Question 1

An unenforceable contract is one that cannot be enforced because of certain legal defenses against it.

Accepted Answer

An unenforceable contract is one that cannot be enforced because it is either illegal or lacks essential elements, such as consideration. These legal defenses make it impossible to enforce the contract in court. Therefore, the statement is true.

Question 2

Smith & Jones, Accountants, agrees to perform an audit for Brick & Mortar Stores, Inc. Whether or not this agreement meets all of the requirements of a contract, the parties are likely to follow the rules of contract law because they
A) ​want to avoid potential disputes.
B) ​are conscious of those rules.
C) ​are not conscious of those rules.
D) ​have a moral obligation to do so.

Accepted Answer

The most likely reason that Smith & Jones, Accountants and Brick & Mortar Stores, Inc. would follow the rules of contract law is to avoid potential disputes. This can help ensure that the terms of the agreement are clear and enforceable, and can minimize the risk of disagreements over the parties' rights and obligations. While it is possible that the parties may be conscious of the rules of contract law or may feel a moral obligation to follow them, these factors are less crucial to understanding why the parties would choose to adhere to contract law principles.

Question 3

Informal contracts include all contracts other than formal contracts.

Accepted Answer

Informal contracts refer to agreements or contracts that are not necessarily in writing, such as verbal agreements or implied contracts. Formal contracts, on the other hand, are typically written and follow specific legal requirements.

Question 4

Jim tells Dana that he will take her out to lunch on Thursday. Jim has made Dana​
A) ​a prediction.
B) ​a promise.
C) ​a bilateral contract.
D) ​a void contract.

Accepted Answer

By saying he will take her out to lunch, Jim has made a promise. This creates a unilateral contract, meaning that Dana could accept the promise by showing up for lunch on Thursday. However, if she does not show up, Jim cannot force her to do so.

Question 5

An implied contract is not an actual contract.

Accepted Answer

An implied contract is an actual contract where the agreement between parties is inferred from their actions, conduct, or circumstances, rather than from written or spoken words.

Question 6

A check is a formal contract.

Accepted Answer

A check is a written order to a bank to pay a specific sum of money to a specific person. It is a formal contract between the account holder and the bank.

Question 7

A quasi contract is not enforceable by a court.

Accepted Answer

A quasi contract, also known as an implied-in-law contract, is not an actual contract but rather a legal fiction created by the court to prevent one party from being unjustly enriched at the expense of another. While quasi contracts cannot be enforced in the same way as express contracts, the court may still order compensation or restitution to the injured party.

Question 8

An express contract must be in writing.

Accepted Answer

The answer of An express contract must be in writing....

Question 9

Lark promises to buy Mac's used textbook for $60. Lark is
A) ​an executor.
B) ​an offeree.
C) ​a promisee.
D) ​a promisor.

Accepted Answer

Lark is a promisor because she is making a promise to buy Mac's used textbook for $60.

Question 10

A contract that has been fully performed by the parties is an executory contract.

Accepted Answer

A contract that has been fully performed by the parties is called an executed contract, not an executory contract. An executory contract is a contract that is still in the process of being performed by one or both parties.

Question 11

When a contract's writing is not clear, a court will not consider evidence outside the contract to interpret its terms.

Accepted Answer

When a contract's writing is not clear, a court may consider evidence outside the contract to interpret its terms. This is known as the parol evidence rule exception. However, this will only occur in limited circumstances and the court will generally give priority to the plain language of the contract.

Question 12

Movers LLC promises to deliver a certain couch to Nora, who promises to pay for the service. If Movers does not perform, it may be required to
A) ​cease business.
B) ​make another promise.
C) ​pay money damages.
D) ​perform a different service.

Accepted Answer

If Movers LLC does not perform its promised service of delivering Nora's couch, it has breached its contract with her. As a result, Nora may be entitled to money damages to compensate her for any losses she incurred as a result of Movers' breach. Ceasing business or making another promise would not fulfill Movers' original contractual obligation, and performing a different service may not be feasible or desired by Nora.

Question 13

A court will normally interpret the language of a contract according to what the parties claim their intent was when they made it.

Accepted Answer

A court typically interprets the language of a contract based on the plain meaning of the words within the contract itself, rather than the subjective intent of the parties, unless the language is ambiguous.

Question 14

A quasi contract is a fictional contract.

Accepted Answer

A quasi contract is not an actual contract, but rather a legal remedy used when one party has received something of value from another party without a proper contract in place, and fairness requires restitution or compensation. It is sometimes referred to as an implied-in-law contract.

Question 15

All contracts include an implied covenant of good faith and fair dealing.

Accepted Answer

This is a legal principle that is recognized in many jurisdictions and reflects the basic expectation that parties to a contract will act in good faith towards one another and not engage in behavior that is dishonest, unfair, or undermines the other party's rights or interests. It is sometimes referred to as an implied duty of mutual trust and confidence. While the precise scope and application of the covenant may vary depending on the circumstances, courts generally recognize that it is an important component of contractual relationships and can be used to help interpret and enforce the terms of a contract.

Question 16

If a voidable contract is ratified, the parties must fully perform their respective legal obligations.

Accepted Answer

Ratification of a voidable contract makes it valid from its inception, and the parties must perform their respective obligations as if the contract was valid from the beginning.

Question 17

In a divorce proceeding, Jonas promises to pay a certain amount of child support to Kelly every month until their daughter Lois is eighteen years old. Jonas's obligation with respect to this promise is
A) ​moral, not legal.
B) ​legal, not moral.
C) ​legal and moral.
D) ​neither legal nor moral.

Accepted Answer

Jonas's obligation to pay child support is both legal and moral. It is legal because it is part of a court order or divorce agreement, and failure to pay can result in legal consequences such as wage garnishment or even jail time. It is also moral because Jonas has a responsibility to financially support his child as a parent. Thus, his obligation is both legally enforceable and morally ethical.

Question 18

If a contract term is ambiguous, a court can consider outside evidence.

Accepted Answer

This is known as the "parol evidence rule" which allows courts to consider outside evidence such as emails, witness testimony, and other documents to interpret the meaning of ambiguous language in a contract.

Question 19

In an express contract, the terms are fully and explicitly stated in words.

Accepted Answer

In an express contract, the terms are clearly and fully stated in words, either verbally or in writing.

Question 20

An executed contract is one that has been fully performed.

Accepted Answer

An executed contract is one where all parties involved have fulfilled their obligations as outlined in the contract, meaning it has been fully performed.

Quiz 7: Nature and Terminology