Question 1

Great Marketing Company and Hot Tunes, Inc., sign a document that states Great agrees to create a marketing campaign for Hot and Hot agrees to pay Great for the service. Great and Hot have
A) an executed contract.
B) an express contract.
C) an implied-in-fact contract.
D) a quasi contract.

Accepted Answer

An express contract is one where the terms are stated clearly in words, either orally or in writing. In this case, the document explicitly states the agreement between Great Marketing Company and Hot Tunes, Inc.

Question 2

Delia promises to buy a house from Edwin, who promises to vacate the prop?erty on July 1. If these promises are in writing, they are most likely
A) enforceable.
B) unenforceable.
C) void.
D) voidable.

Accepted Answer

If the promises are in writing, they are likely to be considered a valid contract and therefore enforceable in court. As long as both parties have agreed to the terms and conditions, and there is a exchange of consideration (such as the promise to buy a house for the promise to vacate the property), the contract is binding and legally enforceable.

Question 3

Beth claims that her contract with Carl is voidable. If the contract is avoided
A) both parties are released from it.
B) neither party is released from it.
C) only Beth is released from it.
D) only Carl is released from it.

Accepted Answer

If a contract is voidable and one party chooses to avoid it, both parties are released from their obligations under the contract.

Question 4

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 there was no explicit discussion of price, but the actions of both parties (Kwik towing the car and Jeff allowing it) imply an agreement to pay for the service.

Question 5

Curt promises to buy illegal copies of CDs and DVDs from Donna, who promises to deliver on May 1. These promises are most likely
A) enforceable.
B) valid.
C) void.
D) voidable.

Accepted Answer

The promises made in the scenario are illegal as they involve the purchase of illegal copies of CDs and DVDs. Any contract that involves illegal activities is considered void and unenforceable in a court of law. Therefore, the promises made by Curt and Donna are void.

Question 6

Mia, a physician, renders aid to Noel, who is injured and unconscious. Mia can recover the cost of the aid from Noel
A) even if Noel was not aware of the aid.
B) only if Noel recovers because of the aid.
C) only if Noel was aware of the aid.
D) under no circumstances.

Accepted Answer

Mia can recover the cost of the aid from Noel even if Noel was not aware of the aid. This is because the principle of unjust enrichment allows for someone who benefits from the actions of another to be liable for the cost of that action, regardless of their awareness of it. In this case, Noel benefited from Mia's aid and therefore can be held responsible for the cost.

Question 7

Lou claims that he and Mira 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 prop?erty.
C) Lou provided Mira with services or property.
D) Mira failed to reject services or property provided by Lou.

Accepted Answer

Option A refers to a court-imposed promise, which is not necessary to establish an implied-in-fact contract. The other options, such as Lou expecting payment, providing services or property, and Mira not rejecting those services, are all elements that could help establish an implied-in-fact contract.

Question 8

Cory enters into a contract with Diane to act as her personal sports trainer. If they later dispute the meaning, 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 defendant claims was the parties' intent.
C) what the plaintiff claims was the parties' intent.
D) what the parties now agree they intended.

Accepted Answer

The rules of contract interpretation will strive to give effect to the parties' intent as expressed in their contract, even if the terms are unclear. This is because the parties' intent is usually considered the most important factor in a contract dispute.

Question 9

Cole drives into Dino's Service Station and asks Erin, the attendant, to fill the tank in Cole's sport utility 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

The contract between Cole and Dino's is still executory because the payment has not been made yet. Both parties still have obligations to fulfill.

Question 10

Ada mistakenly pays property taxes that should have been assessed against Bud. Ada can recover the amount from Bud in quantum meriut
A) even if Bud was not aware of the error.
B) only if Bud tried to conceal the error.
C) only if Bud was aware of the error.
D) under no circumstances.

Accepted Answer

The answer of Ada mistakenly pays property taxes that should...

Question 11

Pete, a judge, can apply the doctrine of quasi contract to a dispute be?tween Quality Service Company and Regulated Office Systems
A) only if there is a valid contract covering the area in question.
B) only if there is not a valid contract covering the area in question.
C) whether or not there is a valid contract covering the area in question.
D) under no circumstances.

Accepted Answer

The doctrine of quasi contract is applied when there is no valid contract in place, to prevent unjust enrichment of one party at the expense of another.

Question 12

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 prom?ise to pay. Avatar delivers. The contract is
A) voidable.
B) executed.
C) executive.
D) executory.

Accepted Answer

An executory contract is one in which both parties have yet to fulfill their obligations.

Question 13

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 would be voidable. This means that Fred would have the option to either enforce the contract or void it. The law generally allows minors to avoid contracts because they are not considered legally competent to enter into binding agreements.

Question 14

Dot, a real estate agent, tells Ed, a home seller, that her commission is 12 percent. Ed agrees that Dot can sell his house but refuses to sign a contract unless the amount of the commission is reduced. After the house is sold, Ed refuses to pay 12 percent. Dot is most likely to recover
A) nothing.
B) on a theory of an express contract.
C) on a theory of an implied-in-fact contract.
D) on a theory of a quasi contract.

Accepted Answer

A quasi contract is an obligation imposed by law to prevent unjust enrichment. In this case, Ed received the benefit of Dot's services in selling his house, and he is obligated to pay her a reasonable commission, even though he did not sign a contract.

Question 15

Sam and Tiffany enter into an implied-in-fact contract. This is a contract in which 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

An implied-in-fact contract is formed by the parties' conduct and the contract terms are defined by their actions and behavior. It is an actual contract, just like an express contract, but the terms are not explicitly stated in words.

Question 16

Macro Corporation and Micro, Inc., enter into an agreement. To consti?tute a contract
A) all terms must be express.
B) all terms must be implied.
C) the terms may be express, implied, or a mix of both.
D) the terms may be express or implied, but not both.

Accepted Answer

The terms of a contract can be either express or implied, or a combination of both. It is not necessary for all terms to be express, nor is it necessary for all terms to be implied. Therefore, option C is the best answer.

Question 17

Adams Accounting Services and Best Products, Inc., enter into a con?tract. Terms in the contract that are the subject of separate negotiation are considered subordinate to
A) standardized terms.
B) terms that can be understood only by lawyers and judges.
C) terms that are not negotiated separately.
D) =one of the choices.

Accepted Answer

The answer of Adams Accounting Services and Best Products, Inc.,...

Question 18

Eve and Frank enter an express contract for the construction of a warehouse. Express contract terms are given
A) less priority than the parties' prior dealing.
B) less priority than the trade usage in that particular industry.
C) less priority than the parties' course of performance.
D) more priority than the prior dealing, course of performance, and trade usage.

Accepted Answer

Express contract terms are given more priority than prior dealings, course of performance, and trade usage as they are explicitly agreed upon by the parties involved.

Question 19

National Grocers, Inc., enters into a contract with Overland Shipping Company for the de?livery of a shipment of fresh produce. If ambiguities appear in the con?tract, they will be construed against
A) the party who drafted the contract.
B) the party with the greater bargaining power.
C) the promisor.
D) the promisee.

Accepted Answer

The rule of contra proferentem states that any ambiguities in a contract should be construed against the party who drafted the contract. This rule applies regardless of the bargaining power of the parties involved in the contract. Therefore, in this scenario, any ambiguities in the contract will be resolved against National Grocers, Inc. since it is the party that drafted the contract.

Question 20

Phil enters into a contract with Quality Resorts, Inc., to work as a chef. Under the plain meaning rule, the meaning of this contract must be de?ter?mined by reference to
A) any available evidence.
B) any relevant extrinsic evidence.
C) the face of the instrument.
D) the later testimony of the parties.

Accepted Answer

According to the plain meaning rule, the meaning of a contract must be determined by reference to the face of the instrument or the words used in the contract. This means that the court should only consider the language of the contract itself and not any extrinsic evidence, later testimony, or other evidence. Therefore, the correct choice is C, the face of the instrument.

Quiz 10: Nature and Terminology

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

Delia promises to buy a house from Edwin, who promises to vacate the prop?erty on July 1. If these promises are in writing, they are most likely

Beth claims that her contract with Carl is voidable. If the contract is avoided

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

Curt promises to buy illegal copies of CDs and DVDs from Donna, who promises to deliver on May 1. These promises are most likely

Mia, a physician, renders aid to Noel, who is injured and unconscious. Mia can recover the cost of the aid from Noel

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

Cory enters into a contract with Diane to act as her personal sports trainer. If they later dispute the meaning, and the contract contains un?clear terms, the rules of contract interpretation will give effect to

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

Ada mistakenly pays property taxes that should have been assessed against Bud. Ada can recover the amount from Bud in quantum meriut

Pete, a judge, can apply the doctrine of quasi contract to a dispute be?tween Quality Service Company and Regulated Office Systems

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 prom?ise to pay. Avatar delivers. The contract is

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

Dot, a real estate agent, tells Ed, a home seller, that her commission is 12 percent. Ed agrees that Dot can sell his house but refuses to sign a contract unless the amount of the commission is reduced. After the house is sold, Ed refuses to pay 12 percent. Dot is most likely to recover

Sam and Tiffany enter into an implied-in-fact contract. This is a contract in which the parties' conduct

Macro Corporation and Micro, Inc., enter into an agreement. To consti?tute a contract

Adams Accounting Services and Best Products, Inc., enter into a con?tract. Terms in the contract that are the subject of separate negotiation are considered subordinate to

Eve and Frank enter an express contract for the construction of a warehouse. Express contract terms are given

National Grocers, Inc., enters into a contract with Overland Shipping Company for the de?livery of a shipment of fresh produce. If ambiguities appear in the con?tract, they will be construed against

Phil enters into a contract with Quality Resorts, Inc., to work as a chef. Under the plain meaning rule, the meaning of this contract must be de?ter?mined by reference to