Deck 5: Nature and Classes of Contracts

Question 1

An agreement between two parties to perform an illegal act is a quasi-contract.

Answer 1

False

Question 2

There is no difference between a void contract and an unenforceable contract.

Answer 2

False

Question 3

An executory contract is defined as:

A)a contract that may be set aside or avoided by one of the parties.
B)a contract where the terms of the agreement are specified in words.
C)a contract that is required to be created in a special form or manner of creation.
D)a contract in which the terms have not been fully carried out by all parties.

Answer 3

D

Question 4

The failure of a party to perform the obligations assumed under a contract is known as a(n): ​

A)intrinsic fraud.
B)misrepresentation
C)negative pledge.
D)breach of contract.

Question 5

One may have rights and obligations imposed by law even when no real contract exists.

Question 6

When a contract is required to be sealed, a substitute for an actual seal may be used.

Question 7

Which of the following is true of quasi-contracts?

A)It is an unenforceable contract.
B)It generally offends ethical principles.
C)It is always formed by an adult with a minor.
D)It prevents the unjust enrichment of a party.

Question 8

What is a contract? What are the five definite requirements that every contract must fulfill? ​

Question 9

Judy promises to pay Ashley $50 to babysit her children.   After Ashley babysits the children, Judy pays Ashley the $50; thus each party has completed performance of each part of the contract. This is an example of a(n):

A)executed contract.
B)executory contract.
C)quasi-contract.
D)recognizance .

Question 10

​ The promise or obligation of each party to a contract must be supported by consideration in order for the contract to be valid.

Question 11

Most business people prefer making oral contracts regarding matters of great importance.

Question 12

A contract for the sale of goods is governed by the Uniform Commercial Code.

Question 13

Which of the following is not a true contract and has been imposed by law in order to prevent one party benefiting unfairly at another's expense?

A)A voidable contract
B)An informal contract
C)A quasicontract
D)A unilateral contract

Question 14

The law states that a unilateral contract can be formed when performance is started.

Question 15

What is the difference between an agreement and a contract?

A)An agreement results whenever two people's minds meet on a subject, but a contract only exists when the parties intend to be legally obligated by the terms of the agreement.
B)An agreement must be put in writing, whereas a contract may be made orally.
C)An agreement is binding for a shorter period of time than a formal contract.
D)An agreement may be made for an unlawful purpose, whereas a contract must be made for a lawful purpose.

Question 16

Which of the following best describes the term "recognizance"?

A)It refers to the conditions of a formal or simple contract that an adult signs with a minor.
B)It refers to the obligations that people enter into before a court to do an act required by law.
C)It refers to the penalties that a party faces if the party fails to honor the obligations of a contract.
D)It refers to negotiable instruments such as checks, notes, drafts, and certificates of deposit.

Question 17

All agreements are contracts.

Question 18

An enforceable contract is made by an adult with a minor. Which of the following is most likely to hold true in this case?

A)The contract is enforceable against the adult but not against the minor.
B)The contract is enforceable against the minor but not against the adult.
C)The contract is not enforceable against either of the parties until the minor attains a majority.
D)The contract is enforceable against the adult only if the minor ratifies the contract.

Question 19

The legal term for one party benefiting unfairly at the expense of another is unjust enrichment.

Question 20

A contract must be in a special form or be created in a certain way.

A)formal
B)implied
C)sealed
D)simple