Question 1

Informal contracts are usually based on substance rather than form.

Accepted Answer

Informal contracts do not require a specific form or format and can be based on the substance or content of the agreement.

Question 2

A check,like other negotiable instruments,is a formal contract.

Accepted Answer

A check is a formal contract between the drawer (person writing the check) and the payee (person receiving the money). It contains terms and conditions of the agreement, such as the amount to be paid and the date of payment.

Question 3

"Consideration" refers to the genuine assent of all of the parties to a contract.

Accepted Answer

Consideration refers to something of value that is exchanged between the parties in a contract. While genuine assent is a requirement for a valid contract, it is not the definition of consideration.

Question 4

The intention to enter into a contract is judged by objective facts as interpreted by a reasonable person.

Accepted Answer

The objective theory of contracts states that the intent to enter into a contract is judged by objective facts, rather than subjective beliefs or intentions. A reasonable person would interpret these facts to determine whether or not a contract exists.

Question 5

An offer to form a bilateral contract is accepted only by completing the contract performance.

Accepted Answer

A bilateral contract is accepted by a promise to perform, not by completing the performance.

Question 6

An implied-in-fact contract is implied from the conduct of the parties.

Accepted Answer

An implied-in-fact contract is created based on the conduct of the parties, rather than being expressed in written or spoken words.

Question 7

An express contract must be in writing.

Accepted Answer

An express contract can be formed orally or in writing, but a written agreement may be necessary to show evidence of the terms and conditions of the contract.

Question 8

A contract is a promise to act.

Accepted Answer

The answer of A contract is a promise to act....

Question 9

A unilateral contract is formed when the one receiving the offer completes the requested act or performance.

Accepted Answer

In a unilateral contract, the offeror promises to pay or provide something to the offeree only when the offeree performs a specific act or task. The contract is formed when the offeree completes the performance, and the offeror becomes obligated to fulfill their promise.

Question 10

Offers may not be revoked before they are accepted.

Accepted Answer

An offer can generally be revoked before it is accepted, unless it is irrevocable due to a specific condition like an option contract or a firm offer under the UCC.

Question 11

Contract law shows what excuses our society accepts for breaking certain types of promises.

Accepted Answer

Contract law sets out the legal consequences for breaking certain types of promises or contracts, and thus reflects societal expectations and values regarding acceptable excuses for such breaches.

Question 12

An offeror is a person who makes an offer.

Accepted Answer

An offeror is the person who initiates an offer to another party, typically in a contract negotiation or business transaction.

Question 13

One of the requirements of a valid contract is its acceptance.

Accepted Answer

Acceptance is one of the essential elements of a valid contract. Without acceptance, there is no mutual agreement between the parties involved in the contract. Therefore, acceptance is a necessary condition for the formation of a valid and enforceable contract.

Question 14

Contract disputes rarely arise on a promise of future performance.

Accepted Answer

Contract disputes can arise on a promise of future performance if one party fails to fulfill that promise. Therefore, the statement is false.

Question 15

A promise is an assertion that something will or will not happen in the future.

Accepted Answer

A promise is a commitment or assurance that something will or will not happen in the future. It is a declaration of intent or affirmation of a fact that is yet to be done or completed.

Question 16

Some promises are not legally binding contracts.

Accepted Answer

Not all promises create legal obligations or are enforceable by law. For example, promises made between friends or family members may not be considered legally binding contracts.

Question 17

One of the requirements of a valid contract is a fair price.

Accepted Answer

A fair price is not a requirement for a valid contract. However, the price must be agreed upon by all parties involved and must not be illegal or against public policy. Other requirements of a valid contract are offer and acceptance, consideration, legal capacity, and a lawful object.

Question 18

Resolving whether a promise should be enforced is the essence of contract law.

Accepted Answer

Enforcing promises and ensuring the performance of contractual obligations is the central objective of contract law.

Question 19

There are no exceptions to the rule that contracts voluntarily entered into will be enforced.

Accepted Answer

There are exceptions, such as contracts that involve illegal activities, lack of capacity, or are entered into under duress or fraud.

Question 20

An offer to form a unilateral contract is accepted by a promise to perform.

Accepted Answer

The answer of An offer to form a unilateral contract...

Quiz 9: Nature and Classification