Question 1

Vernon claims that his contract with Ulani is voidable.If their contract is avoided
A)both parties are released from it.
B)both parties must fully perform their obligations under it.
C)a wholly different contract is agreed to.
D)a wholly different contract is imposed "as if" the parties had agreed.

Accepted Answer

If the contract is deemed voidable, it means that either party has the option to void it or cancel it. If one party chooses to do so, the contract becomes void and both parties are released from their obligations under it, making option A the correct choice.

Question 2

Lana applies for a firefighter's job with Metro City,which responds with a letter setting an appointment for a medical exam.The letter also states that it is "an employment offer conditioned on the applicant passing the exam." This letter is
A)a bilateral contract that Lana accepted by applying for the job.
B)a quasi contract on which Lana can rely for employment.
C)a unilateral contract that Lana can accept by passing the exam.
D)no contract.

Accepted Answer

The letter is a unilateral contract because it is an offer that can be accepted by performing a specific act – passing the medical exam. Lana can accept the offer by completing the required act, but until then there is no contract.

Question 3

Employment Sources,Inc. ,enters into a contract with Fred.If Fred is a minor,this contract is most likely
A)enforceable.
B)unenforceable.
C)void.
D)voidable.

Accepted Answer

If Fred is a minor, then the contract is considered voidable. This means that Fred has the option to either enforce or disaffirm the contract. The reason for this is that minors are not considered legally competent to enter into contracts. Therefore, if Fred chooses to disaffirm the contract, the contract becomes void and neither party is obligated to perform.

Question 4

Scot and Tiffany enter into an implied-in-fact contract.The parties' conduct
A)defines the contract's terms.
B)finds the contract's facts.
C)terminates any unintended consequences.
D)undercuts any terms based on the facts.

Accepted Answer

In an implied-in-fact contract, the parties' conduct defines the contract's terms. That is, the agreement is implied from the circumstances or conduct of the parties rather than being explicitly stated in writing or verbally. Therefore, the correct choice is A, which states that the parties' conduct defines the terms of the contract.

Question 5

GR8 Marketing Company and Hot Tunes,Inc. ,sign a document that states GR8 agrees to create a marketing campaign for Hot and Hot agrees to pay GR8 for the service.GR8 and Hot have
A)an executed contract.
B)an express contract.
C)an implied contract.
D)a quasi contract.

Accepted Answer

An express contract is formed when the terms are clearly stated, either orally or in writing, as in the case of the document signed by GR8 and Hot Tunes, Inc.

Question 6

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 tells Outdoor Landscaping, Inc. that he will pay them $500 if a variety of tasks are completed by Friday, this creates a unilateral contract. Once Outdoor began to perform the tasks, they accepted the offer and the contract became binding. Therefore, even though Neil attempted to change his mind on Wednesday, the contract was still in effect and he would be obligated to pay Outdoor the agreed-upon amount upon completion of the tasks.

Question 7

Lou claims that he and Myra entered into an implied-in-fact contract.To establish this contract,it is not necessary to show that
A)a court imposed a promise in the interest of fairness.
B)Lou expected to be paid for providing services or property.
C)Lou provided Myra with services or property.
D)Myra failed to reject services or property provided by Lou.

Accepted Answer

The answer of Lou claims that he and Myra entered...

Question 8

Mona asserts that a contract she entered into with Nate is unenforceable.Defenses to the enforcement of a contract include
A)a desire not to perform.
B)adverse economic consequences.
C)results that do not match expectations.
D)the lack of a party's genuine assent.

Accepted Answer

The lack of a party's genuine assent is a valid defense to the enforcement of a contract. This could occur if a party was coerced or misled into entering the contract, or if there was a mistake or misunderstanding about the terms of the agreement. Choices A, B, and C are not valid defenses and may be considered breach of contract or a failure to perform.

Question 9

Livewire Company and Kitchen Products,Inc. ,sign a document that states Livewire agrees to design a Web site for Kitchen Products,which agrees to pay for the service.Livewire and Kitchen Products have made
A)an express contract.
B)an implied contract.
C)a quasi contract.
D)no contract.

Accepted Answer

Livewire and Kitchen Products have made an express contract by signing a document that outlines the terms and conditions of their agreement.

Question 10

Avatar,Inc. ,and Bling Corporation sign a contract in which Avatar agrees to deliver t-shirts emblazoned with video game characters in exchange for Bling's promise to pay.Avatar delivers.The contract is
A)voidable.
B)executed.
C)executive.
D)executory.

Accepted Answer

The answer of Avatar,Inc. ,and Bling Corporation sign a contract...

Question 11

On behalf of the rock group Uno,their manager Thalia agrees to a performance in Seaside Amphitheatre on July 4.Rex,acting for Seaside Productions,sends a written copy of the agreement to Thalia to be signed.Typically,businesspersons put their contracts in writing to
A)ensure proof of the contracts' existence.
B)create substance from form.
C)obtain a check or other negotiable instrument.
D)practice their "letters of credit."

Accepted Answer

Putting contracts in writing provides evidence of the agreement's existence, which can be important in case of a dispute or the need to enforce the agreement. It can also ensure that both parties have a clear understanding of the terms and conditions.

Question 12

Expert Pavers,Inc. ,contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay.The requirements of this,and any other,contract do not include
A)consideration.
B)capacity.
C)legality.
D)practicality.

Accepted Answer

While practicality may be a factor in the negotiation and execution of the contract, it is not a requirement that must be explicitly stated in the contract. The other three elements, consideration, capacity, and legality, are essential to the validity of any contract.

Question 13

When Jeff's car breaks down,he asks Kwik Tow,Inc. ,to tow it from its location to Loyal Repair Shop.There is no discussion of a price,and Jeff and Kwik do not sign any documents.After the tow,Kwik sends Jeff a bill.With respect to Jeff'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 example of an implied contract because there was no discussion of a specific price or signing of any documents, but it is implied that there will be payment for the services rendered.

Question 14

Flo tells Gregor that she will buy his textbook from last semester for $65.Gregor agrees.Flo and Gregor have
A)an executed contract.
B)an express contract.
C)an implied contract.
D)a quasi contract.

Accepted Answer

The answer of Flo tells Gregor that she will buy...

Question 15

Opie offers to sell his guitar to Pinky for $100.Pinky agrees and writes a check payable to the order of Opie for the price.This check is
A)a formal contract.
B)an informal contract.
C)a social contract.
D)no contract.

Accepted Answer

A check is a formal contract because it is a written agreement to pay a certain amount of money to a specific person.

Question 16

Bay City Construction,Inc. ,a contractor,asks Cool Electric,a subcontractor,to provide certain services.Nothing is expressed about payment.Cool provides the services,but Bay City refuses to pay.In Cool's suit to recover,the chief issue is most likely to be whether these parties had
A)a formal contract.
B)an actual contract.
C)an implied contract.
D)a voidable contract.

Accepted Answer

The chief issue is likely to be whether these parties had an implied contract. Even though nothing was expressed about payment, the fact that Bay City asked Cool to provide certain services implies that there was an agreement or understanding between the parties that Cool would be compensated for the services. Therefore, an implied contract may have been formed between them.

Question 17

Tania promises to buy Saki's handheld game-player for $75.Saki is
A)an executee.
B)an offeror.
C)a promisee.
D)a promisor.

Accepted Answer

Saki is the promisee because Tania promises to buy Saki's handheld game-player.

Question 18

Peter offers to pay Quik Delivery (QD)$50 if it picks up and delivers to him a package from Rico within 30 minutes.QD can accept the offer only by meeting the deadline.If QD performs as directed,these parties will have
A)a bilateral contract.
B)a trilateral contract.
C)a unilateral contract.
D)no contract.

Accepted Answer

This is a unilateral contract because Peter is making an offer to QD, and the acceptance of the offer is by performance (i.e. picking up and delivering the package within 30 minutes). QD can accept the offer only by meeting the deadline, and if it does so, then a contract is formed. Therefore, the contract is unilateral because only one party (QD) has the power to accept by performance, and the other party (Peter) already made the offer.

Question 19

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 trilateral contract.
C)a unilateral contract.
D)no contract.

Accepted Answer

A bilateral contract is a type of contract that involves two parties who make promises to each other. In this scenario, Clay is promising to pay $50 for a golf lesson from Dot, and Dot is promising to provide the golf lesson. Both parties are making promises and are exchanging something of value (the lesson for the money), which makes it a bilateral contract.

Question 20

Cole drives into Dino's Service Station and asks Erin,the attendant,to fill the tank in Cole's hybrid vehicle.After Erin fills the tank,but before Cole pays for the gas,any contract between Cole and Dino's is
A)executed.
B)executory.
C)quasi.
D)unenforceable.

Accepted Answer

The contract is executory because payment has not been made yet.

Quiz 7: Nature and Classification

Vernon claims that his contract with Ulani is voidable.If their contract is avoided

Lana applies for a firefighter's job with Metro City,which responds with a letter setting an appointment for a medical exam.The letter also states that it is "an employment offer conditioned on the applicant passing the exam." This letter is

Employment Sources,Inc. ,enters into a contract with Fred.If Fred is a minor,this contract is most likely

Scot and Tiffany enter into an implied-in-fact contract.The parties' conduct

GR8 Marketing Company and Hot Tunes,Inc. ,sign a document that states GR8 agrees to create a marketing campaign for Hot and Hot agrees to pay GR8 for the service.GR8 and Hot 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

Lou claims that he and Myra entered into an implied-in-fact contract.To establish this contract,it is not necessary to show that

Mona asserts that a contract she entered into with Nate is unenforceable.Defenses to the enforcement of a contract include

Livewire Company and Kitchen Products,Inc. ,sign a document that states Livewire agrees to design a Web site for Kitchen Products,which agrees to pay for the service.Livewire and Kitchen Products have made

Avatar,Inc. ,and Bling Corporation sign a contract in which Avatar agrees to deliver t-shirts emblazoned with video game characters in exchange for Bling's promise to pay.Avatar delivers.The contract is

On behalf of the rock group Uno,their manager Thalia agrees to a performance in Seaside Amphitheatre on July 4.Rex,acting for Seaside Productions,sends a written copy of the agreement to Thalia to be signed.Typically,businesspersons put their contracts in writing to

Expert Pavers,Inc. ,contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay.The requirements of this,and any other,contract do not include

When Jeff's car breaks down,he asks Kwik Tow,Inc. ,to tow it from its location to Loyal Repair Shop.There is no discussion of a price,and Jeff and Kwik do not sign any documents.After the tow,Kwik sends Jeff a bill.With respect to Jeff's obligation to pay the bill,this is

Flo tells Gregor that she will buy his textbook from last semester for $65.Gregor agrees.Flo and Gregor have

Opie offers to sell his guitar to Pinky for $100.Pinky agrees and writes a check payable to the order of Opie for the price.This check is

Bay City Construction,Inc. ,a contractor,asks Cool Electric,a subcontractor,to provide certain services.Nothing is expressed about payment.Cool provides the services,but Bay City refuses to pay.In Cool's suit to recover,the chief issue is most likely to be whether these parties had

Tania promises to buy Saki's handheld game-player for $75.Saki is

Peter offers to pay Quik Delivery (QD) $50 if it picks up and delivers to him a package from Rico within 30 minutes.QD can accept the offer only by meeting the deadline.If QD performs as directed,these parties will have

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

Cole drives into Dino's Service Station and asks Erin,the attendant,to fill the tank in Cole's hybrid vehicle.After Erin fills the tank,but before Cole pays for the gas,any contract between Cole and Dino's is