Question 1

Vernon claims that his contract with Ulani 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 a contract is voidable, it means that one party has the option to avoid or cancel the contract. If the contract is avoided, both parties are released from their obligations under it. Therefore, option A is the correct choice.

Question 2

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
A) an express contract.
B) an implied-in-fact contract.
C) an implied-in-law contract.
D) a quasi contract.

Accepted Answer

Livewire Company and Kitchen Products, Inc. have entered into an express contract, which is a contract where the terms are explicitly stated and agreed upon by both parties. The document signed by both parties outlines the agreement for Livewire to design a web page in exchange for payment from Kitchen Products.

Question 3

Mona asserts that a contract she entered into with Nate is unenforceable.Defenses to the enforcement of a contract include
A) a desire not to perform.
B) adverse economic consequences.
C) results that do not match expectations.
D) the lack of a party's genuine assent.

Accepted Answer

The lack of a party's genuine assent, also known as lack of mutual understanding or mutual mistake, is a valid defense to the enforcement of a contract. The other choices listed (a desire not to perform, adverse economic consequences, and results that do not match expectations) are not valid defenses and do not affect the enforceability of a contract.

Question 4

Digital Architecture,Inc.,enters into a contract to design robotic software for Chassis Assembly Corporation.The freedom to enter into contracts is
A) a fundamental public policy of the United States.
B) an ambiguous business goal that is irrelevant in terms of the law
C) a philosophical concept that underlies international law.
D) a principle that describes contracting parties' intent.

Accepted Answer

The freedom to enter into contracts is a fundamental public policy of the United States, as it is necessary for promoting commercial activity and economic growth.

Question 5

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
A) executed.
B) executory.
C) quasi.
D) unenforceable.

Accepted Answer

An executory contract is a contract that has not yet been fully performed by one or both parties. In this situation, the contract between Cole and Dino's is executory because Cole has not yet paid for the gas, and therefore both parties have not fully performed their obligations.

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
A) an express contract.
B) an implied-in-fact contract.
C) an implied-in-law contract.
D) no contract.

Accepted Answer

This is an implied-in-fact contract because even though there was no explicit discussion of a price, both parties implicitly agreed that Kwik would tow Jeff's car and be compensated for it. The fact that Kwik sent Jeff a bill reinforces this understanding.

Question 7

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
A) a formal contract.
B) an informal contract.
C) a social contract.
D) no contract.

Accepted Answer

The use of the word "seal" indicates that this is a formal contract.

Question 8

Flo tells Gregor that she will buy his textbook from last semester for $65.Gregor agrees.Flo and Gregor have
A) an executed contract.
B) an express contract.
C) an implied-in-fact contract.
D) a quasi contract.

Accepted Answer

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

Question 9

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
A) a bilateral contract.
B) a trilateral contract.
C) a unilateral contract.
D) no contract.

Accepted Answer

This is a unilateral contract because Peter's promise to pay is only activated if QD performs as directed (picks up and delivers the package from Rico within 30 minutes). QD's performance creates acceptance and forms the contract.

Question 10

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) a quasi contract when Neil said that he would pay for certain work.
C) a unilateral contract as soon as Outdoor began to perform.
D) no contract.

Accepted Answer

The scenario describes a unilateral contract where Neil made a promise to pay $500 upon completion of the specified tasks by Friday. Outdoor began to perform the tasks, thus accepting the offer and creating a binding contract. Although Neil attempted to revoke the offer on Wednesday, it was already too late as the contract had been formed. Therefore, the parties had a unilateral contract when Neil attempted to change his mind.

Question 11

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 as it is an offer that can be accepted by Lana only through completing the condition of passing the medical exam. Until this condition is met, no contract is formed.

Question 12

Employment Sources,Inc.,enters into a contract with Fred.If Fred is a minor,this contract is most likely
A) enforceable.
B) unenforceable.
C) void.
D) voidable.

Accepted Answer

If Fred is a minor, the contract is considered voidable, meaning that Fred can choose to either uphold the contract or void it. Minors have this legal protection to prevent them from being taken advantage of in contracts.

Question 13

Lou claims that he and Myra entered into an implied-in-fact contract.To establish this contract,it is not necessary to show that
A) a court imposed a promise in the interest of fairness.
B) Lou expected to be paid for providing services or property.
C) Lou provided Myra with services or property.
D) Myra failed to reject services or property provided by Lou.

Accepted Answer

Option A refers to a court imposing a promise in the interest of fairness, which is not necessary to prove an implied-in-fact contract. The other options relate to elements that are required to establish such a contract, including an expectation of payment, provision of services, and acceptance of services or property.

Question 14

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
A) an executed contract.
B) an express contract.
C) an implied-in-fact contract.
D) a quasi contract.

Accepted Answer

The answer of GR8 Marketing Company and Hot Tunes,Inc.,sign a...

Question 15

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

Practicality is not a legal requirement for a contract. While it is important for the parties involved to consider the practicality of the terms and obligations of the contract, it is not a legal requirement for the contract to be enforceable. The other options - consideration, capacity, and legality - are all essential elements for a valid and enforceable contract.

Question 16

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

Both parties have entered into an agreement where Clay offers to pay $50 and Dot agrees to give a golf lesson for Eula. The exchange of money for the lesson is a clear indication of a bilateral contract.

Question 17

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
A) voidable.
B) executed.
C) executive.
D) executory.

Accepted Answer

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

Question 18

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
A) a formal contract.
B) an actual contract.
C) an implied-in-fact contract.
D) a voidable contract.

Accepted Answer

Since nothing is expressed about payment, it is likely that the agreement was an implied-in-fact contract. This type of contract is formed by the conduct of the parties and not necessarily by an express agreement. Cool Electric provided the services and Bay City accepted them, implying that payment would be made.

Question 19

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
A) ensure proof of the contracts' existence.
B) create substance from form.
C) obtain a check or other negotiable instrument.
D) practice their "letters of credit."

Accepted Answer

Putting contracts in writing helps to provide evidence of the existence of the agreement and its terms in case of any dispute or legal action.

Question 20

Scot and Tiffany enter into an implied-in-fact contract.The parties' conduct
A) defines the contract's terms.
B) finds the contract's facts.
C) terminates any unintended consequences.
D) undercuts any terms based on the facts.

Accepted Answer

In an implied-in-fact contract, the parties' conduct defines the terms of the contract, indicating that they intended to enter into a contractual relationship without express words. This can be shown through their actions and behavior, rather than through written or spoken words.

Quiz 9: Nature and Classification

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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