Question 1

Scot and Tiffany enter into an implied-in-fact contract.The parties' conduct

Accepted Answer

In an implied-in-fact contract, the parties' conduct indicates their intent to enter into a contract and defines the terms of that contract. Since the terms are not explicitly stated, the parties' conduct becomes the means of determining what those terms actually are.

Question 2

Digital Architecture,Inc.,enters into a contract to design robotic software for Chassis Assembly Corporation.The freedom to enter into contracts is

Accepted Answer

The freedom to enter into contracts is a fundamental public policy of the United States. This principle is recognized in the Constitution and is seen as essential to economic growth and individual autonomy.

Question 3

Employment Sources,Inc.,enters into a contract with Fred.If Fred is a minor,this contract is most likely

Accepted Answer

If Fred is a minor, this contract is likely voidable, meaning that Fred has the option to either enforce or reject the contract because he is not legally bound by it as a minor.

Question 4

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

Accepted Answer

This is a unilateral contract where only one party (QD) is obligated to perform. Peter offers to pay $50 if QD picks up and delivers the package within 30 minutes. If QD performs as directed, Peter is obligated to pay the $50, but if QD fails to meet the deadline, there is no contract and no obligation for Peter to pay.

Question 5

Opie offers to sell his guitar to Pinky for $100.Pinky agrees.They complete and sign a printed form that includes,near the blanks for their signatures,the word "seal." This is

Accepted Answer

The inclusion of the word "seal" in the contract indicates that it is a formal contract, which is a written agreement that is signed, sealed, and delivered with the intent to create a legal obligation between the parties.

Question 6

When Jeff's car breaks down,he asks Kwik Tow,Inc.,to tow it from its location to Loyal Repair Shop.There is no discussion of a price,and Jeff and Kwik do not sign any documents.After the tow,Kwik sends Jeff a bill.With respect to Jeff's obligation to pay the bill,this is

Accepted Answer

This is an implied-in-fact contract because although there was no explicit agreement or discussion of price, Jeff requested Kwik's towing services, and Kwik provided them. Based on Jeff's request and Kwik's performance, it can be inferred that there was an implicit agreement to pay for the services provided.

Question 7

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

Accepted Answer

The requirements of a contract include consideration, capacity, and legality, but practicality is not a necessary element. While practicality may be a consideration in the performance of the contract, it is not a requirement for the contract to be legally binding.

Question 8

Livewire Company and Kitchen Products,Inc.,sign a document that states Livewire agrees to design a Web page for Kitchen Products,which agrees to pay for the service.Livewire and Kitchen Products have made

Accepted Answer

Livewire and Kitchen Products have made an express contract because the terms and conditions of designing a web page and the payment agreement have been explicitly stated and agreed upon by both parties.

Question 9

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

Accepted Answer

The letter from Metro City stating that the employment offer is conditioned on passing the medical exam creates a unilateral contract. Lana can accept this contract by passing the exam, and once she does so, the contract will be complete. Therefore, choice C is the correct answer.

Question 10

Cole drives into Dino's Service Station and asks Erin,the attendant,to fill the tank in Cole's hybrid vehicle.After Erin fills the tank,but before Cole pays for the gas,any contract between Cole and Dino's is

Accepted Answer

The contract is executory because Cole has not yet paid for the gas, meaning the terms of the contract have not been fully executed by both parties.

Question 11

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

Accepted Answer

An express contract is formed when the terms are clearly stated, either orally or in writing, as in the document signed by GR8 and Hot Tunes, Inc.

Question 12

On behalf of the rock group Uno,their manager Thalia agrees to a performance in Seaside Amphitheatre on July 4.Rex,acting for Seaside Productions,sends a written copy of the agreement to Thalia to be signed.Typically,businesspersons put their contracts in writing to

Accepted Answer

Putting contracts in writing provides proof of the agreement and helps to avoid any potential misunderstandings or disagreements between the parties involved. It also ensures that the terms and conditions of the contract are clear and agreed upon by both parties.

Question 13

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

Accepted Answer

When Neil made the offer to Outdoor, it created a unilateral contract, meaning that Outdoor's completion of the tasks would constitute acceptance and create a binding agreement. Therefore, when Outdoor began to perform, the contract was already in effect. Neil's attempt to change his mind after Outdoor had already started working does not invalidate the contract.

Question 14

Flo tells Gregor that she will buy his textbook from last semester for $65.Gregor agrees.Flo and Gregor have

Accepted Answer

The answer of Flo tells Gregor that she will buy...

Question 15

Avatar,Inc.,and Bling Corporation sign a contract in which Avatar agrees to deliver t-shirts emblazoned with video game characters in exchange for Bling's promise to pay.Avatar delivers.The contract is

Accepted Answer

The answer of Avatar,Inc.,and Bling Corporation sign a contract in...

Question 16

Vernon claims that his contract with Ulani is voidable.If their contract is avoided

Accepted Answer

If a contract is voidable, it means that one or both parties have the option to avoid the contract. If the contract is avoided, both parties are released from their obligations under the contract. Therefore, option A is the best choice.

Question 17

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

Accepted Answer

A bilateral contract is a type of contract where both parties make promises to each other. In this scenario, Clay is promising to pay Dot $50 for the golf lesson, and Dot is promising to give Eula a golf lesson. Therefore, both parties are making promises, making this a bilateral contract.

Question 18

Lou claims that he and Myra entered into an implied-in-fact contract.To establish this contract,it is not necessary to show that

Accepted Answer

An implied-in-fact contract is formed by the conduct of the parties, not by a court imposing a promise. Therefore, it is not necessary to show that a court imposed a promise in the interest of fairness.

Question 19

Mona asserts that a contract she entered into with Nate is unenforceable.Defenses to the enforcement of a contract include

Accepted Answer

The lack of a party's genuine assent is a valid defense to the enforcement of a contract. Mona may argue that she did not give her genuine assent to the contract and therefore it should not be enforced. Options A, B and C are not valid defenses to the enforcement of a contract.

Question 20

Bay City Construction,Inc.,a contractor,asks Cool Electric,a subcontractor,to provide certain services.Nothing is expressed about payment.Cool provides the services,but Bay City refuses to pay.In Cool's suit to recover,the chief issue is most likely to be whether these parties had

Accepted Answer

Since there was no express agreement regarding payment, the issue of whether a contract existed between Bay City and Cool will depend on whether there was an implied-in-fact contract, which is based on the parties' conduct and circumstances surrounding their dealings.

Quiz 9: Nature and Classification