Question 1

Robin claims that her contract with Stroud for tennis lessons is voidable. If their contract is avoided
A)both parties are released from it.
B)both parties must fully perform their obligations under it.
C)a wholly different contract is agreed to.
D)a wholly different contract is imposed "as if" the parties had agreed.

Accepted Answer

If Robin's contract with Stroud for tennis lessons is voidable and avoided, both parties are released from it, meaning they are no longer bound by its terms and obligations.

Question 2

Cody signs and returns a letter from Dora,referring to Dora's Bar-D Ranch and its price. When Cody attempts to complete the deal,Dora re-fuses,claiming that they have no con-tract. Cody claims they do. What standard determines whether these parties have a contract?

Accepted Answer

The answer of Cody signs and returns a letter from...

Question 3

Ed,a businessperson,is a friend of Fran,the owner of a Percolated Coffee & Baked Goods store. Every day,Ed spends five minutes in Fran's store,looking at the goods and usually buying one or two cinnamon buns or bagels. One afternoon,Ed goes into the store,looks at the items,and picks up a $1 chocolate brownie. Ed waves the brownie at Fran without saying a word and walks out. Is there a con-tract? If so,how would it be classified in terms of formation,perform-ance,and enforceability?

Accepted Answer

The answer of Ed,a businessperson,is a friend of Fran,the owner...

Question 4

Jessie,a nurse practitioner,renders aid to Kruz,who is injured and unconscious. Jessie can recover the cost of the aid from Kruz
A)on a quasi contract theory.
B)only if Kruz recovers because of the aid.
C)only if Kruz was aware of the aid.
D)under no circumstances.

Accepted Answer

A nurse practitioner can recover the cost of aid given to an injured and unconscious person on the basis of a quasi-contract theory, which implies that the person receiving the aid should pay for it. There is no requirement for Kruz to be aware of the aid or to recover because of it.

Question 5

Mallory promises to buy illegal digital copies of movies from Nick,who promises to deliver on October 31. These promises are most likely
A)enforceable.
B)valid.
C)void.
D)voidable.

Accepted Answer

The promises made between Mallory and Nick are illegal, as they involve the purchase and delivery of illegal digital copies of movies. Therefore, they are void and cannot be enforced by law.

Question 6

Leilani 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
A)only evidence not contained in the document.
B)any relevant extrinsic evidence.
C)only the face of the instrument.
D)the later testimony of the parties.

Accepted Answer

Under the plain meaning rule, the meaning of the terms must be determined from only the face of the instrument or the document itself, as long as it is clear and unambiguous. Extrinsic evidence, later testimony of the parties, or evidence not contained in the document cannot be considered under this rule.

Question 7

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 that
A)drafted the contract.
B)has the greater bargaining power.
C)made the offer to contract.
D)offers the most confusing explanation of the terms.

Accepted Answer

The rule of contra proferentem states that any ambiguities in a contract will be construed against the party that drafted the contract. This encourages parties to draft contracts with clear and unambiguous language.

Question 8

Francie drives into Gage's Auto Service and asks Hong,a Gage's employee,to replace a tire on Francie's car. After Hong replaces the tire,but before Francie pays for it,any contract between Francie and Gage's is
A)executed.
B)executory.
C)void.
D)unenforceable.

Accepted Answer

The contract between Francie and Gage's is executory because although the work has been done, payment has not yet been made.

Question 9

Sales Marketing Corporation and Tech Support,Inc.,negotiate a contract. If the contract has all of the elements necessary for one of the parties to enforce it in court,it is
A)a valid contract.
B)a voidable contract.
C)a void contract.
D)an unenforceable contract.

Accepted Answer

A valid contract has all of the necessary elements such as offer, acceptance, consideration, capacity, and legality which allow one of the parties to enforce it in court.

Question 10

Sunny enters into a contract with Trey to act as his personal sports trainer. If a dispute later arises and the contract contains un-clear terms,the rules of contract interpretation will give effect to
A)the parties' intent as expressed in their contract.
B)what the promisor claims was the parties' intent.
C)what the promisee claims was the parties' intent.
D)what the parties now agree they intended.

Accepted Answer

The rules of contract interpretation will aim to give effect to the parties' intent as expressed in their contract. This means that any ambiguities or unclear terms in the contract will be interpreted in a way that is consistent with the parties' intentions at the time of contracting. Choice B, C, and D are all incorrect as they do not prioritize the parties' original intent but rely on subjective claims or post-contracting agreements.

Question 11

A letter-of-credit agreement between Rural Feed Corporation and Soybean Farms,Inc.,requires Rural Feed's bank to pay Soybean Farms on receipt of invoices. This is a letter of credit,which is
A)a formal contract.
B)no contract.
C)an implied contract.
D)a quasi contract.

Accepted Answer

A letter-of-credit agreement is a formal contract between two parties and their respective banks, outlining the terms under which payments will be made. Therefore, the best choice is A.

Question 12

Rough Water Fishing Trips,LLC,and Schafer enter into a contract for the delivery of a used freshwater fishing boat. Until the goods are delivered and paid for,these parties have
A)an executory contract.
B)no contract.
C)a quasi contract.
D)an executed contract.

Accepted Answer

An executory contract is one in which one or both parties have not yet fully fulfilled their obligations. In this case, Rough Water Fishing Trips, LLC and Schafer have entered into a contract for the delivery of a used freshwater fishing boat, but the boat has not yet been delivered or paid for, so the contract is still executory.

Quiz 10: Nature and Classification

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

Cody signs and returns a letter from Dora,referring to Dora's Bar-D Ranch and its price. When Cody attempts to complete the deal,Dora re-fuses,claiming that they have no con-tract. Cody claims they do. What standard determines whether these parties have a contract?

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

Mallory promises to buy illegal digital copies of movies from Nick,who promises to deliver on October 31. These promises are most likely

Leilani 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

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 that

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

Sales Marketing Corporation and Tech Support,Inc.,negotiate a contract. If the contract has all of the elements necessary for one of the parties to enforce it in court,it is

Sunny enters into a contract with Trey to act as his personal sports trainer. If a dispute later arises and the contract contains un-clear terms,the rules of contract interpretation will give effect to

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

Rough Water Fishing Trips,LLC,and Schafer enter into a contract for the delivery of a used freshwater fishing boat. Until the goods are delivered and paid for,these parties have