Question 1

Demi buys a lottery ticket. The ticket has the winning numbers for a prize. She submits the ticket to claim the prize. Demi accepted an offer for
A) a bilateral contract.
B) a unilateral contract.
C) a quasi contract.
D) an unenforceable contract.

Accepted Answer

A unilateral contract is formed when one party makes a promise in return for the other party's performance. In this case, by buying the lottery ticket, Demi is performing the required action to potentially win the prize. The lottery company is then obligated to fulfill their promise to award the prize if the winning numbers are on Demi's ticket.

Question 2

Ren offers to pay Sara to pick up and deliver certain business documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Ren and Sara will have
A) a bilateral contract.
B) a unilateral contract.
C) a void contract.
D) an executive contract.

Accepted Answer

This is a unilateral contract since Ren is offering a promise to pay if Sara completes the task within the deadline. The contract is accepted only by the completion of the task, making it a unilateral contract.

Question 3

On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had
A) an expired contract when Neil said that he had changed his mind.
B) a quasi contract when Neil said that he would pay for certain work.
C) a unilateral contract as soon as Outdoor began to perform.
D) no contract.

Accepted Answer

When Neil offered to pay Outdoor $500 if certain tasks were completed by Friday, a unilateral contract was formed. This means that Outdoor had to perform the tasks in order to accept the offer, and once they started to perform, the contract was binding. Therefore, Neil could not simply change his mind and cancel the contract once Outdoor had started working.

Question 4

Alyssa hires Bret to mow Alyssa's lawn every Friday. Although they do not discuss the terms of payment, after each of the first three Friday mows, Alyssa pays Bret on Saturday. The payment term is
A) express.
B) implied.
C) quasi.
D) non-existent.

Accepted Answer

The fact that Alyssa pays Bret after each of the first three Friday mows indicates that there is an implied agreement that Bret will be paid for his services.

Question 5

A valid contract requires
A) a price and a subject.
B) a duration and a termination.
C) an offer and an acceptance.
D) specific quality standards.

Accepted Answer

A valid contract requires an offer and an acceptance, which are essential elements to form a binding agreement.

Question 6

Foster promises to buy Gideon's trumpet for $75. Gideon is
A) an offeree.
B) an offeror.
C) a promisee.
D) a promisor.

Accepted Answer

The answer of Foster promises to buy Gideon's trumpet for...

Question 7

Bo signs a lease with Capri Apartments to lease a studio apartment for the next year for $650 per month. Daisy signs on Capri's behalf as their agent. Bo and Capri have executed a(n)
A) no contract.
B) an express contract.
C) an implied contract.
D) a simple contract.

Accepted Answer

Bo and Capri Apartments have executed an express contract. This is because the terms and conditions of the lease, including the rental price and duration of the lease, were explicitly stated and agreed upon by both parties. Additionally, the lease was signed by Capri's agent, Daisy, on their behalf.

Question 8

Clay offers to pay Dot $50 for a golf lesson for Eula. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have
A) a bilateral contract.
B) a void contract.
C) a unilateral contract.
D) no contract.

Accepted Answer

A bilateral contract is formed when both parties exchange promises to perform, which is the case here as Clay promises to pay $50 and Dot promises to provide a golf lesson.

Question 9

Jan tells Lee she will give him her old car if he babysits her son Mark weekday evenings for six months. Lee agrees. Jan and Lee have formed
A) a bilateral contract.
B) a unilateral contract.
C) a void contract.
D) an unenforceable contract.

Accepted Answer

A bilateral contract is a promise for a promise, meaning both parties have made promises to each other. In this scenario, Jan promised to give Lee her old car and Lee promised to babysit Jan's son Mark for six months. Therefore, it is a bilateral contract.

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. The elements of this, and any other, contract include
A) capability.
B) legality.
C) necessity.
D) marketability.

Accepted Answer

Legality is an essential element of any contract, meaning that the agreement must not violate any laws or regulations. The other options listed do not apply in this scenario.

Question 11

When a rainstorm erupts outside Rita's Souvenir & Gift Shop, Rita and Shaw enter into an oral contract to split the revenue from Shaw's sale of umbrellas to Rita's customers. The terms of this contract are defined by
A) the conduct of the parties.
B) the words of the parties.
C) the unforeseeable storm that gave rise to the deal.
D) the unexpressed subjective intent of the parties.

Accepted Answer

The terms of the contract are defined by the words spoken by the parties.

Question 12

Vicky asks Walt, a cobbler, to repair a pair of boots. There is no discussion of a price, and Vicky and Walt do not sign any documents. After the repair, Walt hands Vicky a bill. With respect to Vicky's obligation to pay the bill, this is
A) an express contract.
B) an implied contract.
C) a quasi contract.
D) no contract.

Accepted Answer

This is an implied contract because while there was no express agreement on price, the fact that Vicky asked Walt to repair her boots implies that she would pay for the service. The bill handed over by Walt further solidifies this contract.

Question 13

Ray promises to give Steve his iPhone in exchange for Steve's promise to pay Ray $200. Later, they exchange the iPhone for the funds. A contract was created when
A) Ray offered to sell his iPhone.
B) Ray exchanged his iPhone for $200.
C) Steve promised to pay Ray for the iPhone.
D) Steve paid Ray $200 for the iPhone.

Accepted Answer

A contract was created when Steve promised to pay Ray for the iPhone, as this constituted an offer and acceptance, forming a binding agreement.

Question 14

Pavers, Inc., contracts with a QuikStop store to repave the store's parking lot for a certain price. The requirements of this, and any other, contract include
A) consideration.
B) acceptability.
C) achievability.
D) practicality.

Accepted Answer

All contracts require consideration, which is the exchange of something of value between parties. In this case, Pavers, Inc. is providing a service (repaving the parking lot) in exchange for a certain price. The other options, while important considerations in a contract, are not required elements.

Question 15

Eve agrees to work for Far East Shipping, Ltd., as a translator. In determining whether a contract has been formed, an element of prime importance is
A) the parties' intent.
B) Far East's base.
C) the work's duration.
D) Eve's capabilities.

Accepted Answer

The intent of the parties is a fundamental element in determining whether a contract has been formed, as it reflects their willingness to enter into a binding agreement.

Question 16

On behalf of the jazz group Fusion, their manager Greg agrees to a performance in Hillside Amphitheatre on July 4. Hillside sends a written copy of the agreement to Greg to be signed . If Greg signs the copy, the parties will have
A) an express contract.
B) an implied contract.
C) a quasi contract.
D) no contract.

Accepted Answer

An express contract is formed when the terms are stated clearly, either orally or in writing. If Greg signs the written agreement, it becomes an express contract.

Question 17

Omar asserts that a deal he entered into with Patty to sponsor and host a motivational conference for independent sales representatives is an unenforce-able contract. Defenses to the enforcement of a contract include
A) a desire not to perform.
B) insufficient capital.
C) preliminary indications of unsatisfactory results.
D) the lack of a party's voluntary consent.

Accepted Answer

The lack of a party's voluntary consent is a defense to the enforcement of a contract. Omar may assert that he did not voluntarily consent to the deal with Patty, which would make the contract unenforceable. The other options listed are not defenses to the enforcement of a contract.

Question 18

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 as promised, they may be required to pay money damages to Nora for breach of contract. This is a common remedy in contract law when one party fails to fulfill their obligations under the agreement. The other options listed are not typically required in a breach of contract situation.

Question 19

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have
A) no contract.
B) an express contract.
C) an implied contract.
D) a quasi contract.

Accepted Answer

The parties have entered into an express contract, as they have reached a clear agreement (to buy and sell a specific textbook for a specific price) and both parties have given their mutual assent.

Question 20

Marketing Inc. offers to create a campaign to increase N'Ice Cream Inc.'s online business. N'Ice agrees to pay for the service. These parties have
A) no contract.
B) an express contract.
C) an implied contract.
D) a quasi contract.

Accepted Answer

The fact that N'Ice Cream Inc. has agreed to pay for Marketing Inc.'s services suggests that there is an express contract between the two parties. The terms of the contract would likely outline the specific services to be provided and the payment arrangement.

Quiz 8: Introduction to Contracts

Demi buys a lottery ticket. The ticket has the winning numbers for a prize. She submits the ticket to claim the prize. Demi accepted an offer for

Ren offers to pay Sara to pick up and deliver certain business documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Ren and Sara will have

On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had

Alyssa hires Bret to mow Alyssa's lawn every Friday. Although they do not discuss the terms of payment, after each of the first three Friday mows, Alyssa pays Bret on Saturday. The payment term is

A valid contract requires

Foster promises to buy Gideon's trumpet for $75. Gideon is

Bo signs a lease with Capri Apartments to lease a studio apartment for the next year for $650 per month. Daisy signs on Capri's behalf as their agent. Bo and Capri have executed a(n)

Clay offers to pay Dot $50 for a golf lesson for Eula. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have

Jan tells Lee she will give him her old car if he babysits her son Mark weekday evenings for six months. Lee agrees. Jan and Lee have formed

Field Construction Inc. contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay. The elements of this, and any other, contract include

When a rainstorm erupts outside Rita's Souvenir & Gift Shop, Rita and Shaw enter into an oral contract to split the revenue from Shaw's sale of umbrellas to Rita's customers. The terms of this contract are defined by

Vicky asks Walt, a cobbler, to repair a pair of boots. There is no discussion of a price, and Vicky and Walt do not sign any documents. After the repair, Walt hands Vicky a bill. With respect to Vicky's obligation to pay the bill, this is

Ray promises to give Steve his iPhone in exchange for Steve's promise to pay Ray $200. Later, they exchange the iPhone for the funds. A contract was created when

Pavers, Inc., contracts with a QuikStop store to repave the store's parking lot for a certain price. The requirements of this, and any other, contract include

Eve agrees to work for Far East Shipping, Ltd., as a translator. In determining whether a contract has been formed, an element of prime importance is

On behalf of the jazz group Fusion, their manager Greg agrees to a performance in Hillside Amphitheatre on July 4. Hillside sends a written copy of the agreement to Greg to be signed . If Greg signs the copy, the parties will have

Omar asserts that a deal he entered into with Patty to sponsor and host a motivational conference for independent sales representatives is an unenforce-able contract. Defenses to the enforcement of a contract include

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

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have

Marketing Inc. offers to create a campaign to increase N'Ice Cream Inc.'s online business. N'Ice agrees to pay for the service. These parties have