Question 1

An effective offer requires reasonably definite terms.

Accepted Answer

A) True 
 B)False

Question 2

A contract that has been fully performed by the parties is an executory contract.

Accepted Answer

A) True 
 B)False

Question 3

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) a bilateral contract. 
B) a trilateral contract. 
C) a unilateral contract. 
D) no contract. 
A) a bilateral contract. 
B) a trilateral contract. 
C) a unilateral contract. 
D) no contract.

Question 4

Rough Water Fishing Trips, LLC, and Schafer enter into a contract for the delivery of a used freshwater fishing boat. Until the goods are delivered and paid for, these parties have​

Accepted Answer

A) an executory contract. 
B) no contract. 
C) a quasi contract. 
D) an executed contract. 
A) an executory contract. 
B) no contract. 
C) a quasi contract. 
D) an executed contract.

Question 5

In contract law, intent is determined by the secret, subjective intent, or belief, of a party.

Accepted Answer

A) True 
 B)False

Question 6

An offer must be practical to be effective.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Aaron questions whether there is consideration for his contract with Banquet Hall to exchange his musical performance of country tunes at select social events for Banquet's payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be​

Accepted Answer

A) objectively worthy. 
B) precisely adequate. 
C) legally sufficient. 
D) practically sound.Fact Pattern 8-1​ Teatro Restoration, Inc., begins renovating an old theater for Urban Edge Productions, but after three months Teatro demands an extra $250,000.Urban Edge agrees to pay. 
A) objectively worthy. 
B) precisely adequate. 
C) legally sufficient. 
D) practically sound.Fact Pattern 8-1​ Teatro Restoration, Inc., begins renovating an old theater for Urban Edge Productions, but after three months Teatro demands an extra $250,000.Urban Edge agrees to pay.

Question 9

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

A) there is a large disparity in the amount of consideration exchanged. 
B) the consideration involves the performance of services. 
C) something of value passed between the parties. 
D) the consideration is worth less than $100. 
A) there is a large disparity in the amount of consideration exchanged. 
B) the consideration involves the performance of services. 
C) something of value passed between the parties. 
D) the consideration is worth less than $100.

Question 10

An acceptance can materially change or add to the terms of the original offer without rejecting it.

Accepted Answer

A) True 
 B)False

Question 11

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

A) still open. 
B) terminated. 
C) rejected and subject to a counteroffer. 
D) revoked. 
A) still open. 
B) terminated. 
C) rejected and subject to a counteroffer. 
D) revoked.

Question 12

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

A) as soon as he says he will do the job. 
B) once he starts to work. 
C) only after he hauls away the debris. 
D) when he hears the offer. 
A) as soon as he says he will do the job. 
B) once he starts to work. 
C) only after he hauls away the debris. 
D) when he hears the offer.

Question 13

A valid contract requires

Accepted Answer

A) a price and a subject. 
B) a duration and termination provision. 
C) an offer and an acceptance. 
D) specific quality standards. 
A) a price and a subject. 
B) a duration and termination provision. 
C) an offer and an acceptance. 
D) specific quality standards.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Idina admires Jude's collection of guitars. Jude says, "I plan to sell the collection when I get tired of it." Jude's statement is​

Accepted Answer

A) an offer. 
B) not an offer because it has not been communicated to Idina. 
C) not an offer because Jude expressed only an intent to enter into a future contract. 
D) an acceptance. 
A) an offer. 
B) not an offer because it has not been communicated to Idina. 
C) not an offer because Jude expressed only an intent to enter into a future contract. 
D) an acceptance.

Question 16

Maya's motorcycle is damaged in an accident caused by Luc's negligence. Luc agrees to pay Maya $25,000 if she agrees to release him from further liability. Maya agrees. If her damages ultimately exceed $25,000, she can​

Accepted Answer

A) recover the balance for lack of consideration. 
B) recover the balance because the consideration was past. 
C) recover the balance due to unforeseen events. 
D) not recover the balance. 
A) recover the balance for lack of consideration. 
B) recover the balance because the consideration was past. 
C) recover the balance due to unforeseen events. 
D) not recover the balance.

Question 17

An express contract must be in writing.

Accepted Answer

A) True 
 B)False

Question 18

Informal contracts are usually based on their substance rather than their form.

Accepted Answer

A) True 
 B)False

Question 19

A counteroffer is a rejection of the original offer and the simultaneous making of a new offer.

Accepted Answer

A) True 
 B)False

Question 20

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) a provision relating to the resolution of any dispute. 
B) a detailed history of the music business. 
C) positive reviews from users of the service. 
D) an updated list of the music available through the service. 
A) a provision relating to the resolution of any dispute. 
B) a detailed history of the music business. 
C) positive reviews from users of the service. 
D) an updated list of the music available through the service.

Exam 8: Agreement and Consideration in Contracts

An effective offer requires reasonably definite terms.

A contract that has been fully performed by the parties is an executory contract.

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​

Rough Water Fishing Trips, LLC, and Schafer enter into a contract for the delivery of a used freshwater fishing boat. Until the goods are delivered and paid for, these parties have​

In contract law, intent is determined by the secret, subjective intent, or belief, of a party.

An offer must be practical to be effective.

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

Aaron questions whether there is consideration for his contract with Banquet Hall to exchange his musical performance of country tunes at select social events for Banquet's payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be​

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​

An acceptance can materially change or add to the terms of the original offer without rejecting it.

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

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​

A valid contract requires

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

Idina admires Jude's collection of guitars. Jude says, "I plan to sell the collection when I get tired of it." Jude's statement is​

Maya's motorcycle is damaged in an accident caused by Luc's negligence. Luc agrees to pay Maya $25,000 if she agrees to release him from further liability. Maya agrees. If her damages ultimately exceed $25,000, she can​

An express contract must be in writing.

Informal contracts are usually based on their substance rather than their form.

A counteroffer is a rejection of the original offer and the simultaneous making of a new offer.

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​

Legal and Constitutional Foundations of Business

Courts and Alternative Dispute Resolution

Tort Law and Product Liability

Intellectual Property

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Business Ethics

Capacity, Legality, and Enforceability

Contract Performance, Breach, and Remedies

Sales and Lease Contracts

Performance and Breach in Sales and Lease Contracts

Consumer Law

Negotiable Instruments

Banking in the Digital Age

Creditors Rights and Bankruptcy

Agency Relationships in Business

Employment Law

The Entrepreneurs Options

Corporations

Investor Protection, Insider Trading, and Corporate Governance

Antitrust Law and Promoting Competition

Personal Property, Bailments, and Insurance

Real Property and Environmental Law

International Law in a Global Economy

Filters

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

Rough Water Fishing Trips, LLC, and Schafer enter into a contract for the delivery of a used freshwater fishing boat. Until the goods are delivered and paid for, these parties have

Aaron questions whether there is consideration for his contract with Banquet Hall to exchange his musical performance of country tunes at select social events for Banquet's payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be

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

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

Idina admires Jude's collection of guitars. Jude says, "I plan to sell the collection when I get tired of it." Jude's statement is

Maya's motorcycle is damaged in an accident caused by Luc's negligence. Luc agrees to pay Maya $25,000 if she agrees to release him from further liability. Maya agrees. If her damages ultimately exceed $25,000, she can

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