Question 1

Insofar as possible, a reasonable, lawful, and effective meaning will be given to all of the terms of a contract.

Accepted Answer

A) True 
 B)False

Question 2

Any contract that is not in writing is not enforceable.

Accepted Answer

A) True 
 B)False

Question 3

Mel agrees to work as a freight broker for National Shipping Inc. In determining whether a contract has been formed, an element of prime importance is the parties'

Accepted Answer

A)  intent.
B)  objectives.
C)  subjective beliefs.
D)  motives.E) A) and B)
F) A) and C)

Question 4

Once an offer is made, the offeror cannot revoke it.

Accepted Answer

A) True 
 B)False

Question 5

A signed agreement for a video streaming service is an express written contract.

Accepted Answer

A) True 
 B)False

Question 6

An offer that can be accepted simply by a promise to perform does not create a binding contract.

Accepted Answer

A) True 
 B)False

Question 7

On Monday, Xi tells Yard Work Inc., that he will pay $500 if a variety of tasks are completed by Friday. On Wednesday, when Yard Work is more than half done with the work, Xi says that he has changed his mind. These parties had

Accepted Answer

A)  an expired contract when Xi said that he had changed his mind.
B)  a quasi contract when Xi said that he would pay for certain work.
C)  a unilateral contract as soon as Yard Work began to perform.
D)  no contract.E) B) and C)
F) None of the above

Question 8

Boca claims that he intended to enter into a contract with Carla for tutoring, and she breached it. Carla responds that she never intended to enter into a contract with Boca. Their 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.E) A) and C)
F) A) and D) B

Question 9

When a storm erupts outside Reba's Diner, Reba and Shaw quickly enter into an implied contract to split the revenue from Shaw's sale of umbrellas to Reba's customers. The terms of this contract are defined by

Accepted Answer

A)  the conduct of the parties.
B)  the written words of the parties.
C)  the unforeseeable storm that gave rise to the deal.
D)  the fortuity of the deal's timing and the parties' proximity.E) A) and D)
F) A) and B) A

Question 10

Promises that are legally binding include

Accepted Answer

A)  a promise to take a friend to lunch.
B)  a promise to pay for items ordered online.
C)  a promise to watch a certain sporting event.
D)  all of the choices.E) A) and B)
F) All of the above B

Question 11

Field Construction Inc. contracts with Mesa Ranch to build a new barn on Mesa's property for which Mesa agrees to pay. If this is a valid contract, it will be partly because it includes the element of

Accepted Answer

A)  capability.
B)  legality.
C)  necessity.
D)  marketability.E) C) and D)
F) A) and D)

Question 12

A party who confers a benefit on someone else unnecessarily can obtain its fair value by invoking the doctrine of quasi contract.

Accepted Answer

A) True 
 B)False

Question 13

Ota asserts that a deal entered into with Pai to sponsor and host a motivational conference for independent sales representatives was formed as the result of a mistake. Ota's best defense to the enforcement of this contract is

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.E) C) and D)
F) A) and B)

Question 14

Contracting parties are bound only by terms that can be objectively inferred from promises made.

Accepted Answer

A) True 
 B)False

Question 15

One of the requirements of a valid contract is an adequate market for the deal's goods or services.

Accepted Answer

A) True 
 B)False

Question 16

Contests and lotteries are unilateral contracts.

Accepted Answer

A) True 
 B)False

Question 17

A letter of credit is a type of formal contract.

Accepted Answer

A) True 
 B)False

Question 18

When price changes make performance of a contract costly, compliance with the terms may most certainly be obtained through

Accepted Answer

A)  the adversely affected party's sense of duty.
B)  both parties' good faith.
C)  the principles of contract law.
D)  the innocent party's sense of rightness.E) A) and C)
F) B) and D)

Question 19

Quasi contract are not actual contracts.

Accepted Answer

A) True 
 B)False

Question 20

The term consideration refers to the deference shown by contracting parties to each other.

Accepted Answer

A) True 
 B)False

Exam 11: Nature and Terminology

Insofar as possible, a reasonable, lawful, and effective meaning will be given to all of the terms of a contract.

Correct AnswerverifiedShow Answer

Any contract that is not in writing is not enforceable.

Correct AnswerverifiedShow Answer

Mel agrees to work as a freight broker for National Shipping Inc. In determining whether a contract has been formed, an element of prime importance is the parties'

Correct AnswerverifiedShow Answer

Once an offer is made, the offeror cannot revoke it.

Correct AnswerverifiedShow Answer

A signed agreement for a video streaming service is an express written contract.

Correct AnswerverifiedShow Answer

An offer that can be accepted simply by a promise to perform does not create a binding contract.

Correct AnswerverifiedShow Answer

On Monday, Xi tells Yard Work Inc., that he will pay $500 if a variety of tasks are completed by Friday. On Wednesday, when Yard Work is more than half done with the work, Xi says that he has changed his mind. These parties had

Correct AnswerverifiedShow Answer

Boca claims that he intended to enter into a contract with Carla for tutoring, and she breached it. Carla responds that she never intended to enter into a contract with Boca. Their intent to enter into a contract is determined with reference to

Correct AnswerverifiedB

When a storm erupts outside Reba's Diner, Reba and Shaw quickly enter into an implied contract to split the revenue from Shaw's sale of umbrellas to Reba's customers. The terms of this contract are defined by

Correct AnswerverifiedA

Promises that are legally binding include

Correct AnswerverifiedB

Field Construction Inc. contracts with Mesa Ranch to build a new barn on Mesa's property for which Mesa agrees to pay. If this is a valid contract, it will be partly because it includes the element of

Correct AnswerverifiedShow Answer

A party who confers a benefit on someone else unnecessarily can obtain its fair value by invoking the doctrine of quasi contract.

Correct AnswerverifiedShow Answer

Ota asserts that a deal entered into with Pai to sponsor and host a motivational conference for independent sales representatives was formed as the result of a mistake. Ota's best defense to the enforcement of this contract is

Correct AnswerverifiedShow Answer

Contracting parties are bound only by terms that can be objectively inferred from promises made.

Correct AnswerverifiedShow Answer

One of the requirements of a valid contract is an adequate market for the deal's goods or services.

Correct AnswerverifiedShow Answer

Contests and lotteries are unilateral contracts.

Correct AnswerverifiedShow Answer

A letter of credit is a type of formal contract.

Correct AnswerverifiedShow Answer

When price changes make performance of a contract costly, compliance with the terms may most certainly be obtained through

Correct AnswerverifiedShow Answer

Quasi contract are not actual contracts.

Correct AnswerverifiedShow Answer

The term consideration refers to the deference shown by contracting parties to each other.

Correct AnswerverifiedShow Answer

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