Question 1

Bob claims that Carla breached their contract for tutoring.Carla responds that she never intended to enter into a contract with Bob.The intent to enter into a contract is determined with reference to​
A)the intentional theory of contracts.
B)the objective theory of contracts.
C)the personal theory of contracts.
D)the subjective theory of contracts.

Accepted Answer

The objective theory of contracts looks at what a reasonable person would believe based on the outward manifestations of intent, rather than relying solely on the person's subjective intentions or beliefs. Therefore, it is the most relevant theory for determining whether or not a contract was intended to be entered into.

Question 2

A contract that is oral when it is required to be in writing is voidable by a party who does not wish to follow through with the agreement.

Accepted Answer

This is known as the statute of frauds, which requires certain types of contracts to be in writing in order to be enforceable. When an oral contract falls under this requirement, it is considered voidable by a party who wishes to back out.

Question 3

A person who is intoxicated can avoid liability on any contract due to the intoxication.

Accepted Answer

A person who is intoxicated may have diminished capacity to enter into a contract, but this does not automatically negate their liability. A court will consider the level of intoxication and other factors such as whether the other party knew or should have known of the intoxication. Therefore, the intoxicated person may still be held responsible for the contract.

Question 4

Ron 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,Ron 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 because only Sara has the power to accept the offer by completing the task within the given time frame. Ron's obligation to pay is conditional on Sara's performance.

Question 5

A delegation relieves the party making it of the obligation to perform.

Accepted Answer

A delegation transfers the obligation to perform to another party, but it does not relieve the original party of the obligation. The original party remains responsible for ensuring that the delegated task is completed properly.

Question 6

K'Nect,Inc. ,makes an offer to Lori to enter into a contract to work as a salesperson for a certain salary plus commission for ninety days subject to a one-year renewal based on her performance.Lori accepts the offer.A valid contract requires​
A)a price and a subject.
B)a duration and a termination.
C)an offer and an acceptance.
D)all of the choices.

Accepted Answer

A valid contract requires an offer and an acceptance, which are the essential elements for forming a contract.

Question 7

A release does not require consideration to be legally binding.

Accepted Answer

The answer of A release does not require consideration to...

Question 8

An obligation is enforceable only if it is made in return for actions or events that have already taken place.

Accepted Answer

An obligation can be enforceable if it is made in return for actions or events that have already taken place, but it can also be enforceable if it is made in return for future actions or events (such as a contract for services to be rendered).

Question 9

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 mixed contract.
D)no  contract.

Accepted Answer

If Greg signs the written copy of the agreement sent by Hillside, it will be an example of an express contract. An express contract is a contract where the terms are explicitly agreed upon in writing or orally.

Question 10

Both intended and incidental beneficiaries acquire legal rights in a contract.

Accepted Answer

The answer of Both intended and incidental beneficiaries acquire legal...

Question 11

A contract that is otherwise valid is enforceable even if it is not in the proper form.

Accepted Answer

The answer of A contract that is otherwise valid is...

Question 12

Under the doctrine of promissory estoppel,a promise will not be enforced unless it is supported by consideration.

Accepted Answer

Promissory estoppel is an exception to the general rule of consideration. It allows a promise to be enforced even if there is no consideration, but only if certain elements are present, such as detrimental reliance by the promisee.

Question 13

A covenant not to compete included in the sale of an ongoing business is never enforceable.

Accepted Answer

A covenant not to compete included in the sale of an ongoing business can be enforceable, but only to the extent that it is reasonable in terms of the duration, geographic scope, and nature of the restriction. The reasonableness of the covenant is evaluated based on the specific circumstances of the business and the parties involved.

Question 14

Performance can constitute the consideration that creates a contractual obligation.

Accepted Answer

Performance, whether it's the performance of an action or the delivery of a product or service, can create a contractual obligation. For example, if someone agrees to pay for a product and the seller delivers that product, then both parties have fulfilled their obligations under the contract.

Question 15

A contract entered into by a mentally incompetent person can be valid if the person had capacity at the time the contract was formed.

Accepted Answer

If a person had capacity at the time the contract was formed, despite later becoming mentally incompetent, the contract can still be considered valid. However, if the person never had capacity to understand the contract, it would be considered voidable.

Question 16

Risks ordinarily assumed in business can constitute consideration for the modification of a contract.

Accepted Answer

The answer of Risks ordinarily assumed in business can constitute...

Question 17

If a bargain is grossly unfair,it is unconscionable.

Accepted Answer

A bargain is considered unconscionable if it is extremely one-sided and unfair, taking advantage of one party over another. This can be due to the parties being in very different bargaining positions, or due to one party using unethical or illegal tactics to take advantage of the other. In such cases, the law may step in to protect the party who has been treated unfairly.

Question 18

Legally sufficient consideration is something of value in the eyes of the law.

Accepted Answer

Legally sufficient consideration is a fundamental element of a contract, and refers to something of value that is exchanged between parties to a contract. Such consideration may take many forms, including payment, goods, or services, and must be given voluntarily and with the intention of inducing the other party to enter into the contract. If there is no legally sufficient consideration, the contract may be unenforceable.

Question 19

An assignee of contract rights has a right to demand performance of the contract from the obligor.

Accepted Answer

An assignee of contract rights acquires the same rights that the original party had, including the right to demand performance from the obligor. This is one of the key benefits of assigning contract rights.

Question 20

Clay offers to pay Dian $50 for a golf lesson for Ewan.They agree to meet on Friday to exchange the cash for the lesson.These parties have​
A)a bilateral contract.
B)a unilateral contract.
C)a void contract.
D)an executive contract.

Accepted Answer

A bilateral contract is an agreement in which both parties promise to perform certain acts. In this scenario, both Clay and Dian have made promises (Clay promising to pay $50 and Dian promising to give a golf lesson) and therefore a bilateral contract has been formed.

Quiz 12: Formation of Traditional and E-Contracts

Bob claims that Carla breached their contract for tutoring.Carla responds that she never intended to enter into a contract with Bob.The intent to enter into a contract is determined with reference to​

A contract that is oral when it is required to be in writing is voidable by a party who does not wish to follow through with the agreement.

A person who is intoxicated can avoid liability on any contract due to the intoxication.

Ron 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,Ron and Sara will have​

A delegation relieves the party making it of the obligation to perform.

K'Nect,Inc. ,makes an offer to Lori to enter into a contract to work as a salesperson for a certain salary plus commission for ninety days subject to a one-year renewal based on her performance.Lori accepts the offer.A valid contract requires​

A release does not require consideration to be legally binding.

An obligation is enforceable only if it is made in return for actions or events that have already taken place.

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​

Both intended and incidental beneficiaries acquire legal rights in a contract.

A contract that is otherwise valid is enforceable even if it is not in the proper form.

Under the doctrine of promissory estoppel,a promise will not be enforced unless it is supported by consideration.

A covenant not to compete included in the sale of an ongoing business is never enforceable.

Performance can constitute the consideration that creates a contractual obligation.

A contract entered into by a mentally incompetent person can be valid if the person had capacity at the time the contract was formed.

Risks ordinarily assumed in business can constitute consideration for the modification of a contract.

If a bargain is grossly unfair,it is unconscionable.

Legally sufficient consideration is something of value in the eyes of the law.

An assignee of contract rights has a right to demand performance of the contract from the obligor.

Clay offers to pay Dian $50 for a golf lesson for Ewan.They agree to meet on Friday to exchange the cash for the lesson.These parties have​

Bob claims that Carla breached their contract for tutoring.Carla responds that she never intended to enter into a contract with Bob.The intent to enter into a contract is determined with reference to

Ron 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,Ron and Sara will have

K'Nect,Inc. ,makes an offer to Lori to enter into a contract to work as a salesperson for a certain salary plus commission for ninety days subject to a one-year renewal based on her performance.Lori accepts the offer.A valid contract requires

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

Clay offers to pay Dian $50 for a golf lesson for Ewan.They agree to meet on Friday to exchange the cash for the lesson.These parties have