Question 1

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

Accepted Answer

False

Question 2

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

Accepted Answer

The mailbox rule states that an acceptance is effective as soon as it is sent, as long as it is sent through an acceptable means of communication. This means that the offeree is bound to the contract as soon as they put the acceptance in the mail or hit send on an email. Therefore, the acceptance is not dependent on when it is received by the offeror.

Question 3

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

Accepted Answer

To create an implied-in-fact contract, it must be established that there was a mutual intent to create an agreement, even if there was no explicit contract. Gratuitous provision of property or services would not be sufficient to establish such intent.

Question 4

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

Accepted Answer

According to the common law of contract, a rejection of an offer is only effective once it is communicated to the offeror. Therefore, until the offeror actually receives the rejection, they can still accept the offer.

Question 5

A voidable contract is also termed as an unenforceable contract.

Accepted Answer

A voidable contract can be enforced, but one or both parties have the option to cancel or void the contract. An unenforceable contract cannot be enforced by either party due to some legal defect or violation.

Question 6

A counteroffer is considered a rejection of the original offer.

Accepted Answer

When a counteroffer is made, it is a rejection of the original offer and proposes a new offer with different terms or conditions. This means that the original offer is no longer available for acceptance.

Question 7

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

Accepted Answer

An auction is considered to be with reserve unless it is explicitly stated to be an auction without reserve. In a with reserve auction, the seller reserves the right to accept or reject any and all bids.

Question 8

Provision of services qualifies as "consideration" for an enforceable contract.

Accepted Answer

Consideration is something of value given by each party to a contract, and the provision of services can certainly qualify as consideration.

Question 9

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

Accepted Answer

The answer of An act of performance is necessary to...

Question 10

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

Accepted Answer

The answer of An offer to create a unilateral contract...

Question 11

In a recognizance, a party acknowledges in court that he or she will pay a specified sum of money if a certain event occurs.

Accepted Answer

A recognizance is a legal agreement in which a party promises to do something, such as pay a sum of money, if a certain event occurs. The acknowledgment is made in court and is usually part of a bail agreement or other legal proceeding.

Question 12

A promise is something of legal value given in exchange of a consideration.

Accepted Answer

A promise is a declaration or assurance that one will do something or that a particular thing will happen. Consideration, which is something of legal value given in exchange, is a separate element required to form a binding contract, not the promise itself.

Question 13

An express contract can be stated orally.

Accepted Answer

An express contract can be stated orally, in writing, or even implied by the actions of the parties involved.

Question 14

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

Accepted Answer

In a bilateral contract, both parties make promises to each other, so the offeror's promise is met with the offeree's promise to accept the offer.

Question 15

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

Accepted Answer

The death of the offeror does not necessarily terminate an option contract. The offeror's estate or other successors may be able to fulfill the obligations of the contract. However, there may be clauses in the contract that specify the termination of the contract in case of the offeror's death.

Question 16

In auction without reserve, the seller is the offeree.

Accepted Answer

In an auction without reserve, the bidders are the offerees and the seller is the offeror. The seller is offering their item for sale with no minimum price or reserve, and the bidders are making offers (bids) to purchase the item.

Question 17

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

Accepted Answer

A contract that has been fully performed by both sides is called an executed contract, not an executory contract. An executory contract is a contract that has not yet been fully performed by one or both parties.

Question 18

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

Accepted Answer

A unilateral contract is accepted by the performance of an act by the offeree, not merely by a promise to perform.

Question 19

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

Accepted Answer

The mirror image rule states that the acceptance must match the terms of the offer exactly, without adding, changing, or contradicting any terms. Therefore, the offeree must accept the terms of the offer without modification to meet the mirror image rule.

Question 20

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.

Accepted Answer

A unilateral contract is one where the offeror promises to pay or perform upon the completion of a specific act by the offeree. This type of contract can be revoked by the offeror at any time prior to the offeree's performance of the requested act. Once the offeree has completed the act, the contract becomes binding and cannot be revoked by the offeror.

Quiz 9: Formation of Traditional and E-Contracts