Question 1

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.

Accepted Answer

A) A void contract is one 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 and, thus, cannot be enforced by either party.
B) A void contract is one 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 and, thus, cannot be enforced by either party.
C) A void contract is one 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 and, thus, cannot be enforced by either party.
D) A void contract is one 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 and, thus, cannot be enforced by either party.

Question 2

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

Accepted Answer

A) A unilateral contract is a promise that can be accepted only by performance.
A) A unilateral contract is a promise that can be accepted only by performance.
B) A unilateral contract is a promise that can be accepted only by performance.
C) A unilateral contract is a promise that can be accepted only by performance.

Question 3

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.

Accepted Answer

A) Kathy would be unjustly enriched, so a quasi-contract would be formed to lessen
the hospital's damages.
S) Kathy would be unjustly enriched, so a quasi-contract would be formed to lessen the hospital's damages.
T) Kathy would be unjustly enriched, so a quasi-contract would be formed to lessen the hospital's damages.
U) Kathy would be unjustly enriched, so a quasi-contract would be formed to lessen the hospital's damages.

Question 4

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.

Accepted Answer

A) Most advertisements appearing in the mass media, in store windows, or in display
cases are not offers. Rather, the law recognizes mass advertisements as an invitation for the consumer to make an offer to the seller to purchase the goods at a specified price. Frequently, these advertisements do not constitute an offer because they do not contain a specific commitment to sell.
M) Most advertisements appearing in the mass media, in store windows, or in display cases are not offers. Rather, the law recognizes mass advertisements as an invitation for the consumer to make an offer to the seller to purchase the goods at a specified price. Frequently, these advertisements do not constitute an offer because they do not contain a specific commitment to sell.
N) Most advertisements appearing in the mass media, in store windows, or in display cases are not offers. Rather, the law recognizes mass advertisements as an invitation for the consumer to make an offer to the seller to purchase the goods at a specified price. Frequently, these advertisements do not constitute an offer because they do not contain a specific commitment to sell.
O) Most advertisements appearing in the mass media, in store windows, or in display cases are not offers. Rather, the law recognizes mass advertisements as an invitation for the consumer to make an offer to the seller to purchase the goods at a specified price. Frequently, these advertisements do not constitute an offer because they do not contain a specific commitment to sell.

Question 5

In general,contracts for services are governed by
A) state common law.
B) state statutory law.
C) the Uniform Commercial Code.
D) federal law.

Accepted Answer

A) State common law generally governs contracts for services.
A) State common law generally governs contracts for services.
B) State common law generally governs contracts for services.
C) State common law generally governs contracts for services.

Question 6

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

Accepted Answer

A) Capacity to contract is achieved when parties are of proper age and mental
competence.
A) Capacity to contract is achieved when parties are of proper age and mental competence.
B) Capacity to contract is achieved when parties are of proper age and mental competence.
C) Capacity to contract is achieved when parties are of proper age and mental competence.

Question 7

When the reason and outcome of a contract are legal,the contract has
A) legal purpose.
B) consideration.
C) capacity.
D) mutual assent.

Accepted Answer

A) Legal purpose is the required element of a contract that ensures the reason and
outcome of the contract are legal.
B) Legal purpose is the required element of a contract that ensures the reason and outcome of the contract are legal.
C) Legal purpose is the required element of a contract that ensures the reason and outcome of the contract are legal.
D) Legal purpose is the required element of a contract that ensures the reason and outcome of the contract are legal.

Question 8

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.

Accepted Answer

A) There is no agreement at all, and while Maria was enriched, she was not unjustly
enriched.
D) There is no agreement at all, and while Maria was enriched, she was not unjustly enriched.
E) There is no agreement at all, and while Maria was enriched, she was not unjustly enriched.
F) There is no agreement at all, and while Maria was enriched, she was not unjustly enriched.

Question 9

An offer of a reward,if it is fulfilled,forms
A) a bilateral contract.
B) a unilateral contract.
C) an express contract.
D) a quasi-contract.

Accepted Answer

A) A reward offer creates a unilateral contract because it involves a promise to pay a
reward that requires performance.
A) A reward offer creates a unilateral contract because it involves a promise to pay a reward that requires performance.
B) A reward offer creates a unilateral contract because it involves a promise to pay a reward that requires performance.
C) A reward offer creates a unilateral contract because it involves a promise to pay a reward that requires performance.

Question 10

At this moment,your contract with your university or college is
A) implied, unilateral, and voidable.
B) express, bilateral, and valid.
C) implied, bilateral, and valid.
D) quasi, unilateral, and voidable.

Accepted Answer

A) It is express because you and the school knowingly entered into the agreement. It
is bilateral because enforceable promises were exchanged. It is valid because it has all the required elements and is for a legal purpose.
A) It is express because you and the school knowingly entered into the agreement. It is bilateral because enforceable promises were exchanged. It is valid because it has all the required elements and is for a legal purpose.
B) It is express because you and the school knowingly entered into the agreement. It is bilateral because enforceable promises were exchanged. It is valid because it has all the required elements and is for a legal purpose.
C) It is express because you and the school knowingly entered into the agreement. It is bilateral because enforceable promises were exchanged. It is valid because it has all the required elements and is for a legal purpose.

Question 11

All of the following are necessary elements of a contract except
A) mutual assent.
B) capacity.
C) writing.
D) consideration.

Accepted Answer

A) Writing is not a necessary contract element. Contracts must have mutual assent,
capacity to contract, consideration, and legal purpose.
B) Writing is not a necessary contract element. Contracts must have mutual assent, capacity to contract, consideration, and legal purpose.
C) Writing is not a necessary contract element. Contracts must have mutual assent, capacity to contract, consideration, and legal purpose.
D) Writing is not a necessary contract element. Contracts must have mutual assent, capacity to contract, consideration, and legal purpose.

Question 12

Which of the following is formed to remedy unjust enrichment?
A) implied contract
B) contract based on promissory estoppel
C) express contract
D) quasi-contract

Accepted Answer

A) Quasi-contracts are formed when unjust enrichment occurs and are designed to
create fairness.
A) Quasi-contracts are formed when unjust enrichment occurs and are designed to create fairness.
B) Quasi-contracts are formed when unjust enrichment occurs and are designed to create fairness.
C) Quasi-contracts are formed when unjust enrichment occurs and are designed to create fairness.

Question 13

When an offer and agreement exist between parties,this is called
A) capacity.
B) legal purpose.
C) consideration.
D) mutual assent.

Accepted Answer

A) Mutual assent is the existence of an offer and agreement between the parties.
B) Mutual assent is the existence of an offer and agreement between the parties.
C) Mutual assent is the existence of an offer and agreement between the parties.
D) Mutual assent is the existence of an offer and agreement between the parties.

Question 14

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

Accepted Answer

A) An option contract occurs when the offeror agrees to hold the offer for a specific
offeree in exchange for something of value (consideration).
A) An option contract occurs when the offeror agrees to hold the offer for a specific offeree in exchange for something of value (consideration).
B) An option contract occurs when the offeror agrees to hold the offer for a specific offeree in exchange for something of value (consideration).
C) An option contract occurs when the offeror agrees to hold the offer for a specific offeree in exchange for something of value (consideration).

Question 15

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

Accepted Answer

A) Brandi's offer required performance on Mike's part, making it a unilateral
contract.
A) Brandi's offer required performance on Mike's part, making it a unilateral contract.
B) Brandi's offer required performance on Mike's part, making it a unilateral contract.
C) Brandi's offer required performance on Mike's part, making it a unilateral contract.

Question 16

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.

Accepted Answer

A) State common law generally governs real estate agreements.
J) State common law generally governs real estate agreements.
K) State common law generally governs real estate agreements.
L) State common law generally governs real estate agreements.

Question 17

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.

Accepted Answer

A) State statutory law based on the Uniform Commercial Code generally governs
contracts for the sale of goods.
G) State statutory law based on the Uniform Commercial Code generally governs contracts for the sale of goods.
H) State statutory law based on the Uniform Commercial Code generally governs contracts for the sale of goods.
I) State statutory law based on the Uniform Commercial Code generally governs contracts for the sale of goods.

Question 18

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.

Accepted Answer

A) There is no exchange of promises, so the contract is unilateral. Mark did not
perform what was asked for, so he is entitled to nothing.
A) There is no exchange of promises, so the contract is unilateral. Mark did not perform what was asked for, so he is entitled to nothing.
B) There is no exchange of promises, so the contract is unilateral. Mark did not perform what was asked for, so he is entitled to nothing.
C) There is no exchange of promises, so the contract is unilateral. Mark did not perform what was asked for, so he is entitled to nothing.

Question 19

Something of value that is exchanged as part of an agreement is called
A) mutual assent.
B) consideration.
C) capacity.
D) legal purpose.

Accepted Answer

A) Consideration is a thing of value, like money for goods or services, that is
exchanged between the parties.
B) Consideration is a thing of value, like money for goods or services, that is exchanged between the parties.
C) Consideration is a thing of value, like money for goods or services, that is exchanged between the parties.
D) Consideration is a thing of value, like money for goods or services, that is exchanged between the parties.

Question 20

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.

Accepted Answer

A) This is an offer for a unilateral contract. Acceptance is only by on-time performance.
P) This is an offer for a unilateral contract. Acceptance is only by on-time performance.
Q) This is an offer for a unilateral contract. Acceptance is only by on-time performance.
R) This is an offer for a unilateral contract. Acceptance is only by on-time performance.

Quiz 6: Overview and Language of Contracts

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 promise that can be accepted only by the performance of the person to whom it is offered is an example of

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.

Most advertisements in the mass media are not offers because they

In general,contracts for services are governed by

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

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

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?

An offer of a reward,if it is fulfilled,forms

At this moment,your contract with your university or college is

All of the following are necessary elements of a contract except

Which of the following is formed to remedy unjust enrichment?

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

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.

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?

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?

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

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.

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

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?