Question 1

Alan tells Sherry that he will pay her $5,000 if she runs the Boston Marathon.Once Sherry starts running the marathon,Alan ________.

Accepted Answer

A) can revoke the contract as informal verbal agreements are not binding 
B) cannot revoke the contract 
C) can reduce the money on offer 
D) can only increase the money on offer 
A) can revoke the contract as informal verbal agreements are not binding 
B) cannot revoke the contract 
C) can reduce the money on offer 
D) can only increase the money on offer B

Question 2

If one of the parties to a contract can enforce the contract,it is considered valid.

Accepted Answer

A) True 
 B)False  True

Question 3

Compare valid,void,voidable,and unenforceable contracts.

Accepted Answer

1. Valid contract.A valid contract meets all the essential elements to establish a contract.In other words,it (a)consists of an agreement between the parties, (b)is supported by legally sufficient consideration, (c)is between parties with contractual capacity,and (d)accomplishes a lawful object.A valid contract is enforceable by at least one of the parties.
2. Void contract.A void contract has no legal effect.It is as if no contract had ever been created.A contract to commit a crime is void.If a contract is void then neither party is obligated to perform the contract and neither party can enforce the contract.
3. Voidable contract.A voidable contract is a contract in which at least one party has the option to void his or her contractual obligations.If the contract is voided,both parties are released from their obligations under the contract.If the party with the option chooses to ratify the contract,both parties must fully perform their obligations.
4. Unenforceable contract.With an unenforceable contract,there is some legal defense to the enforcement of the contract.If a contract is required to be in writing under the Statute of Frauds but is not,the contract is unenforceable.

Question 4

Which of the following is true of enforcing a contract?

Accepted Answer

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

Question 5

A contract is a(n)________ if the offeror's promise is answered with the offeree's promise of acceptance.

Accepted Answer

A) unilateral contract 
B) bilateral contract 
C) executed contract 
D) executory contract 
A) unilateral contract 
B) bilateral contract 
C) executed contract 
D) executory contract

Question 6

Which of the following statements is true of the doctrine of quasi contract?

Accepted Answer

A) It allows a court to award monetary damages to a defendant because no actual contract existed between the parties. 
B) It applies only where there is an enforceable contract between the parties. 
C) It is an equitable doctrine intended to prevent unjust enrichment. 
D) Agreement between parties to a quasi contract has been inferred from their conduct. 
A) It allows a court to award monetary damages to a defendant because no actual contract existed between the parties. 
B) It applies only where there is an enforceable contract between the parties. 
C) It is an equitable doctrine intended to prevent unjust enrichment. 
D) Agreement between parties to a quasi contract has been inferred from their conduct.

Question 7

Which of the following is a necessary condition for a contract to be considered valid?

Accepted Answer

A) It cannot be enforced by just one of the parties involved. 
B) It is enforceable by at least one of the parties. 
C) It can be voided by one of the parties. 
D) It can be voided by both parties. 
A) It cannot be enforced by just one of the parties involved. 
B) It is enforceable by at least one of the parties. 
C) It can be voided by one of the parties. 
D) It can be voided by both parties.

Question 8

Explain the basic requirements that must be met for a contract to be enforceable.

Accepted Answer

The requirements for a contract to be en

Question 9

A contract is bilateral contract if the offeror's promise is answered with the offeree's promise of acceptance.

Accepted Answer

A) True 
 B)False

Question 10

The UCITA (Uniform Computer Information Transactions Act)is a model act that does not become law until a state legislature adopts it as a statute for the state.

Accepted Answer

A) True 
 B)False

Question 11

Contracts under seal are thus named because they are highly confidential,and the parties to these contracts are not allowed to talk about their terms.

Accepted Answer

A) True 
 B)False

Question 12

A unilateral contract can be accepted without the performance of an act by the offeree.

Accepted Answer

A) True 
 B)False

Question 13

Equity is a doctrine that permits judges to make decisions based on fairness,equality,moral rights,and natural law.

Accepted Answer

A) True 
 B)False

Question 14

Checks and drafts are considered informal contracts as their method of creation varies from one bank to another.

Accepted Answer

A) True 
 B)False

Question 15

A contract that has been fully performed by both sides is called an executory contract.

Accepted Answer

A) True 
 B)False

Question 16

If one of the parties of a contract has the option to void his or her contractual obligations,the contract is considered voidable.

Accepted Answer

A) True 
 B)False

Question 17

Martha contacts a bakery to get a cake for her son's birthday party.She tells the baker that she will pay him $150 for the cake if he delivers the cake on Friday evening.If the baker does not deliver the cake on Friday evening,which of the following will hold true?

Accepted Answer

A) Martha can sue the baker to recover $150 in damages. 
B) Martha can sue the baker but cannot recover damages. 
C) The baker has to give $150 plus cost of the replacement cake to Martha as he entered into a verbal contract with her. 
D) Martha cannot sue the baker. 
A) Martha can sue the baker to recover $150 in damages. 
B) Martha can sue the baker but cannot recover damages. 
C) The baker has to give $150 plus cost of the replacement cake to Martha as he entered into a verbal contract with her. 
D) Martha cannot sue the baker.

Question 18

Objective theory of contracts 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) True 
 B)False

Question 19

What are the possible problems that can come up in a unilateral contract?

Accepted Answer

In a unilateral contract,problems arise

Question 20

Express contract can be stated orally.

Accepted Answer

A) True 
 B)False

Exam 9: Nature of Traditional and E-Contracts

Alan tells Sherry that he will pay her $5,000 if she runs the Boston Marathon.Once Sherry starts running the marathon,Alan ________.

If one of the parties to a contract can enforce the contract,it is considered valid.

Compare valid,void,voidable,and unenforceable contracts.

Which of the following is true of enforcing a contract?

A contract is a(n)________ if the offeror's promise is answered with the offeree's promise of acceptance.

Which of the following statements is true of the doctrine of quasi contract?

Which of the following is a necessary condition for a contract to be considered valid?

Explain the basic requirements that must be met for a contract to be enforceable.

A contract is bilateral contract if the offeror's promise is answered with the offeree's promise of acceptance.

The UCITA (Uniform Computer Information Transactions Act)is a model act that does not become law until a state legislature adopts it as a statute for the state.

Contracts under seal are thus named because they are highly confidential,and the parties to these contracts are not allowed to talk about their terms.

A unilateral contract can be accepted without the performance of an act by the offeree.

Equity is a doctrine that permits judges to make decisions based on fairness,equality,moral rights,and natural law.

Checks and drafts are considered informal contracts as their method of creation varies from one bank to another.

A contract that has been fully performed by both sides is called an executory contract.

If one of the parties of a contract has the option to void his or her contractual obligations,the contract is considered voidable.

Martha contacts a bakery to get a cake for her son's birthday party.She tells the baker that she will pay him $150 for the cake if he delivers the cake on Friday evening.If the baker does not deliver the cake on Friday evening,which of the following will hold true?

Objective theory of contracts states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.

What are the possible problems that can come up in a unilateral contract?

Express contract can be stated orally.

Legal Environment of Business and Online Commerce

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Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

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Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

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Creation of Negotiable Instruments

Holder in Due Course and Transferability

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Ethics and Social Responsibility of Business

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