Question 1

A court usually will enforce a covenant not to compete provided its restrictions are reasonable.

Accepted Answer

Generally, courts will enforce a covenant not to compete as long as the restrictions are reasonable in terms of time, geographic area, and scope of activity. However, the reasonableness of these restrictions will depend on the circumstances of each case and jurisdiction, as some states have stricter requirements for covenants not to compete.

Question 2

A minor can ratify a contract and thus make it enforceable.

Accepted Answer

In certain circumstances, a minor (someone under the age of 18) can ratify a contract, which means they agree to be bound by its terms and make it enforceable. However, this usually requires the minor to reach the age of majority and confirm their intention to ratify the contract.

Question 3

Acceptance is timely if it is effective before the offer is terminated.

Accepted Answer

Acceptance must be effective before the offer is terminated in order for a contract to be formed. If the offeror revokes the offer before the acceptance is received, the acceptance will no longer be effective.

Question 4

Painting a garage can constitute "something of legally sufficient value."

Accepted Answer

Painting a garage can improve its appearance and increase its value, therefore it can be considered "something of legally sufficient value."

Question 5

A click-on agreement can indicate the acceptance of an online offer.

Accepted Answer

A click-on agreement is a type of electronic contract where the user signifies their acceptance of the terms and conditions of an offer by clicking an "I agree" button or checkbox.

Question 6

To exercise the power of acceptance effectively,an offeree must accept an offer without adding or changing any terms.

Accepted Answer

This is a basic principle of contract law called the "mirror image rule" which requires that the acceptance must match the offer exactly without any modifications or additions in order to create a binding agreement.

Question 7

The lack of a license in certain occupations bars the enforcement of work-related contracts.

Accepted Answer

In certain occupations, such as medicine or law, a license is required to practice. Without a license, any work-related contracts are considered invalid and unenforceable.

Question 8

Howe downloads Instagram's app by clicking on the site's "I agree" link to its terms of service.Later,Howe reverse engineers the software to create a competing app.This is most likely
A) a breach of Howe's agreement to the terms of service.
B) part of the bargain between a social media site and its users.
C) acceptable as long as the code is not shared with third parties.
D) within the promisee's right to expect or demand something of the future.

Accepted Answer

By reverse engineering the software to create a competing app, Howe is violating the terms of service that he agreed to when downloading Instagram's app. The terms of service likely include clauses that prohibit reverse engineering, copying, or using the software for any purpose other than what is intended. Therefore, Howe's actions are a breach of the agreement he made with Instagram.

Question 9

A minor can enter into any contract an adult can,without exception.

Accepted Answer

Minors generally lack the legal capacity to enter into contracts and therefore, cannot enter into certain types of contracts without parental or guardian consent.

Question 10

Field Construction Inc.contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay.If this is a valid contract,it will be partly because it includes the element of
A) capability.
B) legality.
C) necessity.
D) marketability.

Accepted Answer

Legality is one of the essential elements of a valid contract. It means that the subject matter of the contract and the actions required by the parties must be lawful. In this case, because Field Construction Inc. and Mesa Ranch are entering into a contract to build a new horse barn, it must be legal for them to do so, and the payment terms must also be lawful.

Question 11

A contract provision that deprives one party of the benefits of the agreement may seem unfair but a court is not likely to consider it unconscionable.

Accepted Answer

A contract provision that deprives one party of the benefits of the agreement may be considered unconscionable by a court if it is found to be excessively one-sided or if it takes advantage of a power imbalance between the parties. Therefore, such a provision may be deemed unenforceable.

Question 12

Consideration is the value given in return for a promise or performance in a contractual agreement.

Accepted Answer

This is the legal definition of consideration in contract law. It is essential for the formation of a valid contract.

Question 13

Macy offers to sell his fitness watch for $50 to Nona.Nona promises to pay Macy the price.Later,they exchange the watch for the funds.A contract was created when
A) Macy offered to sell the watch.
B) Macy delivered the watch.
C) Nona promised to pay for the watch.
D) Nona paid for the watch.

Accepted Answer

The answer of Macy offers to sell his fitness watch...

Question 14

Steel Mill Inc.makes an offer to Tom to enter into a contract to work as a mechanical engineer for a certain salary for one year subject to a five-year renewal based on his performance.Tom accepts the offer.This is a valid contract because it includes
A) a price and a subject.
B) a duration and a termination.
C) an offer and an acceptance.
D) specific quality standards.

Accepted Answer

The answer of Steel Mill Inc.makes an offer to Tom...

Question 15

Acceptance may consist of words or conduct.

Accepted Answer

Acceptance can be communicated through words or actions.

Question 16

Mel agrees to work as a freight broker for National Shipping Inc.In determining whether a contract has been formed,an element of prime importance is the parties'
A) intent.
B) character.
C) subjective beliefs.
D) motives.

Accepted Answer

Intent is crucial in determining whether a contract has been formed. The parties must have a mutual intention to enter into a lawful agreement. Character, subjective beliefs, and motives may be relevant in other contexts, but they are not the key factors in determining whether a contract has been formed.

Question 17

With respect to consideration,a bargained-for exchange distinguishes a contract from a gift.

Accepted Answer

A bargained-for exchange is an essential element of consideration which distinguishes a contract from a gift. Consideration refers to something of value exchanged between the parties to a contract, such as money, goods, or services. In a gift, no consideration is given or expected in return.

Question 18

A landlord can avoid liability for injuries that occur on rental property by including an exculpatory clause in the lease.

Accepted Answer

A landlord cannot completely avoid liability for injuries that occur on rental property by including an exculpatory clause in the lease. Such clauses are generally considered unenforceable as they violate public policy and state laws protecting tenants' rights. Landlords still have a legal duty to maintain safe conditions on their property and provide adequate warnings of hazards.

Question 19

Before the Uniform Electronic Transactions Act applies,each party to a transaction must agree to conduct it by electronic means.

Accepted Answer

The UETA only applies to transactions conducted by electronic means if both parties agree to it.

Question 20

Shrink-wrap terms are enforceable even if a buyer does not discover them until after the parties have entered into a contract.

Accepted Answer

The answer of Shrink-wrap terms are enforceable even if a...

Quiz 10: The Formation of Traditional and E-Contracts