Deck 10: Forming a Contract

Question 1

Alex promises to pay $100 to anyone who finds his lost watch. Kate finds and returns the watch to Alex after hearing of the reward money. Alex and Kate have an enforceable unilateral contract.

Answer 1

True

Question 2

Nella offers to sell her crop of strawberries, which have just been picked, to Morgan's Market. Since Nella does not specify a time limit for acceptance, Morgan's can accept the offer at any point in time.

Answer 2

False

Question 3

Robert offers to buy a car from Jane for $400. Jane must accept this offer in order to form an enforceable contract.

Answer 3

True

Question 4

Valerie promises Teresa that she will pay Teresa $75 if Teresa will clean Valerie's house by noon on Saturday. If Teresa cleans the house by noon on Saturday and Valerie pays the $75, then this is an implied, bilateral, executory contract.

Question 5

One purpose of contract law is to determine which agreements are worthy of legal enforcement.

Question 6

On Monday, Mick puts an offer in the mail to Sheri to sell his guitar for $50. Monday night when jamming with his buddies, he decides he will really miss his old guitar and has second thoughts about selling it. Tuesday morning he puts a revocation in the mail informing Sheri he has changed his mind and the guitar is no longer for sale. The revocation is effective on Tuesday morning.

Question 7

If the offer does not specify a type of acceptance, the offeree may accept in any reasonable manner and method.

Question 8

Revocation is the withdrawal of an offer by the offeror.

Question 9

Candy, Inc. signed an agreement with Sweet Plantation. Under the contract, Candy, Inc. agreed to purchase all the sugar cane Sweet Plantation grew during the coming season for $0.16 per pound. This contract will be unenforceable due to its vagueness.

Question 10

In a unilateral contract, one party makes a promise that the other party can accept only by actually doing something.

Question 11

Contracts generally do not require bargaining that leads to an exchange between the parties.

Question 12

Lucy and Rick sign a contract in which Lucy agrees to deliver 10 boxes of chocolates in exchange for Rick's promise to pay $5 per box. Lucy delivers the candy. Rick pays for the goods. This contract is fully executory.

Question 13

Regarding contracts, in seeking to determine whether there is a meeting of the minds, the courts look to how a reasonable person would objectively view the language or actions of the parties.

Question 14

Some of the elements of a contract are acceptance, consideration, legality, and capacity.

Question 15

When promissory estoppel is used by the courts, it is because there is NOT an enforceable contract present.

Question 16

Under a contract, Danielle is required to paint a room with paint chosen by the homeowners, the Flynns. After Danielle paints the room according to the contract requirements, her duties under the contract are discharged.

Question 17

Mary goes into Honest Harry's Electronics and purchases a TV. Mary agrees to pay for the TV in 30 days on the store's "30 days same as cash" plan. This is an executory contract.

Question 18

Contracts for the sale of fabric, automobiles, computers, furniture, and paper clips would all be governed by Article 2 of the Uniform Commercial Code.

Question 19

The element of a contract that states the parties must be adults of sound mind is consent .

Question 20

All oral contracts are quasi-contracts until they are completely executed.

Question 21

Patty is a poor college student struggling to work and keep up with her studies. Fred, her uncle, promises to pay Patty support of $200 per month for the next six months. Although Fred didn't ask her to, she quits her current job in order to devote full time to her studies for the next six months. Fred makes one payment and then stops with no explanation. If Patty sues, what is the likely result?

A)Fred would win, as he did not ask Patty to quit her job.
B)Patty would win, as a contract was formed when Fred promised to pay her the support.
C)Fred would win, as family members cannot sue each other for breach of an oral promise.
D)Patty may win under the doctrine of promissory estoppel.

Question 22

The courts will find an implied contract when

A)justice demands it.
B)conduct of the parties indicates they intended an agreement.
C)there is promissory estoppel.
D)there is undue influence.

Question 23

Jaime offered to buy Kevin's bike. Jamie is the

A)offeree.
B)offeror.
C)mortgagor.
D)trustee.

Question 24

The basic distinction between an executory contract and an executed contract is that

A)one is enforceable, the other is not.
B)only one promise is involved in an executory contract.
C)one is legal, the other is not.
D)all parties have fulfilled their obligations in an executed contract.

Question 25

What is the best definition of the mailbox rule?

A)Acceptance of an offer must be on precisely the same terms as the offer.
B)Users must agree to certain terms and conditions prior to using the product or service.
C)Acceptance of an offer is generally effective upon dispatch; terminations are effective when received.
D)Courts follow certain practices when parties to an agreement fail to make provisions for a particular matter.

Question 26

Travel Lines offered to sell 10 round-trip tickets to Elaine. Travel Lines stated that the acceptance must be in writing by USPS next-day service. Which of the following acceptances will create a contract between Travel Lines and Elaine?

A)Elaine calls Travel Lines and states that she will buy the tickets.
B)Elaine sends a fax to Travel Lines stating she will buy the tickets.
C)Elaine sends a letter by USPS next-day service to Travel Lines stating that she will buy the tickets.
D)All of these responses will create a contract between Travel Lines and Elaine since they constitute reasonable means of communication.

Question 27

Jack mails an offer to Joan that states, "I offer to sell you my car for $2,000. If I don't hear from you in 10 days, I will assume you are willing to buy the car for the stated price." Jack hears nothing by the deadline and assumes he has a deal. What is the result?

A)Jack has a deal. His offer was intended and contains definite terms.
B)Jack has a deal. Joan should have responded saying she is not interested in the car if she didn't want to be bound to the offer.
C)Joan is not bound. Generally, an offeree must say or do something to accept an offer.
D)Joan is not bound. Ten days is not a reasonable amount of time to consider the offer and accept by mail.

Question 28

Dick offers to sell Jane his 1955 Thunderbird convertible. Before Jane can accept the offer, lightning strikes the car and it is totally destroyed. Which of the following is true?

A)Jane can still accept the offer and John must find a 1955 Thunderbird to sell.
B)The offer is terminated by law.
C)Dick can still revoke his offer so long as he does so before Jane accepts.
D)Jane can still accept the offer. She will be entitled to the insurance proceeds.

Question 29

If an offer specifies no time limit in which to accept,

A)the offeree has 30 days to respond.
B)the offeree has 10 days to respond.
C)the offer is not valid and therefore it does not matter when the offeree responds.
D)the offeree has a reasonable period during which to accept.

Question 30

Mike made the following offer to Mick: "I will pay you $500 if you agree to paint my house." Mick replied that he would. At this point, the contract is an

A)executed, bilateral, express contract.
B)executory, bilateral, implied-in-law contract.
C)executed, unilateral, express contract.
D)executory, bilateral, express contract.

Question 31

What element of a contract refers to both parties receiving some measurable benefit?

A)consideration
B)capacity
C)consent
D)legality

Question 32

When Myrtle comes home from work one evening, she finds that her yard has been mowed and trimmed. Later, a man comes to collect for the yard work done. Myrtle refuses to pay for the work since she has never seen the man before and did not hire him to do her yard work. Which of the following answers is most accurate?

A)This is an implied, unilateral contract and she must pay the price requested by the man.
B)This is an express, voidable contract that either party may avoid.
C)The court would order Myrtle to pay the reasonable value of the yard work because of the benefit conferred on her.
D)Myrtle would not have to pay for the yard work.

Question 33

Wally owns 200 acres of land. Wally offers to sell the land to Robert for $1,500 per acre. Robert replies that he does not need 200 acres of land but would like to buy 40 acres at $1,500 per acre. Wally agrees to sell but does not identify which 40 acres. Later, Wally refuses to sell any land to Robert. What is the result?

A)Robert wins; this is an enforceable contract with complete and definite terms.
B)Robert wins; the UCC will decide which 40 acres are to be sold.
C)Wally wins; the original offer was not intended to be an offer but merely an invitation to negotiate.
D)Wally wins; this agreement is too indefinite since it does not identify which 40 acres are to be sold.

Question 34

Which term refers to whether an offeree accepts an offer by promising, by making a down payment, or by performing?

A)manner of acceptance
B)method  of acceptance
C)definiteness
D)intent

Question 35

Courts may award damages called quantum meruit , which means

A)"as much as he deserves."
B)"to the letter of the law."
C)"let the buyer beware."
D)"something for something."

Question 36

Which of the following scenarios describes an offer?

A)Luther says to Consuela, "My son needs tutoring in Spanish. I'd like you to come to my home on Monday and Wednesday nights beginning next week for two-hour sessions, and I'll pay you $40 per hour. I'd like you to tutor him for the next three months."
B)Raoul asks Wendy if she would be willing to sell her first-edition copy of War and Peace . Wendy replies, "I couldn't possibly part with that book for less than a couple thousand dollars."
C)KD Lamp Company sends out a catalog to customers that lists prices for various types of light bulbs.
D)Nestor places an antique pocket knife, which he inherited from his father, up for auction. He tells the auctioneer that he hopes to get at least $250 for the knife.

Question 37

Tim sent an email to Belinda offering to sell his car to her for $5,000. Belinda texted Tim back offering to pay $4,000 for the car. A valid contract did not exist because

A)Belinda should have accepted Tim's offer orally.
B)consideration was not present in the negotiations.
C)the contract was not for a lawful purpose.
D)Belinda did not accept Tim's offer; she is still negotiating.

Question 38

Which of the following is NOT required to establish promissory estoppel?

A)a promise made by the defendant
B)a promise made by the plaintiff in response to the defendant's promise
C)reliance on the defendant's promise
D)All of these are required.

Question 39

Collector Carl displays his beer can collection at the local swap meet. Mary sees the collection and is interested in buying it. Carl says he will sell the collection for $1,500. Mary says she really likes the collection but is only willing to pay $1,000. Which of the following is correct?

A)Mary's counteroffer terminates Carl's offer of $1,500.
B)If Carl rejects Mary's counteroffer, she can still accept Carl's offer of $1,500.
C)Neither offer is valid. Who would ever pay $1,000 or $1,500 for a beer can collection?
D)Mary's offer is an option contract and she cannot revoke the offer.

Question 40

Jerry offers to shovel the snow from Ben's driveway for $35. Ben replies "OK." This is an example of

A)an implied, unilateral contract.
B)an express, unilateral contract.
C)an implied, bilateral contract.
D)an express, bilateral contract.

Question 41

An express contract

A)must be in writing.
B)may be inferred by the conduct of the parties involved.
C)has both parties setting forth their intentions.
D)is not valid in many states.

Question 42

Jennifer has offered to sell her laptop computer for $500 to Jack. She tells Jack that the computer is only six months old but, in fact, it is three years old, and Jennifer wants to unload the lemon. Jack agrees to buy the computer based on Jennifer's representations. This contract is

A)a void agreement because of the fraud involved.
B)a voidable contract, one that Jack can void.
C)a voidable contract, because it is unilateral.
D)a void contract because of the UCC.

Question 43

Briefly discuss how an offer can be accepted. Include in your answer the application of the mirror image rule.

Question 44

An agreement in which parties intend to form a valid bargain, but a court declares that some rule of law prevents enforcing it is called

A)a void agreement.
B)a voidable contract.
C)an unenforceable agreement.
D)a quasi-contract.

Question 45

Briefly discuss the meaning of bilateral, unilateral, executory, and executed contracts.

Question 46

McCann Construction purchased a poured concrete form from Advance Concrete Forms, Inc. McCann purchased the concrete form by placing a phone call to Advance in Madison, Wisconsin. Advance delivered the concrete form with an invoice stating the terms of the sale required payment within 30 days and a 1 1/2 % interest per month finance charge would be charged on accounts over 30 days. When McCann failed to pay the invoice on time, interest was charged according to this rate. Later, McCann refused to pay the accumulated interest charge, claiming there was not a meeting of the minds regarding the finance charge in any conversation prior to the sale. The trial court concluded that the finance charge was in fact an additional term added by Advance when it accepted McCann's purchase order. Discuss Uniform Commercial Code Section 2-207 in general and with regard to this situation. Does McCann owe the interest accrued?

Question 47

ACME, Inc. is a software producer that entered into a verbal agreement with XYZ Corporation wherein XYZ agreed to buy ACME's newly developed software. The agreement also provided that ACME would supply training personnel, as well as technical personnel, to work with XYZ employees in installing and learning the software. What law governs this agreement?

Question 48

Preferred Contractors was a general contractor and owner of a condominium complex that was under construction. Barrett, a subcontractor, had been hired by Henderson Plumbing, another subcontractor, to help it complete the plumbing work on the project. When Henderson began using shoddy installation procedures and subsequently fell behind the scheduled completion time for the project, Preferred Contractors urged Barrett to correct Henderson's mistakes and to finish the job. Barrett refused to continue until he knew who would pay him, since he feared Henderson's financial position was shaky. Nonetheless, Preferred Contractors' job superintendent told Barrett to go ahead even if Barrett and Preferred Contractors had no contract because "he would use his influence to try to help Barrett get his money." Barrett finished the work and sent a $7,500 bill to Henderson, which was never paid. When Barrett later sent the bill to Preferred Contractors, these facts emerged: Preferred Contractors told him that due to Barrett's failure to notify Preferred Contractors promptly of Henderson's non-payment, Preferred Contractors had already paid Henderson in full and therefore would not pay twice for the work. Discuss the best possible theory of recovery Barrett may argue.

Question 49

Discuss the requirements of promissory estoppel.

Question 50

Which of the following types of property would be considered "goods" under the Uniform Commercial Code?

A)a promissory note
B)a stock
C)a patent
D)a computer

Question 51

List and briefly describe the seven key characteristics that must be present for a contract to be enforceable.

Question 52

What elements are necessary for an offer to be valid? Give two examples of nonoffers.

Question 53

Walter enters a dentist office and points to a damaged tooth. The dentist, Matt, treats the tooth. If Walter refused to pay and Matt sued,

A)Walter would win as there was no contract.
B)Walter would win because of the UCC.
C)Matt would win; this is an implied contract.
D)Matt would win in quantum meruit .

Question 54

Which of the following represents a unilateral offer?

A)"I will pay you $50 if you mow my lawn."
B)"I will pay you $50 if you promise to trim that tree."
C)"I will pay you $50 for your CD player."
D)"I will pay you $50 for your backpack."