Question 1

Why does an illusory contract lack consideration?

Accepted Answer

A) because the consideration promised is unlawful and therefore void 
B) because the person promises to perform an act or do something he is already under an obligation to do 
C) because one or both of the parties can choose not to perform their contractual obligations 
D) because the compensation paid is for work done in the past 
A) because the consideration promised is unlawful and therefore void 
B) because the person promises to perform an act or do something he is already under an obligation to do 
C) because one or both of the parties can choose not to perform their contractual obligations 
D) because the compensation paid is for work done in the past

Question 2

Which of the following elements must be established for a contract to be deemed unconscionable?

Accepted Answer

A) The weaker party did not enter the contract under duress. 
B) The parties had equal bargaining power. 
C) The dominant party justly used its bargaining power. 
D) The adhering party had no reasonable alternative. 
A) The weaker party did not enter the contract under duress. 
B) The parties had equal bargaining power. 
C) The dominant party justly used its bargaining power. 
D) The adhering party had no reasonable alternative.

Question 3

To create an implied-in-fact contract,it must be established that the plaintiff provided the property or services gratuitously.

Accepted Answer

A) True 
 B)False

Question 4

According to the objective theory of contracts,the intent to enter into a contract is judged by the ________.

Accepted Answer

A) doctrine of equity 
B) legality of the contract 
C) reasonable person standard 
D) common law of contracts 
A) doctrine of equity 
B) legality of the contract 
C) reasonable person standard 
D) common law of contracts

Question 5

Which of the following is true of an option contract?

Accepted Answer

A) If the offeree chooses not to buy the property,the consideration paid must be returned. 
B) The consideration paid for the option cannot be applied to the sale price. 
C) The death or incompetency of either party terminates an option contract. 
D) The offer cannot be revoked during the option period. 
A) If the offeree chooses not to buy the property,the consideration paid must be returned. 
B) The consideration paid for the option cannot be applied to the sale price. 
C) The death or incompetency of either party terminates an option contract. 
D) The offer cannot be revoked during the option period.

Question 6

If an insane person who has not been adjudged insane enters into a contract,the contract is non-voidable by the insane person.

Accepted Answer

A) True 
 B)False

Question 7

The Uniform Computer Information Transactions Act (UCITA)is a law applicable to all states and does not require a state legislature to adopt it as a statute for the state.

Accepted Answer

A) True 
 B)False

Question 8

To meet the mirror image rule,the offeree must accept the terms of the offer without modification.

Accepted Answer

A) True 
 B)False

Question 9

Explain in brief the standards concerning contracts of mentally incompetent persons.

Accepted Answer

The law protects people suffering from s

Question 10

In terms of a contract's enforcement,which of the following is true?

Accepted Answer

A) A contract is only considered valid if it is enforceable by both parties. 
B) Parties may voluntarily perform a contract that is unenforceable. 
C) An unenforceable contract allows at least one party the option to void his or her contract obligations. 
D) Void contracts are enforceable in cases involving mutual mistake. 
A) A contract is only considered valid if it is enforceable by both parties. 
B) Parties may voluntarily perform a contract that is unenforceable. 
C) An unenforceable contract allows at least one party the option to void his or her contract obligations. 
D) Void contracts are enforceable in cases involving mutual mistake.

Question 11

The ________ states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.

Accepted Answer

A) objective theory of contracts 
B) common law of contracts 
C) Restatement of the Law of Contracts 
D) Restatement (Second)of Contracts 
A) objective theory of contracts 
B) common law of contracts 
C) Restatement of the Law of Contracts 
D) Restatement (Second)of Contracts

Question 12

An oral agreement to purchase a neighbor's bicycle for $250 is a(n)________ contract.

Accepted Answer

A) void 
B) voidable 
C) implied 
D) express 
A) void 
B) voidable 
C) implied 
D) express

Question 13

A person who has dealt with an insane person need not place that insane person in status quo if the contract is either void or voided by the insane person.

Accepted Answer

A) True 
 B)False

Question 14

A(n)________ contract is a contract entered into by way of an exchange of promises between the parties.

Accepted Answer

The answer of A(n)________ contract is a contract entered into...

Question 15

Elizabeth signs a contract to purchase a new car from Quickcash Motors.She has not yet paid for the car,and Quickcash Motors has not yet delivered the car to Elizabeth.This is an example of a(n)________ contract.

Accepted Answer

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

Question 16

In terms of the infancy doctrine,which of the following is true?

Accepted Answer

A) A minor must honor a contract he or she entered into with an adult if the minor had sufficient mental capacity when the contract was formed. 
B) A minor can disaffirm a contract he or she entered into with an adult. 
C) A minor cannot enter into a legal contract with another minor. 
D) A minor cannot elect to enforce a contract he or she has entered into with an adult. 
A) A minor must honor a contract he or she entered into with an adult if the minor had sufficient mental capacity when the contract was formed. 
B) A minor can disaffirm a contract he or she entered into with an adult. 
C) A minor cannot enter into a legal contract with another minor. 
D) A minor cannot elect to enforce a contract he or she has entered into with an adult.

Question 17

A(n)________ is a response by an offeree that contains terms and conditions different from or in addition to those of the offer.

Accepted Answer

The answer of A(n)________ is a response by an offeree...

Question 18

A person who disaffirms a contract based on intoxication must be returned to the status quo.

Accepted Answer

A) True 
 B)False

Question 19

The ________ rule states that acceptance is effective when it is dispatched,even if it is lost in transmission.

Accepted Answer

A) silence-as-acceptance 
B) mirror image 
C) mailbox 
D) mutual assent 
A) silence-as-acceptance 
B) mirror image 
C) mailbox 
D) mutual assent

Question 20

A contract that has been fully performed by one party but not by the other party is a(n)________ contract.

Accepted Answer

A) void 
B) voidable 
C) executory 
D) executed 
A) void 
B) voidable 
C) executory 
D) executed

Exam 9: Formation and Requirements of Contracts

Why does an illusory contract lack consideration?

Which of the following elements must be established for a contract to be deemed unconscionable?

To create an implied-in-fact contract,it must be established that the plaintiff provided the property or services gratuitously.

According to the objective theory of contracts,the intent to enter into a contract is judged by the ________.

Which of the following is true of an option contract?

If an insane person who has not been adjudged insane enters into a contract,the contract is non-voidable by the insane person.

The Uniform Computer Information Transactions Act (UCITA)is a law applicable to all states and does not require a state legislature to adopt it as a statute for the state.

To meet the mirror image rule,the offeree must accept the terms of the offer without modification.

Explain in brief the standards concerning contracts of mentally incompetent persons.

In terms of a contract's enforcement,which of the following is true?

The ________ states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.

An oral agreement to purchase a neighbor's bicycle for $250 is a(n)________ contract.

A person who has dealt with an insane person need not place that insane person in status quo if the contract is either void or voided by the insane person.

A(n)________ contract is a contract entered into by way of an exchange of promises between the parties.

Elizabeth signs a contract to purchase a new car from Quickcash Motors.She has not yet paid for the car,and Quickcash Motors has not yet delivered the car to Elizabeth.This is an example of a(n)________ contract.

In terms of the infancy doctrine,which of the following is true?

A(n)________ is a response by an offeree that contains terms and conditions different from or in addition to those of the offer.

A person who disaffirms a contract based on intoxication must be returned to the status quo.

The ________ rule states that acceptance is effective when it is dispatched,even if it is lost in transmission.

A contract that has been fully performed by one party but not by the other party is a(n)________ contract.

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