Question 1

Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself against disputes involving these contracts by making important terms​

Accepted Answer

Making important terms reasonably clear helps prevent misunderstandings and disputes by ensuring that all parties understand their rights and obligations.

Question 2

Younger asks Zoey, "Do you want to buy one of my fishing rods?" This is​

Accepted Answer

The terms of the offer are not definite as it lacks specific details such as price, which is necessary for a valid offer.

Question 3

Play-It-Loud, LLC, provides music-streaming services online subject to complex pricing schedules. To control specific offers for the services and thus the resulting contracts, important terms to provide online include​

Accepted Answer

A provision relating to the resolution of any dispute is important to provide online, as it sets out the process for resolving any disagreements that may arise between the company and its customers.

Question 4

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

Accepted Answer

A unilateral contract is formed when one party makes a promise in exchange for the other party's performance. Here, Paige's offer can only be accepted by QD's performance (picking up and delivering the package within 30 minutes), making it a unilateral contract.

Question 5

Liz offers to sell Jock her iPad for $500 without any accessories. Under the mirror image rule, Jock's response will be considered an acceptance if the terms of the acceptance​

Accepted Answer

The mirror image rule states that an acceptance must exactly mirror the terms of the offer. Therefore, Jock's response must be an unqualified acceptance of Liz's offer for $500 without any accessories in order to form a binding contract. Any changes to the terms would be considered a counteroffer.

Question 6

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

Accepted Answer

The terms of an oral contract are defined by the conduct of the parties.

Question 7

Mallory promises to buy illegal digital copies of movies from Nick, who promises to deliver on October 31. These promises are most likely​

Accepted Answer

The promises made by Mallory and Nick are for illegal activity, which is against public policy and therefore not legally enforceable. As a result, the promises are void.

Question 8

​Refer to Fact Pattern 8-1. If Teatro says it is asking for the extra $250,000 because ordinary business expenses have increased, the agreement is

Accepted Answer

The agreement is unenforceable due to the preexisting duty rule, which states that a promise to do something that one is already legally obligated to do is not valid consideration for a new contract.

Question 9

Gayla tells Franco that she will pay him $50 to haul the trimmed tree limbs and other lawn debris from her property. Franco's acceptance is complete​

Accepted Answer

The answer of Gayla tells Franco that she will pay...

Question 10

Valley Paragliders Association files a suit against Wing Designers, Inc., claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if​

Accepted Answer

The court will examine the existence of consideration, meaning that something of value passed between the parties, but it will not typically examine the adequacy of the consideration, unless it is shown to be grossly inadequate or lacking in value altogether.

Question 11

Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Relay's acceptance by e-mail will be considered effective when​

Accepted Answer

Under the mailbox rule, acceptance by e-mail is considered effective when it is sent. Therefore, once Relay sends their acceptance via e-mail, the contract will be formed.

Question 12

Diversions, Inc., makes video, games. Ember buys a copy of Final Infinity. Inside the package is a shrink-wrap agreement. With respect to the contract for the game's purchase, the shrink-wrap agreement may not be enforced if Ember​

Accepted Answer

A shrink-wrap agreement is a contract that is included with a product and is only enforceable if the purchaser has an opportunity to read it before the purchase is made. If Ember learns of the shrink-wrap agreement after the contract is formed (i.e. after purchasing the game), it cannot be enforced. Therefore, option B is the correct answer. The other options are irrelevant to the enforceability of the shrink-wrap agreement.

Question 13

Frisco offers to buy a Gibson guitar owned by Hayden for twice what Hayden paid for it. She accepts and hands the guitar to Frisco. Her delivery of the guitar is​

Accepted Answer

The offer made by Frisco, to pay twice the amount for the guitar, is a valid consideration. Hayden has accepted the offer and has handed over the guitar to Frisco, which completes the contract. Therefore, the delivery of the guitar is also a part of the consideration in this case.

Question 14

Rafi offers a tour of Bay Harbor aboard his sailboat, Sea Siren, to Tiara's Travel Group for $500. Referring to the prices for similar tours, Tiara's says, "We'll pay no more than $400." Rafi's offer is

Accepted Answer

Tiara's Travel Group has rejected Rafi's initial offer and has stated their willingness to pay no more than $400. This opens up the possibility of a counteroffer from Rafi or negotiation between the two parties. The offer has not been terminated or revoked, as there is still room for discussion.

Question 15

Digital Enterprise, Inc., promises to pay its employees a year-end bonus "if profits continue to be high and management agrees at the time." This is​

Accepted Answer

The promise of Digital Enterprise, Inc. to pay a year-end bonus is an illusory promise because it depends on the condition "if profits continue to be high and management agrees at the time." This means that the promise may not actually result in a bonus being paid, making it unenforceable as a contract.

Question 16

Richie, a user of SmartPhoneApps.com's Web site, can download apps for free if he first clicks on "I accept" after viewing certain terms. This is​

Accepted Answer

By clicking "I accept" after viewing certain terms, Richie has formed a contract with SmartPhoneApps.com that includes the terms.

Question 17

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)

Accepted Answer

An express contract is one where the terms are clearly stated, either orally or in writing. In this case, Bo and Capri Apartments have a clear agreement with specified terms for leasing the apartment, making it an express contract.

Question 18

Business Properties, Inc. (BPI), offers to sell a warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This​

Accepted Answer

When Corporate Investments offers to pay $100 to hold the offer open for three business days, they are making a counteroffer to Business Properties Inc.'s original offer. This counteroffer puts a time restraint on the acceptance of BPI's offer and, if BPI accepts, makes the offer irrevocable for the three-day period.

Question 19

While sailboarding, Jolene is injured when Kilroy carelessly crosses her path. Kilroy's insurance company offers Jolene $50,000 to release Kilroy from liability, and she accepts. Later, she learns that her injuries are more serious than she realized. The release is​

Accepted Answer

The release is enforceable because Jolene accepted the offer from Kilroy's insurance company. When someone accepts a settlement offer, they are typically providing a release of liability in exchange for the agreed upon compensation. Jolene cannot now try to recover additional damages after accepting the settlement offer unless she can prove a valid legal reason for doing so, such as fraud or a mistake in understanding the extent of her injuries at the time she accepted the offer.

Question 20

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

Accepted Answer

An implied contract is formed by the conduct of the parties rather than explicit words. Lou's request for repair and Mark's completion of the work imply an agreement that Lou will pay for the service.

Quiz 8: Agreement and Consideration in Contracts

Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself against disputes involving these contracts by making important terms

Younger asks Zoey, "Do you want to buy one of my fishing rods?" This is

Play-It-Loud, LLC, provides music-streaming services online subject to complex pricing schedules. To control specific offers for the services and thus the resulting contracts, important terms to provide online include

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

Liz offers to sell Jock her iPad for $500 without any accessories. Under the mirror image rule, Jock's response will be considered an acceptance if the terms of the acceptance

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

Mallory promises to buy illegal digital copies of movies from Nick, who promises to deliver on October 31. These promises are most likely

Refer to Fact Pattern 8-1. If Teatro says it is asking for the extra $250,000 because ordinary business expenses have increased, the agreement is

Gayla tells Franco that she will pay him $50 to haul the trimmed tree limbs and other lawn debris from her property. Franco's acceptance is complete

Valley Paragliders Association files a suit against Wing Designers, Inc., claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if

Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Relay's acceptance by e-mail will be considered effective when

Diversions, Inc., makes video, games. Ember buys a copy of Final Infinity. Inside the package is a shrink-wrap agreement. With respect to the contract for the game's purchase, the shrink-wrap agreement may not be enforced if Ember

Frisco offers to buy a Gibson guitar owned by Hayden for twice what Hayden paid for it. She accepts and hands the guitar to Frisco. Her delivery of the guitar is

Rafi offers a tour of Bay Harbor aboard his sailboat, Sea Siren, to Tiara's Travel Group for $500. Referring to the prices for similar tours, Tiara's says, "We'll pay no more than $400." Rafi's offer is

Digital Enterprise, Inc., promises to pay its employees a year-end bonus "if profits continue to be high and management agrees at the time." This is

Richie, a user of SmartPhoneApps.com's Web site, can download apps for free if he first clicks on "I accept" after viewing certain terms. This 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)

Business Properties, Inc. (BPI) , offers to sell a warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This

While sailboarding, Jolene is injured when Kilroy carelessly crosses her path. Kilroy's insurance company offers Jolene $50,000 to release Kilroy from liability, and she accepts. Later, she learns that her injuries are more serious than she realized. The release is

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

Quiz 8: Agreement and Consideration in Contracts

Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself against disputes involving these contracts by making important terms​

Younger asks Zoey, "Do you want to buy one of my fishing rods?" This is​

Play-It-Loud, LLC, provides music-streaming services online subject to complex pricing schedules. To control specific offers for the services and thus the resulting contracts, important terms to provide online include​

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

Liz offers to sell Jock her iPad for $500 without any accessories. Under the mirror image rule, Jock's response will be considered an acceptance if the terms of the acceptance​

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

Mallory promises to buy illegal digital copies of movies from Nick, who promises to deliver on October 31. These promises are most likely​

​Refer to Fact Pattern 8-1. If Teatro says it is asking for the extra $250,000 because ordinary business expenses have increased, the agreement is

Gayla tells Franco that she will pay him $50 to haul the trimmed tree limbs and other lawn debris from her property. Franco's acceptance is complete​

Valley Paragliders Association files a suit against Wing Designers, Inc., claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if​

Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Relay's acceptance by e-mail will be considered effective when​

Diversions, Inc., makes video, games. Ember buys a copy of Final Infinity. Inside the package is a shrink-wrap agreement. With respect to the contract for the game's purchase, the shrink-wrap agreement may not be enforced if Ember​

Frisco offers to buy a Gibson guitar owned by Hayden for twice what Hayden paid for it. She accepts and hands the guitar to Frisco. Her delivery of the guitar is​

Rafi offers a tour of Bay Harbor aboard his sailboat, Sea Siren, to Tiara's Travel Group for $500. Referring to the prices for similar tours, Tiara's says, "We'll pay no more than $400." Rafi's offer is

Digital Enterprise, Inc., promises to pay its employees a year-end bonus "if profits continue to be high and management agrees at the time." This is​

Richie, a user of SmartPhoneApps.com's Web site, can download apps for free if he first clicks on "I accept" after viewing certain terms. This 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)

Business Properties, Inc. (BPI) , offers to sell a warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This​

While sailboarding, Jolene is injured when Kilroy carelessly crosses her path. Kilroy's insurance company offers Jolene $50,000 to release Kilroy from liability, and she accepts. Later, she learns that her injuries are more serious than she realized. The release is​

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

Waste Management Corporation enters into contracts for its services online. Waste Management can protect itself against disputes involving these contracts by making important terms

Younger asks Zoey, "Do you want to buy one of my fishing rods?" This is

Play-It-Loud, LLC, provides music-streaming services online subject to complex pricing schedules. To control specific offers for the services and thus the resulting contracts, important terms to provide online include

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

Liz offers to sell Jock her iPad for $500 without any accessories. Under the mirror image rule, Jock's response will be considered an acceptance if the terms of the acceptance

Mallory promises to buy illegal digital copies of movies from Nick, who promises to deliver on October 31. These promises are most likely

Refer to Fact Pattern 8-1. If Teatro says it is asking for the extra $250,000 because ordinary business expenses have increased, the agreement is

Gayla tells Franco that she will pay him $50 to haul the trimmed tree limbs and other lawn debris from her property. Franco's acceptance is complete

Valley Paragliders Association files a suit against Wing Designers, Inc., claiming that the consideration for their contract is inadequate. The court will most likely not examine the adequacy of the consideration if

Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Relay's acceptance by e-mail will be considered effective when

Diversions, Inc., makes video, games. Ember buys a copy of Final Infinity. Inside the package is a shrink-wrap agreement. With respect to the contract for the game's purchase, the shrink-wrap agreement may not be enforced if Ember

Frisco offers to buy a Gibson guitar owned by Hayden for twice what Hayden paid for it. She accepts and hands the guitar to Frisco. Her delivery of the guitar is

Digital Enterprise, Inc., promises to pay its employees a year-end bonus "if profits continue to be high and management agrees at the time." This is

Richie, a user of SmartPhoneApps.com's Web site, can download apps for free if he first clicks on "I accept" after viewing certain terms. This is

Business Properties, Inc. (BPI) , offers to sell a warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This

While sailboarding, Jolene is injured when Kilroy carelessly crosses her path. Kilroy's insurance company offers Jolene $50,000 to release Kilroy from liability, and she accepts. Later, she learns that her injuries are more serious than she realized. The release is

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