Question 1

There can be no contract where:

Accepted Answer

The contract in choice A lacks certainty because the essential terms of price and payment dates are not fixed and are left to be agreed upon in the future, which means there is no binding agreement.

Question 2

An executed agreement is one where one party or the other has performed its contractual obligations.

Accepted Answer

An executed agreement is one where both parties have fulfilled their contractual obligations.

Question 3

A unilateral contract is wholly executory.

Accepted Answer

A unilateral contract becomes executed on one side once the party performs the requested action, making it not wholly executory.

Question 4

An agreement not to negotiate with anyone else for one year is valid.

Accepted Answer

Such an agreement is generally considered valid if it is part of a larger, lawful contract and is reasonable in scope and duration, serving a legitimate business interest.

Question 5

An agreement to negotiate in good faith is impossible because: - Please select all that apply.

Accepted Answer

A) It lacks the necessary certainty.B) A negotiator must be free to threaten to withdraw if he is not offered terms better than those on the table.

Question 6

If the parties agree that the price is to be fixed by T, and one of the parties then prevents T from fixing the price, the other party may sue her for damages.

Accepted Answer

If one party prevents T, the third party agreed upon to fix the price, from doing so, it constitutes a breach of contract, allowing the other party to sue for damages.

Question 7

If, at the beginning of negotiations, the negotiations are stated to be 'subject to contract', no contract can ever arise until exchange of the formal written and signed contract.

Accepted Answer

Stating negotiations are 'subject to contract' means that the parties intend not to be bound until a formal contract is signed; however, it is possible for a contract to arise before formal exchange if both parties act as though a contract is in place, depending on the jurisdiction and specific actions of the parties.

Question 8

There can be no contract in the following examples:

Accepted Answer

The answer of There can be no contract in the...

Quiz 4: Contract As an Agreement