Question 1

Bo signs a lease with Capri Apartments to lease a studio apartment for the next year for $650 per month. Daisy signs on Capri's behalf. Bo and Capri have
A)no contract.
B)an express contract.
C)an implied contract.
D)a simple contract.

Accepted Answer

Bo and Capri have a lease agreement which is an example of an express contract. The terms and conditions of the contract are clearly stated and agreed upon by both parties. The signing of the lease by Daisy on behalf of Capri further solidifies the existence of the contract.

Question 2

Tania promises to buy Saki's handheld game-player for $40. Saki is
A)an executee.
B)an offeror.
C)a promisee.
D)a promisor.

Accepted Answer

Saki is the person to whom a promise is made by Tania to buy the handheld game-player for $40, hence Saki is the promisee.

Question 3

Lana applies for a firefighter's job with Metro City,which responds with a letter setting an appointment for a medical exam. The letter also states that it is "an employment offer conditioned on the applicant passing the exam." This letter is
A)a bilateral contract that Lana accepted by applying for the job.
B)a quasi contract on which Lana can rely for employment.
C)a unilateral contract that Lana can accept by passing the exam.
D)no contract.

Accepted Answer

The letter from Metro City is a unilateral contract as it offers employment upon the condition of Lana passing the exam. Lana can accept this contract by fulfilling the condition of passing the exam.

Question 4

Omar asserts that a deal he entered into with Patty to sponsor and host a motivational conference for independent sales representatives is an unenforce-able contract. Defenses to the enforcement of a contract include
A)a desire not to perform.
B)insufficient capital.
C)preliminary indications of unsatisfactory results.
D)the lack of a party's voluntary consent.

Accepted Answer

The lack of a party's voluntary consent is a defense to the enforcement of a contract. If one of the parties did not voluntarily agree to the terms of the contract, such as if they were under duress, fraud, or misrepresentation, the contract may be unenforceable. This could be the case if Omar did not fully understand the terms of the contract or if he was coerced into signing it.

Question 5

Vita asks Walter,a cobbler and shoe salesperson,to repair a pair of work boots. There is no discussion of a price,and Vita and Walter do not sign any documents. After the repair,Walter hands Vita a bill. With respect to Vita's obligation to pay the bill,this is
A)an express contract.
B)an implied contract.
C)a quasi contract.
D)no contract.

Accepted Answer

An implied contract is formed through the conduct of the parties and is not explicitly stated or written. In this case, Vita asked Walter to repair the boots without discussing the price, and Walter went ahead with the repair. As a result, it can be assumed that Vita impliedly agreed to pay for the repair, making it an implied contract.

Question 6

Cellphones & Calltime,Inc.,makes an offer to Delores to enter into a contract to work as a salesperson for a certain base salary plus commission for ninety days subject to a one-year renewal based on her performance. Delores accepts the offer. A valid contract requires
A)a price and a subject.
B)a duration and termination provision.
C)an offer and an acceptance.
D)specific quality standards.

Accepted Answer

A valid contract requires an offer and an acceptance. Both parties have agreed to the terms and conditions, including the base salary, commission, and renewal terms. While the other options may be included in a contract, they are not necessary for a contract to be valid.

Question 7

Bobbie claims that Carly breached their contract. Carly responds that she never intended to enter into a contract with Bobbie. The intent to enter into a contract is determined with reference to
A)the conscious theory of contracts.
B)the objective theory of contracts.
C)the personal theory of contracts.
D)the subjective theory of contracts.

Accepted Answer

The intent to enter into a contract is determined with reference to the objective theory of contracts. This theory provides that the intent to enter into a contract should be based on how a reasonable person in the parties' position would interpret their words and conduct. Therefore, Carly's subjective intentions are not relevant to the determination of whether a contract was formed or not.

Question 8

Jana tells Levi she will give him an Xbox if Levi does Jana's chores for a month. Levi promises to do the chores. Jana and Levi have formed
A)abilateral contract.
B)aunilateral contract.
C)avoid contract.
D)anunenforceable contract.

Accepted Answer

A bilateral contract is a type of contract where both parties make promises or commitments to each other. In this scenario, Jana promises to give Levi an Xbox if he does her chores for a month, and Levi promises to do the chores. Both parties have made commitments to each other, making it a bilateral contract.

Question 9

Clay offers to pay Dot $50 for a golf lesson for Eula. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have
A)a bilateral contract.
B)a trilateral contract.
C)a unilateral contract.
D)no contract.

Accepted Answer

A bilateral contract is an agreement in which both parties make promises to each other, and in this case, both Clay and Dot have agreed to exchange $50 for a golf lesson. A trilateral contract would involve a third party, which is not present here. A unilateral contract involves only one party making a promise, but in this scenario, both parties have made promises to each other. Therefore, there is a bilateral contract between Clay and Dot.

Question 10

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have
A)no contract.
B)an express contract.
C)an implied contract.
D)a quasi contract.

Accepted Answer

A verbal agreement between Flo and Ginger to buy and sell a textbook for an agreed-upon price constitutes an express contract.

Question 11

GR8 Marketing Company and Brainfreeze Tunes,Inc.,sign a document that states GR8 agrees to create a marketing campaign for Brainfreeze,which agrees to pay GR8 for the service. GR8 and Brainfreeze have
A)an executed contract.
B)an express contract.
C)an implied contract.
D)a quasi contract.

Accepted Answer

An express contract is formed when the terms are stated clearly in writing or orally, as in the case where GR8 and Brainfreeze have a written agreement outlining their obligations.

Question 12

Wilson buys a lottery ticket at his local gas station. Wilson has accepted an offer for
A)abilateral contract.
B)aunilateral contract.
C)avoid contract.
D)anunenforceable contract.

Accepted Answer

A lottery ticket purchase constitutes a unilateral contract, where Wilson is agreeing to pay for the ticket in exchange for a chance to win the prize. The gas station is not obligated to provide the prize unless the winning numbers match, at which point Wilson can claim the prize.

Question 13

Lucy agrees to work for Mung Manufacturing,Ltd.,as a Chinese/ English/ French translator. In determining whether a contract has been formed,an element of prime importance is
A)the parties' intent.
B)Mung's base of operations.
C)the duration of the work.
D)Lucy's language capabilities.

Accepted Answer

The intent of the parties is a fundamental element in determining whether a contract has been formed. Both Lucy and Mung Manufacturing, Ltd. must have the intention to create legal relations and be bound by the terms of the agreement in order for a contract to exist.

Question 14

Peter offers to pay Quik Delivery (QD)$50 if it picks up and delivers to him a package of business documents from Rico within 30 minutes. QD can ac-cept the offer only by meeting the deadline. If QD performs as directed,these parties will have
A)a bilateral contract.
B)a trilateral contract.
C)a unilateral contract.
D)no contract.

Accepted Answer

This is a unilateral contract because Peter is promising to pay if QD performs a specific action (picking up and delivering the package within 30 minutes). QD is not required to accept the offer or promise to perform, but if they do perform within the allotted timeframe, Peter is obligated to pay. There are no indications of multiple parties providing promises or obligations, so it is not a bilateral or trilateral contract.

Question 15

On behalf of the rock group Uno,their manager Thalia agrees to a performance in Seaside Amphitheatre on July 4. Rex,acting for Seaside,sends a written copy of the agreement to Thalia to be signed. If Thalia signs the copy,the parties will have
A)an express contract.
B)an implied contract.
C)an implied-in-law contract.
D)no contract.

Accepted Answer

An express contract is created when parties explicitly state the terms of their agreement, either in writing or verbally. In this case, the agreement is made between Uno and Seaside, and Rex sends a written copy of the agreement to Thalia to be signed. If Thalia signs the copy, the terms of the agreement will be expressed in the written document, creating an express contract between the parties.

Question 16

Randy promises to give Stewart her iPod in exchange for Stewart's promise to pay Randy $50. This bilateral contract was created when
A)Randy offered to sell her iPod to Stewart.
B)Randy decided to sell her iPod.
C)Stewart promised to pay Randy $50.
D)Stewart became aware that Randy was willing to sell her iPod.

Accepted Answer

A bilateral contract is formed when both parties exchange promises. Here, the contract was created when Stewart promised to pay Randy $50 in exchange for the iPod.

Question 17

On Monday,Neil tells Outdoor Landscaping,Inc.,that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday,when Outdoor is more than half done with the work,Neil says that he has changed his mind. These parties had
A)an expired contract when Neil said that he had changed his mind.
B)aquasi contract when Neil said that he would pay for certain work.
C)aunilateral contract as soon as Outdoor began to perform.
D)no contract.

Accepted Answer

When Neil said that he would pay Outdoor $500 if they completed certain tasks by Friday, it formed a unilateral contract. This means that Outdoor was obligated to complete the tasks by Friday, and if they did so, Neil was obligated to pay $500. Once Outdoor began to perform the tasks, the unilateral contract was in effect. Neil cannot simply change his mind and back out of the contract. Therefore, Outdoor could hold Neil to his promise of payment.

Question 18

When a rainstorm erupts outside Rita's Souvenir & Gift Shop,Rita and Shaw enter into an implied contract to split the revenue from Shaw's sale of umbrellas to Rita's customers. The terms of this contract are defined by
A)the conduct of the parties.
B)the words of the parties.
C)the unforeseeable storm that gave rise to the deal.
D)the unexpressed subjective intent of the parties.

Accepted Answer

In an implied contract, the terms are defined by the conduct of the parties and their actions rather than by their words or subjective intent. In this scenario, Rita and Shaw's conduct in splitting the revenue from umbrella sales shows an agreement between them. The rainstorm was merely the circumstance that led to the contract, but the actual agreement was defined by their conduct.

Question 19

Expert Pavers,Inc.,contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay.The requirements of this,and any other,contract do not include
A)consideration.
B)capacity.
C)legality.
D)practicality.

Accepted Answer

While practicality is an important consideration in any business venture, it is not a legal requirement for a contract. The other options - consideration, capacity, and legality - are all essential elements of a valid contract.

Question 20

Home & Barn Construction,Inc.,contracts with Idyll Farms to build a new dairy barn on Idyll's property for which Idyll agrees to pay.The elements of this,and any other,contract include
A)the parties' capability.
B)consideration.
C)necessity of purpose.
D)theprice.

Accepted Answer

Consideration is a fundamental element of a contract, referring to the value exchanged between the parties involved.

Quiz 10: Nature and Classification

Bo signs a lease with Capri Apartments to lease a studio apartment for the next year for $650 per month. Daisy signs on Capri's behalf. Bo and Capri have

Tania promises to buy Saki's handheld game-player for $40. Saki is

Lana applies for a firefighter's job with Metro City,which responds with a letter setting an appointment for a medical exam. The letter also states that it is "an employment offer conditioned on the applicant passing the exam." This letter is

Omar asserts that a deal he entered into with Patty to sponsor and host a motivational conference for independent sales representatives is an unenforce-able contract. Defenses to the enforcement of a contract include

Vita asks Walter,a cobbler and shoe salesperson,to repair a pair of work boots. There is no discussion of a price,and Vita and Walter do not sign any documents. After the repair,Walter hands Vita a bill. With respect to Vita's obligation to pay the bill,this is

Cellphones & Calltime,Inc.,makes an offer to Delores to enter into a contract to work as a salesperson for a certain base salary plus commission for ninety days subject to a one-year renewal based on her performance. Delores accepts the offer. A valid contract requires

Bobbie claims that Carly breached their contract. Carly responds that she never intended to enter into a contract with Bobbie. The intent to enter into a contract is determined with reference to

Jana tells Levi she will give him an Xbox if Levi does Jana's chores for a month. Levi promises to do the chores. Jana and Levi have formed

Clay offers to pay Dot $50 for a golf lesson for Eula. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have

GR8 Marketing Company and Brainfreeze Tunes,Inc.,sign a document that states GR8 agrees to create a marketing campaign for Brainfreeze,which agrees to pay GR8 for the service. GR8 and Brainfreeze have

Wilson buys a lottery ticket at his local gas station. Wilson has accepted an offer for

Lucy agrees to work for Mung Manufacturing,Ltd.,as a Chinese/ English/ French translator. In determining whether a contract has been formed,an element of prime importance is

Peter offers to pay Quik Delivery (QD) $50 if it picks up and delivers to him a package of business documents from Rico within 30 minutes. QD can ac-cept the offer only by meeting the deadline. If QD performs as directed,these parties will have

On behalf of the rock group Uno,their manager Thalia agrees to a performance in Seaside Amphitheatre on July 4. Rex,acting for Seaside,sends a written copy of the agreement to Thalia to be signed. If Thalia signs the copy,the parties will have

Randy promises to give Stewart her iPod in exchange for Stewart's promise to pay Randy $50. This bilateral contract was created when

On Monday,Neil tells Outdoor Landscaping,Inc.,that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday,when Outdoor is more than half done with the work,Neil says that he has changed his mind. These parties had

When a rainstorm erupts outside Rita's Souvenir & Gift Shop,Rita and Shaw enter into an implied contract to split the revenue from Shaw's sale of umbrellas to Rita's customers. The terms of this contract are defined by

Expert Pavers,Inc.,contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay.The requirements of this,and any other,contract do not include

Home & Barn Construction,Inc.,contracts with Idyll Farms to build a new dairy barn on Idyll's property for which Idyll agrees to pay.The elements of this,and any other,contract include