Deck 7: Nature and Terminology

Question 1

Some promises are not legally binding.

Answer 1

True

Question 2

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

Answer 2

False

Question 3

The term consideration refers to the regard that contracting parties hold for each other.

Answer 3

False

Question 4

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

Question 5

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

Question 6

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

Question 7

The person who makes a promise is the promisee.

Question 8

All contracts must be in writing to be enforceable.

Question 9

An offer may not be revoked until it is accepted.

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

An offeree is a person who makes an offer.

Question 17

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

Question 18

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

Question 19

Informal contracts are usually based on their substance rather than their form.

Question 20

Every contract involves at least three parties.

Question 21

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

Question 22

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) ​are not conscious of those rules.
D) ​have a moral obligation to do so.

Question 23

Informal contracts include all contracts other than formal contracts.

Question 24

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

A) ​a prediction.
B) ​a promise.
C) ​a bilateral contract.
D) ​a void contract.

Question 25

An implied contract is not an actual contract.

Question 26

A check is a formal contract.

Question 27

A quasi contract is not enforceable by a court.

Question 28

An express contract must be in writing.

Question 29

Lark promises to buy Mac's used textbook for $60. Lark is

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

Question 30

A contract that has been fully performed by the parties is an executory contract.

Question 31

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

Question 32

Movers LLC promises to deliver a certain couch to Nora, who promises to pay for the service. If Movers does not perform, it may be required to

A) ​cease business.
B) ​make another promise.
C) ​pay money damages.
D) ​perform a different service.

Question 33

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

Question 34

A quasi contract is a fictional contract.

Question 35

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

Question 36

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

Question 37

In a divorce proceeding, Jonas promises to pay a certain amount of child support to Kelly every month until their daughter Lois is eighteen years old. Jonas's obligation with respect to this promise is

A) ​moral, not legal.
B) ​legal, not moral.
C) ​legal and moral.
D) ​neither legal nor moral.

Question 38

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

Question 39

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

Question 40

An executed contract is one that has been fully performed.

Question 41

Pavers, Inc., contracts with a QuikStop store to repave the store's parking lot for a certain price. The requirements of this, and any other, contract include

A) ​consideration.
B) ​acceptability.
C) ​achievability.
D) ​practicality.

Question 42

On behalf of the jazz group Fusion, their manager Greg agrees to a performance in Hillside Amphitheatre on July 4. Hillside sends a written copy of the agreement to Greg to be signed. If Greg 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 43

K'Nect, Inc., makes an offer to Lori to enter into a contract to work as a salesperson for a certain salary plus commission for ninety days subject to a one-year renewal based on her performance. Lori accepts the offer. A valid contract requires

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

Question 44

Field Construction, Inc., contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay. The elements of this, and any other, contract include

A) ​capability.
B) ​legality.
C) ​necessity.
D) ​marketability.

Question 45

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) ​a quasi contract when Neil said that he would pay for certain work.
C) ​a unilateral contract as soon as Outdoor began to perform.
D) ​no contract.

Question 46

Clay offers to pay Dian $50 for a golf lesson for Ewan. They agree to meet on Friday to exchange the cash for the lesson. These parties have

A) ​a bilateral contract.
B) ​a unilateral contract.
C) ​a void contract.
D) ​an executive contract.

Question 47

Jan tells Lee she will give him her old car if he babysits her son Mark weekday evenings for six months. Lee agrees. Jan and Lee have formed

A) ​a bilateral contract.
B) ​a unilateral contract.
C) ​a void contract.
D) ​an unenforceable contract.

Question 48

Bob claims that Carla breached their contract for tutoring. Carla responds that she never intended to enter into a contract with Bob. The intent to enter into a contract is determined with reference to

A) ​the intentional theory of contracts.
B) ​the objective theory of contracts.
C) ​the personal theory of contracts.
D) ​the subjective theory of contracts.

Question 49

Foster promises to buy Gideon's trumpet for $75. Gideon is

A) ​an offeree.
B) ​an offeror.
C) ​a promisee.
D) ​a promisor.

Question 50

Evie agrees to work for Far East Shipping, Ltd., as a translator. In determining whether a contract has been formed, an element of prime importance is

A) ​the parties' intent.
B) ​Far East's base.
C) ​the work's duration.
D) ​Evie's capabilities.

Question 51

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 52

Lane 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 is

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

Question 53

Wilson buys a lottery ticket. Wilson has accepted an offer for

A) ​a bilateral contract.
B) ​a unilateral contract.
C) ​a void contract.
D) ​an unenforceable contract.

Question 54

When a rainstorm erupts outside Rita's 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 55

Moe asserts that a deal he entered into with Nina to sponsor and host a motivational conference for independent sales representatives is an unenforceable 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 56

Ren offers to pay Sara to pick up and deliver certain business documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Ren and Sara will have

A) ​a bilateral contract.
B) ​a unilateral contract.
C) ​a void contract.
D) ​an executive contract.

Question 57

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

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

Question 58

Marketing Inc. offers to create a campaign to increase N'Ice Creamery, Inc.'s online business. N'Ice agrees to pay for the service. These parties have

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

Question 59

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 60

Ray promises to give Steve his iPod in exchange for Steve's promise to pay Ray $50. Later, they exchange the device for the funds. A contract was created when

A) ​Ray offered to sell his iPod.
B) ​Ray exchanged his iPod for $50.
C) ​Steve promised to pay Ray for the iPod.
D) ​Steve paid Ray $50 for the iPod.

Question 61

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 who

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 62

Sales Corporation and Real Properties, Inc., agree to the payment of a commission for the sale of certain property. If this deal 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 63

On May 1, Ramona and Santonio orally agree that Santonio will guide a party from the base of Mount McKinley to its summit and from the summit to a return to the base. Under the agreement, Ramona will pay for the service after the completion of the climb on June 1. On May 1, is this contract express or implied? On May 31, after the climb has been made but before payment is paid, is the contract executed or executory?

Question 64

Susan enters into a contract with Troy to act as his personal sports trainer. If a dispute later arises and the contract contains unclear 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 65

Oceans Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legal limit. This agreement is most likely

A) ​enforceable.
B) ​quasi.
C) ​void.
D) ​voidable.

Question 66

Leila 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

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

A) ​as if the parties had entered into an actual contract.
B) ​only if Kurt recovers because of the aid.
C) ​only if Kurt was aware of the aid.
D) ​under no circumstances.

Question 68

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 69

Rough Water, LLC, and Schafer enter into a contract for the delivery of a used kayak. Until the kayak is delivered and paid for, these parties have

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

Question 70

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

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

Question 71

Philo, a businessperson, is a friend of Quiana, the owner of Rise n' Shine, a coffee stand. Every day, Philo spends a few minutes at the stand, watching the brewing, considering the options, and usually buying a cup of coffee and something extra-a bagel, a muffin, a cookie, or a sandwich. One afternoon, Philo comes to the stand and picks up a bottle of iced coffee and a sandwich priced at $5 each. Philo waves the items at Quiana without saying a word and walks out. Is there a contract? If so, how would it be classified in terms of formation, performance, and enforceability?

Question 72

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

A) ​a formal contract.
B) ​an informal contract.
C) ​an implied contract.
D) ​a quasi contract.