Deck 6: Overview and Language of Contracts

Question 1

Express contracts arise from the parties' conduct.

Answer 1

False

Question 2

Contracts that involve goods and services are known as contracts.

Answer 2

hybrid

Question 3

All contracts can be classified in seven ways.

Answer 3

True

Question 4

When a party may,at his or her option,either disaffirm or enforce a contract,that contract is said to be .

Question 5

Valid contracts can be written or oral.

Question 6

Justin is 17 years old and just signed a contract to buy his first car.This contract is unenforceable.

Question 7

A promise made in return for a detriment previously made by the promisee that does not meet the bargained-for exchange requirement is called .

Question 8

An offer is considered to have terminated via when a time limit attached by the offeror expires or after a reasonable time has passed.

Question 9

Parties must be of proper age and mental competence to have to contract.

Question 10

When a contract is formed from a party's actions rather than the party's words,it is called a[n]
contract.

Question 11

A contract is a promise or set of promises by law.

Question 12

is the element of a contract that requires a bargained-for exchange of goods and/or services that are recognized as valuable.

Question 13

The reason and outcome of the contract must be for a purpose.

Question 14

Each contract should cover a singular promise,and if multiple promises are involved,multiple contracts should be created.

Question 15

Void contracts are seemingly valid contracts that one party has the right to declare void.

Question 16

Ralph calls Alice and asks her out on a date to see a movie.Alice agrees.This is the type of promise that the courts will enforce as a contract.

Question 17

A unilateral contract is formed when a promise requires acceptance by performance.

Question 18

Only written agreements are enforceable as contracts by courts.

Question 19

A unilateral contract is formed by an exchange of promises.

Question 20

To have assent,there must be an offer and agreement between the parties.

Question 21

A negotiation to buy a car is an example of entering into an implied contract.

Question 22

A building manager hires a painting company to paint the common areas in the building.The manager will supply all of the paint.This contract is a hybrid contract.

Question 23

The Uniform Commercial Code (UCC)is law that governs contracts for the sale of goods.

Question 24

The terms agreement and contract have the same meaning.

Question 25

A valid contract is one that has all the necessary elements and,thus,can be enforced.

Question 26

A contract for installing a new furnace is an example of a hybrid contract.

Question 27

Common law governs a contract that involves installation of computer equipment when materials are valued at $75,000 and labor is $10,000.

Question 28

An enforceable contract has four necessary elements: mutual assent,capacity to contract,consideration,and legal purpose.

Question 29

Unjust enrichment is a theory used to impose an obligation in the absence of an actual agreement.

Question 30

A promise is illusory and will not be enforced by courts when the offeror is not truly bound by his or her vague promise.

Question 31

Mary is 16 years old and promises her mother that she will not smoke cigarettes until she is 18,the age under state law for legally purchasing and possessing tobacco.In exchange,her mother gives her $1,000.There is sufficient consideration for a valid contract.

Question 32

Legal purpose means the contract itself does not violate the law.

Question 33

Any meeting of the minds resulting in mutual assent to do or refrain from doing something is called a contract.

Question 34

Sophia stops at a coffee shop after class and orders a latte.This is an example of an implied contract.

Question 35

The mailbox rule is a principle stating that the offeree's response operates as an acceptance only if it is the precise mirror image of the offer.

Question 36

A legal defense renders a contract unenforceable,even though it has the necessary elements of a valid contract.

Question 37

Under a bilateral contract,there is no contract until the offeree performs the requested act.

Question 38

Elise hires an artist to paint a portrait of her family.This contract is governed by common law.

Question 39

A handyman goes to the wrong house by mistake and cleans the gutters while the homeowners are at work.The homeowners will have to pay for the service under the quasi-contract theory of unjust enrichment.

Question 40

Most contracts require a specific format or ceremony.

Question 41

A contract that lacks one or more of the basic required elements of a contract or that has not been formed in conformance with the law from the outset of the agreement is considered

A) void.
B) voidable.
C) valid.
D) enforceable.

Question 42

A promise that can be accepted only by the performance of the person to whom it is offered is an example of
A) a bilateral contract.

A) an implied contract.
B) a unilateral contract.
D) a quasi-contract.

Question 43

Mike is walking through a parking lot and finds Kathy lying unconscious.He puts her in his car and takes her to the hospital.The hospital saves her life,and when she becomes conscious,it presents her with a bill.

A) Kathy has to pay based on a unilateral contract.
B) Kathy has to pay based on an implied contract.
C) Kathy has to pay based on a quasi-contract.
D) Mike has to pay because he brought her to the hospital.

Question 44

Most advertisements in the mass media are not offers because they

A) are specific enough to constitute a unilateral contract.
B) require that the consumer accept the offer in a specific manner.
C) contain a specific commitment to sell.
D) do not contain a specific commitment to sell.

Question 45

In general,contracts for services are governed by
A) state common law.

A) the Uniform Commercial Code.
B) state statutory law.
D) federal law.

Question 46

When a party to a contract is of proper age and mental competence,it is said that he or she has
A) capacity to contract.

A) mutual assent.
B) legal purpose.
D) consideration.

Question 47

When the reason and outcome of a contract are legal,the contract has

A) legal purpose.
B) consideration.
C) capacity.
D) mutual assent.

Question 48

When Maria comes home from work,she finds that her yard has been mowed and trimmed.An hour later,a man comes to her door to collect payment for the yard work.Maria refuses to pay him because she has never seen him before and did not hire him to do the work.Which of the following is accurate?

A) This is an implied, unilateral contract, so she must pay.
B) Maria has received unjust enrichment, so a quasi-contract is formed and she must pay.
C) The court would make Maria pay the reasonable cost of the work to be fair to both parties.
D) Maria would not have to pay anything.

Question 49

An offer of a reward,if it is fulfilled,forms
A) a bilateral contract.

A) an express contract.
B) a unilateral contract.
D) a quasi-contract.

Question 50

At this moment,your contract with your university or college is
A) implied, bilateral, and valid.

A) implied, unilateral, and voidable.
B) express, bilateral, and valid.
D) quasi, unilateral, and voidable.

Question 51

All of the following are necessary elements of a contract except

A) mutual assent.
B) capacity.
C) writing.
D) consideration.

Question 52

Which of the following is formed to remedy unjust enrichment?
A) express contract

A) implied contract
B) contract based on promissory estoppel
D) quasi-contract

Question 53

When an offer and agreement exist between parties,this is called

A) capacity.
B) legal purpose.
C) consideration.
D) mutual assent.

Question 54

A[n] is where the offeror agrees to hold an offer open and not to enter into a contract with another party for a certain period of time in exchange for consideration.
A) a divisible contract

A) a severable contract
B) option contract
D) a voidable contract

Question 55

Brandi orally tells Mike,her landscaper,"If you trim my hedges,I'll pay you $50." Mike trims her hedges.Which of the following is correct?
A) This is a formal contract.

A) This is a unilateral contract.
B) This is a bilateral contract.
D) This is a quasi-contract.

Question 56

ABC Land Co.is negotiating the sale of an office building to Mega Co.Which laws will govern the contract for the sale of the building?

A) Hybrid laws.
B) The Uniform Commercial Code.
C) State statutory law based on the Uniform Commercial Code.
D) State common law.

Question 57

In general,contracts for the sale of goods are governed by:

A) state common law.
B) state statutory law based on the Uniform Commercial Code.
C) federal regulations.
D) the Uniform Commercial Code.

Question 58

Helen's cat Fluffy has run away,and she places reward posters throughout her neighborhood.Mark sees one of the reward posters and spends the next six hours searching for Fluffy.While Mark is searching the neighborhood,Fluffy gets hungry and comes home.

A) This is a bilateral contract, and Mark is entitled to be compensated for his efforts.
B) This is a bilateral contract, and Mark is entitled to nothing because he did not perform.
C) This is a unilateral contract, and Mark is entitled to be compensated for his efforts.
D) This is a unilateral contract, and Mark is entitled to nothing because he did not perform.

Question 59

Something of value that is exchanged as part of an agreement is called

A) mutual assent.
B) consideration.
C) capacity.
D) legal purpose.

Question 60

A professor tells a student that if she writes a 5,000-word paper on the evils of plagiarism by May 13,he will pay her $750.Which of the following is true?

A) The offer is for a unilateral contract.
B) If the student gives the paper to the professor on May 14, the money is owed because the student came close and did get the paper done.
C) This contract is enforceable only if it is in writing.
D) This contract is enforceable only if the student verbally or in writing accepts the offer prior to beginning the paper.

Question 61

A consulting contract between a management consulting firm and a software company is governed by what source of law?
A) Common law.

A) The Uniform Commercial Code.
B) Statutory law.
D) Law at equity.

Question 62

An agreement to buy cocaine from a drug dealer is
A) a valid contract.

A) a voidable contract.
B) a void contract.
D) an unenforceable contract.

Question 63

An agreement between two adults to pay $300 cash for a bicycle is an example of a contract that is

A) valid.
B) void.
C) voidable.
D) unenforceable.

Question 64

A contract in which one party may disaffirm or enforce the contract is
A) a valid contract.

A) a voidable contract.
B) a void contract.
D) an unenforceable contract.

Question 65

Alan lives in a beachfront home,and one morning he discovers an adult woman who has washed up on shore and is unconscious.Alan takes her into his home and administers aid to her.She awakens after a few hours but has amnesia,not knowing who she is or how she ended up washed ashore on his property.Alan cares for her for two weeks,and then her memory returns.She fell overboard while sailing with her wealthy parents on their yacht.She tells him that her name is April,and she provides him with contact information for her parents.Naturally,when Alan calls,they are ecstatic.They tell Alan that they will fly in to pick her up the next day and that he should tally up his expenses and they will reimburse him for his costs.When they arrive,Alan gives them the cost sheet,which they refuse to pay.Does Alan have any rights against the parents? Does Alan have any rights against April?

Question 66

Franz asks Joe if he will paint his office building for $1,000.Joe says he will do the job for $2,000.Joe's response is
A) a counteroffer.

A) an acceptance.
B) a rejection.
D) a mirror image offer.

Question 67

An offer may be terminated in all but which of the following ways?

A) revocation
B) acceptance
C) rejection
D) counteroffer

Question 68

April is at work when a commercial painter's truck pulls up in front of her house.After checking the address on his assignment sheet,the painter starts erecting ladders against April's house and unloading brushes,rollers,and cans of paint.April has not contracted with this company,and the company has mistakenly put the wrong address on the painter's assignment sheet.When April arrives home,the painter is just finishing and he presents her with a bill.Is she obligated to pay? Why or why not?

Question 69

What are some examples of contracts in the business context,and how does having an understanding of contract law help business owners and managers?

Question 70

Tina's dog has run away.She places reward posters throughout the neighborhood and places an ad in the local newspaper.Ted,her good friend,sees Tina's dog wandering and takes the dog back to Tina's house without ever seeing a poster or the newspaper advertisement.After he leaves her home,he then sees a reward poster.If he returns and demands the reward,is Tina obligated to pay?

Question 71

Why is it so important that the law of contracts be ordered and strong,particularly with regard to the business world?

Question 72

Randy is home when a landscaping crew enters his yard and begins working on his front garden beds and lawn.Randy did not hire the crew,but he allows them to continue working.Explain whether Randy will have to pay for the work.

Question 73

What are the categories of contracts in the following scenario?
Dr.Pearson,an avid skier,decides to purchase a new pair of skis.He goes to a local ski shop and is assisted by the shop's owner as he looks at several pairs.He really likes a pair that costs $1,085,the most expensive set in the store,and says he will buy them if the owner will include bindings.The owner agrees and prints an order form with instructions to the shop staff for fitting the skis with bindings.Dr.Pearson pays for the skis and collects his receipt.The shop staff prepares the skis,and Dr.Pearson returns the following week to pick them up,ready to hit the slopes.

Question 74

Will and Kendrick live in a state that requires that contracts involving transactions over $500 be in writing.If they enter a verbal agreement to buy a car for $1,500,this contract is

A) valid.
B) void.
C) voidable.
D) unenforceable.

Question 75

When a store places an advertisement in a newspaper or runs an ad on the radio,what are the store's obligations if a customer arrives at the store and demands to purchase the item at the advertised price? Be complete.

Question 76

In Lucy v.Zehmer,the two parties were drinking in a bar when Lucy offered to buy Zehmer's farm.After some negotiation,a written contract was executed.Zehmer claimed the entire episode was a joke and he never intended to sell his farm.The court determined that

A) since Zehmer claimed to be "high as a Georgia pine" and it was only the liquor talking, there was no contract.
B) since the contract was written without lawyers present, it was likely not really serious, so no contract was actually formed.
C) because the terms were fair, the parties are bound by the contract regardless of their intent or capacity.
D) Zehmer's actions made him appear serious; therefore, he was bound by his act despite what he was inwardly thinking.

Question 77

Ally,a minor,purchases a car from a used-car dealer.The law allows minors the right to cancel a contract until the time the minor turns 18.The contract between Ally and the dealer is
A) a valid contract.

A) a void contract.
B) a voidable contract.
D) an unenforceable contract.

Question 78

Courts enforce contracts only if each party has the legal capacity to enter into a contract.Which classes of persons have limited power to contract?

Question 79

If the offer specifies no time limit to which to accept

A) the offeree has a reasonable amount of time to accept.
B) the offeree has 30 days to accept.
C) the offeree has an unlimited amount of time to accept as long as a revocation has not been made.
D) the offeree has 10 days to accept.

Question 80

In lawsuits that involve both goods and services,how is the proper source of law to enforce and govern the agreement established?