Question 1

The term consideration refers to the regard that contracting parties hold for each other.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Lark promises to buy Mac's used textbook for $60. Lark is

Accepted Answer

A)  ​an executor. 
B)  ​an offeree. 
C)  ​a promisee. 
D)  ​a promisor. 
A)  ​an executor. 
B)  ​an offeree. 
C)  ​a promisee. 
D)  ​a promisor.

Question 4

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

Accepted Answer

A)  ​no contract. 
B)  ​an express contract. 
C)  ​an implied contract. 
D)  ​a quasi contract. 
A)  ​no contract. 
B)  ​an express contract. 
C)  ​an implied contract. 
D)  ​a quasi contract.

Question 5

Francisca and Garden Estate, Inc., enter into a contract for the use of a Victorian mansion and its grounds for a wedding and reception. If ambiguities appear in the contract, they will be construed against the party who

Accepted Answer

A)  ​drafted the contract. 
B)  ​has the greater bargaining power. 
C)  ​made the offer to contract. 
D)  ​offers the most confusing explanation of the terms. 
A)  ​drafted the contract. 
B)  ​has the greater bargaining power. 
C)  ​made the offer to contract. 
D)  ​offers the most confusing explanation of the terms.

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

An offeree is a person who makes an offer.

Accepted Answer

A) True 
 B)False

Question 8

Leila enters into a contract with Metro Taxi Company to work as a cabdriver. Under the plain meaning rule, if the contract's writing is clear and unequivocal, the meaning of the terms must be determined from

Accepted Answer

A)  ​only evidence not contained in the document. 
B)  ​any relevant extrinsic evidence. 
C)  ​only the face of the instrument. 
D)  ​the later testimony of the parties. 
A)  ​only evidence not contained in the document. 
B)  ​any relevant extrinsic evidence. 
C)  ​only the face of the instrument. 
D)  ​the later testimony of the parties.

Question 9

All contracts include an implied covenant of good faith and fair dealing.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Moe asserts that a deal he entered into with Nina to sponsor and host a motivational conference for independent sales representatives is an unenforceable contract. Defenses to the enforcement of a contract include

Accepted Answer

A)  ​a desire not to perform. 
B)  ​insufficient capital. 
C)  ​preliminary indications of unsatisfactory results. 
D)  ​the lack of a party's voluntary consent. 
A)  ​a desire not to perform. 
B)  ​insufficient capital. 
C)  ​preliminary indications of unsatisfactory results. 
D)  ​the lack of a party's voluntary consent.

Question 12

Jim tells Dana that he will take her out to lunch on Thursday. Jim has made Dana​

Accepted Answer

A)  ​a prediction. 
B)  ​a promise. 
C)  ​a bilateral contract. 
D)  ​a void contract. 
A)  ​a prediction. 
B)  ​a promise. 
C)  ​a bilateral contract. 
D)  ​a void contract.

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Francie drives into Gage's Auto Service and asks Gage to replace a tire on her car. After Gage replaces the tire, but before Francie 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.

Question 15

A quasi contract is not enforceable by a court.

Accepted Answer

A) True 
 B)False

Question 16

Rough Water, LLC, and Schafer enter into a contract for the delivery of a used kayak. Until the kayak is 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 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A)  ​no contract. 
B)  ​an express contract. 
C)  ​an implied contract. 
D)  ​a quasi contract. 
A)  ​no contract. 
B)  ​an express contract. 
C)  ​an implied contract. 
D)  ​a quasi contract.

Question 19

Vicky asks Walt, a cobbler, to repair a pair of boots. There is no discussion of a price, and Vicky and Walt do not sign any documents. After the repair, Walt hands Vicky a bill. With respect to Vicky's obligation to pay the bill, this is

Accepted Answer

A)  ​an express contract. 
B)  ​an implied contract. 
C)  ​a quasi contract. 
D)  ​no contract. 
A)  ​an express contract. 
B)  ​an implied contract. 
C)  ​a quasi contract. 
D)  ​no contract.

Question 20

A unilateral contract is formed at the moment when the contract is performed.

Accepted Answer

A) True 
 B)False

Exam 11: Nature and Terminology

The term consideration refers to the regard that contracting parties hold for each other.

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

Lark promises to buy Mac's used textbook for $60. Lark is

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

Francisca and Garden Estate, Inc., enter into a contract for the use of a Victorian mansion and its grounds for a wedding and reception. If ambiguities appear in the contract, they will be construed against the party who

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

An offeree is a person who makes an offer.

Leila enters into a contract with Metro Taxi Company to work as a cabdriver. Under the plain meaning rule, if the contract's writing is clear and unequivocal, the meaning of the terms must be determined from

All contracts include an implied covenant of good faith and fair dealing.

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

Moe asserts that a deal he entered into with Nina to sponsor and host a motivational conference for independent sales representatives is an unenforceable contract. Defenses to the enforcement of a contract include

Jim tells Dana that he will take her out to lunch on Thursday. Jim has made Dana​

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

Francie drives into Gage's Auto Service and asks Gage to replace a tire on her car. After Gage replaces the tire, but before Francie pays for it, any contract between them is

A quasi contract is not enforceable by a court.

Rough Water, LLC, and Schafer enter into a contract for the delivery of a used kayak. Until the kayak is delivered and paid for, these parties have

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

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

Vicky asks Walt, a cobbler, to repair a pair of boots. There is no discussion of a price, and Vicky and Walt do not sign any documents. After the repair, Walt hands Vicky a bill. With respect to Vicky's obligation to pay the bill, this is

A unilateral contract is formed at the moment when the contract is performed.

Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Business and the Constitution

Business Ethics

Tort Law

Strict Liability and Product Liability

Intellectual Property Rights

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

The Writing Requirement in Our Digital World

Third Party Rights

Performance and Discharge

Breach of Contract and Remedies

The Formation of Sales and Lease Contracts

Title, Risk, and Insurable Interest

Performance and Breach of Sales and Lease Contracts

Warranties

International and Space Law

Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Agency Formation and Duties

Agency Liability and Termination

Employment, Immigration, and Labor Law

Employment Discrimination

Small Businesses and Franchises

All Forms of Partnerships

Limited Liability Companies and Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, and Shareholders

Mergers and Takeovers

Investor Protection, Insider Trading, and Corporate Governance

Administrative Agencies

Consumer Law

Environmental Protection

Antitrust Law

Professional Liability and Accountability

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance

Wills and Trusts

The Legal Environment of Business

Torts and Crimes

Contracts and E-Contracts

Domestic and International Sales and Lease Contracts

Negotiable Instruments

Creditors Rights and Bankruptcy

Agency and Employment

Business Organizations

Government Regulation

Jim tells Dana that he will take her out to lunch on Thursday. Jim has made Dana