Question 1

Oscar asserts that a deal he entered into with Patty 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.

Question 2

A forum-selection clause indicates the location for the resolution of any dispute arising under the contract.

Accepted Answer

A) True 
 B)False

Question 3

Diversions, Inc., makes video, games. Ember buys a copy of Final Infinity. Inside the package is a shrink-wrap agreement. With respect to the contract for the game's purchase, the shrink-wrap agreement may not be enforced if Ember​

Accepted Answer

A) does not read it. 
B) learns of it after the contract is formed. 
C) learns of it before the contract is formed. 
D) has difficulty learning how to play the game.

Question 4

When a rainstorm erupts outside Rita's Souvenir & Gift Shop, Rita and Shaw enter into an oral 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.

Question 5

On December 1, Petroleum, Inc., sent Rachel & Rico (R&R) a letter, via overnight delivery, offering to employ R&R to review Petroleum's tax situation for the current year for $10,000. In the letter, the company stated that R&R had ten days to accept. On December 5, R&R sent an e-mail message that stated, "The price for the tax analysis seems too low. Would you consider paying $15,000?" Petroleum received the message without responding immediately. The next day, Smith & Taylor, an R&R competitor, offered to conduct the appraisal for $8,000. On learning of this offer, R&R immediately e-mailed Petroleum, agreeing to do the work for $10,000. Petroleum received this message on December 7. Explain why R&R and Petroleum do, or do not, have a contract.

Accepted Answer

The answer of On December 1, Petroleum, Inc., sent Rachel...

Question 6

Mallory promises to buy illegal digital copies of movies from Nick, who promises to deliver on October 31. These promises are most likely​

Accepted Answer

A) enforceable. 
B) valid. 
C) void. 
D) voidable.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

An offer may not be revoked before it is accepted.

Accepted Answer

A) True 
 B)False

Question 10

Twyla's dock is damaged in an accident caused by Ulric's negligence. Twyla agrees not to sue him if he will pay for the damage. If Ulric fails to pay, Twyla can bring an action for breach of contract. This is​

Accepted Answer

A) a covenant not to sue. 
B) an illusory promise. 
C) an unforeseen difficulty. 
D) a release.

Question 11

An e-contract must meet basic requirements that are different from those required of a paper contract.

Accepted Answer

A) True 
 B)False

Question 12

Most advertisements-"this property for sale"-are offers.

Accepted Answer

A) True 
 B)False

Question 13

A promise by one party to pay another for refraining from an action that one has a legal right to undertake is enforceable.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

A transaction that lacks a bargained-for exchange lacks an element of consideration.

Accepted Answer

A) True 
 B)False

Question 16

Essentially, adequacy of consideration concerns the fairness of the bargain.

Accepted Answer

A) True 
 B)False

Question 17

An implied contract is not an actual contract.

Accepted Answer

A) True 
 B)False

Question 18

Younger asks Zoey, "Do you want to buy one of my fishing rods?" This is​

Accepted Answer

A) a valid offer. 
B) not a valid offer because the terms are not definite. 
C) not a valid offer because Younger did not state an intent. 
D) not a valid offer because Zoey did not respond.Fact Pattern 8-1​ Teatro Restoration, Inc., begins renovating an old theater for Urban Edge Productions, but after three months Teatro demands an extra $250,000.Urban Edge agrees to pay.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Pacific Charter Company offers to provide an air-conditioned bus to Quincy's tour group for $1,500 plus the cost of the fuel. The mailbox rule applies if Quincy accepts the offer by​​

Accepted Answer

A) e-mail. 
B) phone. 
C) regular mail. 
D) any of the choices.

Exam 8: Agreement and Consideration in Contracts

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

A forum-selection clause indicates the location for the resolution of any dispute arising under the contract.

Diversions, Inc., makes video, games. Ember buys a copy of Final Infinity. Inside the package is a shrink-wrap agreement. With respect to the contract for the game's purchase, the shrink-wrap agreement may not be enforced if Ember​

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

Mallory promises to buy illegal digital copies of movies from Nick, who promises to deliver on October 31. These promises are most likely​

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

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

An offer may not be revoked before it is accepted.

Twyla's dock is damaged in an accident caused by Ulric's negligence. Twyla agrees not to sue him if he will pay for the damage. If Ulric fails to pay, Twyla can bring an action for breach of contract. This is​

An e-contract must meet basic requirements that are different from those required of a paper contract.

Most advertisements-"this property for sale"-are offers.

A promise by one party to pay another for refraining from an action that one has a legal right to undertake is enforceable.

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

A transaction that lacks a bargained-for exchange lacks an element of consideration.

Essentially, adequacy of consideration concerns the fairness of the bargain.

An implied contract is not an actual contract.

Younger asks Zoey, "Do you want to buy one of my fishing rods?" This is​

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

Pacific Charter Company offers to provide an air-conditioned bus to Quincy's tour group for $1,500 plus the cost of the fuel. The mailbox rule applies if Quincy accepts the offer by​​

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

Diversions, Inc., makes video, games. Ember buys a copy of Final Infinity. Inside the package is a shrink-wrap agreement. With respect to the contract for the game's purchase, the shrink-wrap agreement may not be enforced if Ember

Mallory promises to buy illegal digital copies of movies from Nick, who promises to deliver on October 31. These promises are most likely

Twyla's dock is damaged in an accident caused by Ulric's negligence. Twyla agrees not to sue him if he will pay for the damage. If Ulric fails to pay, Twyla can bring an action for breach of contract. This is

Younger asks Zoey, "Do you want to buy one of my fishing rods?" This is

Pacific Charter Company offers to provide an air-conditioned bus to Quincy's tour group for $1,500 plus the cost of the fuel. The mailbox rule applies if Quincy accepts the offer by