Exam 7: Nature and Terminology

A promise is a declaration that something will or will not happen in the future.

Sales Corporation and Real Properties, 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

A bilateral contract comes into existence at the moment promises are exchanged.

When a contract's writing is not clear, a court will not consider evidence outside the contract to interpret its terms.

In a divorce proceeding, Jonas promises to pay a certain amount of child support to Kelly every month until their daughter Lois is eighteen years old. Jonas's obligation with respect to this promise is

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

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have

A quasi contract is not enforceable by a court.

An executed contract is one that has been fully performed.

An unenforceable contract is one that cannot be enforced because of certain legal defenses against it.

Informal contracts include all contracts other than formal contracts.

Oceans Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legal limit. This agreement is most likely

Philo, a businessperson, is a friend of Quiana, the owner of Rise n' Shine, a coffee stand. Every day, Philo spends a few minutes at the stand, watching the brewing, considering the options, and usually buying a cup of coffee and something extra-a bagel, a muffin, a cookie, or a sandwich. One afternoon, Philo comes to the stand and picks up a bottle of iced coffee and a sandwich priced at $5 each. Philo waves the items at Quiana without saying a word and walks out. Is there a contract? If so, how would it be classified in terms of formation, performance, and enforceability?

Contract law assures the parties to private agreements that the promises they make will be enforceable.

K'Nect, Inc., makes an offer to Lori to enter into a contract to work as a salesperson for a certain salary plus commission for ninety days subject to a one-year renewal based on her performance. Lori accepts the offer. A valid contract requires

The element of intent is of prime importance in determining whether a contract has been formed.

Lane applies for a firefighter's job with Metro City, which responds with a letter setting an appointment for a medical exam. The letter also states that it is "an employment offer conditioned on the applicant passing the exam." This is

On May 1, Ramona and Santonio orally agree that Santonio will guide a party from the base of Mount McKinley to its summit and from the summit to a return to the base. Under the agreement, Ramona will pay for the service after the completion of the climb on June 1. On May 1, is this contract express or implied? On May 31, after the climb has been made but before payment is paid, is the contract executed or executory?

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

Marketing Inc. offers to create a campaign to increase N'Ice Creamery, Inc.'s online business. N'Ice agrees to pay for the service. These parties have