Question 1

A contract of record is also referred to as a:

Accepted Answer

A contract of record is a legal agreement in which a person acknowledges a debt or obligation and pledges to pay it. This type of agreement is also known as a recognizance. B is incorrect because reconnaissance refers to military observation or surveying of an area. C is incorrect because a recording contract is a type of agreement between a music artist and a record label.

Question 2

When a contract is fully performed by one party, it is called a unilateral contract.

Accepted Answer

A unilateral contract is one where only one party makes a promise to perform in exchange for an act by the other party. Full performance by one party refers to fulfilling the terms of the contract, not the type of contract itself.

Question 3

An option contract gives one of the parties an absolute right to enter into a second contract at a later date.

Accepted Answer

This is the definition of an option contract - it gives one party the right (but not the obligation) to enter into a second contract at a later date.

Question 4

An agreement arises when one person, the __________, makes an offer and the other person to whom the offer is made, the __________, accepts.

Accepted Answer

The person who makes an offer is called the offeror, while the person to whom the offer is made is called the offeree. Therefore, option C is the correct answer.

Question 5

Whenever a person receives a benefit for which payment has not been made, there is an unjust enrichment and the value of such benefit must be paid to the person conferring the benefit.

Accepted Answer

The answer of Whenever a person receives a benefit for...

Question 6

A contract requires:

Accepted Answer

A contract requires both an offer and an acceptance. An offer is a proposal to do something or refrain from doing something, while acceptance is the agreement to the terms of the offer. Without both an offer and an acceptance, there can be no contract. The contract can be made through written or spoken words, but the manifestation of agreement is not sufficient on its own.

Question 7

A contract never can be both executory and unilateral.

Accepted Answer

A contract can be both executory and unilateral. A contract is executory if some of its obligations have not yet been performed, while it is unilateral if only one party is obligated to perform. These two concepts are not mutually exclusive, and a contract can be both executory and unilateral if, for example, only one party has promised to perform and has not yet done so.

Question 8

The elements of a contract include all of the following except:

Accepted Answer

An illegal purpose is not an element of a valid contract. In fact, contracts with illegal purposes are void and unenforceable. The other elements of a contract include mutual assent or agreement, competent parties, and consideration.

Question 9

The principle behind the quasi contract is to prevent unjust enrichment.

Accepted Answer

The quasi contract, also known as a constructive contract, is based on the principle of unjust enrichment. It allows courts to impose a contractual obligation on a party in order to prevent them from being unjustly enriched at the expense of another party, even in the absence of a written or express agreement.

Question 10

A contract is:

Accepted Answer

All of the options listed are correct definitions of a contract. Therefore, the best answer is D.

Question 11

An implied contract is shown by:

Accepted Answer

An implied contract is one in which the terms and conditions are inferred from the acts and conducts of the parties involved. It is not necessary to have a formal written contract or an exchange of oral promises. Statements made in open court or any other verbal agreement may not necessarily imply a contract, hence option B is the best choice.

Question 12

The subject matter of a contract may relate to:

Accepted Answer

The subject matter of a contract can relate to any of the options (A) the performance of personal services, (B) the construction of a house, or (C) the transfer of ownership of property, or any other kind of transaction or agreement. Therefore, the best choice is D - all of the above.

Question 13

Negotiable instruments are:

Accepted Answer

Negotiable instruments are formal contracts that can be transferred from one party to another. Examples of negotiable instruments include checks, promissory notes, and bills of exchange.

Question 14

With regard to a unilateral contract, the offeree does not accept the offer by express agreement, but rather by performance.

Accepted Answer

In a unilateral contract, the offer is made in the form of a promise to pay or perform, and the offeree can accept the offer only by performing the requested act. There is no need for express agreement or communication of acceptance.

Question 15

Quasi-contractual liability will generally be imposed when the cost of performing a contract is greater than had been expected.

Accepted Answer

Quasi-contractual liability is imposed when one party receives a benefit from another party and it would be unjust for the benefit receiver to keep the benefit without compensating the other party. It is not dependent on the cost of performing a contract.

Question 16

A quasi contract may arise in a situation in which no contract exists.

Accepted Answer

A quasi contract is a legal concept in which a court may impose certain obligations on one party in order to avoid unjust enrichment, even if there was no actual contract in place between the parties. This can occur when one party receives a benefit from another party and it would be unfair for them to keep that benefit without compensating the other party in some way.

Question 17

The promisor in a contract may also be called the:

Accepted Answer

The promisor in a contract is the party that makes a promise or agrees to perform a certain action. This party is also known as the obligor as they have an obligation to fulfill their promise or meet their contractual obligations.

Question 18

When a contract sets a price for services rendered, a plaintiff cannot sue for reasonable value.

Accepted Answer

When a contract specifies a price for services, the plaintiff is generally limited to recovering that amount and cannot sue for a different or "reasonable" value. This is known as the doctrine of "liquidated damages." However, there are some exceptions to this rule, such as if the contract was procured by fraud or if the agreed-upon price was grossly unfair or unconscionable.

Question 19

A bilateral contract is essentially an exchange of promises.

Accepted Answer

A bilateral contract consists of a promise by one party in exchange for a promise from the other party. Both parties have obligations to fulfill under the terms of the contract.

Question 20

A party to a contract may be:

Accepted Answer

All of the above choices are correct as parties to a contract can be individuals, partnerships, or corporations.

Quiz 12: Nature and Classes of Contracts: Contracting on the Internet