Question 1

The ________ states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.

Accepted Answer

The objective theory of contracts states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties. This means that a party's own intent or understanding of the contract is not important; rather, the court will consider what a reasonable person would have believed the intent of the parties to be based on their words and actions. The other choices (B, C, and D) are not as directly relevant to this principle.

Question 2

Alan tells Sherry that he will pay her $5,000 if she runs the Boston Marathon. Once Sherry starts running the marathon, Alan, legally, ________.

Accepted Answer

Once Sherry starts running the marathon, Alan cannot revoke the contract as it becomes legally binding.

Question 3

Which of the following elements must be established to create an implied-in-fact contract?

Accepted Answer

In order to create an implied-in-fact contract, it must be shown that there was an opportunity for the defendant to reject the plaintiff's property or services but failed to do so. This implies that there was an understanding between the parties that the defendant would be obligated to pay for the property or services if they accepted and did not reject them. The other choices do not relate to the key element of an implied-in-fact contract.

Question 4

Elizabeth signs a contract to purchase a new car from Spadace Motors. She has not yet paid for the car and Spadace Motors has not yet delivered the car to Elizabeth. This is an example of a(n)________ contract.

Accepted Answer

An executory contract is a contract where one or both parties have not yet fulfilled their obligations under the contract. In this case, Elizabeth has not yet paid for the car and Spadace Motors has not yet delivered it, so this is an example of an executory contract.

Question 5

Which of the following statements is true of the doctrine of quasi-contract?

Accepted Answer

The doctrine of quasi-contract is an equitable doctrine intended to prevent unjust enrichment. It applies in situations where there is no actual contract between the parties but one party has received a benefit (usually monetary) from the other party. The agreement between parties to a quasi-contract is not inferred from their conduct, and it does not allow a court to award monetary damages to a defendant because no actual contract existed between the parties.

Question 6

An offeror uses blackmail to make an offeree sign a contract that involves the sale of the offeree's house. The contract is ________.

Accepted Answer

The contract is voidable because it was signed under duress, such as blackmail, which means the offeree can choose to void the contract.

Question 7

Which of the following is true for an auction with reserve?

Accepted Answer

In an auction with reserve, the seller sets a minimum price or reserve price for the item being sold. If the highest bid does not meet or exceed this reserve price, the seller retains the right to refuse the highest bidder and the item will not be sold.

Question 8

Which of the following is true of enforcing a contract?

Accepted Answer

Parties may choose to voluntarily perform an unenforceable contract, even though it cannot be legally enforced.

Question 9

Which of the following is a necessary condition for a contract to be considered valid?

Accepted Answer

The answer of Which of the following is a necessary...

Question 10

What is recognizance?

Accepted Answer

Recognizance is a legal term that refers to a defendant's promise to the court or a judge that they will fulfill certain obligations or follow certain rules or conditions. This promise may include paying a specified sum of money if certain events occur or taking other actions. Therefore, choice B is the most accurate as it describes a party's acknowledgement in court that they will pay a specified sum of money if certain events occur.

Question 11

Ben was talking to Harry who was drunk. Harry agreed to give his car to Ben as a token of friendship. Once sober, Harry asks Ben to return his car. This contract is considered ________.

Accepted Answer

The contract is voidable because Harry was under the influence of alcohol and unable to fully comprehend the consequences of his actions. Therefore, he can choose to void the contract once he is sober.

Question 12

Stella is injured in a motor accident and is brought to the hospital by a passerby. Stella subsequently passes into a coma. The doctors and other staff perform the necessary medical procedures to save her life. Stella comes out of her coma after two months and is released from the hospital after the doctors are satisfied by her recovery. Under the doctrine of ________ contract, Stella has to pay the hospital for its services.

Accepted Answer

In this scenario, Stella did not enter into any express or implied-in-fact contract with the hospital for medical services. Therefore, the hospital cannot enforce payment based on a traditional contractual relationship. However, under the doctrine of quasi-contract, or unjust enrichment, the hospital can seek payment from Stella for the value of the services rendered. This is because by receiving and benefiting from the medical care provided, Stella has received a benefit without paying for it, which would be unjust. Therefore, she is obliged to pay the hospital for its services.

Question 13

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 will hold true?

Accepted Answer

Martha cannot sue the baker because there is no legally enforceable contract. The agreement is not in writing, and it does not meet the requirements for an oral contract.

Question 14

Which of the following is an informal contract?

Accepted Answer

A lease is an informal contract that is usually not required to be in writing and is based on an agreement between the landlord and tenant. It may also include informal terms and conditions that are not legally enforceable. Recognizance is a formal contract that involves a defendant promising to appear in court, while a bank draft and check are financial instruments that do not involve contracts.

Question 15

If a contract is required to be in writing under the Statute of Frauds but is not, the contract is ________.

Accepted Answer

The Statute of Frauds requires certain contracts, such as contracts for the sale of goods over $500, to be in writing to be enforceable. If a contract that is required to be in writing under the Statute of Frauds is not in writing, it is considered unenforceable. This means that a court will not enforce the terms of the contract if there is a dispute between the parties.

Question 16

According to the objective theory of contracts, the intent to enter into an express or implied-in-fact contract is judged by the ________.

Accepted Answer

The objective theory of contracts states that the intent to enter into a contract should be judged by the reasonable person standard. This means that a contract is formed based on the parties' objective manifestations of intent, not on what they may have subjectively intended. The other options, such as doctrine of equity, legality of the contract, and common law of contracts, may be relevant to contract formation and interpretation, but they are not the primary means by which intent is judged under the objective theory.

Question 17

Contracts that have been fully performed by one side but not by the other are classified as ________ contracts.

Accepted Answer

An executory contract is a contract in which one or more parties have not yet fulfilled their obligations under the agreement. Once both parties have fully performed their duties, the contract becomes executed. Therefore, contracts that have been fully performed by one side but not by the other are classified as executory contracts. Void and voidable contracts refer to contracts that are either not legally binding from the beginning or have the option to be terminated by one of the parties. Executed contracts refer to contracts that have been fully performed by both parties.

Question 18

An oral agreement to purchase a neighbor's bicycle is a(n)________ contract.

Accepted Answer

An oral agreement is considered an express contract because the terms are clearly stated and agreed upon verbally by the parties involved.

Question 19

Which of these is an instance of a quasi-contract?

Accepted Answer

A quasi-contract, also known as an implied-in-law contract, is a legal agreement that is implied by a court to prevent one party from being unjustly enriched at the expense of another party. In this scenario, the hospital is providing medical services to an unconscious man who cannot consent to treatment or enter into a contract. However, the hospital is still entitled to receive payment for these services, and a quasi-contract is implied to prevent the man from being unjustly enriched by receiving medical treatment without paying for it. The other options do not involve a quasi-contract. Option A involves an actual contract between an employer and employee, while Option B involves a contract that is defined but open-ended. Option D involves an actual contract between a customer and caterer.

Question 20

Kyle goes to a used-car showroom to buy a sedan. He signs an agreement with the store which bears the name of the car, price, and other details. This is an example of a(n)________ contract.

Accepted Answer

An express contract is a contract in which the parties explicitly state the terms of their agreement, either orally or in writing. In this case, Kyle signed an agreement with the store, indicating that the terms of the contract were expressed.

Quiz 9: Formation of Traditional and E-Contracts