Question 1

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 parties' intent is an essential element in determining whether a contract has been formed. In this case, Lucy agreed to work as a translator for Mung Manufacturing, Ltd., which implies a mutual understanding between the parties to enter into a contract. The other options do not directly relate to the formation of a contract.

Question 2

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

The parties have an express contract because they spoke directly and agreed to the purchase of the textbook for $65.

Question 3

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

A signed written agreement between the two parties indicates their intention to create a legally binding contract. This is known as an express contract. Therefore, if Thalia signs the copy, the parties will have an express contract.

Question 4

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 a type of contract where both parties make a promise to each other. In this scenario, Clay promises to pay $50 to Dot in exchange for a golf lesson for Eula. Dot promises to provide the golf lesson to Eula in exchange for the $50 payment. Therefore, both parties make a promise to each other, making it a bilateral contract.

Question 5

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 only QD has to perform by meeting the deadline, and Peter's offer is only accepted once QD performs.

Question 6

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 essential for a valid contract. In this case, the consideration is Idyll's agreement to pay for the construction of the new dairy barn. The other elements listed (parties' capability, necessity of purpose, and price) may also be important, but they are not necessary for every contract and are not clearly applicable to this specific scenario.

Question 7

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 Omar did not voluntarily consent to the terms of the contract, it could be deemed unenforceable. The other options listed (a desire not to perform, insufficient capital, preliminary indications of unsatisfactory results) are not defenses to enforcement, but rather potential reasons for breach or termination of the contract.

Question 8

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 consideration, capacity, and legality are all necessary elements of a valid contract, practicality is not necessarily required. The terms of a contract may not always be practical, but as long as the other elements of a contract are met, it is still considered valid.

Question 9

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

The answer of GR8 Marketing Company and Brainfreeze Tunes, Inc.,...

Question 10

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. In this case, Randy promises to give her iPod, and Stewart promises to pay $50. The other choices (A, B, and D) do not involve an exchange of promises between the two parties.

Question 11

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 Apartments have an express contract because they have agreed upon the terms and conditions of the lease, including the rent amount and duration, in a written document signed by both parties (Bo and Daisy signing on behalf of Capri).

Question 12

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

The terms of the contract are implied based on the conduct of the parties. Despite not explicitly discussing the revenue split, both Rita and Shaw understood and acted upon it, leading to an implied contract.

Question 13

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 objective theory of contracts states that the intent to enter into a contract is determined by the reasonable person standard, rather than by a party's subjective intent. In other words, if a reasonable person would interpret the actions of the parties as indicative of an intent to enter into a contract, then a contract is formed. Therefore, Carly's subjective intent is not relevant, but rather the objective interpretation of her actions.

Question 14

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

Wilson has only accepted the offer made by the lottery ticket machine and has not made any promise in return. Therefore, it is a unilateral contract where only one party makes a promise which will be fulfilled upon the occurrence of a specific event. The other options are not applicable in this scenario.

Question 15

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. The other options listed may be important details to include in a contract, but they are not necessary for the creation of a valid contract.

Question 16

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 an agreement in which both parties make promises to perform certain actions. In this case, Jana promises to give Levi an Xbox and Levi promises to do Jana's chores for a month. Therefore, it is a bilateral contract.

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 made the offer to pay Outdoor if they completed certain tasks by Friday, Outdoor began to perform the tasks, creating a unilateral contract. This means that Outdoor is now entitled to the promised payment, even if Neil changes his mind before the tasks are completed. Therefore, option C is the correct answer.

Question 18

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

This is an implied contract because although there was no discussion of a price or signed document, the fact that Vita asked Walter to repair the boots and that he did so implies an agreement that Vita would pay for the services rendered.

Question 19

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 promisee in this scenario because Tania is making a promise to buy Saki's handheld game-player for $40.

Question 20

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 is a unilateral contract that Lana can accept by passing the exam. A unilateral contract is created when one party makes an offer that can be accepted only by the performance of a specific act, and the performance of that act constitutes acceptance. In this case, the offer is employment conditioned on passing the medical exam, and acceptance is by passing the exam.

Quiz 10: Nature and Classification

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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