Deck 18: Formation of Contracts

Question 1

What legal term describes a proposal made by an offeror?

A) Offer
B) Bargain
C) Deal
D) Proposition

Answer 1

Offer

Question 2

What is a possible action of an offeree after receiving an offer from an offeror?

A) Accept
B) Reject
C) Make a counteroffer
D) All of the above

Answer 2

All of the above

Question 3

What term describes a change of mind of the offeror when he or she takes back the offer before the offeree accepts it?

A) Rejection
B) Breach of contract
C) Revocation
D) Repeal

Answer 3

Revocation

Question 4

What term describes the offeree's assent to the terms of the offer?

A) Acknowledgment
B) Acceptance
C) Approval
D) Recognition

Question 5

What action terminates an offer?

A) Rejection
B) Revocation
C) Counteroffer
D) All of the above

Question 6

What is an invitation to negotiate?

A) Advertisements
B) Price tags
C) Prices in catalogs
D) All of the above

Question 7

What is one of the major groups of contracts?

A) Multiparty and Single Party
B) Bilateral and Unilateral
C) Two-sided and One-sided
D) Joint and Individual

Question 8

What is a major group in contracts classification?

A) Expressed and Implied
B) Executed and Executory
C) Valid, Void, Voidable and Unenforceable Contracts
D) All of the above

Question 9

What term describes a contract in which the terms are stated by the parties?

A) Express
B) Articulated
C) Stated
D) Communicated

Question 10

What contract may the court impose to prevent unjust enrichment?

A) Contract implied in law
B) Quasi contract
C) All of the above
D) None of the above

Question 11

What term describes a contract containing two promises, one made by each party to the contract?

A) Mutual
B) Bilateral
C) Two-parties
D) Dual

Question 12

What is an example of a unilateral contract?

A) Winning a crown at a Miss America scholarship pageant
B) Promising to win a gold medal at the Olympics
C) Trying to win a prize at the Tour de France bicycle race
D) Attempting to win a prize in the American Idol singing competition

Question 13

What term describes a contract that may be disaffirmed by one of the parties?

A) Void
B) Voidable
C) Avoided
D) Repudiated

Question 14

What contract must be in writing to be enforceable?

A) Prenuptial agreement
B) Writing a guest blog for a website
C) Contracts for sales of goods where the purchase price is $300
D) Giving piano lessons

Question 15

What statute declares what contracts must be in writing to be enforceable?

A) Statute of limitations
B) Statute of repose
C) Statute of frauds
D) Long-arm statute

Question 16

What term describes an illegal contract?

A) Void
B) Implied in law
C) Unenforceable
D) Valid

Question 17

What is an example of an executed contract?

A) A seller sold a car, and a buyer paid for it
B) A painter painted the house, and the owner paid for the job done
C) A tutor gave a French language lesson, and the student paid for it
D) All of the above

Question 18

What is a characteristic of an executory contract?

A) Revocation
B) Counteroffer
C) Both sides' performance duties have not been fully completed
D) Ratification

Question 19

What act of Congress established validity of electronic signatures?

A) E-Sign
B) Cyber-Sign
C) Electronic Signature Legalization
D) Cyber Signature Justification

Question 20

What is a type of contract entered into on the Internet?

A) Clickwrap
B) Browsewrap
C) All of the above
D) None of the above

Question 21

If the offeree assents to the terms of the offer, an acceptance occurs.

Question 22

The counteroffer changes the original offer.

Question 23

Numerous types of contracts were grouped based on their mutual characteristics.

Question 24

Minors' contracts are included in one of the major groups in the contracts classifications.

Question 25

A contract implied in reality is a contract that arises from the conduct of the parties rather than from their express statements.

Question 26

To prevent illegal enrichment, the court may impose on the parties a contract which actually does not exist.

Question 27

Contracts are classified according to the number of promises made by the parties.

Question 28

A performance is a necessary part of a unilateral contract.

Question 29

A contract created between an infant and an adult is voidable by the adult, but not by the infant.

Question 30

The term "valid contract" is redundant.

Question 31

Statutes of frauds determine what contracts need to be in writing in order to be enforceable.

Question 32

Contracts that are completely carried out are called performed.

Question 33

If a contract has been created but did not come into existence, it is called voidable.

Question 34

Contracts entered into on the Internet have been termed cyber-contracts.

Question 35

There is no separate body of contract law that governs contracts entered into on the Internet.

Question 36

To reach an agreement, a(n) ________ makes a proposal to another party.

Question 37

When an offer contains a condition ________, the other party is not obligated to perform until the prerequisite is carried out.

Question 38

Usually, ________ are classified into four major groups.

Question 39

When the terms of the contract are stated by the parties, it is called ________ contract.

Question 40

When one retains money that in equity and justice belongs to another, unjust ________ occurs.

Question 41

A contract containing one promise in exchange for an act is called a(n) ________ contract.

Question 42

A void contract is a(n) ________ and has no legal effect.

Question 43

The legal name for a minor is a(n) ________.

Question 44

When both sides' performance duties have been fully completed, their contract is said to be ________.

Question 45

When the offeree enters into the contract by clicking on a dialog box, which is on the computer's screen, it is called a(n) ________ agreement.

Question 46

Match the terms with their descriptions:

-Condition precedent

A) Act of restoring the other person to his or her original position prior to the loss
B) Contract satisfying all of the requirements of an enforceable agreement
C) Contract that is valid unless voided
D) One of the major four classifications of contracts
E) Contract containing two promises, one made by each party to the contract
F) Refusal by the offeree of an offer
G) Advertising contract online in which the offeree enters into a contract by clicking on a dialog box on an Internet website.
H) Contracts that are completely carried out
I) Event that must first occur before an agreement becomes effective
J) Contract that arises from the conduct of the parties rather than from their express statements

Question 47

Match the terms with their descriptions:

-Executed contracts

A) Act of restoring the other person to his or her original position prior to the loss
B) Contract satisfying all of the requirements of an enforceable agreement
C) Contract that is valid unless voided
D) One of the major four classifications of contracts
E) Contract containing two promises, one made by each party to the contract
F) Refusal by the offeree of an offer
G) Advertising contract online in which the offeree enters into a contract by clicking on a dialog box on an Internet website.
H) Contracts that are completely carried out
I) Event that must first occur before an agreement becomes effective
J) Contract that arises from the conduct of the parties rather than from their express statements

Question 48

Match the terms with their descriptions:

-Contract implied in fact

A) Act of restoring the other person to his or her original position prior to the loss
B) Contract satisfying all of the requirements of an enforceable agreement
C) Contract that is valid unless voided
D) One of the major four classifications of contracts
E) Contract containing two promises, one made by each party to the contract
F) Refusal by the offeree of an offer
G) Advertising contract online in which the offeree enters into a contract by clicking on a dialog box on an Internet website.
H) Contracts that are completely carried out
I) Event that must first occur before an agreement becomes effective
J) Contract that arises from the conduct of the parties rather than from their express statements

Question 49

Match the terms with their descriptions:

-Bilateral and unilateral

A) Act of restoring the other person to his or her original position prior to the loss
B) Contract satisfying all of the requirements of an enforceable agreement
C) Contract that is valid unless voided
D) One of the major four classifications of contracts
E) Contract containing two promises, one made by each party to the contract
F) Refusal by the offeree of an offer
G) Advertising contract online in which the offeree enters into a contract by clicking on a dialog box on an Internet website.
H) Contracts that are completely carried out
I) Event that must first occur before an agreement becomes effective
J) Contract that arises from the conduct of the parties rather than from their express statements

Question 50

Match the terms with their descriptions:

-Voidable contract

A) Act of restoring the other person to his or her original position prior to the loss
B) Contract satisfying all of the requirements of an enforceable agreement
C) Contract that is valid unless voided
D) One of the major four classifications of contracts
E) Contract containing two promises, one made by each party to the contract
F) Refusal by the offeree of an offer
G) Advertising contract online in which the offeree enters into a contract by clicking on a dialog box on an Internet website.
H) Contracts that are completely carried out
I) Event that must first occur before an agreement becomes effective
J) Contract that arises from the conduct of the parties rather than from their express statements

Question 51

Match the terms with their descriptions:

-Clickwrap agreement

A) Act of restoring the other person to his or her original position prior to the loss
B) Contract satisfying all of the requirements of an enforceable agreement
C) Contract that is valid unless voided
D) One of the major four classifications of contracts
E) Contract containing two promises, one made by each party to the contract
F) Refusal by the offeree of an offer
G) Advertising contract online in which the offeree enters into a contract by clicking on a dialog box on an Internet website.
H) Contracts that are completely carried out
I) Event that must first occur before an agreement becomes effective
J) Contract that arises from the conduct of the parties rather than from their express statements

Question 52

Match the terms with their descriptions:

-Rejection

A) Act of restoring the other person to his or her original position prior to the loss
B) Contract satisfying all of the requirements of an enforceable agreement
C) Contract that is valid unless voided
D) One of the major four classifications of contracts
E) Contract containing two promises, one made by each party to the contract
F) Refusal by the offeree of an offer
G) Advertising contract online in which the offeree enters into a contract by clicking on a dialog box on an Internet website.
H) Contracts that are completely carried out
I) Event that must first occur before an agreement becomes effective
J) Contract that arises from the conduct of the parties rather than from their express statements

Question 53

Match the terms with their descriptions:

-Restitution

A) Act of restoring the other person to his or her original position prior to the loss
B) Contract satisfying all of the requirements of an enforceable agreement
C) Contract that is valid unless voided
D) One of the major four classifications of contracts
E) Contract containing two promises, one made by each party to the contract
F) Refusal by the offeree of an offer
G) Advertising contract online in which the offeree enters into a contract by clicking on a dialog box on an Internet website.
H) Contracts that are completely carried out
I) Event that must first occur before an agreement becomes effective
J) Contract that arises from the conduct of the parties rather than from their express statements

Question 54

Match the terms with their descriptions:

-Bilateral contract

A) Act of restoring the other person to his or her original position prior to the loss
B) Contract satisfying all of the requirements of an enforceable agreement
C) Contract that is valid unless voided
D) One of the major four classifications of contracts
E) Contract containing two promises, one made by each party to the contract
F) Refusal by the offeree of an offer
G) Advertising contract online in which the offeree enters into a contract by clicking on a dialog box on an Internet website.
H) Contracts that are completely carried out
I) Event that must first occur before an agreement becomes effective
J) Contract that arises from the conduct of the parties rather than from their express statements

Question 55

Match the terms with their descriptions:

-Valid

A) Act of restoring the other person to his or her original position prior to the loss
B) Contract satisfying all of the requirements of an enforceable agreement
C) Contract that is valid unless voided
D) One of the major four classifications of contracts
E) Contract containing two promises, one made by each party to the contract
F) Refusal by the offeree of an offer
G) Advertising contract online in which the offeree enters into a contract by clicking on a dialog box on an Internet website.
H) Contracts that are completely carried out
I) Event that must first occur before an agreement becomes effective
J) Contract that arises from the conduct of the parties rather than from their express statements

Question 56

Compare and contrast express contract and implied contract.

Question 57

Compare and contrast voidable contract and unenforceable contract.

Question 58

While Paul was removing weeds along his fence, he also removed weeds along the fence of his neighbor Bob. Bob paid Paul $20. For the next 6 weeks Paul was removing weeds along Bob's fence, and each time Bob paid Paul $20. Then Bob left for 3 months, but every week Paul removed weeds along Bob's fence. When Bob returned, he refused to pay Paul $240 (for 12 weeks) because he did not make a contract with Paul for weed-removing services and considered Paul was acting as a good neighbor. Discuss whether Bob and Paul had any contract and whether Bob should pay Paul.

Question 59

Stefan and Julia wanted to buy a house and asked their friend Lucas to help them to obtain the loan. Lucas went to the bank and orally promised that he will be responsible for Stefan and Julia's debts. Discuss what contract was made by Lucas.