Question 1

A divisible contract is made up of two or more parts,each part being independent of the others.

Accepted Answer

A divisible contract is one where each part is separate and independent of the others, meaning if one part of the contract is found to be invalid or unenforceable, the other parts can still be enforced.

Question 2

It is usually advisable to make a contract in oral when the transaction is important and involves a large amount of money.

Accepted Answer

It is generally not advisable to make a contract orally, especially when the transaction involves a large amount of money. Written contracts provide clear evidence of what was agreed upon, which helps prevent misunderstandings, disputes, and legal problems. Moreover, written contracts can include important terms, conditions, and protections that oral agreements may overlook or omit. Therefore, it is usually better to put the terms of the transaction in writing, especially if it is significant.

Question 3

All contracts are agreements,but not all agreements are contracts.The PRIMARY reason is that:

Accepted Answer

Contracts are a type of legally enforceable agreement. However, not all agreements can be enforced by law. For an agreement to be a contract, it must meet certain legal requirements, such as consideration, offer and acceptance, and intention to create legal relations. Contracts have legal consequences if one party does not meet the obligations agreed upon, while agreements that cannot be enforced by law do not have legal consequences.

Question 4

The element of proper form requires that a contract for the sale of goods over $100 or less should be in writing.

Accepted Answer

The element of proper form requires that a contract for the sale of goods over $500 should be in writing, according to the Statute of Frauds.

Question 5

A promise to give up something of value that a person has a legal right to keep or to agree to do something that he is not legally required to do is known as consideration.

Accepted Answer

This is the definition of consideration in contract law.

Question 6

An executed contract is one in which all terms of the agreement have been fully performed by both parties.

Accepted Answer

An executed contract is one where all parties involved have fulfilled their obligations as outlined in the contract terms.

Question 7

It is not required for a formal contract to be written under a contract seal.

Accepted Answer

The answer of It is not required for a formal...

Question 8

A simple contract is defined as an informal contract made under seal.

Accepted Answer

A simple contract is an informal contract that does not require a seal. A seal is a formal requirement, and contracts made under seal are called contracts "under seal" or "formal contracts."

Question 9

Competent parties can be of any age as long as they understand the terms of a contract.

Accepted Answer

Competent parties must generally be of legal age (usually 18 or older) and mentally capable of understanding the contract's terms. Minors are typically considered not competent to enter into contracts, with some exceptions.

Question 10

An entire or indivisible contract can contain only two parts,and each is required to be independent of the other.

Accepted Answer

An entire or indivisible contract cannot be divided into separate parts that can be performed independently of each other. Rather, the contract must be performed in its entirety, and if one part is breached, the entire contract is considered to be breached.

Question 11

An executory contract is one in which the terms of the agreement have not yet been fully performed.

Accepted Answer

An executory contract is defined as a contract in which one or both parties have not yet fully performed their obligations under the contract.

Question 12

A written contract can be a handwritten note.

Accepted Answer

A written contract can be a handwritten note as long as it meets the necessary legal requirements such as the offer, acceptance, consideration, and certainty of terms. However, it is always advisable to have a formal and professionally drafted contract for important or complex agreements.

Question 13

A contract may be extended and revised as needed to reflect the wishes of the parties.

Accepted Answer

A contract can be extended and revised through a process of negotiation and mutual agreement between the parties involved.

Question 14

The Uniform Commercial Code (UCC)defines a contract under the provision:

Accepted Answer

The UCC defines a contract under the provision of UCC 1-201(11), which states that a contract is an agreement between parties to sell goods, lease goods, or perform services.

Question 15

The law requires a particular form and language to be used in all contracts.

Accepted Answer

While some contracts may require specific language and forms, there is no one-size-fits-all rule when it comes to contract creation. In general, as long as the essential elements of a contract are present (such as offer, acceptance, consideration, etc.), the form and language used can vary depending on the needs and preferences of the parties involved.

Question 16

A contract that is not formal,whether it is written,oral or implied,is also known as a sealed contract.

Accepted Answer

A sealed contract is a formal agreement that requires a seal or signature to make it legally binding. A contract that is not formal, whether it is written, oral, or implied, is known as an informal or simple contract.

Question 17

A contract must show mutual agreement,which is also referred to as "a meeting of the minds."

Accepted Answer

A contract is only valid if all parties involved fully understand and agree to its terms, which is commonly known as a "meeting of the minds." This means that there must be mutual agreement amongst all parties for a contract to be legally binding.

Question 18

A person who discusses the terms of a purchase with a salesperson,pays cash for it,and takes the item with him,is making an unenforceable written contract.

Accepted Answer

The scenario described does not involve a written contract, but rather an oral contract. The transaction is still enforceable, albeit more difficult to demonstrate, as there is no written record of the agreement.

Question 19

To be legally enforceable,a contract must contain any three of the five elements - offer and acceptance,mutual agreement,consideration,competent parties,and legality of purpose.

Accepted Answer

A legally enforceable contract must contain all five elements: offer and acceptance, mutual agreement, consideration, competent parties, and legality of purpose.

Question 20

An enforceable contract can result from an agreement that imposes a legal obligation.

Accepted Answer

An enforceable contract requires an agreement between two or more parties that imposes a legal obligation. The obligations stated in the contract must be supported by consideration, and the parties involved must have the capacity and intention to enter into the agreement. Only then is a contract legally binding and enforceable.

Quiz 7: Introduction to Contracts