Question 1

On May 1, Ramona and Santonio orally agree that Santonio will guide a party from the base of Mount McKinley to its summit and from the summit to a return to the base. Under the agreement, Ramona will pay for the service after the completion of the climb on June 1. On May 1, is this contract express or implied? On May 31, after the climb has been made but before payment is paid, is the contract executed or executory?

Accepted Answer

An express contract is one in which the terms are fully expressed, either in writing or orally. An implied contract is defined by the conduct of the parties, not their words. The contract between Ramona and Santonio is an oral contract, in which the terms are fully expressed. That means their contract is an express contract.
The contract between Ramona and Santonio is an executory contract on May 31. An executed contract is a contract that has been fully performed on both sides. An executory contract is a contract that has not been fully performed. If, as in this problem, one party (Santonio) has fully performed but the other (Ramona) has not-because she has not yet made the payment promised on a certain date-the contract, executed on one side and executory on the other, is classified as executory.

Question 2

Every contract involves at least three parties.

Accepted Answer

A) True 
 B)False  False

Question 3

In a divorce proceeding, Jonas promises to pay a certain amount of child support to Kelly every month until their daughter Lois is eighteen years old. Jonas's obligation with respect to this promise is

Accepted Answer

A)   ​moral, not legal.
B)   ​legal, not moral.
C)   ​legal and moral.
D)   ​neither legal nor moral. C

Question 4

Contract law assures the parties to private agreements that the promises they make will be enforceable.

Accepted Answer

A) True 
 B)False

Question 5

A check is a formal contract.

Accepted Answer

A) True 
 B)False

Question 6

Robin claims that her contract with Stroud for tennis lessons is voidable. If their contract is avoided​

Accepted Answer

A)   ​both parties are released from it.
B)   ​both parties must fully perform their obligations under it.
C)   ​a wholly different contract is agreed to.
D)   ​a wholly different contract is imposed "as if" the parties had agreed.

Question 7

Evie agrees to work for Far East Shipping, Ltd., as a translator. In determining whether a contract has been formed, an element of prime importance is

Accepted Answer

A)   ​the parties' intent.
B)   ​Far East's base.
C)   ​the work's duration.
D)   ​Evie's capabilities.

Question 8

Some promises are not legally binding.

Accepted Answer

A) True 
 B)False

Question 9

Bob claims that Carla breached their contract for tutoring. Carla responds that she never intended to enter into a contract with Bob. The intent to enter into a contract is determined with reference to

Accepted Answer

A)   ​the intentional theory of contracts.
B)   ​the objective theory of contracts.
C)   ​the personal theory of contracts.
D)   ​the subjective theory of contracts.

Question 10

Bo signs a lease with Capri Apartments to lease a studio apartment for the next year for $650 per month. Daisy signs on Capri's behalf. Bo and Capri have

Accepted Answer

A)   ​no contract.
B)   ​an express contract.
C)   ​an implied contract.
D)   ​a simple contract.

Question 11

In contract law, intent is determined by the subjective theory of contracts.

Accepted Answer

A) True 
 B)False

Question 12

Jess, a nurse practitioner, renders aid to Kurt, who is injured and unconscious. Jess can recover the cost of the aid from Kurt

Accepted Answer

A)   ​as if the parties had entered into an actual contract.
B)   ​only if Kurt recovers because of the aid.
C)   ​only if Kurt was aware of the aid.
D)   ​under no circumstances.

Question 13

Foster promises to buy Gideon's trumpet for $75. Gideon is

Accepted Answer

A)   ​an offeree.
B)   ​an offeror.
C)   ​a promisee.
D)   ​a promisor.

Question 14

Susan enters into a contract with Troy to act as his personal sports trainer. If a dispute later arises and the contract contains unclear terms, the rules of contract interpretation will give effect to

Accepted Answer

A)   ​the parties' intent as expressed in their contract.
B)   ​what the promisor claims was the parties' intent.
C)   ​what the promisee claims was the parties' intent.
D)   ​what the parties now agree they intended.

Question 15

Lane applies for a firefighter's job with Metro City, which responds with a letter setting an appointment for a medical exam. The letter also states that it is "an employment offer conditioned on the applicant passing the exam." This is

Accepted Answer

A)   ​a bilateral contract that Lane accepted by applying for the job.
B)   ​a quasi contract on which Lane can rely for employment.
C)   ​a unilateral contract that Lane can accept by passing the exam.
D)   ​no contract.

Question 16

One of the requirements of a valid contract is an adequate price.

Accepted Answer

A) True 
 B)False

Question 17

On behalf of the jazz group Fusion, their manager Greg agrees to a performance in Hillside Amphitheatre on July 4. Hillside sends a written copy of the agreement to Greg to be signed. If Greg signs the copy, the parties will have

Accepted Answer

A)   ​an express contract.
B)   ​an implied contract.
C)   ​an implied-in-law contract.
D)   ​no contract.

Question 18

Informal contracts include all contracts other than formal contracts.

Accepted Answer

A) True 
 B)False

Question 19

In an express contract, the terms are fully and explicitly stated in words.

Accepted Answer

A) True 
 B)False

Question 20

K'Nect, Inc., makes an offer to Lori to enter into a contract to work as a salesperson for a certain salary plus commission for ninety days subject to a one-year renewal based on her performance. Lori accepts the offer. A valid contract requires

Accepted Answer

A)   ​a price and a subject.
B)   ​a duration and a termination.
C)   ​an offer and an acceptance.
D)   ​specific quality standards.

Exam 11: Nature and Terminology

Every contract involves at least three parties.

In a divorce proceeding, Jonas promises to pay a certain amount of child support to Kelly every month until their daughter Lois is eighteen years old. Jonas's obligation with respect to this promise is

Contract law assures the parties to private agreements that the promises they make will be enforceable.

A check is a formal contract.

Robin claims that her contract with Stroud for tennis lessons is voidable. If their contract is avoided​

Evie agrees to work for Far East Shipping, Ltd., as a translator. In determining whether a contract has been formed, an element of prime importance is

Some promises are not legally binding.

Bob claims that Carla breached their contract for tutoring. Carla responds that she never intended to enter into a contract with Bob. The intent to enter into a contract is determined with reference to

Bo signs a lease with Capri Apartments to lease a studio apartment for the next year for $650 per month. Daisy signs on Capri's behalf. Bo and Capri have

In contract law, intent is determined by the subjective theory of contracts.

Jess, a nurse practitioner, renders aid to Kurt, who is injured and unconscious. Jess can recover the cost of the aid from Kurt

Foster promises to buy Gideon's trumpet for $75. Gideon is

Susan enters into a contract with Troy to act as his personal sports trainer. If a dispute later arises and the contract contains unclear terms, the rules of contract interpretation will give effect to

Lane applies for a firefighter's job with Metro City, which responds with a letter setting an appointment for a medical exam. The letter also states that it is "an employment offer conditioned on the applicant passing the exam." This is

One of the requirements of a valid contract is an adequate price.

On behalf of the jazz group Fusion, their manager Greg agrees to a performance in Hillside Amphitheatre on July 4. Hillside sends a written copy of the agreement to Greg to be signed. If Greg signs the copy, the parties will have

Informal contracts include all contracts other than formal contracts.

In an express contract, the terms are fully and explicitly stated in words.

K'Nect, Inc., makes an offer to Lori to enter into a contract to work as a salesperson for a certain salary plus commission for ninety days subject to a one-year renewal based on her performance. Lori accepts the offer. A valid contract requires

Robin claims that her contract with Stroud for tennis lessons is voidable. If their contract is avoided