Question 1

A contract is an agreement that can be enforced in court.

Accepted Answer

A) True 
 B)False

Question 2

An offer may not be revoked until it is accepted.

Accepted Answer

A) True 
 B)False

Question 3

All contracts must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 4

Wilson buys a lottery ticket. Wilson has accepted an offer for

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 5

An express contract must be in writing.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)  ​enforceable. 
B)  ​quasi. 
C)  ​void. 
D)  ​voidable. 
A)  ​enforceable. 
B)  ​quasi. 
C)  ​void. 
D)  ​voidable.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 9

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?

Accepted Answer

The facts presented here indicate the pr

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

If a voidable contract is ratified, the parties must fully perform their respective legal obligations.

Accepted Answer

A) True 
 B)False

Question 12

The person who makes a promise is the promisee.

Accepted Answer

A) True 
 B)False

Question 13

A quasi contract is a fictional contract.

Accepted Answer

A) True 
 B)False

Question 14

If a contract term is ambiguous, a court can consider outside evidence.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Clay offers to pay Dian $50 for a golf lesson for Ewan. They agree to meet on Friday to exchange the cash for the lesson. These parties have

Accepted Answer

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

Question 17

An implied contract is not an actual contract.

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 letter-of-credit agreement between Rural Feed Corporation and Soy Farms, 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 20

Ray promises to give Steve his iPod in exchange for Steve's promise to pay Ray $50. Later, they exchange the device for the funds. A contract was created when

Accepted Answer

A)  ​Ray offered to sell his iPod. 
B)  ​Ray exchanged his iPod for $50. 
C)  ​Steve promised to pay Ray for the iPod. 
D)  ​Steve paid Ray $50 for the iPod. 
A)  ​Ray offered to sell his iPod. 
B)  ​Ray exchanged his iPod for $50. 
C)  ​Steve promised to pay Ray for the iPod. 
D)  ​Steve paid Ray $50 for the iPod.

Exam 11: Nature and Terminology

A contract is an agreement that can be enforced in court.

An offer may not be revoked until it is accepted.

All contracts must be in writing to be enforceable.

Wilson buys a lottery ticket. Wilson has accepted an offer for

An express contract must be in writing.

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

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

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

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

If a voidable contract is ratified, the parties must fully perform their respective legal obligations.

The person who makes a promise is the promisee.

A quasi contract is a fictional contract.

If a contract term is ambiguous, a court can consider outside evidence.

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

Clay offers to pay Dian $50 for a golf lesson for Ewan. They agree to meet on Friday to exchange the cash for the lesson. These parties have

An implied contract is not an actual contract.

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

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

Ray promises to give Steve his iPod in exchange for Steve's promise to pay Ray $50. Later, they exchange the device for the funds. A contract was created when

Law and Legal Reasoning

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The Writing Requirement in Our Digital World

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