Deck 7: Agreement and Consideration in Contracts

Question 1

An expression of opinion-"this is perfect!"-is an effective offer as long as it is not made in jest.

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

True

Question 4

The element of intent is not very important in determining whether a contract has been formed.

Question 5

Some promises create moral, but not legal, obligations.

Question 6

A lottery is an example of an offer for a unilateral contract.

Question 7

A quasi contract is not a true contract.

Question 8

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

Question 9

For an offer to be effective, the offeror must have a serious intention to become bound by the offer.

Question 10

If a contractual promise is not fulfilled, the person who made it may be required to perform the promised act.

Question 11

The mirror image rule requires an acceptance to adhere exactly to an of?fer to create a contract.

Question 12

A seller's price list is not an offer.

Question 13

The person who makes a promise is the promisee.

Question 14

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

Question 15

An offer does not need to be communicated to the offeree to become effective.

Question 16

A quasi contract is not enforceable by a court.

Question 17

The only requirement for a valid contract is that the parties voluntarily entered into it.

Question 18

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

Question 19

An offer made in obvious anger is still an effective offer.

Question 20

An agreement is not one of the requirements of a valid contract.

Question 21

Not all of the terms presented in shrink-wrap agreements have been enforced.

Question 22

Jonathon promises to pay child support and alimony to his ex-wife every month after their divorce. Jonathon has

A) only a moral obligation to do keep his promise.
B) only a legal obligation to keep his promise.
C) both a legal and a moral obligation to keep his promise.
D) no obligation to keep his promise.

Question 23

Adequacy of consideration refers to how much consideration is given.

Question 24

Phil agrees to work for Vacation Resorts, Inc., as a chef. In determining whether a contract has been formed, an element of prime importance is

A) the parties' intent.
B) Phil's rate of pay.
C) Phil's education.
D) the terms of Phil's employment.

Question 25

Consideration is the value given in return for a promise.

Question 26

If an offeror does not expressly specify a certain mode of acceptance, then acceptance can be made by any reasonable means.

Question 27

Jim tells Dana that he will take her out to lunch on Thursday. Jim has made Dana a

A) prediction.
B) promise.
C) bilateral contract.
D) void contract.

Question 28

A release does not require consideration to be legally binding.

Question 29

Bobbie claims that Carly breached their contract. Carly responds that she never intended to enter into a contract with Bobbie. 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 30

A shrink-wrap agreement is an agreement whose terms are expressed in?side a box in which the goods are packaged.

Question 31

A forum-selection clause indicates the forum, or location, for the delivery of goods purchased online.

Question 32

Under federal law, an electronic signature can be as valid as a signature on pa?per.

Question 33

The agreement resulting from a buyer clicking on a box containing the words "I agree" is known as a click-on agreement.

Question 34

It is illegal for two parties to mutually agree to rescind a valid contract.

Question 35

The doctrine of promissory estoppel does not apply if there exists a clear and definite promise.

Question 36

Past consideration can be legally sufficient consideration.

Question 37

Cynthia tells Darryl that she will deliver his boxes of Paradise Cookies as he directs. A declaration that one will do something in the future is part of the defini?tion of

A) a prediction.
B) a premise.
C) a principle.
D) a promise.

Question 38

Browse-wrap terms are arguably not enforceable.

Question 39

An illusory promise is unenforceable.

Question 40

Under the Uniform Electronic Transactions Act, a typed name at the end of an email message is not considered an e-signature.

Question 41

Hi-Lite Manufacturing, Inc., orders supplies online from Indigo Parts Company. To complete the order, the buyer is required to click on a button that says, in reference to certain terms, "I agree." This is

A) a click-on agreement.
B) a browse-wrap term.
C) a wrap-on agreement.
D) a shrink-wrap agreement.

Question 42

Ellen offers to sell her math textbook to Julia for $50. Julia does not respond. Ellen and Julia do not have a contract because they lack the requirement of

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

Question 43

Mary admires Julia's collection of scarves. Julia says, "I might sell you a few someday, if I get tired of them." Julia's statement is

A) an effective offer.
B) not an effective offer because it has not been communicated to Mary.
C) not an effective offer because the Julia does not show a serious intent to be bound.
D) an acceptance.

Question 44

Livewire Company and McCoy's Candy, Inc., sign a document that states Livewire agrees to design a We

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

Question 45

Pastry Dough, Inc., sends its catalogue to Octavio and includes a "per?son?alized" letter inviting him to buy any item in it at the ad?vertised price. This is

A) an offer because of the "person?alized" letter.
B) an offer because there is no room for price negotiation.
C) an offer only if Octavio previously bought items from Pastry Dough.
D) not an offer.

Question 46

Mark is creating a Web site through which he will enter into contracts over the Internet. Important terms to include in his offers include

A) provisions specifying the remedies if the contract is breached.
B) a detailed history of his business.
C) glowing reviews from former customers.
D) his educational background.

Question 47

Beth goes to Dr. Carlton for surgery. Carlton says that Beth should be fully healed within a week. Beth is not healed within a week. With respect to breach of contract, Carlton is

A) liable.
B) not liable, because surgery is not a proper sub?ject for a contract.
C) not liable, because the statement was an opinion.
D) not liable, but Beth is excused from paying Carlton.

Question 48

Peter and Ray are riding their horses together. Peter jokingly tells Ray that Ray's horse is too slow. Ray laughs and jokingly responds, "Yes, he is too slow! I would sell him for $5!" Peter hands Ray $5. This is

A) a valid acceptance because Peter gave Ray the money in a reasonable time.
B) a valid acceptance because there is consideration on both sides.
C) not a valid acceptance because Ray's offer was made in jest.
D) not a valid acceptance because Ray's horse is worth more than $5.

Question 49

Green Grocers, Inc., enters into a contract with Hiway Transport Company for the deliv?ery of a shipment of fresh produce. In a later dispute between these parties over the delivery, the doctrine of quasi contract cannot be used because

A) both of the parties involved are businesses.
B) at least one of the parties had greater bargaining power.
C) the subject of the contract was a service.
D) there is an actual contract covering the subject in dispute.

Question 50

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

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

Question 51

May tries to start her new car with no success. She yells that she will sell the car to anyone for $10. Nick, a passerby who owns Nick's Pre-owned Autos, hands May $10. This is

A) a valid acceptance because May is seriously frustrated.
B) a valid acceptance because Nick is a car dealer.
C) not a valid acceptance because May does not seriously intend to sell.
D) not a valid acceptance because Nick is a car dealer.

Question 52

Kathryn signs a lease agreement for an apartment. Kathryn has entered into a(n)

A) express contract.
B) implied contract.
C) quasi contract.
D) unenforceable contract.

Question 53

Jonah tells Levi he will give him an Xbox if Levi does Jonah's chores for a month. Levi promises to do the chores. Jonah and Levi have formed a

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

Question 54

Jacqi tells Kenneth, who does not know how to perform comedy, that she will tutor him in the subject for $500. As an offer, this is

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

Question 55

Holiday Sales Company and Global Distributors, Inc., enter into a contract for the delivery of imported specialty goods. Until the goods are delivered and paid for, these parties have

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

Question 56

Wilson buys a lottery ticket at his local gas station. Wilson has accepted an offer for a

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

Question 57

Jon says to Kristy, "I would like to sell you my sports memorabilia collec?tion." This is not an offer because it

A) does not describe the subject matter sufficiently.
B) does not include a price term.
C) only expresses an opinion.
D) only invites Kristy to negotiate.

Question 58

Fresh Fast Service, Inc., offers to deliver produce to Growers' Market's customers for a certain price. Fresh's intent to extend a serious offer to Growers' Market is determined by reference to

A) Fresh's assumptions.
B) Fresh's beliefs.
C) Fresh's intentions.
D) what a reasonable person in Growers' position would conclude Fresh's words and actions meant.

Question 59

Deb buys a song through eSongs, an online music vendor. Before completing the purchase and downloading the song, Deb must agree to a provision stating that she will not make and sell copies of the song. This provision is

A) a browse-wrap term.
B) a click-on agreement.
C) a shrink-wrap agreement.
D) a wrap-on agreement.

Question 60

Quality Sales Corporation enters into contracts over the Internet. Quality can protect itself against disputes involving these contracts by making im?portant terms

A) reasonably clear.
B) difficult to notice.
C) impossible to find.
D) standardized.

Question 61

Creative Solutions Corporation (CSC) sells business application software-accounting and book?keeping programs, blank business forms, inventory control functions, and the like-in different combinations, in different packages, at different prices, downloadable online. To complete a deal, a purchaser clicks on a button that, with reference to certain terms, states, "I agree." What is this sort of agreement called? Do the parties have a binding, enforceable contract that includes the terms? Explain.

Question 62

Kingston promises to pay Melina $500 to install a sump pump in his warehouse. Melina com?pletes the installation. The act of installing the pump

A) imposes a moral obligation on Kingston to pay Melina.
B) imposes no obligation on Kingston unless he is satisfied with the job.
C) is not sufficient consideration because it is not goods or money.
D) is the consideration that creates Kingston's obligation to pay Melina.

Question 63

Mariah promises to pay her assistant Nadine $10,000 in consideration of the ser?vices she provided over the years. Mariah never pays Nadine. Mariah is

A) liable for payment of the $10,000.
B) liable only if Nadine still works for Mariah.
C) not liable, because the consideration is in the past.
D) not liable, because the consideration was unintentional.

Question 64

Digital Products Company includes a shrink-wrap agreement in a transac?tion with Eagle Engineering Corporation. A shrink-wrap agreement is an agreement whose terms are expressed

A) in code at the end of a computer program .
B) inside a box in which goods are packaged.
C) in small print at the end of a paper contract signed by both parties.
D) on a computer screen.

Question 65

Over the Internet, Red & White Contractors, Inc., arranges to lease storage space from Blue Services Company. To complete the deal, Red & White clicks on a but?ton that says, in reference to certain terms, "I agree." Most likely, the par?ties have

A) a binding contract that includes the terms.
B) a binding contract that does not include the terms.
C) an unenforceable contract that includes the terms.
D) an unenforceable contract that does not include the terms.

Question 66

Cody signs and returns a letter from Dora, referring to her sale of the Bar-D Ranch and its price. When Cody attempts to complete the deal, Dora re?fuses, claiming that they have no con?tract. Cody claims they do. What standard determines whether these parties have a contract?

Question 67

Franzea is injured in an accident caused by Gentry. Gentry agrees to pay Franzea $2,500 if she agrees to release him from further liability. She agrees. If Franzea's damages ultimately exceed $2,500, she can collect

A) the balance from Gentry in a breach-of-contract suit.
B) the balance from Gentry in a tort suit.
C) the balance from Gentry on the ground of unforeseen difficulties.
D) nothing more from Gentry.

Question 68

Rollo promises to perform, for a price, shoe repair services in affiliation with Togs 'n Things, a clothing store. To support a contract, the consid?eration ex?changed by the parties must be

A) adequately considerate.
B) equally valuable.
C) legally sufficient.
D) wisely priced.

Question 69

Genovese Contracting, Inc., agrees to build a warehouse for Hawthorne Distributors. Genovese runs into the types of difficulties that contrac?tors ordinarily confront, and Hawthorne agrees to pay extra compensation to over?come them. Regarding the agreement to pay more, a court would likely

A) enforce it.
B) rescind it.
C) order the parties to renegotiate it.
D) not enforce it.

Question 70

Sparky offers Teodora $1,000 for her collection of rare coins. She ac?cepts. If a dispute arises, a court would likely

A) enforce the deal after questioning the adequacy of consideration.
B) not question the adequacy of the consideration.
C) rewrite the deal after questioning the adequacy of consideration.
D) set aside the deal after questioning the adequacy of consideration.

Question 71

Jared downloads some video games from the Internet. There is

A) a click-on agreement.
B) browse-wrap terms.
C) a wrap-on agreement.
D) a shrink-wrap agreement.

Question 72

Dave's uncle tells Dave that if "he feels that Dave deserves it," he will give Dave $1,000 when Dave graduates from college. Dave's uncle's promise is

A) illusory.
B) enforceable.
C) a forbearance.
D) a preexisting duty.