Question 1

Which of the following elements must be established to create an implied-in-fact contract?

Accepted Answer

An implied-in-fact contract is created when the parties' conduct implies the existence of a contract, despite there being no formal agreement. One crucial element is that the defendant had an opportunity to reject the property or services provided by the plaintiff but failed to do so, indicating their acceptance of the offer. The other choices do not establish an implied-in-fact contract.

Question 2

An oral agreement to purchase a neighbor's bicycle is a(n)________ contract

Accepted Answer

An express contract is a legally binding agreement that is formed through explicit words, either written or spoken. In this case, the oral agreement between the two neighbors to purchase the bicycle constitutes an express contract. Voidable and void contracts refer to agreements that are either unenforceable or have no legal effect. An implied contract is one that is not explicitly stated but can be inferred from the behavior of the parties involved.

Question 3

A(n)________ contract is inferred from the conduct of the parties.

Accepted Answer

An implied-in-fact contract is created when the conduct of the parties implies an agreement without the use of words or an express written contract. The conduct of the parties shows they intended to enter into a contract, and this can be inferred from their actions. Therefore, option C is the correct answer. Option A refers to a contract that is explicitly stated and written down. Option B is not a recognized category of contract, and Option D refers to a contract that is not actually a contract but a legal remedy to prevent unjust enrichment.

Question 4

A ________ contract has no legal effect.

Accepted Answer

A void contract is one that has no legal effect whatsoever. It is essentially a non-contract.

Question 5

Which of the following is true of contracts?

Accepted Answer

A voidable contract is one where a party has the option to nullify or cancel his or her obligation under the contract. It is different from a void contract, which has no legal effect because one or more of its essential elements are missing. An executory contract is one where one or both parties have not yet fully performed their obligations under the contract, and it is enforceable as long as both parties are willing to carry out their duties.

Question 6

A contract under seal is considered a(n)________.

Accepted Answer

A contract under seal is considered a formal contract because it is signed and sealed by the parties involved, usually witnessed by a notary public, and is given more weight in court than a regular contract. It is also known as a "sealed contract."

Question 7

Which of the following classifications of contracts is based on formation?

Accepted Answer

Express contracts are classified based on their formation, as they are created through the express agreement of the parties involved. Valid contracts refer to contracts that meet all legal requirements, while unenforceable contracts are those that are legally binding but cannot be enforced due to certain defects. On the other hand, executory contracts refer to contracts that are still in progress and have not been fully performed yet.

Question 8

Ben was talking to Harry who was drunk.Harry agreed to give his car to Ben as a token of friendship.Once sober,Harry asks Ben to return his car.This contract is considered ________.

Accepted Answer

This contract is considered voidable because Harry was not in a sound state of mind when he agreed to give his car to Ben. Once he became sober, he realized his mistake and therefore has the right to rescind the contract.

Question 9

Which of the following classifications of contracts is based on enforceability?

Accepted Answer

Void contracts are not enforceable by law, unlike formal contracts (which have specific requirements for their formation), quasi-contracts (which are enforced by courts to prevent unjust enrichment), and executed contracts (which have been fully performed by both parties).

Question 10

Elizabeth signs a contract to purchase a new car from Spadace Motors.She has not yet paid for the car and Spadace Motors has not yet delivered the car to Elizabeth.This is an example of a(n)________ contract.

Accepted Answer

An executory contract is a contract that is not yet fully performed by either party. In this case, Elizabeth has not paid for the car and Spadace Motors has not delivered the car, making it an executory contract.

Question 11

Kyle goes to a used-car showroom to buy a sedan.He signs an agreement with the store which bears the name of the car,price,and other details.This is an example of a(n)________ contract.

Accepted Answer

An express contract is a contract where the terms and conditions are clearly stated either in oral or written form. In this case, Kyle signed an agreement with the store that bears the name of the car, the price, and other details, indicating that the terms of the contract were clearly expressed.

Question 12

Which of the following classifications of contacts is based on performance?

Accepted Answer

Executory contracts are agreements where one or both parties have obligations to fulfill in the future. The performance aspect of the contract determines whether or not it has been executed. Therefore, the classification of contracts based on performance is executory contracts.

Question 13

A(n)________ contract consists of an agreement between the parties,is supported by legally sufficient consideration,is between parties with contractual capacity,and accomplishes a lawful object.

Accepted Answer

A valid contract must meet all four criteria stated in the definition, meaning it is enforceable by law. A voidable contract may be legally binding, but one party has the option to cancel it due to certain circumstances. A void contract is not legally binding from the beginning. An unenforceable contract is usually valid, but cannot be enforced by law for various reasons.

Question 14

Janet pulls her car into a car wash line.She quietly sees her car getting washed by the employees.She then refuses to pay for the service,stating that there was no contract.If a lawsuit is filed,what would the result be?

Accepted Answer

The car wash wins because an implied-in-fact contract is formed by the actions of the parties involved, even without verbal agreement. Janet's act of pulling into the car wash line and allowing the service to be performed without objection indicates her acceptance of the service, thus forming an implied contract.

Question 15

A(n)________ contract is based on an equitable doctrine.

Accepted Answer

An implied-in-law contract, also known as a quasi-contract, is based on the equitable doctrine of unjust enrichment. It is not an actual contract but a legal remedy used when one party is unjustly enriched at the expense of another. This type of contract is not based on the intention of the parties but rather on what is fair and equitable under the circumstances.

Question 16

A contract that has been fully performed on both sides is called a(n)________ contract.

Accepted Answer

An executed contract is one that has been fully performed on both sides, meaning that all obligations under the contract have been fulfilled. Void contracts are not valid from the beginning, executory contracts are still ongoing, and implied-in-law contracts (also known as quasi-contracts) are not actual contracts but are legal remedies imposed by courts to prevent unjust enrichment.

Question 17

Which of the following is required of a contract for it to be considered an express contract?

Accepted Answer

An express contract must be manifested either in writing or through spoken words. It must have clear and unequivocal terms that both parties have agreed upon.

Question 18

The doctrine that is imposed when one person confers a benefit on another,who retains the benefit,and when it is unjust to allow the recipient to retain the benefit without paying for it is known as ________.

Accepted Answer

A quasi-contract is a legal concept that is imposed by a court in the interest of fairness and justice when there is no pre-existing contractual relationship between the parties. In this scenario, one person (the conferee) has conferred a benefit on another person (the recipient) who retains the benefit but has not paid for it, creating an obligation on the part of the recipient to pay the conferee the reasonable value of the benefit conferred. This doctrine is also known as unjust enrichment, and it applies where there is no actual contract between the parties, but one party has received something of value from the other party. Therefore, the best choice in this scenario is A) quasi-contract.

Question 19

Lou writes a check to Bud but leaves out some essential components that are required on the check.This check would be described as ________.

Accepted Answer

The check would be considered unenforceable since it is missing essential components that are required on a check. Without these components, the bank would not be able to process the check, and it would be invalid.

Question 20

Which of the following pairs of terms describes the same concept or situation?

Accepted Answer

Both implied-in-law contract and quasi-contract are legal doctrines that allow for the recovery of unjust enrichment when there is no actual contract in place. The other choices describe different types of contracts.

Quiz 9: Nature of Traditional and E-Contracts

Which of the following elements must be established to create an implied-in-fact contract?

An oral agreement to purchase a neighbor's bicycle is a(n) ________ contract

A(n) ________ contract is inferred from the conduct of the parties.

A ________ contract has no legal effect.

Which of the following is true of contracts?

A contract under seal is considered a(n) ________.

Which of the following classifications of contracts is based on formation?

Ben was talking to Harry who was drunk.Harry agreed to give his car to Ben as a token of friendship.Once sober,Harry asks Ben to return his car.This contract is considered ________.

Which of the following classifications of contracts is based on enforceability?

Elizabeth signs a contract to purchase a new car from Spadace Motors.She has not yet paid for the car and Spadace Motors has not yet delivered the car to Elizabeth.This is an example of a(n) ________ contract.

Kyle goes to a used-car showroom to buy a sedan.He signs an agreement with the store which bears the name of the car,price,and other details.This is an example of a(n) ________ contract.

Which of the following classifications of contacts is based on performance?

A(n) ________ contract consists of an agreement between the parties,is supported by legally sufficient consideration,is between parties with contractual capacity,and accomplishes a lawful object.

Janet pulls her car into a car wash line.She quietly sees her car getting washed by the employees.She then refuses to pay for the service,stating that there was no contract.If a lawsuit is filed,what would the result be?

A(n) ________ contract is based on an equitable doctrine.

A contract that has been fully performed on both sides is called a(n) ________ contract.

Which of the following is required of a contract for it to be considered an express contract?

The doctrine that is imposed when one person confers a benefit on another,who retains the benefit,and when it is unjust to allow the recipient to retain the benefit without paying for it is known as ________.

Lou writes a check to Bud but leaves out some essential components that are required on the check.This check would be described as ________.

Which of the following pairs of terms describes the same concept or situation?