Deck 8: Introduction to Contracts

Question 1

What a party said when entering into a contract is an example of an objective fact.

Answer 1

True

Question 2

A unilateral contract comes into existence at the moment promises are exchanged.

Answer 2

False

Question 3

Failure to perform a moral obligation usually creates legal liability.

Answer 3

False

Question 4

If a contractual promise is not fulfilled, the person who made it may be required to pay monetary damages.

Question 5

Some contracts must be in writing to be enforceable.

Question 6

A bilateral contract is a promise for a promise.

Question 7

Contract law governs all promises.

Question 8

To revoke an offer is to cancel it.

Question 9

The term consideration refers to the apparent voluntary consent of the parties to contract.

Question 10

A declaration that something will happen in the future is a promise .

Question 11

The offeree is the party to whom an offer is made.

Question 12

The party making a promise is the promisor .

Question 13

Every contract involves at least two parties.

Question 14

In contract law, intent is determined by the subjective theory of contracts.

Question 15

The only requirement of a valid contract is that it be in whatever form the law requires.

Question 16

One of the requirements of a valid contract is an adequate price.

Question 17

A n express contract is stated in words, oral or written.

Question 18

A contract is an agreement that can be enforced in court.

Question 19

Only one party entering into a contract must have the legal capacity to do so for a valid contract to exist.

Question 20

Intent in contracts is determined by a party's personal or subjective belief.

Question 21

Bob claims that Carla breached their contract for tutoring. Carla responds that she never intended to enter into a contract with Bob. T he 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 22

Informal contracts are usually based on their sub-stance rather than their form.

Question 23

Formal contracts require a special form or method of creation to be enforceable.

Question 24

If a contract is ambiguous, a court may interpret the ambiguity against the party who was responsible for creating it.

Question 25

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

Question 26

A n unenforceable contract is one that cannot be enforced because of certain legal defenses against it.

Question 27

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

Question 28

A voidable contract is a valid contract that can be avoided by one or both of the parties.

Question 29

An executed contract is one that has not been fully performed.

Question 30

In a divorce proceeding, Jonas promises to pay a certain amount of child support to Kelly every month until their daughter Lois is eighteen years old. Jonas's obligation with respect to this promise is

A) moral, not legal.
B) legal, not moral.
C) legal and moral.
D) neither legal nor moral.

Question 31

Quasi contracts are not true contracts.

Question 32

A contract that has been fully performed by the parties is an executory contract .

Question 33

Informal contracts are usually based on their substance rather than their form.

Question 34

In an express contract, the conduct of the parties creates and defines the terms.

Question 35

Cal tells Dana that he would like to purchase her used car for $5,000. Cal is making

A) a prediction.
B) an offer.
C) a moral obligation.
D) a gift.

Question 36

Implied contracts are not true contracts.

Question 37

E-contracts require the same basic requirements as valid paper contracts.

Question 38

Lark promises to buy Mac's used textbook for $60. Lark is

A) an executor.
B) an offeree.
C) a promisee.
D) a promisor.

Question 39

If a contract is ambiguous, a court must determine the parties' intent without outside evidence .

Question 40

Bart agrees to sell Sandra six double-pane windows for $3,000. After the contract is signed, Bart and Sandra disagree as to the specific model of double-pane window that Bart was obligated to deliver. The contract only specifies "six double-pane windows." A court interpreting this contract will

A) consider outside evidence because a contract term is ambiguous.
B) consider outside evidence because the contract is written.
C) not consider outside evidence because the contract's meaning is clear.
D) not consider outside evidence because the parties lacked sufficient intent to contract.

Question 41

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 42

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

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

Question 43

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 44

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 45

A valid contract requires

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

Question 46

Foster promises to buy Gideon's trumpet for $75. Gideon is

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

Question 47

Bo signs a lease with Capri Apartments to lease a studio apartment for the next year for $650 per month. Daisy signs on Capri's behalf as their agent. Bo and Capri have executed a(n)

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

Question 48

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

A) a bilateral contract.
B) a void contract.
C) a unilateral contract.
D) no contract.

Question 49

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 50

Field Construction Inc. contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay. The elements of this, and any other, contract include

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

Question 51

When a rainstorm erupts outside Rita's Souvenir & Gift Shop, Rita and Shaw enter into an oral 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 52

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 53

Ray promises to give Steve his iPhone in exchange for Steve's promise to pay Ray $200. Later, they exchange the iPhone for the funds. A contract was created when

A) Ray offered to sell his iPhone.
B) Ray exchanged his iPhone for $200.
C) Steve promised to pay Ray for the iPhone.
D) Steve paid Ray $200 for the iPhone.

Question 54

Pavers, Inc., contracts with a QuikStop store to repave the store's parking lot for a certain price. The requirements of this, and any other, contract include

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

Question 55

Eve agrees to work for Far East Shipping, Ltd., as a translator. In determining whether a contract has been formed, an element of prime importance is

A) the parties' intent.
B) Far East's base.
C) the work's duration.
D) Eve's capabilities.

Question 56

On behalf of the jazz group Fusion, their manager Greg agrees to a performance in Hillside Amphitheatre on July 4. Hillside sends a written copy of the agreement to Greg to be signed . If Greg signs the copy, the parties will have

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

Question 57

Omar asserts that a deal he entered into with Patty to sponsor and host a motivational conference for independent sales representatives is an unenforce-able contract. Defenses to the enforcement of a contract include

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

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 money damages.
D) perform a different service.

Question 59

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 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

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 62

Leila enters into a contract with Metro Rides 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 63

A letter-of-credit agreement between Rural Feed Corporation and Soy Farms 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 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

Sales Corporation and Real Properties, 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

A) a valid contract.
B) a voidable contract.
C) a void contract.
D) an unenforceable contract.

Question 66

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 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

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

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

Question 69

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 70

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 71

Robin claims that her contract with Stroud for tennis lessons is voidable as the lessons were never provided and the tennis club burnt down. If their contract is avoided

A) both parties are released from it.
B) both parties must fully perform their obligations under it.
C) a wholly different contract is agreed to.
D) a wholly different contract is imposed "as if" the parties had agreed.

Question 72

FixitCo contracts with James to repair James's first floor electrical system. FixitCo's employee, Patricia, misreads the work order and repairs the electrical system on both the first and second floors of James's home. James is

A) liable for repairs done only on the second floor.
B) liable for none of the repairs because Patricia exceeded the contract.
C) liable for repairs on both floors because a quasi contract has been formed.
D) liable only for repairs done on the first floor.