Question 1

Contracts are involuntary agreements entered into by parties.

Accepted Answer

Contracts are voluntary agreements entered into by parties, meaning that all parties involved must agree to the terms and conditions outlined in the contract. If any party is coerced or forced to enter into a contract, it is considered invalid and unenforceable.

Question 2

A contract is an agreement that is enforceable in a court of law.

Accepted Answer

A contract is a legally binding agreement that can be enforced in a court of law if one party breaches the terms of the contract.

Question 3

An agreement involves:
A)An offer
B)An offeree.
C)An offerer.
D)All of the above.

Accepted Answer

An agreement involves all three components - an offer, an offeree, and an offeror. An offeror makes an offer to an offeree, who can either accept or reject it. Once both parties agree to the terms of the offer, an agreement is formed. Therefore, all of the above options must be present for an agreement to exist.

Question 4

A nondisclosure agreement does not:
A)Provide for the equitable sharing of information.
B)Swear the signatory to secrecy.
C)Usually involve takeovers and corporate deals.
D)Protect people that have great ideas.

Accepted Answer

A nondisclosure agreement (NDA) is primarily designed to protect sensitive information, ensuring that the party signing the agreement keeps the information confidential. It does not inherently provide for the equitable sharing of information; rather, its main purpose is to restrict the sharing of information to protect trade secrets, proprietary information, or any details that should not be publicly disclosed. Options B, C, and D are typical uses or functions of NDAs, such as swearing individuals to secrecy, being involved in corporate deals or takeovers, and protecting innovative ideas.

Question 5

The object of the contract may be for any purpose.

Accepted Answer

The object of the contract must be lawful, possible, and determined or determinable, meaning it cannot be for any purpose that is illegal, impossible, or completely indeterminate.

Question 6

An offer does not necessary need to be communicated to the offeree.

Accepted Answer

An offer must be communicated to the offeree, whether it be directly or indirectly, in order for the offeree to have the opportunity to accept or decline the offer.

Question 7

A contract to perform an illegal act is:
A)An illegal contract.
B)Void.
C)Cannot be enforced.
D)All of the above.

Accepted Answer

A contract to perform an illegal act is both illegal and void, meaning it cannot be enforced by law. Therefore, all of the above options are correct.

Question 8

Under the common law an offeror may revoke an offer:
A)At any time.
B)After the offeree has rejected the offer.
C)After the offeree has accepted the offer.
D)Prior to the acceptance of the offer.

Accepted Answer

Under the common law, an offeror may revoke an offer at any time prior to the acceptance of the offer. Once the offer has been accepted by the offeree, the contract is formed and the offeror cannot revoke the offer without breaching the contract.

Question 9

In an option contract,the offeror agrees not to sell the property to another party during the option period.

Accepted Answer

In an option contract, the offeror grants the optionee the exclusive right to buy the property and agrees not to sell the property to another party during the option period.

Question 10

To have an enforceable contract,there must be an agreement between the parties.

Accepted Answer

An enforceable contract requires a meeting of the minds, which is reflected in an agreement between the parties. Therefore, an agreement is necessary for a contract to be valid and enforceable.

Question 11

In the evolution of contracts,the following is not true:
A)The use of contracts goes back to ancient times.
B)The common law of contracts was developed in France around the 13th century.
C)The United States adopted a laissez-faire approach to the law of contracts.
D)None of the above.

Accepted Answer

The common law of contracts was actually developed in England, not France.

Question 12

The following have the burden of proof of incapacity to contract:
A)The minor.
B)The guardian.
C)The conservator.
D)All of the above.

Accepted Answer

In legal contexts, when a party is claimed to be incapable of entering into a contract due to reasons such as minority, mental incapacity, or other reasons that might necessitate a guardian or conservator, it is typically the responsibility of the party asserting the incapacity (often the guardian or conservator) to prove it. This means that the burden of proof does not fall on the minor or the person alleged to be incapacitated, but rather on those who are responsible for their care or legal representation, making "All of the above" the correct choice as it encompasses the roles (guardian, conservator) usually tasked with proving incapacity.

Question 13

Mental incapacity usually arises from:
A)Mental illness.
B)Brain damage.
C)Senility.
D)All of the above.

Accepted Answer

Mental incapacity can arise from a variety of factors including mental illness, brain damage, and senility. Therefore, the best choice is D, which includes all of these factors.

Question 14

Examples of contracts are:
A)Sales contracts.
B)Rental agreements.
C)Licensing agreements.
D)All of the above.

Accepted Answer

Contracts can take many forms, but sales contracts, rental agreements, and licensing agreements are all common examples of contracts. Therefore, the best choice is D, which includes all of these examples.

Question 15

Consideration may involve:
A)Money.
B)Performance of an act.
C)Property.
D)All of the above.

Accepted Answer

Consideration can involve money, performance of an act, or property. Therefore, option D, which includes all of the above, is the correct answer.

Question 16

The terms of a contract become private law between the parties.

Accepted Answer

The terms of a contract are legally binding agreements between the parties involved and are enforceable in court, making them private law between those parties.

Question 17

Special rules have been developed to apply to electronic commerce.

Accepted Answer

Electronic commerce is a unique form of commerce, and therefore special rules have been developed to apply to it, such as regulations on electronic signatures, online consumer protection, and data protection.

Question 18

In a contract:
A)The offeree makes an offer
B)The offeror is made an offer
C)The offeree promises to do or to refrain from doing something.
D)The offeree has the power to create a contract.

Accepted Answer

The offeree has the power to create a contract by accepting the offer made by the offeror.

Question 19

An offeror must objectively intend to be bound by the offer.

Accepted Answer

An offer becomes valid only when the offeror intends to be legally bound by it. This is referred to as the objective test of intent. The subjective beliefs or intentions of the offeror are not relevant in determining whether a valid offer has been made.

Question 20

The use on contracts goes back to ancient times.

Accepted Answer

Contracts have been used since ancient times, with the earliest known written contract dating back to ancient Sumer in Mesopotamia around 2100 BC.

Quiz 7: Contracts and E-Commerce

Contracts are involuntary agreements entered into by parties.

A contract is an agreement that is enforceable in a court of law.

An agreement involves:

A nondisclosure agreement does not:

The object of the contract may be for any purpose.

An offer does not necessary need to be communicated to the offeree.

A contract to perform an illegal act is:

Under the common law an offeror may revoke an offer:

In an option contract,the offeror agrees not to sell the property to another party during the option period.

To have an enforceable contract,there must be an agreement between the parties.

In the evolution of contracts,the following is not true:

The following have the burden of proof of incapacity to contract:

Mental incapacity usually arises from:

Examples of contracts are:

Consideration may involve:

The terms of a contract become private law between the parties.

Special rules have been developed to apply to electronic commerce.

In a contract:

An offeror must objectively intend to be bound by the offer.

The use on contracts goes back to ancient times.