is delivered or when the bill is presented.This is an illustration of a(n):

Accepted Answer

A)  simple contract. 
B)  consideration. 
C)  implied contract. 
D)  formal contract. 
A)  simple contract. 
B)  consideration. 
C)  implied contract. 
D)  formal contract.

Question 8

The element of proper form in a contract refers to the:

Accepted Answer

A)  requirement of written form. 
B)  legal wording of the contract. 
C)  legal forms. 
D)  exchange of promises. 
A)  requirement of written form. 
B)  legal wording of the contract. 
C)  legal forms. 
D)  exchange of promises.

Question 9

If an agreement imposes a legal obligation,then it is:

Accepted Answer

A)  enforceable. 
B)  unenforceable. 
C)  a negated concurrence. 
D)  a void contract. 
A)  enforceable. 
B)  unenforceable. 
C)  a negated concurrence. 
D)  a void contract.

Question 10

An offer is a proposal made by one party (offeror)to another (offeree)that indicates willingness to:

Accepted Answer

A)  enter into a contract. 
B)  negotiate a service or exchange. 
C)  consider a service or exchange. 
D)  reject an offer. 
A)  enter into a contract. 
B)  negotiate a service or exchange. 
C)  consider a service or exchange. 
D)  reject an offer.

Question 11

Describe the conditions that determine the enforceability of a contract.

Accepted Answer

All contracts are not enforceable.Only t

Question 12

To be legally enforceable,a contract must contain the six elements as mentioned in the law.If one of these elements is missing,the court will usually:

Accepted Answer

A)  enforce the contract. 
B)  refer the matter to the superior courts. 
C)  refuse to enforce the contract. 
D)  validate the contract. 
A)  enforce the contract. 
B)  refer the matter to the superior courts. 
C)  refuse to enforce the contract. 
D)  validate the contract.

Question 13

The element of consideration in a contract refers to the:

Accepted Answer

A)  competence of the parties. 
B)  purpose of the contract. 
C)  parties' exchange of promises. 
D)  form of the contract. 
A)  competence of the parties. 
B)  purpose of the contract. 
C)  parties' exchange of promises. 
D)  form of the contract.

Question 14

The Uniform Commercial Code (UCC)defines a contract under the provision:

Accepted Answer

A)  UCC 1-201(10). 
B)  UCC 1-201(11). 
C)  UCC 1-201(12). 
D)  UCC 1-201(13). 
A)  UCC 1-201(10). 
B)  UCC 1-201(11). 
C)  UCC 1-201(12). 
D)  UCC 1-201(13).

Question 15

An agreement that lacks one or more of the essential elements of a contract from the very beginning is a:

Accepted Answer

A)  voidable and unenforceable contract. 
B)  void and unenforceable contract. 
C)  valid and enforceable contract. 
D)  void, but enforceable contract. 
A)  voidable and unenforceable contract. 
B)  void and unenforceable contract. 
C)  valid and enforceable contract. 
D)  void, but enforceable contract.

Question 16

It is not required for a formal contract to be written under a contract seal.

Accepted Answer

A) True 
 B)False

Question 17

An executory contract is one in which the terms of the agreement have not yet been fully performed.

Accepted Answer

A) True 
 B)False

Question 18

In the event of a dispute involving a sum of $500,contracted into for a period of one year through an oral agreement,how would the parties establish exactly what was agreed between them?

Accepted Answer

The parties would attempt to e

Question 19

Briefly explain the kinds of contracts.

Accepted Answer

Contracts may be classified into many ca

Question 20

The parties to a contract must have a clear understanding of what they are undertaking; that is,the contract must show:

Accepted Answer

A)  mutual agreement. 
B)  legality of purpose. 
C)  consideration. 
D)  competency of parties. 
A)  mutual agreement. 
B)  legality of purpose. 
C)  consideration. 
D)  competency of parties.

Exam 7: Introduction to Contracts

A person who discusses the terms of a purchase with a salesperson,pays cash for it,and takes the item with him,is making an unenforceable written contract.

Contracts can be created for:

A contract in which some future act or obligation remains to be performed under its terms is known as a(n):

The seal on a formal contract may consist of simply the word "Seal" or "L.S." The "L.S." stands for:

A legally enforceable contract:

A contract must show mutual agreement,which is also referred to as "a meeting of the minds."

When a customer asks a merchant to deliver an article to his home with no mention of payment,the buyer implies that he or she will pay the market price of the article when it is delivered or when the bill is presented.This is an illustration of a(n):

The element of proper form in a contract refers to the:

If an agreement imposes a legal obligation,then it is:

An offer is a proposal made by one party (offeror)to another (offeree)that indicates willingness to:

Describe the conditions that determine the enforceability of a contract.

To be legally enforceable,a contract must contain the six elements as mentioned in the law.If one of these elements is missing,the court will usually:

The element of consideration in a contract refers to the:

The Uniform Commercial Code (UCC)defines a contract under the provision:

An agreement that lacks one or more of the essential elements of a contract from the very beginning is a:

It is not required for a formal contract to be written under a contract seal.

An executory contract is one in which the terms of the agreement have not yet been fully performed.

In the event of a dispute involving a sum of $500,contracted into for a period of one year through an oral agreement,how would the parties establish exactly what was agreed between them?

Briefly explain the kinds of contracts.

The parties to a contract must have a clear understanding of what they are undertaking; that is,the contract must show:

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