Question 1

A(n)______ contains a specific promise and a specific demand.

Accepted Answer

An offer contains a specific promise and a specific demand. An offeror-the person making the offer-must intend to make the offer by making a commitment to the offeree-the person to whom the offer is made.

Question 2

Brett offers to sell his old but functioning cell phone to James for $65.James says he will accept the offer if Brett lowers the price to $60.James has

Accepted Answer

In this case, James has made a counteroffer. If the acceptance changes the terms of the offer or adds new terms, it is not really an acceptance but a counteroffer. A counteroffer has the effect of rejecting the original offer and sending back a new offer for a different contract.

Question 3

According to the mailbox rule,a contract is formed

Accepted Answer

Unless the offeror specifies a particular time, the acceptance usually binds the parties when the offeree dispatches it. Since the offeree frequently mails the acceptance, the acceptance becomes binding when it is "deposited" with the postal service-hence the deposited acceptance rule, also called the mailbox rule.

Question 4

In the context of implied warranties as defined by the Uniform Commercial Code (UCC),which of the following refers to the merchantability of goods?

Accepted Answer

Merchantability means that goods will be of fair average quality and conform to any labeling.

Question 5

The remedy of quasi-contract generally applies only when

Accepted Answer

It is important to understand that the remedy of quasi-contract generally applies only when no actual contract exists to cover the dispute. When one party is unjustly enriched at the expense of another, the law may imply a duty on the first party to pay the second even though there is no contract between the two parties. The doctrine that requires this result is based on an implied-in-law contract.

Question 6

The deposited acceptance rule is also known as the ______.

Accepted Answer

Unless the offeror specifies a particular time, the acceptance usually binds the parties when the offeree dispatches it. Since the offeree frequently mails the acceptance, the acceptance becomes binding when it is "deposited" with the postal service-hence the deposited acceptance rule, also called the mailbox rule.

Question 7

A(n)______ is one that appears to be an agreement but lacks an essential requirement for validity and enforceability.

Accepted Answer

A void contract is one that appears to be an agreement but lacks an essential requirement for validity and enforceability.

Question 8

A(n)______ is one in which the promised terms of the contract are discussed by the parties.

Accepted Answer

Many contracts arise from discussions in which parties actually discuss the promised terms of their agreement. These are called express contracts.

Question 9

Mayra offers to sell her home to Hanna for "about $100,000 plus closing costs." Hanna accepts Mayra's offer.Later,a dispute arises over the precise dollar amount of the purchase price.How will a court most likely resolve this dispute?

Accepted Answer

In this case, the court would most likely declare the purchase price and terms too indefinite to create a binding contract. Under the common law of contracts, contractual terms must be definite and specific. An offer to purchase a house at a "reasonable price" cannot be the basis for a contract because of indefiniteness. Under the Uniform Commercial Code, contracts for the sale of goods can leave open nonquantity terms to be decided at a future time. Note that this rule applies only to sales of goods. It does not apply to sales of real estate or services.

Question 10

A(n)______ is an agreement when one party has the right to withdraw from the promise made without incurring any legal liability.

Accepted Answer

A voidable contract is an agreement when at least one party has the right to withdraw from the promise made without incurring any legal liability. That party has the power to end the enforcement of a voidable contract.

Question 11

Which of the following statements is true of silence as a method of acceptance?

Accepted Answer

Silence may well imply acceptance if the parties previously dealt with each other by having the buyer take shipments from the seller unless the buyer notified the seller in advance not to ship.

Question 12

Fred takes Betty to dinner at a very expensive and exclusive restaurant.The menu does not mention the prices.The server takes their order and both Fred and Betty enjoy the meal immensely.When the bill arrives,Fred refuses to pay because the menu had no prices and because he and the server never engaged in language indicating an offer and acceptance.The server said,"Are you ready to order?" and when Fred said "Yes," the server merely asked,"What may I get you tonight?" In the context of this scenario,which of the following statements is true?

Accepted Answer

In this scenario, Fred must pay based on an implied-in-fact contract theory. Implied-in-fact contracts arise from the conduct of the parties rather than from words. For instance, asking a person such as an accountant for professional advice implies a promise to pay the going rate for this advice even though one does not make an express promise to pay for it.

Question 13

Josh announces a reward of $500 for his dog,Ginger,that ran away from his house.Josh spreads the word only by pinning up posters in his neighborhood.Amanda,Josh's colleague,sees Ginger and brings her back to Josh without ever seeing the poster.After returning the dog,Amanda sees one of the reward posters and returns to claim the money.In the context of this scenario,which of the following statements is true?

Accepted Answer

In this scenario, Amanda is entitled to the money since performance of the requested act in the poster indicates acceptance. Unilateral contracts are accepted by performing a requested act, not by making a promise.

Question 14

A(n)______ is one when parties have not performed their agreement.

Accepted Answer

An executed contract is one in which the parties have performed their promises. When the parties have not yet performed their agreement, it is called an executory contract.

Question 15

The doctrine of quasi-contracts is predominantly based on a(n)

Accepted Answer

When one party is unjustly enriched at the expense of another, the law may imply a duty on the first party to pay the second even though there is no contract between the two parties. The doctrine that requires this result is based on an implied-in-law contract. Since there really is no actual contractual agreement, the phrase quasi-contract is often used.

Question 16

In the context of contracts formed by interactions of parties,which of the following arises from the conduct of the parties rather than from words?

Accepted Answer

There are implied-in-fact contracts, which arise from the conduct of the parties rather than from words. For instance, asking a person such as an accountant for professional advice implies a promise to pay the going rate for this advice even though one does not make an express promise to pay for it.

Question 17

In the context of termination of an offer,______ occurs when an offeror retracts the offer before the acceptance.

Accepted Answer

When an offer terminates, the offeree's legal power to bind the offeror ends.
An offer can be terminated by the offeror's revocation, which refers to retracting the offer before the acceptance.

Question 18

According to the mirror image rule,______.

Accepted Answer

For an acceptance to create a binding contract, standard contract law requires that the acceptance must "mirror" the offer, that is, must match it exactly. This is the mirror image rule.

Question 19

Laborers working on a building are promised by their contractors that their wages would be paid at the end of every month.The laborers also in return promise to work from the beginning of the subsequent month.When the laborers have worked for the entire duration of the month and are awaiting their wages at the end of the month,the contract is ______.

Accepted Answer

In this scenario, since the laborers are awaiting their wages, the contract is executory. It is an executory contract because the contractors are yet to fulfill their promise of the payment of wages. An executed contract is one in which the parties have performed their promises. When the parties have not yet performed their agreement, it is called an executory contract.

Question 20

The ultimate purpose of a contract is the creation of an agreement that courts will order parties to perform or to pay consequences for the failure of performance.When courts uphold the validity of such promises,the resulting agreement is a(n)______.

Accepted Answer

The ultimate purpose of a contract is the creation of an agreement that courts will order parties to perform or to pay consequences for the failure of performance. When courts uphold the validity of such promises, the resulting agreement is an enforceable contract.

Quiz 8: Contract Formation

A(n) ______ contains a specific promise and a specific demand.

Brett offers to sell his old but functioning cell phone to James for $65.James says he will accept the offer if Brett lowers the price to $60.James has

According to the mailbox rule,a contract is formed

In the context of implied warranties as defined by the Uniform Commercial Code (UCC) ,which of the following refers to the merchantability of goods?

The remedy of quasi-contract generally applies only when

The deposited acceptance rule is also known as the ______.

A(n) ______ is one that appears to be an agreement but lacks an essential requirement for validity and enforceability.

A(n) ______ is one in which the promised terms of the contract are discussed by the parties.

Mayra offers to sell her home to Hanna for "about $100,000 plus closing costs." Hanna accepts Mayra's offer.Later,a dispute arises over the precise dollar amount of the purchase price.How will a court most likely resolve this dispute?

A(n) ______ is an agreement when one party has the right to withdraw from the promise made without incurring any legal liability.

Which of the following statements is true of silence as a method of acceptance?

A(n) ______ is one when parties have not performed their agreement.

The doctrine of quasi-contracts is predominantly based on a(n)

In the context of contracts formed by interactions of parties,which of the following arises from the conduct of the parties rather than from words?

In the context of termination of an offer,______ occurs when an offeror retracts the offer before the acceptance.

According to the mirror image rule,______.

The ultimate purpose of a contract is the creation of an agreement that courts will order parties to perform or to pay consequences for the failure of performance.When courts uphold the validity of such promises,the resulting agreement is a(n) ______.