Question 1

The term consideration refers to the regard that contracting parties hold for each other.

Accepted Answer

A) True 
 B)False

Question 2

Moe asserts that a deal he entered into with Nina 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 3

A quasi contract is not enforceable by a court.

Accepted Answer

A) True 
 B)False

Question 4

Marketing Inc. offers to create a campaign to increase N'Ice Creamery, Inc.'s online business. N'Ice agrees to pay for the service. These parties have

Accepted Answer

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

Question 5

Vicky asks Walt, a cobbler, to repair a pair of boots. There is no discussion of a price, and Vicky and Walt do not sign any documents. After the repair, Walt hands Vicky a bill. With respect to Vicky's obligation to pay the bill, this is

Accepted Answer

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

Question 6

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have

Accepted Answer

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

Question 7

Jim tells Dana that he will take her out to lunch on Thursday. Jim has made Dana​

Accepted Answer

A)   ​a prediction.
B)   ​a promise.
C)   ​a bilateral contract.
D)   ​a void contract.

Question 8

When a contract's writing is not clear, a court will not consider evidence outside the contract to interpret its terms.

Accepted Answer

A) True 
 B)False

Question 9

Leila enters into a contract with Metro Taxi Company to work as a cabdriver. Under the plain meaning rule, if the contract's writing is clear and unequivocal, the meaning of the terms must be determined from

Accepted Answer

A)   ​only evidence not contained in the document.
B)   ​any relevant extrinsic evidence.
C)   ​only the face of the instrument.
D)   ​the later testimony of the parties.

Question 10

Francisca and Garden Estate, Inc., enter into a contract for the use of a Victorian mansion and its grounds for a wedding and reception. If ambiguities appear in the contract, they will be construed against the party who

Accepted Answer

A)   ​drafted the contract.
B)   ​has the greater bargaining power.
C)   ​made the offer to contract.
D)   ​offers the most confusing explanation of the terms.

Question 11

Rough Water, LLC, and Schafer enter into a contract for the delivery of a used kayak. Until the kayak is delivered and paid for, these parties have

Accepted Answer

A)   ​an executory contract.
B)   ​no contract.
C)   ​a quasi contract.
D)   ​an executed contract.

Question 12

Lark promises to buy Mac's used textbook for $60. Lark is

Accepted Answer

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

Question 13

In contract law, intent is determined by the secret, subjective intent, or belief, of a party.

Accepted Answer

A) True 
 B)False

Question 14

Jan tells Lee she will give him her old car if he babysits her son Mark weekday evenings for six months. Lee agrees. Jan and Lee have formed

Accepted Answer

A)   ​a bilateral contract.
B)   ​a unilateral contract.
C)   ​a void contract.
D)   ​an unenforceable contract.

Question 15

Francie drives into Gage's Auto Service and asks Gage to replace a tire on her car. After Gage replaces the tire, but before Francie pays for it, any contract between them is

Accepted Answer

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

Question 16

An offeree is a person who makes an offer.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

All contracts include an implied covenant of good faith and fair dealing.

Accepted Answer

A) True 
 B)False

Exam 11: Nature and Terminology

Francie drives into Gage's Auto Service and asks Gage to replace a tire on her car. After Gage replaces the tire, but before Francie pays for it, any contract between them is

Correct AnswerverifiedShow Answer

Jan tells Lee she will give him her old car if he babysits her son Mark weekday evenings for six months. Lee agrees. Jan and Lee have formed

Correct AnswerverifiedShow Answer

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have

Correct AnswerverifiedShow Answer

In contract law, intent is determined by the secret, subjective intent, or belief, of a party.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Marketing Inc. offers to create a campaign to increase N'Ice Creamery, Inc.'s online business. N'Ice agrees to pay for the service. These parties have

Correct AnswerverifiedShow Answer

Francisca and Garden Estate, Inc., enter into a contract for the use of a Victorian mansion and its grounds for a wedding and reception. If ambiguities appear in the contract, they will be construed against the party who

Correct AnswerverifiedShow Answer

An offeree is a person who makes an offer.

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Jim tells Dana that he will take her out to lunch on Thursday. Jim has made Dana​

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A quasi contract is not enforceable by a court.

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When a contract's writing is not clear, a court will not consider evidence outside the contract to interpret its terms.

Correct AnswerverifiedShow Answer

Lark promises to buy Mac's used textbook for $60. Lark is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The term consideration refers to the regard that contracting parties hold for each other.

Correct AnswerverifiedShow Answer

Vicky asks Walt, a cobbler, to repair a pair of boots. There is no discussion of a price, and Vicky and Walt do not sign any documents. After the repair, Walt hands Vicky a bill. With respect to Vicky's obligation to pay the bill, this is

Correct AnswerverifiedShow Answer

Leila enters into a contract with Metro Taxi Company to work as a cabdriver. Under the plain meaning rule, if the contract's writing is clear and unequivocal, the meaning of the terms must be determined from

Correct AnswerverifiedShow Answer

Rough Water, LLC, and Schafer enter into a contract for the delivery of a used kayak. Until the kayak is delivered and paid for, these parties have

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

All contracts include an implied covenant of good faith and fair dealing.

Correct AnswerverifiedShow Answer

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Jim tells Dana that he will take her out to lunch on Thursday. Jim has made Dana

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