Deck 10: Nature and Classification

Question 1

By supplying procedures for enforcing private agreements, contract law provides an essential condition for the existence of a market economy.

Answer 1

True

Question 2

The terms of service that a person agrees to before loading an app on a phone are not truly legally binding.

Answer 2

False

Question 3

Contests and lotteries are unilateral contracts.

Answer 3

True

Question 4

The term consideration refers to the deference shown by contracting parties to each other.

Question 5

Once an offer is made, the offeror cannot revoke it.

Question 6

A promisee has the right to expect or demand that something will or will not happen in the future.

Question 7

Only one party entering into a contract must possess characteristics that qualify him or her as competent for a valid contract to exist.

Question 8

Any contract that is not in writing is unenforceable.

Question 9

Contracts relating to real estate are governed by the common law.

Question 10

An agreement to form a contract cannot modify the terms of a previous contract.

Question 11

Contracting parties are bound only by terms that can be objectively inferred from promises made.

Question 12

What a party said when entering into a contract is a subjective fact.

Question 13

A letter of credit is a type of formal contract.

Question 14

One of the requirements of a valid contract is an adequate market for the deal's goods or services.

Question 15

Contract law does not distinguish between moral and legal obligations.

Question 16

A payment of funds or a delivery of goods must take place for a bilateral contract to be formed.

Question 17

An offer that can be accepted simply by a promise to perform does not create a binding contract.

Question 18

A check is an informal contract.

Question 19

Under the objective theory of contracts, a contract is not enforceable without a clearly defined objective.

Question 20

A declaration that binds the person who makes it to do a certain act is a promise.

Question 21

An executed contract is one that has been fully performed by both parties to it.

Question 22

A party who confers a benefit on someone else unnecessarily can obtain its fair value by invoking the doctrine of quasi contract.

Question 23

If what is written in a contract is clear, a court will enforce the contract according to its obvious terms.

Question 24

Yuri agrees to zed.com's terms of service and downloads the site's app. Yuri then reverse-engineers the app to create a competing product. This is

A) within the rights of a contracting party.
B) a fair use of the app, with or without a contract.
C) acceptable as long as the site's owners are unaware of the activity.
D) a breach of contract.

Question 25

A signed agreement for Wi-Fi service is an express written contract.

Question 26

Promises that are legally binding include

A) a promise to take a friend to lunch.
B) a promise to pay for items ordered online.
C) a promise to watch a certain sporting event.
D) all of the choices.

Question 27

If one party to a contract has fully performed but the other has not, the contract is executory.

Question 28

Quasi contract are not actual contracts.

Question 29

Anyone can avoid a contractual obligation by claiming that he or she did not read the contract.

Question 30

Insofar as possible, a reasonable, lawful, and effective meaning will be given to all of the terms of a contract.

Question 31

If a voidable contract is ratified, both parties are released from it.

Question 32

Cass, a certified public accountant, agrees to perform an audit for Drone Distribution Inc. These parties are most likely to follow the rules of contract law in order to

A) avoid potential disputes.
B) acquire business acumen.
C) obtain confidential information.
D) satisfy a moral obligation.

Question 33

A contract is considered to be unequivocal even when a term is susceptible to more than one interpretation.

Question 34

When price changes make performance of a contract costly, compliance with the terms may most certainly be obtained through

A) the adversely affected party's sense of duty.
B) both parties' good faith.
C) the principles of contract law.
D) the innocent party's sense of rightness.

Question 35

A contract is an implied contract if the conduct of the parties creates and defines some of the terms.

Question 36

A contract that only one of the parties can enforce in a court is not valid.

Question 37

Without a legal framework of reasonably assured expectations within which to make plans, businesspersons would most reliably be able to count only on others'

A) moral standards.
B) empathy.
C) good faith.
D) innocence.

Question 38

Quasi contracts are imposed on parties in the interest of fairness and justice.

Question 39

In interpreting a contract, a court will give greater weight to the course of performance between the parties than to the express terms.

Question 40

To avoid a contract, both parties must fully perform their respective legal obligations.

Question 41

Macy offers to sell his fitness watch for $50 to Nona. Nona promises to pay Macy the price. Later, they exchange the watch for the funds. A contract was created when

A) Macy offered to sell the watch.
B) Macy delivered the watch.
C) Nona promised to pay for the watch.
D) Nona paid for the watch.

Question 42

Red offers to pay Sara to deliver certain documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Red and Sara will have

A) a bilateral contract.
B) a unilateral contract.
C) a void contract.
D) an executive contract.

Question 43

Fay offers to pay Grey $50 for a tennis lesson for Hetty. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have

A) a bilateral contract.
B) a third-party contract.
C) a unilateral contract.
D) no contract.

Question 44

Demi buys a lottery ticket. The ticket has the winning numbers for a prize. She submits the ticket to claim the prize. Demi accepted an offer for

A) a bilateral contract.
B) a unilateral contract.
C) a quasi contract.
D) an unenforceable contract.

Question 45

Movers LLC promises to deliver a certain couch to Nora, who promises to pay for the service. If Movers does not perform, it may be required to

A) cease business.
B) make another promise.
C) pay damages.
D) perform a different service.

Question 46

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have

A) no contract.
B) an express contract.
C) an implied contract.
D) a quasi contract.

Question 47

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

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 48

Steel Mill Inc. makes an offer to Tom to enter into a contract to work as a mechanical engineer for a certain salary for one year subject to a five-year renewal based on his performance. Tom accepts the offer. This is a valid contract because it includes

A) a price and a subject.
B) a duration and a termination.
C) an offer and an acceptance.
D) specific quality standards.

Question 49

Pavers Inc. contracts with a QuikStop store to repave the store's parking lot for a certain price. To be enforceable, this contract must include an element of

A) consideration.
B) acceptability.
C) achievability.
D) practicality.

Question 50

Vicky asks Walt, a cobbler, to repair a pair of boots. There is no discussion of a price, and Vicky and Walt do not sign any documents. After the repair, Walt hands Vicky a bill. With respect to Vicky's obligation to pay the bill, this is

A) an express contract.
B) an implied contract.
C) a quasi contract.
D) no contract.

Question 51

Field Construction Inc. contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay. If this is a valid contract, it will be partly because it includes the element of

A) capability.
B) legality.
C) necessity.
D) marketability.

Question 52

Mel agrees to work as a freight broker for National Shipping Inc. In determining whether a contract has been formed, an element of prime importance is the parties'

A) intent.
B) character.
C) subjective beliefs.
D) motives.

Question 53

When a rainstorm erupts outside Rita's Clothing Shop, Rita and Shaw enter into an implied contract to split the revenue from Shaw's sale of umbrellas to Rita's customers. The terms of this contract are defined by

A) the conduct of the parties.
B) the words of the parties.
C) the unforeseeable storm that gave rise to the deal.
D) the unexpressed subjective intent of the parties.

Question 54

Jan tells Lee she will give him her old car if he babysits her son Mark weekday evenings for six months. Lee agrees. Jan and Lee have formed

A) a bilateral contract.
B) a unilateral contract.
C) a void contract.
D) an unenforceable contract.

Question 55

On behalf of the jazz group Fusion, their manager Greg agrees to a performance in Hillside Amphitheatre on July 4. Greg and Hillside sign a written copy of the agreement. These parties have

A) an express contract.
B) an implied contract.
C) a quasi contract.
D) no contract.

Question 56

Bob claims that Carla breached their contract for tutoring. Carla responds that she never intended to enter into a contract with Bob. The intent to enter into a contract is determined with reference to

A) the intentional theory of contracts.
B) the objective theory of contracts.
C) the personal theory of contracts.
D) the subjective theory of contracts.

Question 57

Omar asserts that a deal he entered into with Pat to sponsor and host a motivational conference for independent sales representatives was formed as the result of a mistake. Omar's best defense to the enforcement of this contract is

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 58

Marketing Inc. offers to create a campaign to increase N'Ice Cream Inc.'s online business. N'Ice agrees to pay for the service. These parties have

A) no contract.
B) an express contract.
C) an implied contract.
D) a quasi contract.

Question 59

Bo signs a lease with Capri Properties to lease a studio apartment for the next year for $850 per month. Daisy signs on Capri's behalf. Bo and Capri have

A) no contract.
B) an express contract.
C) an implied contract.
D) a simple contract.

Question 60

Alyssa hires Bret to mow Alyssa's lawn every Friday. Although they do not discuss the terms of payment, after each of the first three Friday mows, Alyssa pays Bret on Saturday. The payment term is

A) express.
B) implied.
C) quasi.
D) non-existent.

Question 61

Sales Corporation and Real Estate Inc. agree to the payment of a commission for the sale of certain property. If this deal has all of the elements necessary for one of the parties to enforce it in court, it is most likely

A) a valid contract.
B) a voidable contract.
C) a void contract.
D) none of the choices.

Question 62

Rough Water LLC and Schafer enter into a contract for the delivery of a used fishing boat. Until the boat is delivered and paid for, these parties have

A) an executory contract.
B) no contract.
C) a quasi contract.
D) an executed contract.

Question 63

Oceans Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legal limit. This agreement is most likely

A) enforceable.
B) quasi.
C) void.
D) voidable.

Question 64

On May 1, Ramona and Santo orally agree that Santo will guide a party from the base of Mount McKinley to its summit and from the summit to a return to the base. Under the agreement, Ramona will pay for the service after the completion of the climb on June 1. On May 1, is this contract express or implied? On May 31, after the climb has been made but before payment is paid, is the contract executed or executory?

Question 65

Susan enters into a contract with Trey to act as his personal sports trainer. If a dispute later arises, the court will interpret the contract according to

A) the parties' intent at the time they entered into the contract.
B) what the promisor claims was the parties' intent.
C) what the promisee claims was the parties' intent.
D) what the parties now agree they intended.

Question 66

A letter-of-credit agreement between Rural Feed Corporation and Soy Farm Inc. requires Rural's bank to pay Soy on receipt of invoices. This is

A) a formal contract.
B) an informal contract.
C) an implied contract.
D) a quasi contract.

Question 67

Darcy enters into a contract with Event Center Inc. to use its venue for a business meeting. If an ambiguity appears in the contract that outside evidence does not make clear, it will most likely be

A) interpreted against the party responsible for creating it.
B) struck from the deal.
C) construed according to the court's discretion.
D) applied in favor of the party who drafted the contract.

Question 68

Ed, a businessperson, is a friend of Fran, the owner of Good Morning, a coffee pastries kiosk. Every day, Ed spends five minutes at the kiosk, looking at the goods and usually buying one or two cinnamon buns or bagels. One afternoon, Ed looks at the items, and picks up a $1 chocolate brownie. He waves the brownie at Fran without saying a word and walks on. Is there a contract? If so, how would it be classified in terms of formation, performance, and enforceability?

Question 69

Saul claims that his contract with Teri for piano lessons is voidable. If their contract is avoided

A) both parties are released from it.
B) both parties must fully perform their obligations under it.
C) the parties' contractual obligations are postponed.
D) the parties are proscribed from another contract on the same subject.

Question 70

Jana, a nurse practitioner, renders aid to Kurtz, who is injured and unconscious. Jana can recover the cost of the aid from Kurtz

A) on a quasi contract theory.
B) only if Kurtz recovers because of the aid.
C) only if Kurtz was aware of the aid.
D) under no circumstances.

Question 71

Sal enters into a contract with Trucking Company to work as a driver. Under the plain meaning rule, the court cannot consider any evidence not contained in the document if

A) the parties' intent cannot be determined from the contract's language.
B) the contract lacks a provision on a disputed issue.
C) the words in the contract appear clear.
D) a contract term can be interpreted in more than one way.

Question 72

Cheri drives into Domestic Auto Service and asks to have a tire replaced on her car. After Domestic replaces the tire, but before Cheri pays for it, any contract between them is

A) executed.
B) executory.
C) void.
D) unenforceable.