Question 1

"Consideration" refers to the genuine assent of all of the parties to a contract.

Accepted Answer

A) True 
 B)False

Question 2

On Monday,Neil tells Outdoor Landscaping,Inc.,that he will pay Outdoor $500 if a variety of tasks are completed by Friday.On Wednesday,when Outdoor is more than half done with the work,Neil says that he has changed his mind.These parties had

Accepted Answer

A) an expired contract when Neil said that he had changed his mind. 
B) a quasi contract when Neil said that he would pay for certain work. 
C) a unilateral contract as soon as Outdoor began to perform. 
D) no contract. 
A) an expired contract when Neil said that he had changed his mind. 
B) a quasi contract when Neil said that he would pay for certain work. 
C) a unilateral contract as soon as Outdoor began to perform. 
D) no contract.

Question 3

Clay offers to pay Dot $50 for a golf lesson for Eula.They agree to meet the day after tomorrow to exchange the cash for the lesson.These parties 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 4

Cathy assures Don that she will deliver his products as he directs.An assertion that one will do something in the future is part of the definition of

Accepted Answer

A) a declaration. 
B) a moral obligation. 
C) an ethical principle. 
D) a promise. 
A) a declaration. 
B) a moral obligation. 
C) an ethical principle. 
D) a promise.

Question 5

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 6

Some promises are not legally binding contracts.

Accepted Answer

A) True 
 B)False

Question 7

Opie offers to sell his guitar to Pinky for $100.Pinky agrees.They complete and sign a printed form that includes,near the blanks for their signatures,the word "seal." This is

Accepted Answer

A) a formal contract. 
B) an informal contract. 
C) a social contract. 
D) no contract. 
A) a formal contract. 
B) an informal contract. 
C) a social contract. 
D) no contract.

Question 8

An otherwise valid contract may be unenforceable if it is not in writing.

Accepted Answer

A) True 
 B)False

Question 9

A void contract is enforceable if it is in writing.

Accepted Answer

A) True 
 B)False

Question 10

Scot and Tiffany enter into an implied-in-fact contract.The parties' conduct

Accepted Answer

A) defines the contract's terms. 
B) finds the contract's facts. 
C) terminates any unintended consequences. 
D) undercuts any terms based on the facts. 
A) defines the contract's terms. 
B) finds the contract's facts. 
C) terminates any unintended consequences. 
D) undercuts any terms based on the facts.

Question 11

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

Accepted Answer

The objective theory of contracts is the

Question 12

An offer to form a bilateral contract is accepted only by completing the contract performance.

Accepted Answer

A) True 
 B)False

Question 13

Flo tells Gregor that she will buy his textbook from last semester for $65.Gregor agrees.Flo and Gregor have

Accepted Answer

A) an executed contract. 
B) an express contract. 
C) an implied-in-fact contract. 
D) a quasi contract. 
A) an executed contract. 
B) an express contract. 
C) an implied-in-fact contract. 
D) a quasi contract.

Question 14

The intention to enter into a contract is judged by objective facts as interpreted by a reasonable person.

Accepted Answer

A) True 
 B)False

Question 15

Ed,a businessperson,is a friend of Fran,the owner of a candy store.Every day,Ed spends five minutes in Fran's candy store,looking at the candy and usually buying one or two candy bars.One afternoon,Ed goes into the store,looks at the candy,and picks up a $1 candy bar.Ed waves the candy at Fran without saying a word and walks out.Is there a contract If so,how would it be classified in terms of formation,performance,and enforceability

Accepted Answer

The facts presented here indicate the pr

Question 16

A unilateral contract is formed when the one receiving the offer completes the requested act or performance.

Accepted Answer

A) True 
 B)False

Question 17

A voidable contract is a valid contract that can be avoided at the option of at least one of the parties to it.

Accepted Answer

A) True 
 B)False

Question 18

Cory enters into a contract with Dian to act as her personal sports trainer.If they later dispute the meaning,and the contract contains unclear terms,the rules of contract interpretation will give effect to

Accepted Answer

A) the parties' intent as expressed in their contract. 
B) what the defendant claims was the parties' intent. 
C) what the plaintiff 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 defendant claims was the parties' intent. 
C) what the plaintiff claims was the parties' intent. 
D) what the parties now agree they intended.

Question 19

Tania promises to buy Saki's handheld game-player for $75.Saki is

Accepted Answer

A) an executee. 
B) an offeror. 
C) a promisee. 
D) a promisor. 
A) an executee. 
B) an offeror. 
C) a promisee. 
D) a promisor.

Question 20

GR8 Marketing Company and Hot Tunes,Inc.,sign a document that states GR8 agrees to create a marketing campaign for Hot and Hot agrees to pay GR8 for the service.GR8 and Hot have

Accepted Answer

A) an executed contract. 
B) an express contract. 
C) an implied-in-fact contract. 
D) a quasi contract. 
A) an executed contract. 
B) an express contract. 
C) an implied-in-fact contract. 
D) a quasi contract.

Exam 9: Nature and Classification

"Consideration" refers to the genuine assent of all of the parties to a contract.

On Monday,Neil tells Outdoor Landscaping,Inc.,that he will pay Outdoor $500 if a variety of tasks are completed by Friday.On Wednesday,when Outdoor is more than half done with the work,Neil says that he has changed his mind.These parties had

Clay offers to pay Dot $50 for a golf lesson for Eula.They agree to meet the day after tomorrow to exchange the cash for the lesson.These parties have

Cathy assures Don that she will deliver his products as he directs.An assertion that one will do something in the future is part of the definition of

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

Some promises are not legally binding contracts.

Opie offers to sell his guitar to Pinky for $100.Pinky agrees.They complete and sign a printed form that includes,near the blanks for their signatures,the word "seal." This is

An otherwise valid contract may be unenforceable if it is not in writing.

A void contract is enforceable if it is in writing.

Scot and Tiffany enter into an implied-in-fact contract.The parties' conduct

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

An offer to form a bilateral contract is accepted only by completing the contract performance.

Flo tells Gregor that she will buy his textbook from last semester for $65.Gregor agrees.Flo and Gregor have

The intention to enter into a contract is judged by objective facts as interpreted by a reasonable person.

A unilateral contract is formed when the one receiving the offer completes the requested act or performance.

A voidable contract is a valid contract that can be avoided at the option of at least one of the parties to it.

Cory enters into a contract with Dian to act as her personal sports trainer.If they later dispute the meaning,and the contract contains unclear terms,the rules of contract interpretation will give effect to

Tania promises to buy Saki's handheld game-player for $75.Saki is

GR8 Marketing Company and Hot Tunes,Inc.,sign a document that states GR8 agrees to create a marketing campaign for Hot and Hot agrees to pay GR8 for the service.GR8 and Hot have

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