Question 1

Identify and describe the four elements that are necessary for a contract to exist.

Accepted Answer

The four elements necessary for a contra

Question 2

Which of the following is a measure of recovery when a quasi-contract is involved?

Accepted Answer

A)  The amount set forth in the contract. 
B)  The fair market value of the matter involved. 
C)  The wholesale price of any good involved. 
D)  The amount sought by the plaintiff in the complaint. 
E)  Damages will be computed the same as they are computed for any other contract. 
A)  The amount set forth in the contract. 
B)  The fair market value of the matter involved. 
C)  The wholesale price of any good involved. 
D)  The amount sought by the plaintiff in the complaint. 
E)  Damages will be computed the same as they are computed for any other contract.

Question 3

Which of the following sets forth the common law rule that the terms of an acceptance must mirror the terms of the offer?

Accepted Answer

A)  The Matching Rule. 
B)  The Complete Rule. 
C)  The Mirror Image Rule. 
D)  The Exact Rule. 
E)  The Parallel Rule. 
A)  The Matching Rule. 
B)  The Complete Rule. 
C)  The Mirror Image Rule. 
D)  The Exact Rule. 
E)  The Parallel Rule.

Question 4

Harry accepts Frank's offer to sell a used car for $2,000. At what point is there a binding contract?

Accepted Answer

A)  When the agreement is made. 
B)  When the money is paid. 
C)  When the car is delivered. 
D)  Ten days after the car is delivered and approved. 
E)  Twenty days after the car is delivered and approved. 
A)  When the agreement is made. 
B)  When the money is paid. 
C)  When the car is delivered. 
D)  Ten days after the car is delivered and approved. 
E)  Twenty days after the car is delivered and approved.

Question 5

Which of the following is, in effect, not a contract at all?

Accepted Answer

A)  A voidable contract. 
B)  An executory contract. 
C)  An implied contract. 
D)  An executed contract. 
E)  A void contract. 
A)  A voidable contract. 
B)  An executory contract. 
C)  An implied contract. 
D)  An executed contract. 
E)  A void contract.

Question 6

Any contact that is not a formal contract is an informal contract, also called a simple contract.

Accepted Answer

A) True 
 B)False

Question 7

A[n] ___________ is a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.

Accepted Answer

A)  Contract. 
B)  Offer. 
C)  Consideration. 
D)  Acceptance. 
E)  Legal object. 
A)  Contract. 
B)  Offer. 
C)  Consideration. 
D)  Acceptance. 
E)  Legal object.

Question 8

All contracts can be categorized as either ___________ or ____________ contracts.

Accepted Answer

A)  Unilateral or complete. 
B)  Unilateral or trilateral. 
C)  Bilateral or trilateral. 
D)  Unilateral or bilateral. 
E)  Bilateral or complete. 
A)  Unilateral or complete. 
B)  Unilateral or trilateral. 
C)  Bilateral or trilateral. 
D)  Unilateral or bilateral. 
E)  Bilateral or complete.

Question 9

Quasi-contracts are actual contracts.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true if no means of communicating an acceptance is specified in an offer?

Accepted Answer

A)  The acceptance must be in writing. 
B)  The acceptance must be made verbally either by telephone or in person. 
C)  No valid contract may be entered into because the offer must specify a means by which to accept. 
D)  Acceptance may be made by any reasonable means. 
E)  Acceptance must be made orally or in writing within twenty-four hours. 
A)  The acceptance must be in writing. 
B)  The acceptance must be made verbally either by telephone or in person. 
C)  No valid contract may be entered into because the offer must specify a means by which to accept. 
D)  Acceptance may be made by any reasonable means. 
E)  Acceptance must be made orally or in writing within twenty-four hours.

Question 11

Once all of the terms of the contract have been fully performed, the contract is said to be _____________.

Accepted Answer

A)  Executory. 
B)  Executed. 
C)  Anticipatory. 
D)  Ended. 
E)  Stopped. 
A)  Executory. 
B)  Executed. 
C)  Anticipatory. 
D)  Ended. 
E)  Stopped.

Question 12

Which of the following provides that a revocation is effective only when received by the offeree?

Accepted Answer

A)  The Acceptance Rule. 
B)  The Contract Rule. 
C)  The Reasonable Rule. 
D)  The Mailbox Rule. 
E)  The Contract Legality Rule. 
A)  The Acceptance Rule. 
B)  The Contract Rule. 
C)  The Reasonable Rule. 
D)  The Mailbox Rule. 
E)  The Contract Legality Rule.

Question 13

Reference - Used Car Sales. Walter sells used cars. He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands. The first thing that Walter does is say that during the first week of December, he will give a $500 rebate on used cars under two years old. To spice things up, he also offers to sell any car on the lot that is under five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th. (Hula hooping was a practice popular some years ago in which a large hoop would be swung around by a person, usually around the waist.) Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hula hoop for ten hours straight. Walter put an advertisement pertaining to the rebate and hula hoop opportunity in the local newspaper. The promotion went over very well. Although he had several on hand, Walter ran out of cars under two years old within one day. During the rest of the week shoppers were told that no cars of that description were available. A customer named Sam was very unhappy when he discovered the next day that no cars under two years old were available. On December 7th, while Walter was watching the hula hoopers, Sally was shopping for a car. She was in college and did not have much money. She saw one, an older car, that she liked but she really did not know if it ran or not. She was going to talk to her parents. Walter eventually approached her and Sally asked him if he would take $3,000 for the car. Walter said, "Yes, sold." Sally tried to explain that she needed to talk to her parents first, but Walter would not hear of it. While Walter was still fuming from his encounter with Sally, Zack walked up and started to criticize the nature of Walter's inventory. Walter told him that he had great cars. Zack pointed at an old jalopy that was banged up, had 200,000 miles on it, and a cracked windshield. Zack said, "Sure, I'll pay $10,000 for that car." Walter said, "Sold." Zack said, "Wait a minute. I was only kidding." Walter said, "No way." Meanwhile all the hula hoopers dropped out well prior to ten hours of hula hooping except for Barbara. One minute before the ten hours were up, Walter yelled out "I revoke!" Barbara completed the hula hooping anyway and asked for her car for $1,000. Walter refused saying that the offer was revoked. Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate. Additionally, Barbara sued Walter, and Walter sued Zack and Sally. What is the most likely result in the lawsuit brought by Barbara against Walter?

Accepted Answer

A)  Walter will win because he was only engaged in preliminary negotiations. 
B)  Walter will win because the advertisement was simply inviting customers, such as Barbara, to make an offer. 
C)  Walter will win because he properly revoked the offer. 
D)  Barbara will win because the ad would be treated as an offer that she properly accepted. 
E)  Barbara will win because she properly made an offer that was accepted by Walter when he allowed her to continue hula hooping. 
A)  Walter will win because he was only engaged in preliminary negotiations. 
B)  Walter will win because the advertisement was simply inviting customers, such as Barbara, to make an offer. 
C)  Walter will win because he properly revoked the offer. 
D)  Barbara will win because the ad would be treated as an offer that she properly accepted. 
E)  Barbara will win because she properly made an offer that was accepted by Walter when he allowed her to continue hula hooping.

Question 14

Which of the following consists of an offer by one party and an acceptance of the terms by another party?

Accepted Answer

A)  Legal object. 
B)  Agreement. 
C)  Coherence. 
D)  Alliance. 
E)  Concurrence. 
A)  Legal object. 
B)  Agreement. 
C)  Coherence. 
D)  Alliance. 
E)  Concurrence.

Question 15

Which of the following are the two most important sources of contract law?

Accepted Answer

A)  Case law and the Restatement of Law. 
B)  Case law and the Uniform Commercial Code. 
C)  The Uniform Commercial Code and the Convention on Contracts for International Sales of Goods. 
D)  Case law and the Convention on Contracts for International Sales of Goods. 
E)  The Convention on Contracts for International Sales of Goods and the Restatement of the Law, Contracts. 
A)  Case law and the Restatement of Law. 
B)  Case law and the Uniform Commercial Code. 
C)  The Uniform Commercial Code and the Convention on Contracts for International Sales of Goods. 
D)  Case law and the Convention on Contracts for International Sales of Goods. 
E)  The Convention on Contracts for International Sales of Goods and the Restatement of the Law, Contracts.

Question 16

The person who agrees to the terms of an offer by another party is called the ___________.

Accepted Answer

A)  Offeree. 
B)  Offeror. 
C)  Agreeor. 
D)  Agree. 
E)  Inquiror. 
A)  Offeree. 
B)  Offeror. 
C)  Agreeor. 
D)  Agree. 
E)  Inquiror.

Question 17

Which of the following is a definition for consideration?

Accepted Answer

A)  Being cordial in the negotiation of contracts. 
B)  Refraining from unethical behavior in the negotiation of contracts. 
C)  Being both cordial and refraining from unethical behavior in the negotiation of contracts. 
D)  A bargained-for exchange. 
E)  A contract negotiated in person as opposed to by telephone or e-mail. 
A)  Being cordial in the negotiation of contracts. 
B)  Refraining from unethical behavior in the negotiation of contracts. 
C)  Being both cordial and refraining from unethical behavior in the negotiation of contracts. 
D)  A bargained-for exchange. 
E)  A contract negotiated in person as opposed to by telephone or e-mail.

Question 18

In which of the following ways may an offeree accept a unilateral contract?

Accepted Answer

A)  By making a counteroffer. 
B)  By a signed writing only. 
C)  By either verbal acceptance or a signed writing. 
D)  By performance. 
E)  By performance, by a verbal acceptance, or by a signed writing. 
A)  By making a counteroffer. 
B)  By a signed writing only. 
C)  By either verbal acceptance or a signed writing. 
D)  By performance. 
E)  By performance, by a verbal acceptance, or by a signed writing.

Question 19

In order to recover under quasi-contract, there is no requirement that enrichment be unjust.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following references the requirement that a contract not be either illegal or against public policy?

Accepted Answer

A)  Consideration. 
B)  Capacity. 
C)  Legal object. 
D)  Illegal prohibition. 
E)  Ethical requirement. 
A)  Consideration. 
B)  Capacity. 
C)  Legal object. 
D)  Illegal prohibition. 
E)  Ethical requirement.

Exam 8: Real, Personal, and Intellectual Property

Identify and describe the four elements that are necessary for a contract to exist.

Which of the following is a measure of recovery when a quasi-contract is involved?

Which of the following sets forth the common law rule that the terms of an acceptance must mirror the terms of the offer?

Harry accepts Frank's offer to sell a used car for $2,000. At what point is there a binding contract?

Which of the following is, in effect, not a contract at all?

Any contact that is not a formal contract is an informal contract, also called a simple contract.

A[n] ___________ is a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.

All contracts can be categorized as either ___________ or ____________ contracts.

Quasi-contracts are actual contracts.

Which of the following is true if no means of communicating an acceptance is specified in an offer?

Once all of the terms of the contract have been fully performed, the contract is said to be _____________.

Which of the following provides that a revocation is effective only when received by the offeree?

Which of the following consists of an offer by one party and an acceptance of the terms by another party?

Which of the following are the two most important sources of contract law?

The person who agrees to the terms of an offer by another party is called the ___________.

Which of the following is a definition for consideration?

In which of the following ways may an offeree accept a unilateral contract?

In order to recover under quasi-contract, there is no requirement that enrichment be unjust.

Which of the following references the requirement that a contract not be either illegal or against public policy?

An Introduction to the Fundamentals of Dynamic Business Law

Business Ethics and Social Responsibility

The Us Legal System and Alternative Dispute Resolution

Administrative Law

Constitutional Law

Criminal Law and Business

Tort Law

Introduction to Contracts and Agreement

Consideration

Capacity and Legality

Reality of Assent

Contracts in Writing and Third-Party Contracts

Discharge and Remedies

Formation and Performance of Sales and Lease Contracts

Sales and Lease Contracts: Performance, Warranties, and Remedies

Negotiable Instruments: Negotiability and Transferability

Holder in Due Course, Liability, and Defenses

Secured Transactions and Bankruptcy

Agency and Liability to Third Parties

Forms of Business Organization

Corporations: Formation and Organization

Securities Regulation

Employment and Discrimination Law

Consumer Law

Filters

All contracts can be categorized as either _ or __ contracts.