Question 1

Saul claims that his contract with Teri for piano lessons is voidable. If their contract is avoided

Accepted Answer

A)  both parties are released from it. 
B)  both parties must fully perform their obligations under it. 
C)  the parties' contractual obligations are postponed. 
D)  the parties are proscribed from another contract on the same subject. 
A)  both parties are released from it. 
B)  both parties must fully perform their obligations under it. 
C)  the parties' contractual obligations are postponed. 
D)  the parties are proscribed from another contract on the same subject.

Question 2

Sales Corporation and Real Estate Inc. agree to the payment of a commission for the sale of certain property. If this deal has all of the elements necessary for one of the parties to enforce it in court, it is most likely

Accepted Answer

A)  a valid contract. 
B)  a voidable contract. 
C)  a void contract. 
D)  none of the choices. 
A)  a valid contract. 
B)  a voidable contract. 
C)  a void contract. 
D)  none of the choices.

Question 3

A letter-of-credit agreement between Rural Feed Corporation and Soy Farm Inc. requires Rural's bank to pay Soy on receipt of invoices. This is

Accepted Answer

A)  a formal contract. 
B)  an informal contract. 
C)  an implied contract. 
D)  a quasi contract. 
A)  a formal contract. 
B)  an informal contract. 
C)  an implied contract. 
D)  a quasi contract.

Question 4

Any contract that is not in writing is unenforceable.

Accepted Answer

A) True 
 B)False

Question 5

On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had

Accepted Answer

A)  an expired contract when Neil said that he had changed his mind. 
B)  a quasi contract when Neil said that he would pay for certain work. 
C)  a unilateral contract as soon as Outdoor began to perform. 
D)  no contract. 
A)  an expired contract when Neil said that he had changed his mind. 
B)  a quasi contract when Neil said that he would pay for certain work. 
C)  a unilateral contract as soon as Outdoor began to perform. 
D)  no contract.

Question 6

Alyssa hires Bret to mow Alyssa's lawn every Friday. Although they do not discuss the terms of payment, after each of the first three Friday mows, Alyssa pays Bret on Saturday. The payment term is

Accepted Answer

A)  express. 
B)  implied. 
C)  quasi. 
D)  non-existent. 
A)  express. 
B)  implied. 
C)  quasi. 
D)  non-existent.

Question 7

By supplying procedures for enforcing private agreements, contract law provides an essential condition for the existence of a market economy.

Accepted Answer

A) True 
 B)False

Question 8

The terms of service that a person agrees to before loading an app on a phone are not truly legally binding.

Accepted Answer

A) True 
 B)False

Question 9

Jan tells Lee she will give him her old car if he babysits her son Mark weekday evenings for six months. Lee agrees. Jan and Lee have formed

Accepted Answer

A)  a bilateral contract. 
B)  a unilateral contract. 
C)  a void contract. 
D)  an unenforceable contract. 
A)  a bilateral contract. 
B)  a unilateral contract. 
C)  a void contract. 
D)  an unenforceable contract.

Question 10

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

Accepted Answer

A)  the intentional theory of contracts. 
B)  the objective theory of contracts. 
C)  the personal theory of contracts. 
D)  the subjective theory of contracts. 
A)  the intentional theory of contracts. 
B)  the objective theory of contracts. 
C)  the personal theory of contracts. 
D)  the subjective theory of contracts.

Question 11

Only one party entering into a contract must possess characteristics that qualify him or her as competent for a valid contract to exist.

Accepted Answer

A) True 
 B)False

Question 12

Pavers Inc. contracts with a QuikStop store to repave the store's parking lot for a certain price. To be enforceable, this contract must include an element of

Accepted Answer

A)  consideration. 
B)  acceptability. 
C)  achievability. 
D)  practicality. 
A)  consideration. 
B)  acceptability. 
C)  achievability. 
D)  practicality.

Question 13

The term consideration refers to the deference shown by contracting parties to each other.

Accepted Answer

A) True 
 B)False

Question 14

Quasi contract are not actual contracts.

Accepted Answer

A) True 
 B)False

Question 15

Insofar as possible, a reasonable, lawful, and effective meaning will be given to all of the terms of a contract.

Accepted Answer

A) True 
 B)False

Question 16

Susan enters into a contract with Trey to act as his personal sports trainer. If a dispute later arises, the court will interpret the contract according to

Accepted Answer

A)  the parties' intent at the time they entered into the contract. 
B)  what the promisor claims was the parties' intent. 
C)  what the promisee claims was the parties' intent. 
D)  what the parties now agree they intended. 
A)  the parties' intent at the time they entered into the contract. 
B)  what the promisor claims was the parties' intent. 
C)  what the promisee claims was the parties' intent. 
D)  what the parties now agree they intended.

Question 17

Demi buys a lottery ticket. The ticket has the winning numbers for a prize. She submits the ticket to claim the prize. Demi accepted an offer for

Accepted Answer

A)  a bilateral contract. 
B)  a unilateral contract. 
C)  a quasi contract. 
D)  an unenforceable contract. 
A)  a bilateral contract. 
B)  a unilateral contract. 
C)  a quasi contract. 
D)  an unenforceable contract.

Question 18

Yuri agrees to zed.com's terms of service and downloads the site's app. Yuri then reverse-engineers the app to create a competing product. This is

Accepted Answer

A)  within the rights of a contracting party. 
B)  a fair use of the app, with or without a contract. 
C)  acceptable as long as the site's owners are unaware of the activity. 
D)  a breach of contract. 
A)  within the rights of a contracting party. 
B)  a fair use of the app, with or without a contract. 
C)  acceptable as long as the site's owners are unaware of the activity. 
D)  a breach of contract.

Question 19

Darcy enters into a contract with Event Center Inc. to use its venue for a business meeting. If an ambiguity appears in the contract that outside evidence does not make clear, it will most likely be

Accepted Answer

A)  interpreted against the party responsible for creating it. 
B)  struck from the deal. 
C)  construed according to the court's discretion. 
D)  applied in favor of the party who drafted the contract. 
A)  interpreted against the party responsible for creating it. 
B)  struck from the deal. 
C)  construed according to the court's discretion. 
D)  applied in favor of the party who drafted the contract.

Question 20

Cheri drives into Domestic Auto Service and asks to have a tire replaced on her car. After Domestic replaces the tire, but before Cheri pays for it, any contract between them is

Accepted Answer

A)  executed. 
B)  executory. 
C)  void. 
D)  unenforceable. 
A)  executed. 
B)  executory. 
C)  void. 
D)  unenforceable.

Exam 10: Nature and Classification

Saul claims that his contract with Teri for piano lessons is voidable. If their contract is avoided

Sales Corporation and Real Estate Inc. agree to the payment of a commission for the sale of certain property. If this deal has all of the elements necessary for one of the parties to enforce it in court, it is most likely

A letter-of-credit agreement between Rural Feed Corporation and Soy Farm Inc. requires Rural's bank to pay Soy on receipt of invoices. This is

Any contract that is not in writing is unenforceable.

On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had

Alyssa hires Bret to mow Alyssa's lawn every Friday. Although they do not discuss the terms of payment, after each of the first three Friday mows, Alyssa pays Bret on Saturday. The payment term is

By supplying procedures for enforcing private agreements, contract law provides an essential condition for the existence of a market economy.

The terms of service that a person agrees to before loading an app on a phone are not truly legally binding.

Jan tells Lee she will give him her old car if he babysits her son Mark weekday evenings for six months. Lee agrees. Jan and Lee have formed

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

Only one party entering into a contract must possess characteristics that qualify him or her as competent for a valid contract to exist.

Pavers Inc. contracts with a QuikStop store to repave the store's parking lot for a certain price. To be enforceable, this contract must include an element of

The term consideration refers to the deference shown by contracting parties to each other.

Quasi contract are not actual contracts.

Insofar as possible, a reasonable, lawful, and effective meaning will be given to all of the terms of a contract.

Susan enters into a contract with Trey to act as his personal sports trainer. If a dispute later arises, the court will interpret the contract according to

Demi buys a lottery ticket. The ticket has the winning numbers for a prize. She submits the ticket to claim the prize. Demi accepted an offer for

Yuri agrees to zed.com's terms of service and downloads the site's app. Yuri then reverse-engineers the app to create a competing product. This is

Darcy enters into a contract with Event Center Inc. to use its venue for a business meeting. If an ambiguity appears in the contract that outside evidence does not make clear, it will most likely be

Cheri drives into Domestic Auto Service and asks to have a tire replaced on her car. After Domestic replaces the tire, but before Cheri pays for it, any contract between them is

Law and Legal Reasoning

Constitutional Law

Ethics in Business

Courts and Alternative Dispute Resolution

Tort Law

Product Liability

Intellectual Property Rights

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Agreement

Consideration

Capacity and Legality

Voluntary Consent

The Statute of Fraudswriting Requirement

Performance and Discharge

Breach and Remedies

Third Party Rights

The Formation of Sales and Lease Contracts

Title and Risk of Loss

Performance and Breach of Sales and Lease Contracts

Negotiable Instruments

International and Space Law

Banking in the Digital Age

Security Interests and Creditors Rights

Bankruptcy

Agency Relationships in Business

Employment, Immigration, and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

All Forms of Partnership

Limited Liability Companies and Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, and Shareholders

Corporate Mergers, Takeovers, and Termination

Investor Protection, Insider Trading, and Corporate Governance

Administrative Law

Antitrust Law and Promoting Competition

Consumer and Environmental Law

Liability of Accountants and Other Professionals

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance, Wills, and Trusts

Filters