Deck 10: The Formation of Traditional and E-Contracts

Question 1

If a voidable contract is avoided, the promisee, but not the promisor, is released from it.

Answer 1

False

Question 2

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

Answer 2

True

Question 3

A unilateral contract is formed when the party receiving the offer com-pletes the re-quested act or performance.

Answer 3

True

Question 4

A statement of future intent-"I plan to sell my car"-is an offer.

Question 5

Some promises are not legally binding.

Question 6

The only requirement for a valid contract is that the parties voluntarily entered into it.

Question 7

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

Question 8

Under the mailbox rule, an acceptance takes effect at the time it is sent.

Question 9

No offer may be revoked before it is accepted.

Question 10

An e-contract must meet basic requirements that are different from those required of a paper contract.

Question 11

An advertisement-"we buy gold"-is an offer.

Question 12

A counteroffer is a rejection of the original offer and the simultaneous making of a new offer.

Question 13

If a contractual promise is not fulfilled, the person who made it is not subject to the sanctions of a court.

Question 14

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

Question 15

An executed contract is one that has been fully performed.

Question 16

A request or invitation to negotiate is an offer.

Question 17

An acceptance sent by means not expressly or impliedly authorized is not effective until it is received.

Question 18

An acceptance that changes the terms of the original offer may be considered a counteroffer.

Question 19

An acceptance can impose new conditions or change the terms of the original offer without rejecting it.

Question 20

An implied contract is not an actual contract.

Question 21

An important rule to keep in mind is that the offeree (the buyer) controls the acceptance and thus the resulting contract.

Question 22

Lucy agrees to work for Mung Manufacturing, Ltd., as a Chinese/ English/ French translator.In determining whether a contract has been formed, an element of prime importance is

A)the parties' intent.
B)Mung's base of operations.
C)the duration of the work.
D)Lucy's language capabilities.

Question 23

In certain circumstances, bargains are so oppressive that the courts relieve innocent parties of part or all of their duties.

Question 24

The element of bargained-for exchange distinguishes contracts from gifts.

Question 25

Every state has a statute that stipulates what types of contracts must be in writing.

Question 26

To be legally sufficient, consideration must be evidenced by something tangible.

Question 27

Cellphones & Calltime, Inc., makes an offer to Delores to enter into a contract to work as a salesperson for a certain base salary plus commission for ninety days subject to a one-year renewal based on her performance.Delores accepts the offer.A valid contract requires

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

Question 28

A promise to do what one already has a legal duty to do constitutes legally suf-ficient consideration.

Question 29

A contract to do something that is prohibited by statutory law is void.

Question 30

A contract entered into by a minor is voidable at the option of either of the contracting parties.

Question 31

A person who has been determined by a court to be mentally competent cannot form a legally binding contract with another party.

Question 32

Under federal law, an electronic signature is as valid as a signature on pa-per.

Question 33

Ethan believes that he and Fiorina agreed that he would find the best location for a well on her ranch and then dig the well.In a later dispute, whether a contract was formed can be determined by

A)the parties' statements at the time of their alleged contract.
B)what Ethan claims was the parties' intent.
C)what Fiorina claims was the parties' intent.
D)what the parties agree they intended.

Question 34

The writing requirement under the Statute of Frauds means that an agreement must be a formal written contract.

Question 35

A promise to do what one already has a legal duty to does not constitute legally sufficient consideration.

Question 36

Home & Barn Construction, Inc., contracts with Idyll Farms to build a new dairy barn on Idyll's property for which Idyll agrees to pay.The elements of this, and any other, contract include

A)the parties' capability.
B)consideration.
C)necessity of purpose.
D)price.

Question 37

In contract law, the term consideration refers to the serious thought that underlies a party's intent to enter into a contract.

Question 38

A contract involving property of any kind must be in writing to be enforceable.

Question 39

Omar asserts that a deal he entered into with Patty to sponsor and host a motivational conference for independent sales representatives is an unenforce-able 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 40

A contract entered into by an intoxicated person is never valid.

Question 41

Lamar offers to pay Melanie $150 for a hot-air balloon ride for Nina.They agree to meet at dawn the next day to exchange the cash for the ride.At this point, these parties have

A)a bilateral contract.
B)a trilateral contract.
C)a unilateral contract.
D)nocontract.

Question 42

Iggy tells Jade, "I might sell the snowboard that I bought this winter since I haven't used it and the season is almost over." This is

A)an acceptance of an offer.
B)a preliminary negotiation.
C)an offer.
D)a statement of future intent.

Question 43

Bilbo signs a lease agreement for an apartment with Cato, who owns and manages the Deer Creek Apartments complex.These parties have

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

Question 44

Bret buys a subscription to the catalog of music provided by Concerto, an online music vendor.Before accessing the catalog, Bret must agree to a provision stating that she will not make and sell copies of the music.This provision is

A)a browse-wrap term.
B)a click-on agreement.
C)a shrink-wrap agreement.
D)a partnering agreement.

Question 45

Fabien offers to sell his Graphic Signs, LLC, business to Hana for $100,000.Hana replies, "The price is too high.I will buy it for $75,000." Hana has

A)accepted the offer.
B)made a counteroffer without rejecting the offer.
C)rejected the offer and made a counteroffer.
D)rejected the offer without making a counteroffer.

Question 46

Following negotiations, Office Park, Inc., enters into an informal contract with Quality Janitorial Company for custodial services for Office Park's buildings.This means that the parties' contract

A)requires no special form.
B)is freely open to either party's interpretation.
C)is subject to change by either party, within reason.
D)is not yet completely formed.

Question 47

Chicken & Egg Farms promises to pay Dex $500 to install a sump pump in its warehouse.Dex completes the installation.The act of installing the pump

A)imposes a moral obligation on Chicken & Egg to pay Dex.
B)imposes no obligation on Chicken & Egg unless it is satisfied with the job.
C)is not sufficient consideration because it is not goods or money.
D)is the consideration that creates Chicken & Egg's obligation to pay Dex.

Question 48

On behalf of Bobble Head Manufacturing Company, Carmela types her name at the bottom of an e-mail purchase order and submits the order to Designer Parts Company.Under the UETA, Carmela's typed name qualifies as

A)a "signature."
B)a statement of future intent.
C)an assignment.
D)a preliminary negotiation.

Question 49

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

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

Question 50

Bruce, a minor, enters into a contract with Coralee to buy her car.Later, Bruce opts to avoid the deal.With respect to the contract, this releases

A)both parties.
B)neither party.
C)only Bruce.
D)only Coralee.

Question 51

Signe offers to sell Thomas her textbook but conditions the sale on Thomas accepting the offer by March 1.Signe may revoke the offer

A)before Thomas accepts the offer.
B)before March 1, whether or not Thomas has accepted the offer.
C)only after Thomas accepts the offer.
D)only after March 1.

Question 52

Mark is creating Nu2U.com, a Web site through which he will enter into contracts over the Internet.Important terms to include in his offers include

A)provisions specifying the remedies if the contract is breached.
B)a detailed history of his business.
C)glowing reviews from former customers.
D)his educational background.

Question 53

Ricci, a user of SmartPhoneApps.com's Web site, can download apps for free if she first clicks on "I accept" after viewing certain terms.This is

A)a contract that does not include the terms.
B)a contract that includes the terms.
C)not a contract but the terms are enforceable.
D)unenforceable.

Question 54

Deluxe Awnings, Inc., offers Elbert a job as an installer.No time for acceptance is specified in the offer.The offer will terminate

A)after a reasonable period of time.
B)after a typical workweek (five business days).
C)after a usual month (thirty calendar days).
D)never.

Question 55

Moby negotiates a contract with Nora via e-mail.It is reasonable to infer that Moby has consented to

A)transact business electronically.
B)submit to the jurisdiction of any selected forum.
C)respond to any message sent to that e-mail address.
D)nothing.

Question 56

Jonah tells Levi he will give him an Xbox if Levi does Jonah's chores for a month.Levi promises to do the chores.Jonah and Levi have formed a

A)a bilateral contract.
B)a formal contract.
C)a unilateral contract.
D)no contract.

Question 57

Henry promises not to open his Hank's Lunchbox Café before 10:00
A)m.if Isis, who owns Isis's Danish & Donuts next door, promises to close by 4:00 p.m.Henry's consideration is

A)the destruction of a legal relationship.
B)the creation of a legal relationship.
C)a forbearance.
D)an exchange of money.

Question 58

Kelby enters into a contract with Lara on a social media network to buy her stock in Mobile Devices Corporation.Neither party prints out a hard copy.Under the Electronic Signatures in Global and National Commerce Act (E-SIGN Act), this contract can

A)be "denied legal effect" if it falls under UCC Article 2.
B)be "denied legal effect" unless a hard copy is printed.
C)be "denied legal effect" until it is signed on paper.
D)not be "denied legal effect" solely because it is in electronic form.

Question 59

On Monday, O'Shea tells Patterson that she will pay Patterson $1,000 if O-Shea's bill processing and office filing are completed by Friday.On Wednesday, when Patterson has finished more than half of the work, O'Shea says that she has changed his mind.Under the modern-day view, these parties had

A)an expired contract when O'Shea said that she changed her mind.
B)a bilateral contract when O'Shea offered to pay for the work.
C)a unilateral contract as soon as Patterson began to perform.
D)no contract.

Question 60

Deb buys a song through eSongs, an online music vendor.Before completing the purchase and downloading the song, Deb must review a provision stating that she will not make and sell copies of the song and is required to click "I agree." This provision is

A)a browse-wrap term.
B)a click-on agreement.
C)a shrink-wrap agreement.
D)none of the choices.

Question 61

Panini Vittles, Inc., contracts with Qino to deliver its sandwiches.Later, the parties decide to cancel their contract.They can

A)rescind their entire contract.
B)rescind their contract to the extent that it is executory.
C)rescind their contract if they make a new contract at the same time.
D)not rescind their contract.

Question 62

Corporate Code, Inc., sells business software-accounting and book-keeping programs, blank business forms, inventory control functions, and the like-in different combinations, in different packages, at different prices.Each package includes a shrink-wrap agreement that limits warranties and remedies.Developmental Research Corporation (DRC) buys a Corporate Code package and uses the product.Later, DRC files a suit against the software seller, claiming that the product was flawed and that the flaws caused DRC to suffer business losses.DRC asks for relief that exceeds the limits in the shrink-wrap agreement.What is a shrink-wrap agreement? Are such agreements al-ways enforced? Under what circumstances is a court likely to enforce this agree-ment?

Question 63

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 con-tract? If so, how would it be classified in terms of formation, perform-ance, and enforceability?

Question 64

Sonya and Taylor enter into an oral contract that is required to be in writing to be enforceable.Such a contract is normally

A)voidable by a party who does not wish to follow through with it.
B)void.
C)valid.
D)voidable but only by consent of both parties.

Question 65

Esmeralda promises to pay Fiorello $400 because "he does not have as much money as other people." Esmeralda's promise is not enforceable because

A)society does not want gifts cheapened by making them legally enforceable.
B)the redistribution of wealth on a one-to-one basis is not a valid social goal.
C)Esmeralda could have paid more.
D)Fiorello has not given consideration in return.

Question 66

Jolie signs a contract with Keaton, an unlicensed physician, to perform a medical procedure.This contract is enforceable by

A)Jolie.
B)Jolie's medical insurance company.
C)Keaton.
D)no one.

Question 67

Odina signs a covenant not to compete with her employer, Penultimate Sales Corporation.A court decides that the covenant is overly restrictive.Depending on the jurisdiction, the court will likely

A)enforce it as written so as not to undercut the freedom of contract.
B)enforce it but evaluate its effects over time.
C)reform its terms to prevent any undue burden.
D)refuse to enforce it unless Penultimate pays a fine to the court.

Question 68

Stella is fifteen.In most states, for contractual purposes, Stella would be considered a minor until she is

A)sixteen.
B)eighteen.
C)seventeen.
D)twenty-one.

Question 69

Intoxicated but still capable of comprehending the consequences of her actions, Cricket signs a contract to sell her phone app design to Downloads, Inc.This contract is

A)unenforceable because Cricket was intoxicated.
B)enforceable.
C)unenforceable if Cricket disaffirms it.
D)unenforceable if Downloads disaffirms it.

Question 70

Under a contract with Bucolic Farms, Agro Excavation, Inc., begins digging an agricultural pond.In mid-project, Agro asks for $15,000 over the contract price, claiming an increase in the "cost of doing business." Bucolic agrees but later refuses to pay.Their agreement is

A)unenforceable because Agro's performance was a preexisting duty.
B)unenforceable because Bucolic's promise was illusory.
C)enforceable.
D)unenforceable because its performance is unforeseeably difficult.

Question 71

Genovese Contracting, Inc., agrees to build a warehouse for Hawthorne Wholesale Distributors.When Genovese runs into the types of difficulties that contractors ordinarily confront, Hawthorne agrees to pay extra compensation to overcome them.Regarding the agreement to pay more, a court would likely

A)enforce it.
B)rescind it.
C)order the parties to renegotiate it.
D)not enforce it.

Question 72

Jolie signs a contract with Keaton, an unlicensed physician, to perform plastic surgery-a medical procedure.This contract is enforceable by

A)Jolie.
B)Jolie's medical insurance company.
C)Keaton.
D)no one.