Deck 5: Nature and Classes of Contracts

Question 1

Ashley offers to pay $50 to Judy in return for babysitting Ashley's children over the weekend. Judy tells Ashley that she will think about it and convey her decision the next day.Which of the following is true in this case?

A) A bilateral contract has been made between Ashley and Judy.
B) Judy has been unjustly enriched in this situation.
C) Only Ashley is under an enforceable obligation.
D) Judy has a duty to baby-sit the children.

Answer 1

C

Question 2

Informal contracts are also known as _____ contracts.

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

Answer 2

D

Question 3

A certificate of deposit is a negotiable instrument.

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

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 8

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 9

The Uniform Commercial Code makes no distinction between contracts under seal and other written contracts for the sale of goods.

Question 10

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 11

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 12

All agreements are contracts.

Question 13

An agreement that does not meet all five of the requirements for a valid contract is known as an unenforceable contract.

Question 14

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

Question 15

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

Question 16

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.

Question 17

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

Question 18

Which of the following is true of unenforceable contracts?

A) They are not valid contracts.
B) They are the same as voidable contracts.
C) They can be made enforceable by making a few changes to them.
D) They are contracts made for an unlawful purpose and the parties can be imprisoned.

Question 19

Only one party needs to give an agreement in order for a contract to be enforceable.

Question 20

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.