Deck 8: Contracts: Enforceable Agreements

Question 1

The offeror makes an offer by mail.Generally,unless otherwise specified,the offeree may accept the offer by using the same or faster means of communication.

Answer 1

True

Question 2

Numerous statutes have been enacted to protect buyers and sellers in sales transactions before,during,and after their related negotiations.

Answer 2

True

Question 3

An agreement that may be either legally enforced or rejected by one party is an enforceable but voidable contract.

Answer 3

True

Question 4

Contracts entered into as a result of duress or undue influences are always void.

Question 5

A minor generally may disaffirm a contract before reaching majority.The minor may also do so within a reasonable time after reaching majority,but if he or she fails to do so,the contract is ratified and binding.

Question 6

Genuine,abiding love is priceless and as such is the highest form of valid consideration in contracts.

Question 7

Performance of a single contract (e.g. ,the sale/purchase of a pizza in a fast food outlet)requires the prior performance of many other contracts by other persons.

Question 8

A quasi-contract is another term for a bilateral contract.

Question 9

An express contract is always in writing.

Question 10

A contract is a legally binding agreement to do or not to do a certain thing,and is enforceable in court.

Question 11

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

Question 12

The validity of a contract that has been fully performed cannot be challenged for failure to comply with the statute of frauds.

Question 13

To create a valid,enforceable contract,the first party must use the expression "I offer..." and the second party must write or say "I accept..."

Question 14

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

Question 15

A "contract under seal" is an example of a formal contract.

Question 16

The definition of an executed contract is an illegal agreement calling for harm to another person for a specified fee or price.

Question 17

When there is a valid novation,one of the original parties to the contract is completely relieved of all former obligations under the contract.

Question 18

Details of contract law are found in the U.S.Constitution and in federal statutes.

Question 19

Contracts with unlicensed persons are enforceable by the unlicensed person if the purpose of the licensing statute is to simply raise revenue rather than to protect the public from unqualified practitioners.

Question 20

The statement "If you wash my car,I will pay you $10" is an example of an offer to form a bilateral contract.

Question 21

A minor's contracts are generally by the minor,but are valid and
on the adult with whom the minor is dealing.

Question 22

A(n)is a legally enforceable agreement to do or not do a specified act.

Question 23

In terms of legal effect,contracts are classified as ,,or
.

Question 24

There are two parties to a contract;the is the person to whom the offer is
made.

Question 25

Under the federal Magnuson-Moss Warranty Act no seller is required to give a written warranty,but the seller who elects to do so must label it as either full or limited.

Question 26

An agreement that cannot be enforced is and is not really a contact at all.

Question 27

A contract that is oral and/or in written form is a(n).

Question 28

Sometimes,the parties to a contract specify in advance what the damages shall be in the case of
breach.These provisions are called clauses.

Question 29

The end of chapter case of Lucy v.Zehmer provided a good example of the objective person standard used to establish the necessary intent to create a contract

Question 30

A(n)mistake about a(n)fact will enable either party
to rescind the contract.

Question 31

The holding in the end of chapter case of Hamer v.Sidway was that oral testimony of prior negotiations cannot be introduced to vary the terms of a integrated contract.

Question 32

If a contract has not been fully performed,it is called a(n)contract.

Question 33

Although the Uniform Commercial Code (UCC)has been adopted,at least in part,by
states,important exist among the adopters in its
application to commerce.

Question 34

exists when one party is prevented from exercising judgment and free will
by some wrongful act or threat of the other party.

Question 35

A(n)is the party to a contract who makes a promise to do something.

Question 36

Many state laws relating to regulation of interest and usury are based on religious principles found in major religions including Judaism and Islam.

Question 37

Contracts with unlicensed persons are unenforceable by the unlicensed person if the purpose of the licensing statute is to protect the public from unqualified practitioners.

Question 38

Wrongful persuasion and persistent pressure is a definition of duress and a common example is a pushy salesperson in a computer store.

Question 39

From the cardholder's point of view there are no differences in the statutory protections available between credit cards and debit cards.

Question 40

If no time is stated,an offer lapses after a(n).

Question 41

consists of two parts: bargained-for exchange and something of legal value.

Question 42

A(n)agreement gives one of the parties the right to buy (or sell)something
at a certain price within a specified future time.

Question 43

Steve Shredder promised to move all practice sessions of his high-volume group the "Scan Jet Fondue" to a location far from his home in exchange for his neighbor Osgood Wheet's promise to pay the music group $300 a month for nine months,commencing immediately.The mutual promises are

A)enforceable,because each party enjoys some resulting legal benefit and each suffers some legal detriment.
B)unenforceable,because playing of music wherever,whenever,and however one pleases is guaranteed as human expression under the Bill of Rights.
C)unenforceable,because tastes in music-or in other art forms-are not to be disputed,and the simple absence of music (or noise)is too intangible to have measurable value.
D)enforceable if in writing,but not if the agreement is oral.

Question 44

A contract drafted by a dominant party and then presented to the other party-the adhering party- on a "take it or leave it" basis is called a and it is generally .

Question 45

Two very different legal concepts are related to need for or treatment of written contracts.Those rules are and .

Question 46

When officials of your city government make contracts for construction of a recreation center in your neighborhood park,complete with swimming pool,tennis courts,and baseball diamond,you and your fellow residents become

A)third-party donor beneficiaries if you pay state income and wholesale taxes.
B)third-party donee beneficiaries if you do not pay city real-property taxes.
C)incidental beneficiaries.
D)third-party creditor beneficiaries.

Question 47

In sales of new or used goods by merchants,probably the most important warranty is that of
,unless it was expressly by stating that the goods
were sold .

Question 48

After ten years of marriage and months of searching,Jan and Jon find what they think is their "dream house." Actually,they want to confirm the availability of required financing.What should they do?

A)"Bite the bullet," and sign the purchase contract immediately.
B)Tell the seller "We'll be back;please hold this house for us and for our twins."
C)Offer to purchase the home contingent upon their ability to obtain reasonable financing within a couple of weeks.
D)Keep on looking;there's always a "better deal" somewhere,if you shop long enough.

Question 49

A valid offer to contract is terminated before acceptance

A)after a reasonable lapse of time,if no specific time is stated.
B)by destruction of the subject matter of the offer.
C)by death or incompetence of the offeror or offeree.
D)any of the above

Question 50

After a minor becomes an adult failure to within a reasonable by the
minor,will turn a into a ..

Question 51

When a party to a contract honestly performs most essentials of the contract,but there is some minor omission or deviation which can be corrected,or compensated for in a reduction of the price the doctrine of exists.

Question 52

Generally,a minor is liable under contract law for purchases of necessaries (e.g. ,food,clothing, shelter,and medical care).However,

A)the necessary that is bought must truly be needed and must not be something that is provided by,or is readily available from,the parent or guardian.
B)the price charged must be reduced to the seller's out-of-pocket costs,plus no more than 10% of gross profit on the item.
C)the goods must be guaranteed to last at least until the minor becomes an adult.
D)none of the above

Question 53

Sara Sou is "bearish" and is of the opinion that the price of Muggle Company stock will drop within a few weeks;Stefan Gordon is "bullish" and thinks the price will go up.Sara sells her 1,000 shares of Muggle Co.stock to Stefan for $100 a share.If,within a few weeks,the price of a share of Muggle Co.stock

A)does not change,both Sara and Stefan can legally rescind because of their mutual mistake as to the value of the stock.
B)drops sharply to $1,Stefan alone can rescind because of Sara's fraud.
C)rises sharply to $200 a share,Stefan can rescind because of his unilateral mistake
D)None of the above is correct.Different expectations of the future value of a good (e.g. ,the Muggle Co.stock)do not affect the validity of a contract for its sale.

Question 54

Parties to a contract may specify in advance the amount of damages that must be paid in case of breach.These liquidated damages

A)are generally payable in a liquid form (for example oil,or solvents,or alcoholic beverages).
B)are enforceable if they are a penalty designed to frighten parties into performance as agreed.
C)must be reasonable and not a penalty.They reflect the difficulty of assessing the actual or anticipated damages that would be caused by any future breach.
D)are most appropriate when actual damages will be easy to calculate.

Question 55

A(n)is a rejection of the original offer,which is also a new offer.

Question 56

A bargain so unfair to a party that no reasonable or informed person should agree to it and a court may decline to enforce is considered to be a(n).

Question 57

A contract that includes a promise for an act is called ,while a contract that
includes a promise in exchange for a promise is called .

Question 58

exists when one vulnerable party is convinced to enter into a contract by
someone who because of his or her relationship as trusted individual deprives the party of freedom of will in making a contract.

Question 59

Although the parties failed to comply with the applicable statute of frauds,a contract that was fully executed

A)is a valid contract.
B)is subject to rescission because of failure to comply with the statute of frauds.
C)subjects one or both parties to criminal prosecution.
D)subjects one or both parties to civil damages for the tort of fraud.

Question 60

A breach of contract leads to a claim of damages by the innocent party to the
contract.

Question 61

(Use the following information to answer questions
Broadnorf Warbeagle is specifically designated to receive cash benefits of $2,000 from Ferd under a contract solely between Cantwell and Ferd.Cantwell owes Broadnorf $4,000.Ferd had never heard of Broadnorf before his recent contract with Cantwell.
Cantwell,by entering into his agreement with Ferd,has

A)extinguished his obligation to Broadnorf.
B)made a partial delegation of his duty to pay Broadnorf.
C)made an partial assignment of his duty to pay Broadnorf.
D)created a three-party novation,also referred to by Justice Baadoza in Marbury v.Madison as a "three-legged monte."

Question 62

Chad,who owns the only coffee shop in Rivercity,learns that Jose is about to open a competing coffee shop in the same small town,just a few blocks from Chad's.Chad offers Jose $10,000 in return for Jose's promise not to open a coffee shop in the Rivercity area for six months.Jose accepts the $10,000 but goes ahead with his plans,even though he had agreed not to do so.When Jose opens his coffee shop for business,Chad sues to enjoin Jose's continued operation or to recover the $10,000.

A)As this contract is not part of an otherwise legal contract it is an illegal anti-competition agreement and is not enforceable.
B)As this contract is reasonable as to time and scope it is enforceable.
C)Although the agreement is not enforceable Chad will get his $10,000 back because he did what he promised.
D)This is enforceable as a narrow exception to enforcement of anti-competitive clause

Question 63

Which statement based on textbook discussion is true about debit or credit cards?

A)A debit card draws against either an account the user has with a financial institution or a prior payment of money made to the card issuer.
B)credit card transactions provide the greater profit to financial institutions.
C)debit cards provide greater protection as a matter of law to the consumer.
D)debit and credit cards are treated identically by the law.

Question 64

The running of the statute of limitations on a contract between Martha,the debtor,and Zelda,the creditor

A)extinguishes Martha's duty (the contract is void).
B)acts as an accord.
C)bars Zelda's remedy (the contract is unenforceable).
D)is unilateral performance.

Question 65

In the historic case of Hamer v.Sidway,the nephew:

A)lost,as there was no consideration.
B)lost,as the uncle was dead.
C)won,as there was consideration.
D)won,as there was a completed gift.

Question 66

The statute of frauds,

A)requires all-important contracts to be in writing and signed by the party against whom action is brought.
B)specifically states in great detail the nature and amount of written information that must be included in the formal contract,if it is to be enforceable.
C)as its name indicates,is designed to prevent all varieties of fraudulent conduct in contracting.
D)if not complied with,renders some otherwise valid contracts unenforceable.

Question 67

Legally sufficient consideration may consist of which of the following?

A)an act
B)a promise to do something
C)a promise to not do something
D)all the above

Question 68

The famous heart surgeon Dr.Ardmeyer entered into an agreement with Brenda Thrope to do heart surgery on Brenda immediately after her University final examination.Unfortunately,the time of the operation conflicted with Dr.Ardmeyer' s bowling tournament,and the doctor assigned the operation to Muckinfuss,a licensed doctor and recent graduate of an unaccredited medical school,Cashcow University of the Somewhat Offshore Islands.Brenda,under anesthesia,was unaware of the switch in surgeons.The surgery was successful and Brenda has completely recovered.Brenda
Has decided not to pay.No contract terms covered any transfer of responsibility for the surgery.

A)The operation was successfully performed,so Brenda has to pay.
B)Any task under a contract may be assigned as long as the assignor has confidence in the assignee.
C)Dr.Ardmeyer had the right to delegate the physical aspects of the operation to any other licensed doctor.
D)Dr.Ardmeyer had contracted to perform a unique individualized service for Brenda,and because of this,Brenda is not obligated to accept,or pay for services rendered by any other person.

Question 69

Promising to do something that one does not have an obligation to do in reply to a request from another usually constitutes:

A)consideration
B)promissory estoppel
C)capacity
D)detrimental reliance

Question 70

The Uniform Commercial Code governs contracts for

A)services.
B)bicycles.
C)real estate.
D)employment.

Question 71

An executory contract between a minor and an adult is

A)absolute.
B)voidable by the adult.
C)voidable by the minor only.
D)a void agreement.

Question 72

A quasi-contract is

A)a bilateral contract.
B)a contract that meets four of the six basic requirements of a contract.
C)not a contact at all,but an improper attempt at a contract that is void.
D)not a true contract at all,but an obligation created by law.

Question 73

In which of the following cases will an agreement be enforced even though reciprocal consideration is lacking?

A)an agreement between close relatives related by common heritage or marriage
B)a promise to purchase season tickets to a major league baseball team.
C)a promise by a student to a teacher that from now on the student will read the textbook before attending class
D)a new promise to pay a debt where collection has been legally blocked by running of a statute of limitations

Question 74

(Use the following information to answer questions
Broadnorf Warbeagle is specifically designated to receive cash benefits of $2,000 from Ferd under a contract solely between Cantwell and Ferd.Cantwell owes Broadnorf $4,000.Ferd had never heard of Broadnorf before his recent contract with Cantwell.
The fact situation suggests the existence of

A)third-party rights and a delegation of duties.
B)an accord and satisfaction.
C)a substantial performance of a liquidated damage clause.
D)a statutory mutual assent.

Question 75

Which of the following choices best completes this sentence? An adhesion contract is one

A)the terms of which are prepared by one party with superior bargaining power,usually in a standardized form,and presented to the other prospective contracting party on a "take-it-or¬leave-it" basis.
B)that "adheres to" both parties;that is,legally binds both parties.
C)that is only recognized only under sales law in Louisiana and Florida.In all other states but Maine it is recognized under sell law.In Maine it is recognized when incarcerated under cell law.
D)so one-sided that courts will ordinarily refuse to enforce it.

Question 76

Which of the below is an example of a novation?

A)Art and Burt agree to terminate their supply contract.
B)Art and Burt enter into an agreement supported by consideration wherein Art agrees to pay a debt Burt owes Carstairs.
C)Art,Burt and Carstairs all agree that Burt will assume Art's rights and duties in a contract between Art and Carstairs.
D)All of the above are examples of a novation.

Question 77

The law recognizes all of the following as fiduciary relationships except that of

A)lawyer or doctor,with client or patient.
B)spouse with other spouse,regardless of the duration of the marriage.
C)dating couples in a happy monogamous relationship.
D)members of a general partnership in their dealings with each other related to the business of the firm.

Question 78

Janquese attended a meeting on March 4,2004,where he met Bradshaw.Janquese orally contracted to hire Bradshaw as a service representative for ten months.Bradshaw was required to begin work on June 26,2004.Before Bradshaw begins performance,

A)Written evidence of the contract is not necessary for its enforcement.
B)The Statute of Frauds renders this agreement unenforceable.
C)This agreement is an example of the substantial performance rule.
D)This is a firm offer under the UCC.

Question 79

When one party has vastly superior bargaining power over another,they often draft their contracts without consultation with the other party.These contracts are called

A)adhesion contracts.
B)unconscionable contracts.
C)unenforceable contracts.
D)torts.

Question 80

(Use the following information to answer questions
Broadnorf Warbeagle is specifically designated to receive cash benefits of $2,000 from Ferd under a contract solely between Cantwell and Ferd.Cantwell owes Broadnorf $4,000.Ferd had never heard of Broadnorf before his recent contract with Cantwell.
Broadnorf Warbeagle appears to be a

A)incidental beneficiary.
B)creditor beneficiary.
C)assignor.
D)donee beneficiary.