Deck 9: Formation and Requirements of Contracts

Question 1

Yvonne finds a carpenter to do some repairs for her house and tells him that if he finishes the job by Saturday,she will pay him $1,000.Yvonne's offer creates a(n)________ contract.

A)executed
B)unilateral
C)executory
D)bilateral

Answer 1

B

Question 2

A(n)________ contract is only valid once the offeree performs the requested act.

Answer 2

unilateral

Question 3

In a recognizance,a party agrees to pay a specified sum of money if another party does not pay it.

Answer 3

True

Question 4

An offer to create a unilateral contract cannot be accepted by a promise to perform.

Question 5

Which of the following is an example of an informal contract?

A)a recognizance
B)a lease
C)a letter of credit
D)a check

Question 6

A contract is a bilateral contract if the offeror's promise is answered with the offeree's promise of acceptance.

Question 7

Which of the following is acceptable consideration for a contract?

A)a penalty
B)an arrest
C)a sentence
D)money

Question 8

Martha contacts a bakery to get a cake for her son's birthday party.She tells the baker that she will pay him $150 for the cake if he delivers the cake on Friday evening.If the baker does not deliver the cake on Friday evening,which of the following is accurate?

A)Martha can sue the baker but cannot recover damages.
B)Martha can sue the baker and recover $150 in damages.
C)Martha cannot sue the baker.
D)The baker must pay Martha $150 plus the cost of a replacement cake,as he entered into a verbal contract with her and did not perform his legal obligation.

Question 9

Two brothers,Sam and Jim,were fighting over the division of their ancestral property.After ten years of legal battle,a frustrated Sam contacted a powerful politician who subjected Jim to extreme duress,forcing him to sign a contract in favor of Sam.When Sam takes this contract to court,the contract will be declared ________.

A)voidable
B)void
C)null
D)unenforceable

Question 10

Explain the basic requirements that must be met for a contract to be enforceable.

Question 11

An act of performance is necessary to create a bilateral contract.

Question 12

Provision of services qualifies as consideration for an enforceable contract.

Question 13

What is a recognizance?

A)a sealed document that contains a formal contract whose contents are known to both parties and the referee who supervised its signing
B)a party's agreement to pay a sum of money if another person does not pay it
C)a party's acknowledgement in court that he or she is not liable to pay money if a certain event occurs
D)a sealed document that contains an informal contract whose contents are known only to the parties

Question 14

A contract is a(n)________ contract if the offeror's promise is answered with the offeree's promise of acceptance.

A)voidable
B)executed
C)unilateral
D)bilateral

Question 15

An offer to create a unilateral contract can be revoked by the offeror any time prior to the offeree's performance of the requested act.

Question 16

A contract is ________ if the offeror's offer can be accepted only by the performance of an act by the offeree.

A)executed
B)executory
C)unilateral
D)bilateral

Question 17

A unilateral contract can be accepted without the performance of an act by the offeree.

Question 18

A(n)________ contract is a contract entered into by way of an exchange of promises between the parties.

Question 19

Windsor,the owner of Windsor's Sandwiches,contacts Gary,a new supplier.He promises Gary that he will pay him $375 if Gary delivers 20 pounds of cheese the following morning.Gary promises to make the delivery as requested by Windsor.This creates a(n)________ contract between them.

A)bilateral
B)unilateral
C)executed
D)voidable

Question 20

Alan tells Sherry that he will pay her $5,000 if she runs the Boston Marathon.Once Sherry starts running the marathon,Alan ________.

A)can revoke the contract,as an informal verbal agreement is not legally binding
B)can revoke the contract,provided he does so before she completes the marathon
C)can reduce the amount of money he offered her,provided he does so before she completes the marathon
D)cannot revoke the contract

Question 21

A voidable contract is also termed as an unenforceable contract.

Question 22

Which of the following is a necessary condition for a contract to be considered valid?

A)It can be voided by both parties.
B)It can be voided by one of the parties.
C)It is enforceable by both parties.
D)It is enforceable by at least one of the parties.

Question 23

A contract in which an agreement between the parties is inferred from their conduct is known as a(n)________ contract.

Question 24

To create an implied-in-fact contract,it must be established that the plaintiff provided the property or services gratuitously.

Question 25

While Harry was intoxicated,he sold his car to Ben for substantially less than its fair market value.This contract is considered ________.

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

Question 26

Noelle uses blackmail to force Jeff to sign a contract for the sale of his home.This contract is ________.

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

Question 27

Kyle goes to a used automobile dealership to buy a truck.He signs an agreement with the dealership that includes a description of the truck,its price,and other details.This is an example of a(n)________ contract.

A)express
B)unilateral
C)implied-in-law
D)implied-in-fact

Question 28

Which of the following elements must be established to create an implied-in-fact contract?

A)The plaintiff provided property or services to the defendant gratuitously.
B)The defendant accepted the plaintiff's property or services as payment for an illegal activity.
C)The plaintiff made the defendant sign the contract and then changed its terms,identifying the new terms as "retroactively implied."
D)The defendant was given an opportunity to reject the plaintiff's property or services but failed to do so.

Question 29

An implied-in-fact contract is a contract in which agreement between parties has been inferred from their conduct.

Question 30

A contract that has been fully performed by both sides is called an executory contract.

Question 31

In terms of a contract's enforcement,which of the following is true?

A)A contract is only considered valid if it is enforceable by both parties.
B)Parties may voluntarily perform a contract that is unenforceable.
C)An unenforceable contract allows at least one party the option to void his or her contract obligations.
D)Void contracts are enforceable in cases involving mutual mistake.

Question 32

An express contract can be stated orally.

Question 33

Which of the following would likely give rise to a quasi-contract?

A)an employee receiving his or her paycheck monthly
B)two companies signing a business agreement of indefinite duration
C)an unconscious man being treated in a hospital emergency room
D)a woman hiring a caterer only after the caterer promises to deliver the food on time

Question 34

Elizabeth signs a contract to purchase a new car from Quickcash Motors.She has not yet paid for the car,and Quickcash Motors has not yet delivered the car to Elizabeth.This is an example of a(n)________ contract.

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

Question 35

A contract that has been fully performed by one party but not by the other party is a(n)________ contract.

A)void
B)voidable
C)executory
D)executed

Question 36

An oral agreement to purchase a neighbor's bicycle for $250 is a(n)________ contract.

A)void
B)voidable
C)implied
D)express

Question 37

If a contract is required to be in writing under the Statute of Frauds but is not,the contract is ________.

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

Question 38

In terms of the doctrine of quasi-contract,which of the following statements is true?

A)The agreement between the parties to a quasi-contract is inferred from their conduct.
B)It is an equitable doctrine intended to prevent unjust enrichment.
C)It only applies to situations involving an enforceable contract between the parties.
D)It allows a court to award damages to the defendant even though no actual contract existed between the parties.

Question 39

Stella is injured in a car accident and is transported to the local hospital by emergency personnel.She subsequently passes into a coma.The doctors and other staff perform the necessary medical procedures to save her life.Stella recovers after two months and is discharged from the hospital.Under the doctrine of ________ contract,Stella must pay the hospital for its services.

A)implied-in-fact
B)express
C)quasi-
D)formal

Question 40

What are the possible problems that can come up in a unilateral contract?

Question 41

A contract is said to be ________ when one or both parties have the option to void the contractual obligations.

Question 42

Which of the following is true of a contract in which one of the parties is insane but not adjudged insane?

A)The contract is voidable by the competent party.
B)The contract is only voidable by the insane person.
C)Only the court-appointed legal guardian of the insane person can modify the contract.
D)The sane person must be placed in status quo if the insane person voids the contract.

Question 43

A(n)________ contract is a contract that has not been fully performed by either or both sides.

Question 44

Which of the following is true for an auction without reserve?

A)The bidder is considered the offeror.
B)The seller need not accept the highest bid.
C)The auctioned item cannot be withdrawn from sale.
D)The auctioneer is not allowed to establish a minimum bid.

Question 45

The ________ rule states that acceptance is effective when it is dispatched,even if it is lost in transmission.

A)silence-as-acceptance
B)mirror image
C)mailbox
D)mutual assent

Question 46

The ________ states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.

A)objective theory of contracts
B)common law of contracts
C)Restatement of the Law of Contracts
D)Restatement (Second)of Contracts

Question 47

Why does an illusory contract lack consideration?

A)because the consideration promised is unlawful and therefore void
B)because the person promises to perform an act or do something he is already under an obligation to do
C)because one or both of the parties can choose not to perform their contractual obligations
D)because the compensation paid is for work done in the past

Question 48

In terms of the infancy doctrine,which of the following is true?

A)A minor must honor a contract he or she entered into with an adult if the minor had sufficient mental capacity when the contract was formed.
B)A minor can disaffirm a contract he or she entered into with an adult.
C)A minor cannot enter into a legal contract with another minor.
D)A minor cannot elect to enforce a contract he or she has entered into with an adult.

Question 49

Which of the following is true of an option contract?

A)If the offeree chooses not to buy the property,the consideration paid must be returned.
B)The consideration paid for the option cannot be applied to the sale price.
C)The death or incompetency of either party terminates an option contract.
D)The offer cannot be revoked during the option period.

Question 50

A(n)________ is an equitable doctrine whereby a court may award monetary damages to a plaintiff for providing work or services to a defendant even though no actual contract existed.

Question 51

A contract is said to have legal value if ________.

A)both the promisor and the promisee receive a legal benefit
B)the promisor suffers a legal detriment
C)the promisee suffers a legal detriment
D)the promisee receives a legal benefit

Question 52

Compare valid,void,voidable and unenforceable contracts.

Question 53

Which of the following statements is true about a counteroffer?

A)An offeree who makes a counteroffer is still considered the offeree.
B)A counteroffer terminates the existing offer.
C)A counteroffer can only be made by the original offeror.
D)A counteroffer is effective even before it has been received by the original offeror.

Question 54

In terms of contractual capacity,what is the most commonly-recognized age of majority?

A)15
B)16
C)18
D)21

Question 55

In auction without reserve,the seller is the offeree.

Question 56

According to the objective theory of contracts,the intent to enter into a contract is judged by the ________.

A)doctrine of equity
B)legality of the contract
C)reasonable person standard
D)common law of contracts

Question 57

Which of the following is true for an auction with reserve?

A)The seller retains the right to refuse the highest bid and withdraw the goods from sale.
B)An invitation to make an offer is not allowed.
C)An auctioned item cannot be withdrawn from the auction after an offer has been made.
D)A bid cannot be withdrawn and is legally binding from the moment it is made.

Question 58

Unless otherwise expressly stated,an auction is considered an auction without reserve.

Question 59

Which of the following is true of a gift promise?

A)A gift promise can be enforced by a court of law.
B)A completed gift promise cannot be cancelled for lack of consideration.
C)A gift promise contains mutual consideration.
D)The promisee can take legal action if the promisor does not fulfill the gift promise.

Question 60

Which of the following is true of a contract with an adjudged insane person?

A)The adjudged insane person is bound by the terms of the contract.
B)The contract is void.
C)Only the competent party can enforce the contract.
D)The competent party is legally obligated to uphold the contract.

Question 61

Under the mailbox rule,an acceptance is effective when ________.

Question 62

Past consideration is sufficient consideration to support a new contract.

Question 63

A person who disaffirms a contract based on intoxication must be returned to the status quo.

Question 64

A preexisting duty is sufficient consideration to support a new contract.

Question 65

The infancy doctrine gives adults the right to disaffirm contracts they have entered into with minors.

Question 66

An option contract is terminated upon the death of the offeror.

Question 67

If an insane person who has not been adjudged insane enters into a contract,the contract is non-voidable by the insane person.

Question 68

A(n)________ is a response by an offeree that contains terms and conditions different from or in addition to those of the offer.

Question 69

Consideration is defined as something of legal value given in exchange for termination of an offer.

Question 70

Any contract entered into by a person who has been adjudged insane is void.

Question 71

Illusory promises require both parties to perform their contractual obligations.

Question 72

A person who has dealt with an insane person need not place that insane person in status quo if the contract is either void or voided by the insane person.

Question 73

A counteroffer is considered a rejection of the original offer.

Question 74

A contract need not arise from a bargained-for exchange.

Question 75

Under the mailbox rule,an acceptance is only effective when it is received.

Question 76

A rejection of an offer is not effective until it is actually received by the offeror.

Question 77

An offeror can ________ an offer by withdrawing the offer prior to its acceptance.

Question 78

The infancy doctrine gives minors the right to disaffirm most contracts they have entered into with adults.

Question 79

To meet the mirror image rule,the offeree must accept the terms of the offer without modification.

Question 80

A person who disaffirms a contract based on intoxication is not legally obligated to return the consideration he or she received under the contract to the other party.