Deck 10: Nature and Classification

Question 1

Contract law assures the parties to private agreements that the promises they make will be enforceable.

Answer 1

True

Question 2

The term consideration refers to the legality of the subject matter of a contract.

Answer 2

False

Question 3

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

Answer 3

True

Question 4

A unilateral contract is formed at the moment when the contract is performed.

Question 5

One of the requirements of a valid contract is an adequate price.

Question 6

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

Question 7

The person who makes a promise is the promisee.

Question 8

The only requirement of a valid contract is that it be voluntarily entered into.

Question 9

Informal contracts are usually based on their sub-stance rather than their form.

Question 10

All contracts must be in writing to be enforceable.

Question 11

Some promises are not legally binding.

Question 12

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

Question 13

The element of intent is of prime importance in determining whether a contract has been formed.

Question 14

Every contract involves at least three parties.

Question 15

An offeree is a person who makes an offer.

Question 16

A bilateral contract comes into existence at the moment promises are exchanged.

Question 17

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

Question 18

A promise is a declaration that something will or will not happen in the future.

Question 19

An offer may not be revoked before it is accepted.

Question 20

In contract law,intent is determined by the secret,subjective intent,or belief,of a party.

Question 21

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 22

A quasi contract is not enforceable by a court.

Question 23

Smith & Jones,Accountants,agrees to perform an audit for Brick & Mortar Stores,Inc. Whether or not this agreement meets all of the requirements of a contract,the parties are likely to follow the rules of contract law because they

A)want to avoid potential disputes.
B)are conscious of those rules.
C)arenot conscious of those rules.
D)have a moral obligation to do so.

Question 24

All contracts include an implied covenant of good faith and fair dealing.

Question 25

An unenforceable contract is one that cannot be enforced because of cer-tain legal defenses against it.

Question 26

A court will normally interpret the language of a contract according to what the parties claim their intent was when they made it.

Question 27

An executed contract is one that has been fully performed.

Question 28

If a contract term is ambiguous,a court can consider outside evidence.

Question 29

When a contract's writing is not clear,a court will not consider evidence outside the contract to interpret its terms.

Question 30

A check is a formal contract.

Question 31

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

A)aprediction.
B)apromise.
C)abilateral contract.
D)avoid contract.

Question 32

An executed contract is one that has been fully performed.

Question 33

Jack promises to buy Lizette's used textbook for $60. Jack is

A)an executor.
B)an offeree.
C)a promisee.
D)a promisor.

Question 34

Informal contracts include all contracts other than formal contracts.

Question 35

A quasi contract is a fictional contract.

Question 36

An express contract mustbe in writing.

Question 37

If a voidable contract is ratified,the parties must fully perform their respective legal obligations.

Question 38

An implied contract is not an actual contract.

Question 39

InTown Delivery Service promises to deliver a certain couch to Kurt,who promises to pay for the service. If InTown does not perform,it may be required to

A)do nothing.
B)make another promise.
C)pay money damages.
D)perform a different service.

Question 40

In an express contract,the terms are fully and explicitly stated in words.

Question 41

Bo signs a lease with Capri Apartments to lease a studio apartment for the next year for $650 per month. Daisy signs on Capri's behalf. Bo and Capri have

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

Question 42

Tania promises to buy Saki's handheld game-player for $40. Saki is

A)an executee.
B)an offeror.
C)a promisee.
D)a promisor.

Question 43

Lana applies for a firefighter's job with Metro City,which responds with a letter setting an appointment for a medical exam. The letter also states that it is "an employment offer conditioned on the applicant passing the exam." This letter is

A)a bilateral contract that Lana accepted by applying for the job.
B)a quasi contract on which Lana can rely for employment.
C)a unilateral contract that Lana can accept by passing the exam.
D)no contract.

Question 44

Omar asserts that a deal he entered into with Patty to sponsor and host a motivational conference for independent sales representatives is an unenforce-able contract. Defenses to the enforcement of a contract include

A)a desire not to perform.
B)insufficient capital.
C)preliminary indications of unsatisfactory results.
D)the lack of a party's voluntary consent.

Question 45

Vita asks Walter,a cobbler and shoe salesperson,to repair a pair of work boots. There is no discussion of a price,and Vita and Walter do not sign any documents. After the repair,Walter hands Vita a bill. With respect to Vita's obligation to pay the bill,this is

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

Question 46

Cellphones & Calltime,Inc.,makes an offer to Delores to enter into a contract to work as a salesperson for a certain base salary plus commission for ninety days subject to a one-year renewal based on her performance. Delores accepts the offer. A valid contract requires

A)a price and a subject.
B)a duration and termination provision.
C)an offer and an acceptance.
D)specific quality standards.

Question 47

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 48

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

A)abilateral contract.
B)aunilateral contract.
C)avoid contract.
D)anunenforceable contract.

Question 49

Clay offers to pay Dot $50 for a golf lesson for Eula. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have

A)a bilateral contract.
B)a trilateral contract.
C)a unilateral contract.
D)no contract.

Question 50

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have

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

Question 51

GR8 Marketing Company and Brainfreeze Tunes,Inc.,sign a document that states GR8 agrees to create a marketing campaign for Brainfreeze,which agrees to pay GR8 for the service. GR8 and Brainfreeze have

A)an executed contract.
B)an express contract.
C)an implied contract.
D)a quasi contract.

Question 52

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

A)abilateral contract.
B)aunilateral contract.
C)avoid contract.
D)anunenforceable contract.

Question 53

Lucy agrees to work for Mung Manufacturing,Ltd.,as a Chinese/ English/ French translator. In determining whether a contract has been formed,an element of prime importance is

A)the parties' intent.
B)Mung's base of operations.
C)the duration of the work.
D)Lucy's language capabilities.

Question 54

Peter offers to pay Quik Delivery (QD)$50 if it picks up and delivers to him a package of business documents from Rico within 30 minutes. QD can ac-cept the offer only by meeting the deadline. If QD performs as directed,these parties will have

A)a bilateral contract.
B)a trilateral contract.
C)a unilateral contract.
D)no contract.

Question 55

On behalf of the rock group Uno,their manager Thalia agrees to a performance in Seaside Amphitheatre on July 4. Rex,acting for Seaside,sends a written copy of the agreement to Thalia to be signed. If Thalia signs the copy,the parties will have

A)an express contract.
B)an implied contract.
C)an implied-in-law contract.
D)no contract.

Question 56

Randy promises to give Stewart her iPod in exchange for Stewart's promise to pay Randy $50. This bilateral contract was created when

A)Randy offered to sell her iPod to Stewart.
B)Randy decided to sell her iPod.
C)Stewart promised to pay Randy $50.
D)Stewart became aware that Randy was willing to sell her iPod.

Question 57

On Monday,Neil tells Outdoor Landscaping,Inc.,that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday,when Outdoor is more than half done with the work,Neil says that he has changed his mind. These parties had

A)an expired contract when Neil said that he had changed his mind.
B)aquasi contract when Neil said that he would pay for certain work.
C)aunilateral contract as soon as Outdoor began to perform.
D)no contract.

Question 58

When a rainstorm erupts outside Rita's Souvenir & Gift Shop,Rita and Shaw enter into an implied contract to split the revenue from Shaw's sale of umbrellas to Rita's customers. The terms of this contract are defined by

A)the conduct of the parties.
B)the words of the parties.
C)the unforeseeable storm that gave rise to the deal.
D)the unexpressed subjective intent of the parties.

Question 59

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 60

Home & Barn Construction,Inc.,contracts with Idyll Farms to build a new dairy barn on Idyll's property for which Idyll agrees to pay.The elements of this,and any other,contract include

A)the parties' capability.
B)consideration.
C)necessity of purpose.
D)theprice.

Question 61

Robin claims that her contract with Stroud for tennis lessons is voidable. If their contract is avoided

A)both parties are released from it.
B)both parties must fully perform their obligations under it.
C)a wholly different contract is agreed to.
D)a wholly different contract is imposed "as if" the parties had agreed.

Question 62

Cody signs and returns a letter from Dora,referring to Dora's 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 63

Ed,a businessperson,is a friend of Fran,the owner of a Percolated Coffee & Baked Goods store. Every day,Ed spends five minutes in Fran's store,looking at the goods and usually buying one or two cinnamon buns or bagels. One afternoon,Ed goes into the store,looks at the items,and picks up a $1 chocolate brownie. Ed waves the brownie at Fran without saying a word and walks out. Is there a con-tract? If so,how would it be classified in terms of formation,perform-ance,and enforceability?

Question 64

Jessie,a nurse practitioner,renders aid to Kruz,who is injured and unconscious. Jessie can recover the cost of the aid from Kruz

A)on a quasi contract theory.
B)only if Kruz recovers because of the aid.
C)only if Kruz was aware of the aid.
D)under no circumstances.

Question 65

Mallory promises to buy illegal digital copies of movies from Nick,who promises to deliver on October 31. These promises are most likely

A)enforceable.
B)valid.
C)void.
D)voidable.

Question 66

Leilani enters into a contract with Metro Taxi Company to work as a cabdriver. Under the plain meaning rule,if the contract's writing is clear and unequivocal,the meaning of the terms must be determined from

A)only evidence not contained in the document.
B)any relevant extrinsic evidence.
C)only the face of the instrument.
D)the later testimony of the parties.

Question 67

Francisca and Garden Estate,Inc.,enter into a contract for the use of a Victorian mansion and its grounds for a wedding and reception. If ambiguities appear in the contract,they will be construed against the party that

A)drafted the contract.
B)has the greater bargaining power.
C)made the offer to contract.
D)offers the most confusing explanation of the terms.

Question 68

Francie drives into Gage's Auto Service and asks Hong,a Gage's employee,to replace a tire on Francie's car. After Hong replaces the tire,but before Francie pays for it,any contract between Francie and Gage's is

A)executed.
B)executory.
C)void.
D)unenforceable.

Question 69

Sales Marketing Corporation and Tech Support,Inc.,negotiate a contract. If the contract has all of the elements necessary for one of the parties to enforce it in court,it is

A)a valid contract.
B)a voidable contract.
C)a void contract.
D)an unenforceable contract.

Question 70

Sunny enters into a contract with Trey to act as his personal sports trainer. If a dispute later arises and the contract contains un-clear terms,the rules of contract interpretation will give effect to

A)the parties' intent as expressed in their contract.
B)what the promisor claims was the parties' intent.
C)what the promisee claims was the parties' intent.
D)what the parties now agree they intended.

Question 71

A letter-of-credit agreement between Rural Feed Corporation and Soybean Farms,Inc.,requires Rural Feed's bank to pay Soybean Farms on receipt of invoices. This is a letter of credit,which is

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

Question 72

Rough Water Fishing Trips,LLC,and Schafer enter into a contract for the delivery of a used freshwater fishing boat. Until the goods are delivered and paid for,these parties have

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