Deck 10: Nature and Terminology

Question 1

Contract law ensures that one party does not threaten another.

Answer 1

False

Question 2

A contract is an agreement only between parties who are not members of the same family.

Answer 2

False

Question 3

A contract is a promise to act.

Answer 3

False

Question 4

A promisee is a person who makes a promise.

Question 5

"Consideration" refers to the legality of the subject matter of a contract.

Question 6

Under the objective theory of contracts, the intention to enter into a con?tract is judged by outward, objective facts as interpreted by a reasonable person.

Question 7

An offer to form a unilateral contract is accepted by a promise to perform.

Question 8

An offer to form a bilateral contract is accepted by a promise to perform.

Question 9

Except for certain types of contracts that must in writing, no special form is required for informal contracts.

Question 10

No offer may be revoked before it is accepted.

Question 11

A contract can be created only when a promise is given in exchange for another promise.

Question 12

Contract law ensures that certain promises are legally binding.

Question 13

A contract under seal is a formal contract.

Question 14

Tort law governs contracts.

Question 15

A unilateral contract is formed when the one receiving the offer com?pletes the re?quested act or performance.

Question 16

Some promises are not binding.

Question 17

One of the requirements for a valid contract is its acceptance.

Question 18

"Consideration" refers to the genuine assent of all of the parties to a contract.

Question 19

One of the elements of a valid contract is a fair price.

Question 20

An offeree is a person who makes an offer.

Question 21

An executed contract is one that has been fully performed.

Question 22

The doctrine of quasi contract applies only if there is an actual con?tract that covers the area in controversy.

Question 23

Under the plain meaning rule, a court will enforce a contract, in which the writing is clear and unequivocal, according to its plain terms.

Question 24

A contract cannot be void if its purpose is legal.

Question 25

A contract is void if its purpose is illegal.

Question 26

A voidable contract is a valid contract that can be avoided at the option of at least one of the parties to it.

Question 27

A quasi contract is a true contract.

Question 28

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

Question 29

An implied-in-fact contract is an actual contract.

Question 30

An express contract must be in writing.

Question 31

The existence of an express contract does not bar an action in quasi con?tract concerning the same transaction.

Question 32

A party who confers a benefit on someone else unnecessarily can recover the cost under the principle of quasi contract.

Question 33

An executory contract is one that has been fully performed.

Question 34

A contract's general intent will usually be subordinated to specific clauses contained within the contract.

Question 35

A void contract is enforceable if it is in writing.

Question 36

An implied-in-fact contract is implied from the conduct of the parties.

Question 37

In an express contract, the terms are fully stated in words.

Question 38

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

Question 39

A quasi contract is a fictional contract.

Question 40

When the words in a contract have more than one meaning, they are gen?erally in?ter?preted in favor of the party who drafted the contract.

Question 41

Jack promises to buy Kris's computer for $400. Jack is

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

Question 42

Bay Construction, Inc., a contractor, asks Cool Electric, a subcontractor, to provide certain services. Nothing is expressed about payment. Cool provides the services, but Bay refuses to pay. In Cool's suit to recover, the chief issue is most likely to be whether these parties had

A) a formal contract.
B) an actual contract.
C) an implied-in-fact contract.
D) a voidable contract.

Question 43

Dalton contracts to tutor Ellen in the principles of business law. For the breach of a contractual promise, contract law entitles innocent parties to

A) any relief that a court wants to provide.
B) any relief that a defendant wants to concede.
C) any relief that a plaintiff wants to seek.
D) some forms of relief.

Question 44

Opie offers to sell his guitar to Pinky for $100. Pinky agrees. They complete and sign a printed form that includes, near the blanks for their signatures, the word "seal." This is

A) a formal contract.
B) an informal contract.
C) a social contract.
D) no contract.

Question 45

Cathy assures Don that she will deliver his products as he directs. An as?surance that one will do something in the future is part of the defini?tion of

A) a declaration.
B) a moral obligation.
C) an ethical principle.
D) a promise.

Question 46

Laura and Mike enter into what Laura later claims is a contract. In de?cid?ing whether a valid contract was formed, a court will not look at

A) the circumstances surrounding the alleged contract.
B) the parties' conduct at the time of the alleged contract.
C) the parties' statements at the time of the alleged contract.
D) the parties' subjective beliefs at the time of the alleged contract.

Question 47

Mona asserts that a deal she entered into with Nate is an unenforce?able contract. Defenses to the enforcement of a contract include

A) a desire not to perform.
B) adverse economic consequences.
C) results that do not match expectations.
D) the lack of a party's genuine assent.

Question 48

Lara applies for a firefighter's job with Metro City, which responds with a letter setting an appointment for a medical exam. The letter also states that it is "a conditional employment offer." Based on the court's reason?ing in Case 10.1, Ardito v. City of Providence, this letter is

A) a bilateral contract that Lara accepted by applying for the job.
B) a quasi contract on which Lara can rely for employment.
C) a unilateral contract that Lara can accept by passing the exam.
D) no contract.

Question 49

Tom enters a coffee shop in which he has an open account, fills a cup of coffee, holds it so the cashier can see it, acknowledges the cashier's nod, and walks out with the coffee, knowing that he will be billed for it at the end of the month. Tom has formed

A) an express contract.
B) an implied-in-fact contract.
C) an implied-in-law contract.
D) a quasi contract.

Question 50

Stu makes an offer to Tina to enter into a contract. Tina accepts the offer. A valid contract requires

A) a valid offer only.
B) a valid acceptance only.
C) a valid offer and a valid acceptance.
D) neither a valid offer nor a valid acceptance.

Question 51

Allen applies for a police officer's job with Bay City, which responds with a letter setting an appointment for a psychological exam. The letter does not state that it is "a conditional employment offer." Based on the court's reasoning in Case 10.1, Ardito v. City of Providence, this letter is

A) a bilateral contract that Allen accepted by applying for the job.
B) a quasi contract on which Allen can rely for employment.
C) a unilateral contract that Allen can accept by passing the exam.
D) no contract.

Question 52

Expert Pavers, Inc., contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay. The elements of this, and any other, contract do not include

A) capacity.
B) consideration.
C) legality.
D) practicality.

Question 53

A contract between Gamma Software Company and Omega Designs, Inc., ends with the initials "L.S." These initials

A) emphasize that the parties must sign with "legal signatures."
B) remind the parties that they must have "legal status" to contract.
C) stand for "locus sigilli" and substitute for a seal.
D) underscore that the parties' deal must have "lawful significance."

Question 54

Jill promises to buy Kent's handheld game-player for $75. Kent is

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

Question 55

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 trilateral contract.
C) a unilateral contract.
D) no contract.

Question 56

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. Under the modern-day view, 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 57

Paco offers to pay Quik Delivery (QD) $50 if it picks up and delivers to him a package from Rich within 30 minutes. QD can ac?cept the offer only by meeting the deadline. If QD performs as directed, these parties will have

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

Question 58

Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have

A) an executed contract.
B) an express contract.
C) an implied-in-fact contract.
D) a quasi contract.

Question 59

Bob claims that Carol breached their contract. Carol 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 conscious theory of contracts.
B) the objective theory of contracts.
C) the personal theory of contracts.
D) the subjective theory of contracts.

Question 60

Freida and Gail enter into a bilateral contract, which is created when Freida gives a promise in exchange for Gail's

A) payment of money only.
B) performance of a par?ticular act only.
C) promise only.
D) prudent awareness only.

Question 61

Great Marketing Company and Hot Tunes, Inc., sign a document that states Great agrees to create a marketing campaign for Hot and Hot agrees to pay Great for the service. Great and Hot have

A) an executed contract.
B) an express contract.
C) an implied-in-fact contract.
D) a quasi contract.

Question 62

Delia promises to buy a house from Edwin, who promises to vacate the prop?erty on July 1. If these promises are in writing, they are most likely

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

Question 63

Beth claims that her contract with Carl is voidable. If the contract is avoided

A) both parties are released from it.
B) neither party is released from it.
C) only Beth is released from it.
D) only Carl is released from it.

Question 64

When Jeff's car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff's obligation to pay the bill, this is

A) an express contract.
B) an implied-in-fact contract.
C) an implied-in-law contract.
D) no contract.

Question 65

Curt promises to buy illegal copies of CDs and DVDs from Donna, who promises to deliver on May 1. These promises are most likely

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

Question 66

Mia, a physician, renders aid to Noel, who is injured and unconscious. Mia can recover the cost of the aid from Noel

A) even if Noel was not aware of the aid.
B) only if Noel recovers because of the aid.
C) only if Noel was aware of the aid.
D) under no circumstances.

Question 67

Lou claims that he and Mira entered into an implied-in-fact contract. To establish this contract, it is not necessary to show that

A) a court imposed a promise in the interest of fairness.
B) Lou expected to be paid for providing services or prop?erty.
C) Lou provided Mira with services or property.
D) Mira failed to reject services or property provided by Lou.

Question 68

Cory enters into a contract with Diane to act as her personal sports trainer. If they later dispute the meaning, and the contract contains un?clear terms, the rules of contract interpretation will give effect to

A) the parties' intent as expressed in their contract.
B) what the defendant claims was the parties' intent.
C) what the plaintiff claims was the parties' intent.
D) what the parties now agree they intended.

Question 69

Cole drives into Dino's Service Station and asks Erin, the attendant, to fill the tank in Cole's sport utility vehicle. After Erin fills the tank, but before Cole pays for the gas, any contract between Cole and Dino's is

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

Question 70

Ada mistakenly pays property taxes that should have been assessed against Bud. Ada can recover the amount from Bud in quantum meriut

A) even if Bud was not aware of the error.
B) only if Bud tried to conceal the error.
C) only if Bud was aware of the error.
D) under no circumstances.

Question 71

Pete, a judge, can apply the doctrine of quasi contract to a dispute be?tween Quality Service Company and Regulated Office Systems

A) only if there is a valid contract covering the area in question.
B) only if there is not a valid contract covering the area in question.
C) whether or not there is a valid contract covering the area in question.
D) under no circumstances.

Question 72

Avatar, Inc., and Bling Corporation sign a contract in which Avatar agrees to deliver t-shirts emblazoned with video game characters in exchange for Bling's prom?ise to pay. Avatar delivers. The contract is

A) voidable.
B) executed.
C) executive.
D) executory.

Question 73

Employment Sources, Inc., enters into a contract with Fred. If Fred is a minor, this contract is most likely

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

Question 74

Dot, a real estate agent, tells Ed, a home seller, that her commission is 12 percent. Ed agrees that Dot can sell his house but refuses to sign a contract unless the amount of the commission is reduced. After the house is sold, Ed refuses to pay 12 percent. Dot is most likely to recover

A) nothing.
B) on a theory of an express contract.
C) on a theory of an implied-in-fact contract.
D) on a theory of a quasi contract.

Question 75

Sam and Tiffany enter into an implied-in-fact contract. This is a contract in which the parties' conduct

A) defines the contract's terms.
B) finds the contract's facts.
C) terminates any unintended consequences.
D) undercuts any terms based on the facts.

Question 76

Macro Corporation and Micro, Inc., enter into an agreement. To consti?tute a contract

A) all terms must be express.
B) all terms must be implied.
C) the terms may be express, implied, or a mix of both.
D) the terms may be express or implied, but not both.

Question 77

Adams Accounting Services and Best Products, Inc., enter into a con?tract. Terms in the contract that are the subject of separate negotiation are considered subordinate to

A) standardized terms.
B) terms that can be understood only by lawyers and judges.
C) terms that are not negotiated separately.
D) =one of the choices.

Question 78

Eve and Frank enter an express contract for the construction of a warehouse. Express contract terms are given

A) less priority than the parties' prior dealing.
B) less priority than the trade usage in that particular industry.
C) less priority than the parties' course of performance.
D) more priority than the prior dealing, course of performance, and trade usage.

Question 79

National Grocers, Inc., enters into a contract with Overland Shipping Company for the de?livery of a shipment of fresh produce. If ambiguities appear in the con?tract, they will be construed against

A) the party who drafted the contract.
B) the party with the greater bargaining power.
C) the promisor.
D) the promisee.

Question 80

Phil enters into a contract with Quality Resorts, Inc., to work as a chef. Under the plain meaning rule, the meaning of this contract must be de?ter?mined by reference to

A) any available evidence.
B) any relevant extrinsic evidence.
C) the face of the instrument.
D) the later testimony of the parties.