Deck 9: Formation and Requirements of Contracts

Question 1

Martha contacts a bakery to get a cake for her son's birthday party. She tells the baker that she will pay him $150 for the cake if he delivers the cake on Friday evening. If the baker does not deliver the cake on Friday evening, which of the following is accurate?

A) Martha can sue the baker but cannot recover damages.
B) Martha can sue the baker and recover $150 in damages.
C) Martha cannot sue the baker.
D) The baker must pay Martha $150 plus the cost of a replacement cake, as he entered into a verbal contract with her and did not perform his legal obligation.

Answer 1

Martha cannot sue the baker.

Question 2

A contract is said to be ________ when one or both parties have the option to void the contractual obligations.

A) voidable
B) executory
C) void
D) implied-in-fact

Answer 2

voidable

Question 3

Tony and Max came to an agreement that if Tony fixed the bumper on Max's car by Friday, Max would pay Tony $500. This is an example of a(n) ________ contract.

A) bilateral
B) unilateral
C) unconscionable
D) illusory

Answer 3

bilateral

Question 4

An act of performance is necessary to create a ________ contract.

A) bilateral
B) unilateral
C) express
D) implied-in-fact

Question 5

An express contract ________.

A) must be in writing
B) can only be oral
C) is stated in oral or written words
D) is implied from the behavior of the parties

Question 6

An offeror can ________ an offer by withdrawing the offer prior to its acceptance.

A) counteroffer
B) disaffirm
C) accept
D) revoke

Question 7

Under the mailbox rule, an acceptance is effective when ________.

A) sealed in an envelope
B) received by the offeror
C) dispatched/mailed
D) appropriate postage is applied to the envelope

Question 8

A rejection of an offer is not effective until ________.

A) it is actually received by the offeror
B) it is mailed, postage paid, to the offeror
C) the offeree informs his attorney to draw up the appropriate papers to reject
D) the offeree files a petition of rejection with the state court

Question 9

A counteroffer is considered a(n) ________ of the original offer.

A) disaffirmance
B) rejection
C) acceptance
D) amendment

Question 10

To meet the mirror image rule, the offeree must accept the terms of the offer ________.

A) using the same method of communication used to communicate the offer
B) with only minor modification
C) without modification
D) in backward order

Question 11

Identify the three elements required for an offer to be effective and the four terms that an offer must generally contain.

Question 12

________ is defined as something of legal value given in exchange for a promise.

A) Option
B) Consideration
C) Offer
D) Acceptance

Question 13

Enforceable contracts ________ arise from a bargained-for exchange.

A) rarely
B) need not
C) must
D) cannot

Question 14

A preexisting duty ________ consideration to support a new contract.

A) is sufficient
B) in government contracts can be sufficient
C) between family members is sufficient
D) is not sufficient

Question 15

A preexisting duty ________ consideration to support a new contract.

A) is sufficient
B) in government contracts can be sufficient
C) between family members is sufficient
D) is not sufficient

Question 16

Describe some of the different forms of consideration.

Question 17

The infancy doctrine allows minors to ________ most contracts they have entered into with adults.

A) publish
B) defer
C) execute
D) disaffirm/cancel

Question 18

The infancy doctrine ________.

A) gives minors the right to disaffirm most contracts they have entered into with adults
B) requires courts to enforce all contracts that minors have entered into with adults
C) makes it a crime to get an infant to sign a contract
D) allows adults to sue children with whom they have contracted

Question 19

Any contract entered into by a person who has been adjudged insane is ________.

A) voidable
B) illusory
C) enforceable
D) void

Question 20

A person who disaffirms a contract based on intoxication must ________.

A) enter rehab for the disaffirmance to be enforceable
B) be returned to the status quo
C) petition the court in order for the disaffirmance to be valid
D) be held to the terms of the contract

Question 21

Bookie Bill runs an illegal sports gambling operation. Sam pays Bookie Bill $500 for bets on the weekend's college football games. All of Sam's selected teams win, and, under the terms of his agreement with Bookie Bill, should be paid $5,000 in winnings. When Bookie Bill refused to pay Sam the gambling winning, Sam sued. Will the court order Bookie Bill to pay Sam? Why or why not?

Question 22

Over the course of 15 years, Norma, a retiree on a fixed income, purchased seven different major household appliances on credit from "Easy Eddie's Appliance Store - The Home of Easy Credit."
Norma was a day late in paying the final payment on a refrigerator, which was the seventh, and last, appliance she bought from Easy Eddie. Hidden in Easy Eddie's consumer credit contract is a clause that says that if a person is even one day late with any payment, Easy Eddie's has the right to repossess all appliances ever purchased from Easy Eddie's. Eddie filed a lawsuit to enforce this contract clause and sought a court order allowing it to go into Norma's house and confiscate all seven appliances that Norma had purchased from Easy Eddie's over the past 15 years. How do you think Easy Eddie's will fare in court? Explain.

Question 23

The Uniform Computer Information Transactions Act (UCITA) ________.

A) was enacted by Congress in 2016
B) is a model state statute that all states have adopted
C) is a model state statute that most states have not adopted
D) was enacted by the United Nations General Assembly in 2015

Question 24

The ________ establishes uniform legal rules for the formation and enforcement of electronic contracts and licenses.

A) Uniform Computer Information Transactions Act (UCITA)
B) Lanham Act
C) Telecommunication Act
D) Economic Espionage Act