Question 1

Susan enters into a contract with Troy to act as his personal sports trainer. If a dispute later arises and the contract contains unclear terms, the rules of contract interpretation will give effect to

Accepted Answer

The rules of contract interpretation aim to give effect to the parties' intent as expressed in their contract. This is known as the objective theory of contracts, which means that the court will interpret the contract based on what a reasonable person would understand the terms to mean. The subjective intent of the parties (what they individually intended) is not as relevant as the objective expressions in the contract itself.

Question 2

Leila enters into a contract with Metro Taxi Company to work as a cabdriver. Under the plain meaning rule, if the contract's writing is clear and unequivocal, the meaning of the terms must be determined from

Accepted Answer

Under the plain meaning rule, the meaning of terms must be determined only from the face of the instrument, i.e., the contract document itself, if clear and unequivocal.

Question 3

Francisca and Garden Estate, Inc., enter into a contract for the use of a Victorian mansion and its grounds for a wedding and reception. If ambiguities appear in the contract, they will be construed against the party who

Accepted Answer

The rule of contra proferentem (interpretation against the drafter) holds that ambiguous contract terms should be interpreted against the party who drafted the contract. This is because the party who drafted the contract had the opportunity to clarify any ambiguities, but did not.

Question 4

Oceans Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legal limit. This agreement is most likely

Accepted Answer

The agreement between Oceans Inc. and Paul is for the purchase of fish caught in excess of Paul's legal limit, which is illegal (as it goes against fishing regulations). Therefore, the agreement is void and unenforceable by law.

Question 5

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

Accepted Answer

The contract between Francie and Gage is executory because it has not been fully performed yet. Francie still needs to pay for the tire replacement.

Question 6

On May 1, Ramona and Santonio orally agree that Santonio will guide a party from the base of Mount McKinley to its summit and from the summit to a return to the base. Under the agreement, Ramona will pay for the service after the completion of the climb on June 1. On May 1, is this contract express or implied? On May 31, after the climb has been made but before payment is paid, is the contract executed or executory?

Accepted Answer

The answer of On May 1, Ramona and Santonio orally...

Question 7

Rough Water, LLC, and Schafer enter into a contract for the delivery of a used kayak. Until the kayak is delivered and paid for, these parties have

Accepted Answer

An executory contract is a contract in which both parties have not fully performed their obligations, and this is the case with Rough Water, LLC and Schafer until the kayak is both delivered and paid for. Therefore, until the contract is fully executed, it is an executory contract.

Question 8

Sales Corporation and Real Properties, Inc., agree to the payment of a commission for the sale of certain property. If this deal has all of the elements necessary for one of the parties to enforce it in court, it is

Accepted Answer

The fact that both parties agreed to the payment of a commission for the sale of certain property suggests that there was offer, acceptance, consideration, and mutual assent. Therefore, this deal has all the elements of a valid contract that can be enforced by either party in court.

Question 9

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

Accepted Answer

A letter-of-credit agreement is a formal contract between two parties and specifies the terms and conditions of payment, including the role of the bank.

Question 10

Jess, a nurse practitioner, renders aid to Kurt, who is injured and unconscious. Jess can recover the cost of the aid from Kurt

Accepted Answer

As a nurse practitioner, Jess has a duty to provide aid in emergency situations, even if there is no contractual obligation to do so. However, as long as the aid rendered was necessary and reasonable, Jess can recover the cost of the aid from Kurt as if the parties had entered into an actual contract.

Question 11

Robin claims that her contract with Stroud for tennis lessons is voidable. If their contract is avoided​

Accepted Answer

Voidable contracts are contracts that can be avoided or cancelled by one or both parties. If Robin's contract with Stroud for tennis lessons is avoided, both parties are released from it, meaning they are no longer bound by the terms of the contract.

Question 12

Philo, a businessperson, is a friend of Quiana, the owner of Rise n' Shine, a coffee stand. Every day, Philo spends a few minutes at the stand, watching the brewing, considering the options, and usually buying a cup of coffee and something extra-a bagel, a muffin, a cookie, or a sandwich. One afternoon, Philo comes to the stand and picks up a bottle of iced coffee and a sandwich priced at $5 each. Philo waves the items at Quiana without saying a word and walks out. Is there a contract? If so, how would it be classified in terms of formation, performance, and enforceability?

Accepted Answer

The answer of Philo, a businessperson, is a friend of...

Quiz 11: Nature and Terminology