Question 1

Which of the following is true of the equity doctrine?

Accepted Answer

A)  Equity is resorted to when an award of money damages would not be the proper remedy. 
B)  In an action in equity, a jury decides the equitable issue. 
C)  An equitable action could be tried with a judge or a jury. 
D)  The doctrine of equity cannot be applied in contract cases. 
A)  Equity is resorted to when an award of money damages would not be the proper remedy. 
B)  In an action in equity, a jury decides the equitable issue. 
C)  An equitable action could be tried with a judge or a jury. 
D)  The doctrine of equity cannot be applied in contract cases.

Question 2

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 3

An offer to create a unilateral contract can be revoked by the offeror any time prior to the offeree's performance of the requested act.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements is true of contracts?

Accepted Answer

A)  Parties to an informal contract can use any words they choose to express their contract. 
B)  A contract under seal is disclosed only to the offeror of the contract. 
C)  A letter of credit is an informal contract. 
D)  A void contract is the same as a voidable contract. 
A)  Parties to an informal contract can use any words they choose to express their contract. 
B)  A contract under seal is disclosed only to the offeror of the contract. 
C)  A letter of credit is an informal contract. 
D)  A void contract is the same as a voidable contract.

Question 5

Elizabeth signs a contract to purchase a new car from Spadace Motors. She is yet to pay for the car and thus Spadace Motors has not delivered the car to Elizabeth. This is an example of a(n) ________ contract.

Accepted Answer

A)  void 
B)  unenforceable 
C)  executed 
D)  executory 
A)  void 
B)  unenforceable 
C)  executed 
D)  executory

Question 6

A letter of credit is considered an informal contract as it does not have a special method of creation.

Accepted Answer

A) True 
 B)False

Question 7

A(n) ________ contract is stated orally or in written words.

Accepted Answer

A)  express 
B)  implied-in-law 
C)  implied-in-fact 
D)  quasi 
A)  express 
B)  implied-in-law 
C)  implied-in-fact 
D)  quasi

Question 8

An oral agreement to purchase a neighbor's bicycle is a(n) ________ contract.

Accepted Answer

A)  voidable 
B)  void 
C)  express 
D)  implied 
A)  voidable 
B)  void 
C)  express 
D)  implied

Question 9

An offer to create a unilateral contract cannot be accepted by a promise to perform.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

In a unilateral contract, problems arise

Question 11

If a contract is required to be in writing under the Statute of Frauds but is not, then the contract is ________.

Accepted Answer

A)  valid 
B)  void 
C)  voidable 
D)  unenforceable 
A)  valid 
B)  void 
C)  voidable 
D)  unenforceable

Question 12

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

Accepted Answer

A)  The common law of contracts 
B)  The Restatement of the Law of Contracts 
C)  Equity 
D)  Letter of credit 
A)  The common law of contracts 
B)  The Restatement of the Law of Contracts 
C)  Equity 
D)  Letter of credit

Question 13

Which of these is an instance of a quasi contract?

Accepted Answer

A)  an employee receiving his or her paycheck every month 
B)  an unconscious man being nursed at a hospital, having been brought in by a passer-by 
C)  two companies signing a business agreement that spans an undefined duration 
D)  a woman hiring a caterer only after the caterer promises to deliver the food on time 
A)  an employee receiving his or her paycheck every month 
B)  an unconscious man being nursed at a hospital, having been brought in by a passer-by 
C)  two companies signing a business agreement that spans an undefined duration 
D)  a woman hiring a caterer only after the caterer promises to deliver the food on time

Question 14

Stella gets injured in a motor accident and is brought to the hospital by a passerby. Stella subsequently passes into a coma. The doctors and other staff perform the necessary medical procedures to save her life. Stella comes out of her coma two months later and is released from the hospital after the doctors are satisfied by her recovery. Under the doctrine of ________ contract, Stella has to pay the hospital for its services.

Accepted Answer

A)  express contract 
B)  quasi contract 
C)  implied-in-fact contract 
D)  formal contract 
A)  express contract 
B)  quasi contract 
C)  implied-in-fact contract 
D)  formal contract

Question 15

Agreement to a contract requires an offer by the offeror and an acceptance of the offer by the offeree.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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 18

Express contract can be stated orally.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Which of the following elements must be established to create an implied-in-fact contract?

Accepted Answer

A)  A plaintiff provided a property or services gratuitously. 
B)  A plaintiff made a defendant sign a contract and then changed its terms, calling the new terms "previously implied." 
C)  A defendant was given an opportunity to reject a property or services provided by a plaintiff but failed to do so. 
D)  A defendant accepted a property or services offered by a plaintiff as a fee for an illegal activity. 
A)  A plaintiff provided a property or services gratuitously. 
B)  A plaintiff made a defendant sign a contract and then changed its terms, calling the new terms "previously implied." 
C)  A defendant was given an opportunity to reject a property or services provided by a plaintiff but failed to do so. 
D)  A defendant accepted a property or services offered by a plaintiff as a fee for an illegal activity.

Exam 9: Nature of Traditional and E-Contracts

Which of the following is true of the equity doctrine?

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

An offer to create a unilateral contract can be revoked by the offeror any time prior to the offeree's performance of the requested act.

Which of the following statements is true of contracts?

Elizabeth signs a contract to purchase a new car from Spadace Motors. She is yet to pay for the car and thus Spadace Motors has not delivered the car to Elizabeth. This is an example of a(n) ________ contract.

A letter of credit is considered an informal contract as it does not have a special method of creation.

A(n) ________ contract is stated orally or in written words.

An oral agreement to purchase a neighbor's bicycle is a(n) ________ contract.

An offer to create a unilateral contract cannot be accepted by a promise to perform.

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

If a contract is required to be in writing under the Statute of Frauds but is not, then the contract is ________.

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

Which of these is an instance of a quasi contract?

Agreement to a contract requires an offer by the offeror and an acceptance of the offer by the offeree.

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

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.

Express contract can be stated orally.

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

Which of the following elements must be established to create an implied-in-fact contract?

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