Deck 12: Formation of Traditional and E-Contracts

Question 1

Most ads-"this property for sale"-are offers.

Answer 1

False

Question 2

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

Answer 2

False

Question 3

The element of intent is of prime importance in determining whether a contract has been formed.

Answer 3

True

Question 4

An essential element for contract formation is a reasonable price related to market value.

Question 5

An express contract must be in writing.

Question 6

Under federal law,an e-document is not as enforceable as a paper one.

Question 7

A forum-selection clause specifies that any contract dispute will be settled in a particular jurisdiction.

Question 8

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

Question 9

An effective offer requires reasonably definite terms.

Question 10

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

Question 11

An invitation to negotiate-"can you afford this?"-is an offer.

Question 12

Terms in a shrink-wrap agreement have been enforced in the same way as the terms of other contracts.

Question 13

A preliminary agreement cannot constitute a binding contract.

Question 14

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

Question 15

Browse-wrap terms are often unenforceable.

Question 16

An acceptance must be unequivocal.

Question 17

If no time for acceptance is specified in an offer,the offer terminates after a reasonable length of time.

Question 18

There are no revocable offers.

Question 19

An expression of opinion-"this is excellent"-is an offer.

Question 20

A contract is valid only if both of the parties entering into it have the capacity to do so.

Question 21

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 22

A contract that is oral when it is required to be in writing is voidable by a party who does not wish to follow through with the agreement.

Question 23

A person who is intoxicated can avoid liability on any contract due to the intoxication.

Question 24

Ron 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,Ron and Sara will have​

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

Question 25

A delegation relieves the party making it of the obligation to perform.

Question 26

K'Nect,Inc. ,makes an offer to Lori to enter into a contract to work as a salesperson for a certain salary plus commission for ninety days subject to a one-year renewal based on her performance.Lori accepts the offer.A valid contract requires​

A)a price and a subject.
B)a duration and a termination.
C)an offer and an acceptance.
D)all of the choices.

Question 27

A release does not require consideration to be legally binding.

Question 28

An obligation is enforceable only if it is made in return for actions or events that have already taken place.

Question 29

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 mixed contract.
D)no  contract.

Question 30

Both intended and incidental beneficiaries acquire legal rights in a contract.

Question 31

A contract that is otherwise valid is enforceable even if it is not in the proper form.

Question 32

Under the doctrine of promissory estoppel,a promise will not be enforced unless it is supported by consideration.

Question 33

A covenant not to compete included in the sale of an ongoing business is never enforceable.

Question 34

Performance can constitute the consideration that creates a contractual obligation.

Question 35

A contract entered into by a mentally incompetent person can be valid if the person had capacity at the time the contract was formed.

Question 36

Risks ordinarily assumed in business can constitute consideration for the modification of a contract.

Question 37

If a bargain is grossly unfair,it is unconscionable.

Question 38

Legally sufficient consideration is something of value in the eyes of the law.

Question 39

An assignee of contract rights has a right to demand performance of the contract from the obligor.

Question 40

Clay offers to pay Dian $50 for a golf lesson for Ewan.They agree to meet on Friday to exchange the cash for the lesson.These parties have​

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

Question 41

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 mixed contract.

Question 42

Rob promises to pay Sara,his niece,$5,000 if she obtains her degree at Tech University,where she is in her third year.Sara graduates.Rob is​

A)not required to pay because Sara was already at Tech.
B)not required to pay because obtaining a degree benefits Sara.
C)required to pay because a job can be hard to find after college.
D)required to pay because Sara obtained a degree at Tech.

Question 43

Lou offers to service Millie's heating and air conditioning system for one year for $500.Under the mirror image rule,Millie's response will be considered an acceptance if the terms of the acceptance​

A)exactly mirror those of the offer.
B)change the items offered,but do not change the price.
C)change the price,but do not change the items offered.
D)change both the price and the items offered.

Question 44

Brian offers Carly a dozen piano lessons for a certain price per lesson but conditions the deal on Carly accepting the offer by April 1.Brian may revoke the offer​

A)before Carly accepts the offer.
B)before April 1,whether or not Carly has accepted the offer.
C)only after Carly accepts the offer.
D)only after April 1.

Question 45

Global Corporation enters into contracts with buyers in e-commerce and traditional commerce.The Uniform Electronics Transactions Act applies,if at all,only to those transactions in which the parties agree to use​

A)electronic means.
B)paper documents.
C)updates and cross-checks to orally verify any e-terms.
D)notarized documents.

Question 46

Industrial Engineering,Inc. ,promises to give stock options to Jasmine for processes she has already designed for the firm.This promise is enforceable​

A)because it is a new contract.
B)because it is an illusory promise.
C)because it is supported by past consideration.
D)under no circumstances.

Question 47

While sailboarding,Jolene is injured when Kirby carelessly crosses her path.Kirby's insurance company offers Jolene $50,000 to release Kirby from liability,and she accepts.Later,Jolene learns that her injuries are more serious than she realized.The release is​

A)enforceable.
B)unenforceable because Jolene's injuries are unforeseeably difficult.
C)unenforceable because Kirby has a preexisting duty to pay.
D)unenforceable because the release is an illusory promise.

Question 48

Megan gives out a business card with an e-mail address on it.It is reasonable to infer that Megan has consented to

A)transact business electronically.
B)submit to the recipient's jurisdiction.
C)respond to e-mail sent to that address.
D)nothing.

Question 49

Due on Receipt,Inc. ,makes tax software,which is packaged with a shrink-wrap agreement.Evenflo Products Company distributes the software to retailers,including a Flatprice discount store,where Greta buys a package of it.The parties to the shrink-wrap agreement are​

A)does not read it.
B)learns of it after the contract is formed.
C)learns of it before the contract is formed.
D)has difficulty learning how to play the game.

Question 50

Play-It-Loud,LLC,provides music-streaming services online subject to complex pricing schedules.To control specific offers for the services and thus the resulting contracts,important terms to provide online include​

A)a provision relating to the resolution of any dispute.
B)a detailed history of the music business.
C)positive reviews from users of the service.
D)an updated list of the music available through the service.

Question 51

Rafi offers a tour of Bay Harbor aboard his sailboat,Sea Siren,to Tiara's Travel Group for $500.Referring to the prices for similar tours,Tiara's says,"We'll pay no more than $400." Rafi's offer is​

A)still open.
B)terminated.
C)rejected and subject to a counteroffer.
D)revoked.

Question 52

After an accident with a vehicle licensed to Guardian Security Company,Heidi signs a covenant not to sue Guardian Security for damages in a tort action if it pays for the damage to her car.This covenant is​

A)a bar to recovery if Guardian Security pays.
B)an illusory contract.
C)barred by the preexisting duty rule.
D)barred by the doctrine of promissory estoppel.

Question 53

Lauren files a suit against Moving Service for breach of contract,based on what Lauren claims was Moving's offer.For a court to determine if a contract has been breached,under the common law,the offer must include terms that are​

A)exactly precise.
B)reasonably definite.
C)unequivocally approximate.
D)vague or uncertain.

Question 54

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)valid.
C)void.
D)voidable.

Question 55

Nevin negotiates a deal for the sale of twenty-five acres of farmland to Otis.Nevin promises to hold the offer open in return for a small payment but does not state an exact period of time.With respect to this offer​

A)the deal is binding except for the promise to hold the offer open.
B)a reasonable period of time is implied.
C)the offer must be held open for an indefinite period.
D)the deal is done.

Question 56

Bytes Inc.enters into contracts for its cloud services online.Bytes can protect itself against disputes involving these contracts by making important terms

A)reasonably clear.
B)vaguely ambiguous.
C)practical.
D)standardized.

Question 57

Idina admires Jules's collection of guitars.Jules says,"I plan to sell the collection when I get tired of it." Jules's statement is​

A)an offer.
B)not an offer because it has not been communicated to Idina.
C)not an offer because Jules expressed only an intent to enter into a future contract.
D)an acceptance.

Question 58

Digital Enterprise,Inc. ,promises to pay its employees a year-end bonus "if profits continue to be high and management agrees at the time." This is​

A)an enforceable contract.
B)an illusory promise.
C)an option-to-cancel clause.
D)promissory estoppel.

Question 59

Fresh Gro,Inc. ,offers to deliver produce to the customers of Grocer's Mart for a certain price.Fresh's intent to extend a serious offer to Grocer's Mart is determined by reference to Fresh's​

A)assumptions.
B)beliefs.
C)intentions.
D)words and action.

Question 60

Anton tells Brooke,who has no knowledge of Shakespearean comedy,that he will tutor her in the subject for $50.As an offer,this is​

A)effective.
B)not effective because comedy is not a serious subject.
C)not effective because Anton's tutoring will be subjective.
D)not effective because Brooke has no knowledge of the subject.

Question 61

Chet,a minor,signs a contract with Denise,an adult. The contract is voidable at the option of​

A)neither party.
B)Chet only.
C)either party.
D)Denise only.

Question 62

Alice and Bart enter into a contract for the sale of Canyon Ranch.To be enforceable,this contract must be​

A)substantiated by reliable,external evidence.
B)signed in a sufficient manner by both parties.
C)in writing or evidenced by a written memorandum.
D)all of the choices.

Question 63

Marketing Solutions Inc.promises to employ Niki as a software engineer.In reliance on the promise,Niki quits her job with Online Ad Company,but Marketing Solutions does not hire her.Most likely,Marketing Solutions is​

A)liable to Niki under the concept of rescission and new contract.
B)liable to Niki under the doctrine of promissory estoppel.
C)liable to Niki under the preexisting duty rule.
D)not liable to Niki.

Question 64

Kim enters into a contract to lease an apartment from Laurel Wood Apartments.The lease contains an exculpatory clause.This clause is​

A)enforceable as a matter of public policy.
B)enforceable if it releases the landlord from liability regardless of fault.
C)enforceable if an event occurs to which the clause applies.
D)generally unenforceable.

Question 65

Leon contracts to install automatic watering troughs in Kendall's dairy barn.Leon then becomes seriously ill and contracts with Jake to install the troughs.Jake is unreliable and never shows up to perform the contract.Kendall can sue​

A)no one.
B)Jake only.
C)Leon only.
D)Jake or Leon.

Question 66

Revenue & Sales Corporation and Software,Inc. ,enter into a contract for the design of custom software for which Revenue & Sales agrees to pay $64,500.Software transfers the right to payment under the contract to CreditLine LLC.This transfer is​

A)a delegation
B)an assignment.
C)prohibited.
D)a third-party beneficiary contract.

Question 67

ActioNOW and Becca enter into an oral contract in which Becca agrees to work on a project for ActioNOW for eighteen months.This contract is enforceable by​
Any third party,such as ActioNOW's clients.

A)ActioNOW.
B)Becca.
C)any third party,such as ActioNOW's clients.
D)none of the choices.

Question 68

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Buns n' Burgers in exchange for her payment of a debt that Lyle owes to New Credit Corporation.New Credit is​

A)a delegatee.
B)an intended beneficiary.
C)an incidental beneficiary.
D)an obligor.

Question 69

Orin signs a covenant not to compete with his employer,Product Distribution,Inc.The covenant will be enforced if it​

A)does not require either party to obtain a business license.
B)is reasonable with respect to geographic area and duration.
C)relieves the employer from liability for any injury to Orin.
D)none of the choices.

Question 70

On December 1,Petro,Inc. ,sent Rachel & Rico (R&R)a letter,via overnight delivery,offering to employ R&R to review Petro's tax situation for the current year for $10,000.In the letter,the company stated that R&R had ten days to accept.On December 5,R&R sent an e-mail message that stated,"The price for the tax analysis seems too low.Would you consider paying $15,000?" Petro received the message without responding immediately.The next day,Smith & Taylor,an R&R competitor,offered to conduct the appraisal for $8,000.On learning of this offer,R&R immediately e-mailed Petro,agreeing to do the work for $10,000.Petro received this message on December 7.Explain why R&R and Petro do,or do not,have a contract.

Question 71

Kevin obtains a loan from Liberty Credit Bank at an interest rate that exceeds the state's maximum.Liberty has​

A)none of the choices.
B)engaged in a restraint of trade.
C)violated a licensing statute.
D)committed usury.

Question 72

First Business Solutions,Inc. ,develops and implements online sales strategies for its clients.First Business hires Gideon to plan and execute an e-commerce strategy for marketing Western Skye Company's products.Gideon signs a contract that includes a clause prohibiting him from competing with First Business during and after the employment.After the plan is formed but before it is implemented,Gideon resigns from First Business's employ and opens a competing business.In First Business's suit against Gideon,what is the most important factor the court should consider in determining whether Gideon should be allowed to compete with First Business?​