Question 1

Sunny enters into a contract with Trey to act as his personal sports trainer.If a dispute later arises and the contract contains unclear terms,the rules of contract interpretation will give effect to

Accepted Answer

The rules of contract interpretation aim to give effect to the parties' intent as expressed in their contract. This means that the court will try to interpret the terms in the way that the parties intended them to mean at the time they entered into the contract. This is done by looking at the language used in the contract, the context of the agreement, and the circumstances surrounding the formation of the contract. The court will not allow one party to dictate the intent of the other party, nor will it rely solely on what the parties now claim they intended after the fact.

Question 2

Avatar,Inc.,agrees to deliver t-shirts emblazoned with video game characters for a certain price to Bling Bling Corporation.To constitute a contract,the terms of this deal

Accepted Answer

The terms of the deal may be expressed, implied, or a mixture of both to constitute a contract. Therefore, option C is the correct answer.

Question 3

Sales Marketing Corporation and Tech Support,Inc.,negotiate a contract.If the contract has all of the elements necessary for one of the parties to enforce it in court,it is

Accepted Answer

A valid contract has all the essential elements required for it to be enforceable in a court of law. These essentials include offer and acceptance, consideration, legality, and capacity. If Sales Marketing Corporation and Tech Support, Inc. have negotiated a contract that satisfies all the necessary elements, then it is considered a valid contract, and both parties can legally enforce it if any dispute arises.

Question 4

Robin claims that her contract with Stroud for tennis lessons is voidable.If their contract is avoided,

Accepted Answer

If a contract is voidable, it means that one party has the right to avoid it. In this case, if Robin avoids the contract, both parties would be released from their obligations under it.

Question 5

Smith & Jones,an accounting firm,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

Accepted Answer

Parties in a business agreement are likely to follow the rules of contract law because they want to avoid potential disputes that may arise if they do not follow the rules.

Question 6

Sal assures Tom that she will deliver a truckload of hay to his cattle ranch.A person's declaration to do a certain act is part of the definition of

Accepted Answer

A promise is a declaration or assurance that one will do a certain thing. Therefore, delivering a truckload of hay to Tom's cattle ranch is considered a promise.

Question 7

Following negotiations,Office Park,Inc.,enters into an informal contract with Quality Janitorial Company for custodial services for Office Park's buildings.This means that the parties' contract

Accepted Answer

An informal contract does not require any special form or specific language to be binding. It can be a verbal agreement or a written agreement without specific legal formalities.

Question 8

A letter-of-credit agreement between Rural Feed Corporation and Soybean Farms,Inc.,requires Rural Feed's bank to pay Soybean Farms on receipt of invoices.This letter of credit is

Accepted Answer

A letter-of-credit agreement is a formal contract between parties, with specific terms and conditions outlined. In this case, the agreement requires Rural Feed's bank to pay Soybean Farms upon receipt of invoices, which is a clear and specific requirement.

Question 9

Gilbert promises to buy Hadley's iPod for $75.Hadley is

Accepted Answer

Hadley is a promisee because Gilbert has promised to buy Hadley's iPod, making Hadley the recipient of the promise.

Question 10

Brady accepts what he believes is an offer to work for Canyon River Adventures,Inc.,as a tour and fishing guide.In determining whether a contract has been formed,an element of prime importance is

Accepted Answer

The intent of the parties is the most important element in determining whether a contract has been formed. Both parties must have a mutual understanding and agreement about the terms of the contract, including the nature of the work to be performed, compensation, and other essential terms. The price to be paid and the duration of the work are important elements, but they are secondary to the intent of the parties. The subject of the contract is also important, but it is not as crucial as the intent of the parties.

Question 11

Lark promises to buy Max's used textbook for $60.Lark is

Accepted Answer

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

Question 12

When Hester's car breaks down,she asks Insta-Tow,Inc.,to tow it to Jerry's Repair Shop.There is no discussion of a price,and Hester and Insta-Tow do not sign any documents.Later,Insta-Tow sends Hester a bill.With respect to Hester's obligation to pay the bill,this is

Accepted Answer

An implied contract is a contract that is created by the actions or behavior of the parties involved. In this scenario, Hester and Insta-Tow entered into an implied contract when Hester asked Insta-Tow to tow her car to Jerry's Repair Shop. The fact that there was no discussion of price or signing of any documents does not negate the existence of a contract. Therefore, Hester is obligated to pay the bill sent by Insta-Tow.

Question 13

Mallory promises to buy illegal digital copies of movies from Napoleon,who promises to deliver on October 31.These promises are most likely

Accepted Answer

The promises between Mallory and Napoleon involve illegal activity, which is not recognized by the law. Therefore, the promises are void and unenforceable.

Question 14

Otto mistakenly pays property taxes that should have been assessed against Pip.Otto can recover the amount from Pip in quantum meruit

Accepted Answer

Quantum meruit allows recovery for services rendered or benefits conferred when one party is unjustly enriched at the expense of another. Otto can recover from Pip even if Pip was not aware of the error, as Pip received a benefit (payment of taxes) that should have been his responsibility.

Question 15

Francie drives into Gage's Auto Service and asks Hong,a Gage's employee,to replace a tire on Francie's car.After Hong replaces the tire,but before Francie pays for it,any contract between Francie and Gage's is

Accepted Answer

The contract is executory because Francie has not yet paid for the tire, so the terms of the agreement have not been fully executed by both parties.

Question 16

Bilbo signs a lease agreement for an apartment with Cato,who owns and manages the Deer Creek Apartments complex.These parties have

Accepted Answer

An express contract is a contract in which the terms are explicitly stated, either in writing or orally. In this case, Bilbo signed a lease agreement with Cato, so they have an express contract.

Question 17

Jonah tells Levi he will give him an Xbox if Levi does Jonah's chores for a month.Levi promises to do the chores.Jonah and Levi have formed a

Accepted Answer

A bilateral contract is formed when both parties make promises to each other, as Jonah promises to give an Xbox and Levi promises to do the chores.

Question 18

Wilson buys a lottery ticket at his local gas station.Wilson has accepted an offer for a

Accepted Answer

Wilson has accepted an offer for a unilateral contract because the lottery ticket is an offer made by the lottery company for a contract where the acceptance is the act of buying the ticket and the consideration is the payment for the ticket. The contract is unilateral because the lottery company is promising to give a prize in exchange for the act of buying the ticket and no further action is required from Wilson to receive the prize if he wins.

Question 19

In a one-care auto accident,Carmel is rendered unconscious and otherwise injured.At the scene,Dana,a physician,acts to save Carmel's life.Later,Dana seeks to recover for the cost of the aid.She is most likely to recover

Accepted Answer

Dana is likely to recover under a theory of a quasi-contract because she provided necessary services to Carmel and Carmel did not explicitly decline those services. Therefore, there is an obligation for Carmel to pay for the value of those services. This is also known as unjust enrichment. The other options do not apply because there was no express contract or implied contract between the parties.

Question 20

Cellphones & Calltime,Inc.,makes an offer to Delores to enter into a contract to work as a salesperson for a certain base salary plus commission for ninety days subject to a one-year renewal based on her performance.Delores accepts the offer.A valid contract requires

Accepted Answer

A valid contract requires an offer and an acceptance. The other options may also be elements of a contract, but they are not necessary for a contract to be valid.

Quiz 11: Nature and Terminology