Deck 11: Nature and Terminology

Question 1

A quasi contract is an actual contract.

Answer 1

False

Question 2

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

Answer 2

False

Question 3

A void contract imposes certain legal obligations on the parties but is not otherwise enforceable.

Answer 3

False

Question 4

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

Question 5

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

Question 6

The doctrine of quasi con?tract generally can only be used when there is an actual contract that covers the matter in controversy.

Question 7

A negotiable instrument is a formal contract.

Question 8

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

Question 9

Contract law does not distinguish between promises that create only moral obligations and promises that are legally binding.

Question 10

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

Question 11

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

Question 12

Contract law demonstrates which excuses our society accepts for breaking certain types of promises.

Question 13

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

Question 14

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

Question 15

The term consideration refers to the legality of the subject matter of a contract.

Question 16

Informal contracts include all contracts other than formal contracts.

Question 17

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

Question 18

A party who has conferred a benefit on someone else unnecessarily can invoke the principle of quasi contract to recover the cost.

Question 19

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

Question 20

When a contract's writing is not clear, a court will enforce it according to its obvious terms.

Question 21

Sales Marketing Corporation and Tech Support, Inc., negotiate a contract. If the contract 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 22

Sal assures Tom that she will deliver a truckload of hay to his cattle ranch. A person's declaration to do a certain act is part of the defini?tion of

A) an expectation.
B) a moral obligation.
C) a prediction.
D) a promise.

Question 23

Sunny enters into a contract with Trey to act as his personal sports trainer. If a dispute later arises and the contract contains un?clear 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 24

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 25

Otto mistakenly pays property taxes that should have been assessed against Pip. Otto can recover the amount from Pip in quantum meruit

A) even if Pip was not aware of the error.
B) only if Pip tried to conceal the error.
C) only if Pip was aware of the error.
D) only if Pip consents.

Question 26

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

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

Question 27

When Hester's car breaks down, she asks Insta-Tow, Inc., to tow it to Jerry's Repair Shop. There is no discussion of a price, and Hester and Insta-Tow do not sign any documents. Later, Insta-Tow sends Hester a bill. With respect to Hester's obligation to pay the bill, this is

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

Question 28

Avatar, Inc., agrees to deliver t-shirts emblazoned with video game characters for a certain price to Bling Bling Corporation. To consti?tute a contract, the terms of this deal

A) must all be express.
B) must all be implied.
C) may be express, implied, or a mixture of both.
D) may be express or implied, but not both.

Question 29

Gilbert promises to buy Hadley's iPod for $75. Hadley is

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

Question 30

Mallory promises to buy illegal digital copies of movies from Napoleon, who promises to deliver on October 31. These promises are most likely

A) enforceable.
B) valid.
C) void.
D) voidable.

Question 31

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 32

In a one-care auto accident, Carmel is rendered unconscious and otherwise injured. At the scene, Dana, a physician, acts to save Carmel's life. Later, Dana seeks to recover for the cost of the aid. She is most likely to recover

A) nothing.
B) on a theory of an express contract.
C) on a theory of an implied contract.
D) on a theory of a quasi contract.

Question 33

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 34

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

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

Question 35

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 quasi contract.
D) no contract.

Question 36

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

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

Question 37

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 38

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) both parties will agree to a wholly different contract.
D) a wholly different contract is imposed "as if" the parties had agreed.

Question 39

Brady accepts what he believes is an offer to work for Canyon River Adventures, Inc., as a tour and fishing guide. In determining whether a contract has been formed, an element of prime importance is

A) the price to be paid. b the duration of the work.
C) the intent of the parties.
D) the subject of the contract.

Question 40

Wilson buys a lottery ticket at his local gas station. Wilson has accepted an offer for a

A) bilateral contract.
B) unilateral contract.
C) void contract.
D) unenforceable contract.

Question 41

On May 1, Bobbi-Ann, a real estate agent, and Corporate Properties, Inc., a commercial property owner, sign an agreement about the sale of Corporate Properties' office building. Under the terms, if a buyer makes a serious offer within sixty days, Corporate Properties must pay Bobbi-Ann's commission. Bobbi-Ann puts signs on the building, ads in real estate pamphlets and a locally focused Web site, and features the property in a "walking" tour online. On June 1, Corporate Properties tells Bobbi-Ann that it is canceling their arrangement. Ten days later, Corporate Properties closes a sale on the building without Bobbi-Ann's participation. Bobbi-Ann files a suit against Corporate Properties for the amount of her commission. In whose favor is the court likely to rule, and why?

Question 42

On behalf of Meadow's Edge Golf Course & Club, Norton signs and returns a letter from Oralee, referring to her services as a resident golf pro and their price. When Norton attempts to complete the deal, however, Oralee re?fuses, claiming that they have no con?tract. Norton claims that they do. What standard determines whether these parties have a contract?