Question 1

Movers LLC promises to deliver a certain couch to Nora, who promises to pay for the service. If Movers does not perform, it may be required to

Accepted Answer

A)  ​cease business. 
B)  ​make another promise. 
C)  ​pay money damages. 
D)  ​perform a different service. 
A)  ​cease business. 
B)  ​make another promise. 
C)  ​pay money damages. 
D)  ​perform a different service.

Question 2

When a rainstorm erupts outside Rita's Gift Shop, Rita and Shaw enter into an implied contract to split the revenue from Shaw's sale of umbrellas to Rita's customers. The terms of this contract are defined by

Accepted Answer

A)  ​the conduct of the parties. 
B)  ​the words of the parties. 
C)  ​the unforeseeable storm that gave rise to the deal. 
D)  ​the unexpressed subjective intent of the parties. 
A)  ​the conduct of the parties. 
B)  ​the words of the parties. 
C)  ​the unforeseeable storm that gave rise to the deal. 
D)  ​the unexpressed subjective intent of the parties.

Question 3

A court will normally interpret the language of a contract according to what the parties claim their intent was when they made it.

Accepted Answer

A) True 
 B)False

Question 4

Field Construction, Inc., contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay. The elements of this, and any other, contract include

Accepted Answer

A)  ​capability. 
B)  ​legality. 
C)  ​necessity. 
D)  ​marketability. 
A)  ​capability. 
B)  ​legality. 
C)  ​necessity. 
D)  ​marketability.

Question 5

Pavers, Inc., contracts with a QuikStop store to repave the store's parking lot for a certain price. The requirements of this, and any other, contract include

Accepted Answer

A)  ​consideration. 
B)  ​acceptability. 
C)  ​achievability. 
D)  ​practicality. 
A)  ​consideration. 
B)  ​acceptability. 
C)  ​achievability. 
D)  ​practicality.

Question 6

Smith & Jones, Accountants, agrees to perform an audit for Brick & Mortar Stores, Inc. Whether or not this agreement meets all of the requirements of a contract, the parties are likely to follow the rules of contract law because they

Accepted Answer

A)  ​want to avoid potential disputes. 
B)  ​are conscious of those rules. 
C)  ​are not conscious of those rules. 
D)  ​have a moral obligation to do so. 
A)  ​want to avoid potential disputes. 
B)  ​are conscious of those rules. 
C)  ​are not conscious of those rules. 
D)  ​have a moral obligation to do so.

Question 7

The only requirement of a valid contract is that it be voluntarily entered into.

Accepted Answer

A) True 
 B)False

Question 8

​A contract is valid only if both of the parties entering into it have the capacity to do so.

Accepted Answer

A) True 
 B)False

Question 9

If a contractual promise is not fulfilled, the person who made it may be required to perform the promised act.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  ​a valid contract. 
B)  ​a voidable contract. 
C)  ​A voidable contract. 
D)  ​an unenforceable contract. 
A)  ​a valid contract. 
B)  ​a voidable contract. 
C)  ​A voidable contract. 
D)  ​an unenforceable contract.

Question 11

Ren offers to pay Sara to pick up and deliver certain business documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Ren and Sara will 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 12

An executed contract is one that has been fully performed.

Accepted Answer

A) True 
 B)False

Exam 11: Nature and Terminology

Movers LLC promises to deliver a certain couch to Nora, who promises to pay for the service. If Movers does not perform, it may be required to

When a rainstorm erupts outside Rita's Gift Shop, Rita and Shaw enter into an implied contract to split the revenue from Shaw's sale of umbrellas to Rita's customers. The terms of this contract are defined by

A court will normally interpret the language of a contract according to what the parties claim their intent was when they made it.

Field Construction, Inc., contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay. The elements of this, and any other, contract include

Pavers, Inc., contracts with a QuikStop store to repave the store's parking lot for a certain price. The requirements of this, and any other, contract include

Smith & Jones, Accountants, agrees to perform an audit for Brick & Mortar Stores, Inc. Whether or not this agreement meets all of the requirements of a contract, the parties are likely to follow the rules of contract law because they

The only requirement of a valid contract is that it be voluntarily entered into.

​A contract is valid only if both of the parties entering into it have the capacity to do so.

If a contractual promise is not fulfilled, the person who made it may be required to perform the promised act.

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

Ren offers to pay Sara to pick up and deliver certain business documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Ren and Sara will have

An executed contract is one that has been fully performed.

Law and Legal Reasoning

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Intellectual Property Rights

Internet Law, Social Media, and Privacy

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Consideration

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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

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A contract is valid only if both of the parties entering into it have the capacity to do so.