Deck 13: Introduction to Contracts

Question 1

In the employer/employee context, the purpose of a covenant not to compete is to restrict what an employee may do after leaving a company.

Answer 1

True

Question 2

Which of the following was the result in the Case Opener in which Hallmark claimed that an arbitration ruling against a former employee should be upheld?

A) The former employee was barred from proceeding in court because of the binding arbitration clause.
B) The former employee was barred from proceeding in court based on the statute of limitations which expired while she was pursuing her remedies in arbitration.
C) The former employee was allowed to proceed in court because she had exhausted her remedies in the arbitration arena.
D) The former employee could proceed with an action in court because there was no consideration for the arbitration agreement and, therefore, no valid agreement.
E) The former employee could proceed with an action in court because, as a matter of law, arbitration agreements are barred in the arbitration context.

Answer 2

The former employee could proceed with an action in court because there was no consideration for the arbitration agreement and, therefore, no valid agreement.

Question 3

A[n] ___________ is a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty.

A) Contract
B) Offer
C) Consideration
D) Acceptance
E) Legal object

Answer 3

Contract

Question 4

Whether a contract is bilateral or unilateral depends upon what response the offeror expects from the offeree.

Question 5

If a quasi-contract is imposed, the amount of damages for a breach is based upon the fair market value of any service provided to the defendant.

Question 6

A person who is intoxicated when signing a contract may not avoid the contract based on being intoxicated because being intoxicated is a voluntary condition.

Question 7

Which of the following consists of an offer by one party and an acceptance of the terms by another party?

A) Legal object
B) Agreement
C) Coherence
D) Alliance
E) Concurrence

Question 8

Today, courts hold that once an offeree begins performance on a unilateral contract, the offeror must hold the offer open for a reasonable time to allow the offeree to complete the performance.

Question 9

Which of the following was the result on appeal in Reisenfeld & Co. v. The Network Group Inc.; Builders Square Inc.; Kmart Corp., the case in the text involving whether the plaintiff could recover from BSI in the situation in which BSI contracted with Network Group to lease property, and Network Group contracted with the plaintiff agreeing to pay a certain commission for his work but then defaulted on the contract?

A) The court ruled that because it was a third-party beneficiary, BSI was required to pay the plaintiff the full amount of the commissions claimed.
B) The court ruled that because it was a third-party beneficiary, BSI was required to pay the plaintiff the reasonable value of the services rendered, not necessarily the contractual amount promised for commissions.
C) The court ruled that because a quasi-contract was involved, BSI was required to pay the plaintiff the full amount of the commissions claimed.
D) The court ruled that because a quasi-contract was involved, BSI was required to pay the plaintiff the reasonable value of the services rendered, not necessarily the contractual amount promised for commissions.
E) The court ruled that because the plaintiff did not have a contract with BSI, the plaintiff was entitled to no recovery from BSI.

Question 10

Which of the following is true regarding the type of marriage contract discussed in the text called the muta'a?

A) It is a type of premarital contract typical to the U.S. in which the parties agree ahead of time how property and assets should be divided in the event of divorce.
B) It is a contract by which the female agrees to a divorce if there are no children from the marriage within five years.
C) It is a contract by which the female agrees to a divorce if there are no children from the marriage within three years.
D) It is a temporary type of arrangement called a "responsibility marriage" in which the female is paid to care for the male's elderly parents.
E) It is a temporary type of arrangement called a "pleasure marriage" in which the female is paid for sexual intimacy.

Question 11

The term "consideration" in relation to contracts involves parties acting in an ethical manner.

Question 12

In order to recover under quasi-contract, there is no requirement that enrichment be unjust.

Question 13

Which of the following is a definition for consideration?

A) Being cordial in the negotiation of contracts.
B) Refraining from unethical behavior in the negotiation of contracts.
C) Being cordial and refraining from unethical behavior in the negotiation of contracts.
D) The bargained-for exchange.
E) A contract negotiated in person as opposed to by telephone or e-mail.

Question 14

If a contract is valid, then it is enforceable.

Question 15

Congress passed the Uniform Electronic Transactions Act (UETA).

Question 16

Any contract that is not a formal contract is an informal contract, also called a simple contract.

Question 17

Quasi-contracts are actual contracts.

Question 18

The person who makes an offer is called a[n] ___________.

A) Offeree
B) Offeror
C) Agreeor
D) Agree
E) Inquirer

Question 19

The Restatement (Second) of the Law of Contracts is not actually the law itself.

Question 20

The person who agrees to the terms of an offer made by the other party is called the _________.

A) Offeree
B) Offeror
C) Agreeor
D) Agree
E) Inquirer

Question 21

Harry and Frank are in agreement that Harry will pay Frank $2,000 for a used car. At what point is there a binding contract?

A) When the agreement is made.
B) When the money is paid.
C) When the car is delivered.
D) Ten days after the car is delivered and approved.
E) Twenty days after the car is delivered and approved.

Question 22

In a[n] _____________ contract, the offeror wants a performance to form the contract.

A) Trilateral
B) Bilateral
C) Unilateral
D) Complete
E) Anticipatory

Question 23

Which of the following was propounded by prominent legal scholars, recruited by the American Law Institute?

A) The Restatement of the Law Second, Contracts.
B) The Convention on Contracts for the National Sales of Goods.
C) Common law.
D) Common law and the Convention on Contracts for International Sales of Goods.
E) The Convention on Contracts for the National Sales of Goods and the Restatement of the Law Second, Contracts.

Question 24

In the U.S., which of the following are the two most important sources of contract law?

A) Case law and the Restatement of Law, Contracts.
B) Case law and the Uniform Commercial Code.
C) The Uniform Commercial Code and the Convention on Contracts for International Sales of Goods.
D) Case law and the Convention on Contracts for International Sales of Goods.
E) The Convention on Contracts for International Sales of Goods and the Restatement of the Law, Contracts.

Question 25

Which of the following is the reason the Uniform Commercial Code was drafted?

A) Different states had different laws governing contracts which did not result in a smooth flow of interstate commerce.
B) Some states had no law governing contracts.
C) Federal law governing contracts was difficult to apply.
D) The Uniform State Act on laws was not working.
E) The Restatement of the Law Second, Contracts was not being evenly and fairly applied.

Question 26

Which of the following may represent a lack of genuine assent?

A) Acceptance secured through fraud, duress, or misrepresentation, but not acceptance through undue influence.
B) Acceptance secured through undue influence, misrepresentation, or duress, but not through fraud.
C) Acceptance secured through fraud or duress, but not through misrepresentation or undue influence.
D) Acceptance secured through fraud, dress, or undue influence, but not through misrepresentation.
E) Acceptance secured through fraud, duress, undue influence, or misrepresentation.

Question 27

Contract law is said to be based on a[n] ___________ theory, meaning that the existence and interpretation of the contract is based on the outward manifestations of intent by the parties.

A) Subjective
B) Objective
C) Interpretive
D) Appearing
E) Unilateral

Question 28

Today's law of contracts originated from judicial decisions in ______.

A) France
B) Italy
C) Spain
D) England
E) Switzerland

Question 29

Which of the following represents the legal ability to enter into a binding agreement?

A) Majority
B) Emancipation
C) Contractual knowledge
D) Contractual capacity
E) Informed consent

Question 30

The law of contracts is primarily _______________ law.

A) Comprehensive
B) Statutory
C) Common
D) Restated
E) Modified

Question 31

An attorney who says that a contract lacks "the proper form" is typically referencing which of the following?

A) The agreement lacked a proper offer.
B) The contract lacked a proper acceptance.
C) The contract lacked consideration.
D) The contract lacked a writing.
E) The contract lacked both an appropriate offer and an appropriate acceptance.

Question 32

If a[n] _____________ misunderstanding between the parties exists, and as a result of that misunderstanding the parties do not really come to a meeting of the minds, there is no contract.

A) Mutual
B) Unilateral
C) Comprehensive
D) Subjective
E) Reasonable

Question 33

In which of the following does a contract arise not from words but from the conduct of the parties?

A) Implied contracts
B) Express contracts
C) Liquidated contracts
D) Bilateral contracts
E) Unilateral contracts

Question 34

Which of the following is the part of the Uniform Commercial code governing contracts for the sale of goods?

A) Article 2
B) Article 3
C) Article 4
D) Article 5
E) Article 7

Question 35

As a general rule, the ________ intent of the parties is not relevant when determining whether a contract exists; rather, what is relevant is how they represented their intent through their actions and words.

A) Objective
B) Subjective
C) Unilateral
D) Comprehensive
E) Considered

Question 36

Which of the following references the requirement that a contract not be either illegal or against public policy?

A) Consideration
B) Capacity
C) Legal object
D) Illegal prohibition
E) Ethical requirement

Question 37

All contracts can be categorized as either ___________ or __________.

A) Unilateral; complete
B) Unilateral; trilateral
C) Bilateral; trilateral
D) Unilateral; bilateral
E) Bilateral; complete

Question 38

Which of the following is the most likely measure of recovery when a quasi-contract is involved?

A) The amount set forth in the contract.
B) The fair market value of the matter involved.
C) The wholesale price of any good involved.
D) The amount sought by the plaintiff in the Complaint.
E) Damages will be computed the same way as they are computed for any other contract.

Question 39

Which of the following is sometimes referred to as an implied-in-law contract?

A) Quasi-contracts
B) Express contracts
C) Implied-in-fact contracts
D) Express contracts and implied-in-fact contracts
E) Express contracts and quasi-contracts

Question 40

A[n] ______________ contract is commonly defined as a promise in exchange for a promise.

A) Unilateral
B) Trilateral
C) Complete
D) Bilateral
E) Classified

Question 41

A[n] _______________ arises when a person acknowledges in court that he or she will perform some specified act or will pay a price upon failure to do so.

A) Contract under seal
B) Voidable contract
C) Recognizance
D) Implied-in-fact
E) Informal contract

Question 42

"Book Sale." Beverly offered to sell Rick a used business law book for $50. She told him that he could use it in his upcoming business law class the next semester. In fact, there was a problem with the book; it was several editions old. Rick was not aware of that fact, and neither was Beverly. When Rick took the book to class and realized the problem, he went back to Beverly requesting a refund. Beverly refused to return his money. She claimed that subjectively she thought that the book was correct, that she did not commit fraud, and that a binding contract existed. The book, however, is outdated and cannot be appropriately used in the class.

-Which of the following would be the correct analysis of the effect of the discovery that Rick has a book that is not appropriate for the class?

A) Rick is stuck with the book because he objectively agreed to purchase it.
B) Rick is stuck with the book because Beverly did not commit fraud.
C) Rick is stuck with the book because Beverly subjectively thought it was the correct book, and Rick did not openly disagree before the contract was executed.
D) Because the parties had a mutual misunderstanding, the parties did not come to a meeting of the minds, and there is no contract.
E) Because both parties were mistaken, at Rick's option he may return the book; but only half of the purchase price would be required as a refund from Beverly because she is not guilty of fraud.

Question 43

A ________________ is an agreement by the person who issues a letter to pay a sum of money on receipt of an invoice and other documents.

A) Letter of agreement
B) Letter of credit
C) Letter of acknowledgement
D) Negotiated credit instrument letter
E) Letter of simple contract

Question 44

"Book Sale." Beverly offered to sell Rick a used business law book for $50. She told him that he could use it in his upcoming business law class the next semester. In fact, there was a problem with the book; it was several editions old. Rick was not aware of that fact, and neither was Beverly. When Rick took the book to class and realized the problem, he went back to Beverly requesting a refund. Beverly refused to return his money. She claimed that subjectively she thought that the book was correct, that she did not commit fraud, and that a binding contract existed. The book, however, is outdated and cannot be appropriately used in the class.

-Which of the following would describe Beverly's role in the transaction?

A) She was the offeror.
B) She was the offeree.
C) She was the assentor.
D) She was the assentee.
E) She was the offeree and the assentee.

Question 45

A[n] _____________ contract is one that contains all the legal elements of a contract.

A) Voidable
B) Executed
C) Formal
D) Valid
E) Approved

Question 46

"Book Sale." Beverly offered to sell Rick a used business law book for $50. She told him that he could use it in his upcoming business law class the next semester. In fact, there was a problem with the book; it was several editions old. Rick was not aware of that fact, and neither was Beverly. When Rick took the book to class and realized the problem, he went back to Beverly requesting a refund. Beverly refused to return his money. She claimed that subjectively she thought that the book was correct, that she did not commit fraud, and that a binding contract existed. The book, however, is outdated and cannot be appropriately used in the class.

-Which of the following describes Rick's role in the transaction?

A) He was the offeror.
B) He was the offeree.
C) He was the assentor.
D) He was the assentee.
E) He was the offeree and the assentee.

Question 47

Which of the following contracts are usually voidable?

A) Contracts entered into as a result of fraud, but not duress or undue influence.
B) Contracts entered into as a result of duress or undue influence, but not fraud.
C) Contracts entered into as a result of undue influence or fraud, but not duress.
D) Contracts entered into as a result of fraud or duress, but not undue influence.
E) Contracts entered into as a result of fraud, duress, or undue influence.

Question 48

Which of the following are written documents signed by a party that makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument?

A) Negotiable instruments
B) Informal contracts
C) Simple contracts
D) Recognizances
E) Formal contracts

Question 49

"Book Sale." Beverly offered to sell Rick a used business law book for $50. She told him that he could use it in his upcoming business law class the next semester. In fact, there was a problem with the book; it was several editions old. Rick was not aware of that fact, and neither was Beverly. When Rick took the book to class and realized the problem, he went back to Beverly requesting a refund. Beverly refused to return his money. She claimed that subjectively she thought that the book was correct, that she did not commit fraud, and that a binding contract existed. The book, however, is outdated and cannot be appropriately used in the class.

-Which of the following is true regarding Beverly's claim that she subjectively believed the book was an appropriate edition and that an enforceable contract, therefore, existed?

A) She is correct because contract law is based upon a subjective theory of contracts.
B) She is correct because her genuinely held belief establishes that she did not commit fraud.
C) She is correct because agreements for the sale of goods are based on a subjective theory.
D) She is incorrect because her subjective belief would not be the basis for a determination of whether the contract would be enforced in this case and also because fraud is not necessary in order to find a breach of contract.
E) She is correct but only if Rick subjectively believed the same as she did.

Question 50

Which of the following states that if a writing, or term in question, appears to be plain and unambiguous on its face, its meaning must be determined from the four corners of the instrument without resort to outside evidence, with the words being given their ordinary meaning?

A) The Interpretation Rule
B) The Simple Rule
C) The Understandable Rule
D) The Plain Meaning Rule
E) The Comprehensive Rule

Question 51

Which of the following is in effect not a contract at all?

A) A voidable contract
B) An executory contract
C) An implied contract
D) An executed contract
E) A void contract

Question 52

"Book Sale." Beverly offered to sell Rick a used business law book for $50. She told him that he could use it in his upcoming business law class the next semester. In fact, there was a problem with the book; it was several editions old. Rick was not aware of that fact, and neither was Beverly. When Rick took the book to class and realized the problem, he went back to Beverly requesting a refund. Beverly refused to return his money. She claimed that subjectively she thought that the book was correct, that she did not commit fraud, and that a binding contract existed. The book, however, is outdated and cannot be appropriately used in the class.

-Which of the following is the term representing the $50 to be provided by Rick and the book to be provided by Beverly?

A) Encouragement
B) Material
C) Consideration
D) Inducement
E) Provisions

Question 53

A valid contract may be valid but _____________ when there is some law that prohibits the courts from enforcing it.

A) Executed
B) Executory
C) Unenforceable
D) Novated
E) Condoned

Question 54

A contract is ______________ if one or both of the parties, without breaching the contract, have the ability to either withdraw from the contract or enforce it.

A) Voidable
B) Executory
C) Implied
D) Executed
E) Void

Question 55

How many states still allow a contract without consideration to be enforced if it is under seal?

A) Five
B) Eight
C) Ten
D) Twenty
E) Thirty

Question 56

Which of the following was the result in In Re Zappos.com Inc., v. Customer Data Security Breach Litigation, the case in the text in which customers of Zappos claimed that they were not bound to an arbitration agreement contained in a contract with Zappos?

A) The court ruled for the plaintiffs for the following two reasons: (1) there was no contract because plaintiffs did not assent to it, and (2) even if a contract existed, the contract was illusory and unenforceable because Zappos could avoid promises at any time.
B) The court ruled for the plaintiffs only because of its finding that no contract existed based on the plaintiffs lack of assent.
C) The court ruled for the plaintiffs only because of its finding that the contract was illusory and unenforceable because Zappos could avoid promises at any time.
D) The court ruled in favor of Zappos on the basis that even though some provisions of the contract were unenforceable, because of the federal policy favoring arbitration agreements, the arbitration clause itself was enforceable.
E) The court ruled in favor of Zappos on the basis that the contract was properly entered into and was fully enforceable.

Question 57

As long as some of the duties under a contract have not yet been performed, the contract is considered ________________.

A) Executory
B) Executed
C) Anticipatory
D) Ended
E) Stopped

Question 58

Once all the terms of the contract have been fully performed, the contract is said to be ___________.

A) Executory
B) Executed
C) Anticipatory
D) Ended
E) Stopped

Question 59

The reference to __________________ comes from the days when the contract was literally sealed by a piece of soft wax into which an impression was made.

A) Implied-in-fact contracts
B) Implied-in-law contracts
C) Contracts under wax
D) Contracts under seal
E) Contracts under pressure

Question 60

Which of the following is an example of a formal contract?

A) Contracts under seal but not executed contracts or letters of credit.
B) Executed contracts but not contracts under sale or letters of credit.
C) Letters of credit and contracts under seal, but not executed contracts.
D) Contracts under seal letters of credit, but not executory contracts.
E) Contracts under seal, letters of credit, and also executed contracts.

Question 61

Define a bilateral contract and a unilateral contract, and give an example of each.

Question 62

"Refusal to Pay." Business law teacher Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Betty who agreed to trim some shrubbery for $40. Max went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max because she said that he had angered the neighbors and their dog, and that he was more trouble than he was worth. Secretly, Debby was glad about the dog bite because she felt it gave her an excuse not to pay. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Betty refused to trim the shrubbery because she got a better offer and claimed that she was not bound on the contract until she started to perform.

-Which of the following is true regarding Max's statement that he did not have to pay the emergency room charges?

A) He is correct.
B) He is incorrect because there was a bilateral, express contract.
C) He is incorrect because there was a unilateral, express contract.
D) He is partially correct in that because a quasi-contract existed, he would have to pay; but he would only have to pay fair market value, not what the hospital requested.
E) He is incorrect because there was a binding implied contract.

Question 63

Millie mows her own yard to save money. Her neighbor Paul, however, hires a lawn service to mow his yard. One day Millie is looking out of the window and sees Paul's lawn service drive up. Surprisingly, they begin to mow her yard, not Paul's yard. Millie thinks that is great and keeps her mouth shut while they mow the yard. Later, she gets a bill. She calls the owner of the lawn service and says that she does not have to pay because there was no contract where she agreed to have her yard mowed. The lawn service says that she is liable for the full amount of its contract. Discuss whether the lawn service is entitled to any recovery and why or why not.

Question 64

"Refusal to Pay." Business law teacher Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Betty who agreed to trim some shrubbery for $40. Max went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max because she said that he had angered the neighbors and their dog, and that he was more trouble than he was worth. Secretly, Debby was glad about the dog bite because she felt it gave her an excuse not to pay. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Betty refused to trim the shrubbery because she got a better offer and claimed that she was not bound on the contract until she started to perform.

-Which of the following is an appropriate characterization of the agreement between Debby and Max?

A) They had a bilateral, express agreement.
B) They had a bilateral, implied agreement.
C) They had a bilateral and unilateral agreement.
D) They had a unilateral, express agreement.
E) They had a unilateral, implied agreement.

Question 65

"Refusal to Pay." Business law teacher Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Betty who agreed to trim some shrubbery for $40. Max went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him, and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max because she said that he had angered the neighbors and their dog, and that he was more trouble than he was worth. Secretly, Debby was glad about the dog bite because she felt it gave her an excuse not to pay. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Betty refused to trim the shrubbery because she got a better offer and claimed that she was not bound on the contract until she started to perform.

-Which of the following is correct regarding Betty's statement that there was no contract?

A) Betty is correct. There was no contract because she had not started working.
B) Betty is incorrect because there was a bilateral, express agreement.
C) Betty is incorrect because there was a bilateral, implied agreement.
D) Betty is incorrect because there was a unilateral, express agreement.
E) Betty is incorrect because there was a unilateral, implied agreement.

Question 66

Discuss the meaning of a void contract and a voidable contract, and the effect of a determination that a contract is either void or voidable.

Question 67

"Wrong Deck." Penny hires Jackson to paint her back deck. She agrees to pay him $200 for the job, and he accepts sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then discovered that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, then he expects all of his funds from Penny, because the contract is executed.

-Which of the following is true regarding Jackson's assertion that Penny must pay him at this point if the neighbor fails to do so?

A) He is correct because an express contract existed, and he made an honest mistake for which Penny must accept the risk.
B) He is correct because an implied contract existed, and he made an honest mistake for which Penny must accept the risk.
C) He is correct because an implied-in-law contract existed.
D) He is correct because a valid contract existed; and, after his performance, it is considered executed.
E) He is incorrect unless he can somehow establish that Penny gave him poor directions or was otherwise at fault in informing him which deck to paint, and the contract remains executory.

Question 68

Identify and describe the four elements that are necessary for a contract to exist.

Question 69

Define an express contract and an implied contract; set forth the three conditions that generally must be met for the courts to find an implied contract, and give an example of an express and implied contract.

Question 70

"Wrong Deck." Penny hires Jackson to paint her back deck. She agrees to pay him $200 for the job, and he accepts sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then discovered that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, then he expects all of his funds from Penny, because the contract is executed.

-Which of the following is correct regarding Penny's assertion that the neighbor will be required to pay Jackson?

A) She is correct. The neighbor will be required to pay Jackson under a theory of quasi-contract.
B) She is correct. The neighbor will be required to pay Jackson based upon an implied-in-fact contract.
C) She is correct. The neighbor will be required to pay Jackson based upon an implied-in-law contract.
D) She is correct. The neighbor will be required to pay Jackson based upon an express contract.
E) She is incorrect. The neighbor will not be required to pay Jackson.

Question 71

"Wrong Deck." Penny hires Jackson to paint her back deck. She agrees to pay him $200 for the job, and he accepts sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then discovered that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, then he expects all of his funds from Penny, because the contract is executed.

-What was the status of the agreement between Jackson and Penny as of Tuesday when they agreed upon the price for the job?

A) The contract was executory.
B) The contract was executed.
C) The contract was novated.
D) The contract was formal.
E) The contract was a recognizance contract.