Question 1

A _____ is a voluntary promise between two or more parties for which the law will provide a remedy for nonperformance.

Accepted Answer

A)  report 
B)  contract 
C)  notice 
D)  memo

Question 2

Which of the following statements best describes the mailbox rule?

Accepted Answer

A)  Unless otherwise agreed, an acceptance is effective when it is sent if it is sent correctly. 
B)  If no time is specified in the offer, then the law will impose a reasonable time based on the circumstances. 
C)  A change in the offer by offeree will only be considered a counteroffer if the offeree intends it to be so. 
D)  If an offer is made but before it can be accepted the subject matter of the offer becomes illegal, the offer is terminated.

Question 3

With reference to a valid contract, _____ indicates that the offeror is extending an offer and the offeree is accepting the offer.

Accepted Answer

A)  capacity to enter into a contract 
B)  mutual assent 
C)  legality 
D)  consideration

Question 4

Jane told Grandma that Grandma was signing a birthday card for her son. In fact, it is the deed to Grandma's house. This is an example of:

Accepted Answer

A)  duress. 
B)  fraud in the inducement. 
C)  mutual mistake. 
D)  fraud in the execution.

Question 5

If a party is below the legal age for contracting, his or her contracts are:

Accepted Answer

A)  the contracts implied in law. 
B)  voidable at their option. 
C)  quasi contracts. 
D)  option contracts.

Question 6

Discuss with examples unilateral and bilateral contracts.

Accepted Answer

The answer of Discuss with examples unilateral and bilateral contracts....

Question 7

Discuss suertyship agreement.

Accepted Answer

The answer of Discuss suertyship agreement....

Question 8

If an incompetent party enters into a contract, the contract will be:

Accepted Answer

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

Question 9

The Restatement of Contracts is also known as "common law of contracts."

Accepted Answer

A) True 
 B)False

Question 10

In the case of _____ the one being defrauded actually knows he or she is entering into a contract, but has been told untruths about significant parts of the contract that form the basis of the bargain.

Accepted Answer

A)  unconscionability 
B)  fraud in the inducement 
C)  undue influence 
D)  duress

Question 11

If an acceptance is seasonable then it means:

Accepted Answer

A)  the acceptance was expressed in the form of silence. 
B)  the offer was accepted by the agent of the offeree. 
C)  the offer was accepted within the time set out by the offeror. 
D)  the acceptance was expressed after a prior rejection.

Question 12

All of the following statements are true regarding the Restatement of Contracts EXCEPT:

Accepted Answer

A)  it is a compilation of the most common approaches to states' common law of contracts. 
B)  states can adopt the Restatement in whole, or in part, or even modify, as they see fit. 
C)  the terms "common law of contracts," tends to be used interchangeably with contract law contained in the Restatement. 
D)  it is a law, in and of itself.

Question 13

If it is illegal to do an act, then it is illegal to contract to have the act done. Which of the following terms best describes this concept?

Accepted Answer

A)  Consideration 
B)  Capacity to enter into a contract 
C)  Legality 
D)  Mutual assent

Question 14

When the terms of the contract have not yet been performed, it is known as a(n) _____ contract.

Accepted Answer

A)  express 
B)  quasi 
C)  executory 
D)  optional

Question 15

The legal relationship formed when someone agrees to pay another's debt if the debtor does not pay is most likely to be an example of a(n):

Accepted Answer

A)  quasi contract 
B)  void contract. 
C)  suretyship agreement 
D)  sponsored agreement

Question 16

Discuss inadequate considerations.

Accepted Answer

The answer of Discuss inadequate considerations....

Question 17

David says to Mike, "I promise to give you $200 if you paint my house." This is most likely to be an example of a(n) _____ contract.

Accepted Answer

A)  unenforceable 
B)  unilateral 
C)  void 
D)  executed

Question 18

These contracts are not really contracts at all. Rather, they are an obligation imposed by law upon an individual who receives a benefit under circumstances in which they would ordinarily be required to pay but no agreement to pay exists. Identify the category of contract in the discussion.

Accepted Answer

A)  Executory contracts 
B)  Unenforceable contracts 
C)  Contracts implied in law 
D)  Voidable contracts

Question 19

_____ is exerting pressure through threats or use of physical force, economic disadvantage, exposure of private matters, etc., to get a party to enter into a contract.

Accepted Answer

A)  Duress 
B)  Undue influence 
C)  Fraud in execution 
D)  Gap filling

Question 20

The mailbox rule is also known as the _____ acceptance rule.

Accepted Answer

A)  direct 
B)  deposited 
C)  expressed 
D)  optional

Exam 5: Contracts and Sales