Deck 11: Nature and Terminology

Question 1

Any contract that is not in writing is not enforceable.

Answer 1

False

Question 2

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

Answer 2

False

Question 3

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

Answer 3

False

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

A letter of credit is a type of formal contract.

Question 9

Contests and lotteries are unilateral contracts.

Question 10

A check is an informal contract.

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

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

Question 19

Contract law does not distinguish between moral and legal obligations.

Question 20

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

Question 21

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

Question 22

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

Question 23

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 24

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 25

A signed agreement for a video streaming service is an express written contract.

Question 26

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

Question 27

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

Question 28

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 29

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

Question 30

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

Question 31

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

Question 32

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

Question 33

Quasi contract are not actual contracts.

Question 34

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

Question 35

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

Question 36

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 37

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

Question 38

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

Question 39

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

Question 40

Odette, a certified public accountant, agrees to perform an audit for Personnel 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 41

Steel Mill Inc. makes an offer to Tag 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. Tag 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 42

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 43

Ota asserts that a deal entered into with Pai to sponsor and host a motivational conference for independent sales representatives was formed as the result of a mistake. Ota'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 44

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 45

Boca claims that he intended to enter into a contract with Carla for tutoring, and she breached it. Carla responds that she never intended to enter into a contract with Boca. Their 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 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 behalf of the jazz group Fusion, their manager Gabe agrees to a performance in Hilltop Amphitheatre on July 4. Gabe and Hilltop 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 48

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

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

Question 49

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 50

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)objectives.
C)subjective beliefs.
D)motives.

Question 51

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 52

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)none of the choices.
B)make another promise.
C)pay damages.
D)perform a different service.

Question 53

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 54

When a storm erupts outside Reba's Diner, Reba and Shaw quickly enter into an implied contract to split the revenue from Shaw's sale of umbrellas to Reba's customers. The terms of this contract are defined by

A)the conduct of the parties.
B)the written words of the parties.
C)the unforeseeable storm that gave rise to the deal.
D)the fortuity of the deal's timing and the parties' proximity.

Question 55

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

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

Question 56

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

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

Question 57

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 58

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 59

Field Construction Inc. contracts with Mesa Ranch to build a new 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 60

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 61

Sui enters into a contract with Trey to act as a personal sports trainer. If a dispute later arises over the parties' promises, 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 62

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

Question 63

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

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

Question 64

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 65

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

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

Question 66

Saul claims that his agreement with Teri for saxophone lessons is voidable. If this contract is avoided, both parties

A)are released from it.
B)must fully perform their obligations under it.
C)effectively postpone their obligations to fulfill it.
D)are proscribed from making another contract on the same subject.

Question 67

Rough Water LLC and Schafer enter into a contract for the delivery of a certain number of river rafts. Until the rafts are delivered and paid for, the parties have

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

Question 68

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 69

Sy enters into a contract with Truck Company to work as a driver. If a dispute arises over the deal, 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 70

Laz is a friend of Maya, the owner of Nuevo Dias, a coffee kiosk. Every day, Laz spends five minutes at the kiosk, looking at the goods and usually buying one or two cinnamon buns or bagels. One morning, Laz looks at the items, and picks up a one-dollar donut. He waves the donut at Maya 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 71

Sales Corporation and Real Estate Inc. negotiate an agreement under which only one of the parties can elect to avoid any duty to perform or to ratify the deal. With respect to this arrangement as a contract, if ratified, both parties

A)are released.
B)must perform their respective legal obligations.
C)must renegotiate new or modified terms.
D)can seek its enforcement on the ground of unjust enrichment.

Question 72

A letter-of-credit agreement between Rural Grain 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.