Deck 6: Contract Law: a Beginning

Question 1

A contract

A) can never be implied from the actions of the parties.
B) must contain consideration.
C) cannot be terminated.
D) must be in writing

Answer 1

B

Question 2

When a party to a contract fails to perform as agreed, a breach of contract occurs.

Answer 2

True

Question 3

A void contract has no legal effect.

Answer 3

True

Question 4

Legally, all contracts are agreements, but not all agreements are contracts.

Question 5

An insurance policy is a good example of an express contract.

Question 6

Johnson entered into a contract to sell his computer to Madison for $950. Johnson then changed his mind and refused to deliver the computer to Madison as agreed. Johnson's failure to deliver the computer is considered to be

A) an acceptance.
B) a breach of contract.
C) a quasi agreement.
D) a performed contract.

Question 7

In a bilateral contract, only one party makes a promise.

Question 8

In a bilateral contract, the offeree's promise is the acceptance.

Question 9

Voidable contracts are legal agreements that lack some requirement of the law.

Question 10

The initial step toward forming a contract is to decide on the amount of consideration.

Question 11

Each party to a contract obtains both rights and obligations.

Question 12

An implied contract in fact is one that is formed from the actions of the parties.

Question 13

A contract is a mere promise between two or more persons who have the capacity to contract.

Question 14

An informal contract should include

A) the names of the parties.
B) the consideration given by each party.
C) the date.
D) all of these.

Question 15

A voidable contract is completely enforceable against all parties unless and until the party legally entitled to avoid it does so.

Question 16

Four essential elements are necessary to create a valid contract. Which of the following is not one of these elements?

A) Something of value must be given by each party.
B) The offeror and offeree must reach agreement.
C) The parties have the capacity to contract.
D) The agreement must be in writing.

Question 17

A quasi contract is not a real contract but rather a fictional contract created by the courts to prevent one party from being unjustly enriched at the expense of another party.

Question 18

An executory contract is one that has not been fully performed by one or all of the parties.

Question 19

An express contract is one in which the agreement is specifically stated.

Question 20

To create a legally binding contract, both parties to the agreement must be

A) able to read and write.
B) able to speak and understand English.
C) financially responsible people.
D) of sound mind.

Question 21

A check is an example of a

A) contract implied in law.
B) contract implied in fact.
C) quasi contract.
D) formal contract.

Question 22

Grimes promised to give Marks, his niece, $500 if she (Marks) promised to give up smoking for six months. Marks did promise to do so. At the end of six months, since Marks did not smoke, she received the $500 from Grimes. This is an example of an

A) express, bilateral, executed contract.
B) express, unilateral, executed contract.
C) express, bilateral, executory contract.
D) express, bilateral, quasi contract.

Question 23

Martin promised Bellis $50 if Bellis found and returned Martin's cocker spaniel. This contract is

A) bilateral.
B) unenforceable.
C) unilateral.
D) executed.

Question 24

Able offers to sell his used motorcycle to Grimes for $500. Since Able made the offer to sell, he is referred to as the ____________________.

Question 25

Joy orally promised to pay Toth $150 if he repaired Joy's computer. Toth repaired the computer but has not yet been paid. At this point, this contract is

A) valid, unilateral, and executory.
B) valid, bilateral, and executory.
C) valid, bilateral, and executed.
D) valid, unilateral, and executed.

Question 26

McManus promises to pay Gooding $150 if Gooding repairs his car. A day later Gooding repairs the car to McManus's satisfaction. This is an example of a

A) bilateral contract.
B) quasi contract.
C) void contract.
D) unilateral contract.

Question 27

Whether a contract is unilateral or bilateral depends on the

A) offeree.
B) performance required of the offeror.
C) type of acceptance required of the offeree by the offeror.
D) type of acceptance required of the offeror by the offeree.

Question 28

A contract implied in law is known as a(n)

A) quasi contract.
B) express contract.
C) voidable contract.
D) unilateral contract.

Question 29

Young offered to sell his boat to Alvarez for $2,000 without knowing that the boat had just been destroyed. This agreement is

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

Question 30

A good example of modern statute law is:

A) common law
B) the Uniform Commercial Code (UCC)
C) the Uniform Quasi Contract Code
D) judge made law

Question 31

The initial step toward forming a contract is a process called ____________________.

Question 32

A(n) ____________________ is a legally binding agreement between two or more competent parties.

Question 33

When a contract is formed, each party obtains certain ____________________ that will be enforced in a court of law.

Question 34

Oral contracts are

A) unenforceable in court.
B) easier to prove than written contracts.
C) harder to prove than written contracts.
D) illegal in some states.

Question 35

An agreement is not necessarily a(n) ____________________.

Question 36

When a client accepts the services of his or her attorney without an agreement concerning fees to be paid, the agreement to pay the attorney's bill is

A) implied in law.
B) implied in fact.
C) a voidable contract.
D) no contract at all.

Question 37

Offering to take someone to dinner is an example of a(n) ____________________.

Question 38

A voidable contract

A) is enforceable against all parties unless a party has a right to back out of it.
B) lacks one of the essential elements of a contract.
C) is required to be in writing.
D) is limited to simple transactions.

Question 39

The requirements of a contract include

A) a statement that the contract is not voidable
B) a promise of enforceability
C) a precedent
D) agreement, consideration, and other elements

Question 40

An executory contract is one that

A) is missing some requirement of the law.
B) has not been completely performed by all parties.
C) will not be enforced by a court of law.
D) has been prepared in written form.

Question 41

A contract whose terms are expressed orally or in writing is legally referred to as a(n) ____________________ contract.

Question 42

Cohen said to Geary, "I'll give you this radio if you promise to clean out my garage on Saturday." Geary agreed.
Who is the offeror?
Who is the offeree?
What was the consideration given to Cohen?
What was the consideration given by Geary?

Question 43

What is the underlying purpose of the law of quasi contracts?

Question 44

Those people who do not have the legal and mental ability to enter into binding contracts are said to be ____________________.

Question 45

____________________ may be money, property, not doing something, or doing something you don't have to do.

Question 46

If it is hard to determine whether a contract is unilateral or bilateral, what does the law presume?

Question 47

Agreements formed for an illegal purpose are ____________________.

Question 48

How does a contract differ from a mere social agreement?

Question 49

You go to your favorite restaurant and select a complete dinner from the menu presented to you. The waiter does not discuss price and you do not ask. Has a contract been formed?