Chapter 10

True

All contracts are promises, but not all promises are contracts. T or F

D

An aspect of modern life that is hardly free of rights and obligations is when someone: a. purchases services. b. forms a business. c. leases a house. d. All of these choices.

A

An example of a void contract would be: a. a contract formed for an illegal purpose. b. a contract entered into by a minor without his or her parents' consent. c. a contract for the sale of alcohol to a competent adult. d. a contract for the sale of land to a competent adult.

Executed contract

An executed contract is a contract that has been fully carried out by all parties.

C

Bilateral contracts: a. would include lotteries. b. require a written form to be enforceable. c. are made when promises are exchanged. d. are made when actions are completed in response to offers

C

Contractual capacity means the: a. contract is in a form required by law. b. purpose of the contract is not against public policy. c. law recognizes the involved parties as possessing characteristics that qualify them as competent parties. d. consent of the parties is genuine.

C

The face of the instrument is a rule: a. mandating consideration of extrinsic evidence. b. followed by courts when a contract's terms are not obvious. c. used by courts to determine a document's meaning when its writing is clear and unequivocal. d. disallowing consideration of intrinsic evidence.

C

This is a rule that courts, generally, will follow in interpreting contractual terms: a. general language will be given greater consideration than specific wording. b. preprinted terms will prevail over typewritten ones. c. specific clauses will be considered subordinate to the contract's general intent. d. preprinted terms will prevail over written ones.

B

To interpret disputed contracts, courts generally will rely on: a. guidelines from the UCC. b. common law rules. c. administrative agency regulations. d. statutory law.

c

To the extent that it has been modified, general contract law, contracts for the lease of goods are governed by: a. administrative agency regulations. b. the common law. c. the Uniform Commercial Code (UCC). d. None of these choices.

A

Under the doctrine of quasi contract, a plaintiff may recover in quantum meruit, a Latin phrase that means: a. "as much as he deserves." b. "treble damages." c. "only a token sum." d. "nihilius"--nothing at all.

A

Which of the following IS NOT a basic element of a valid contract? a. Integrity b. Agreement c. Consideration d. Contractual capacity

B

Whitney drives to her favorite gas station and tells the attendant to fill her tank. The attendant asks Whitney what grade she wants, and she tells him, "regular." The attendant fills the tank. At this point, the contract between the station and Whitney is: a. executed. b. executory. c. void. d. unenforceable.

Express Contract

a contract in which the parties manifest assent in words is an:

Promise

a persons manifestation of an intent to act or refrain from acitng in a specified way.

contract

a promise or a set of promises for the breach of which the law in some way recognizes as a duty.

Promiser

the person making the promise

Promisee

the person to whom the promise is made

Valid contract

this must include: Agreement, consideration, contractual capacity, legality.

Objective facts

what the party said when entering into the contract. how the party acted or appeared. and the circumstances surrounding the transaction

C

Dylan buys a subscription to a national magazine that gives him two years for the price of one year. After the two years expire, Dylan continues to receive the magazine for six more months, although he has not subscribed again. The magazine then sends Dylan a bill for the magazines he received after the expiration of his subscription. Dylan: a. owes the full amount. b. owes half of the bill. c. owes nothing. d. can be fined for failing to return the magazines.

A

For it to be enforceable, a contract must: a. be in whatever form the law requires. b. be supported by legally sufficient and mandated consideration. c. include a party that has considered terms offered by another. d. be based on the fact that something of value was given by one party to another.

B

If a contract has not been fully performed by one of the parties involved, but it has been fully performed by the other, it is a(n): a. ratified contract. b. executory contract. c. express contract. d. void contract.

B

If a court is required to interpret an ambiguous contractual term, which of the following is the court NOT likely to do? a. Interpret a word or term according to its ordinary, commonly accepted meaning. b. Interpret language according to what the parties CLAIM their intent was. c. Give greater consider to handwritten or typewritten terms over preprinted words. d. Interpret the contract as a whole, with regard to the general intent of the document.

C

If the terms of a contract are clear and unambiguous, a court may not consider extrinsic evidence (any evidence not contained in the contract itself) when interpreting the document. This is known as: a. the mailbox rule. b. the single letter rule. c. the plain meaning rule. d. the rule against perpetuities

--B

In contract law, consideration means: a. the genuine, willing consent of both parties. b. the legality of the subject matter of a contract. c. something of value received or promised in the bargain. d. the ability of a party to enter into an otherwise legal contract.

D

In order to determine a party's intent in a contract case, a court will apply: a. the subjective theory of contracts. b. the alternate-party theory of contracts. c. the consideration theory of contracts. d. the objective theory of contracts.

A

In our present day view, an offer to form a unilateral contract: a. becomes irrevocable once performance has begun. b. is accepted only on full performance. c. is made by the promisee. d. can be revoked at any time before performance has been completed.

D

Legality, in contract law, means: a. one of the parties has offered to enter into an agreement. b. at least some of the essential elements of a contract exist. c. something of value has been promised or received. d. None of these choices.

B

One of the main purposes of contract law is to: a. ensure that one party does not threaten another. b. ensure that certain promises are legally binding. c. discourage harms against society. d. discourage misuse of the environment.

B

One of the main purposes of contract law is: a. to ensure that one party does not threaten another. b. to ensure that certain promises made among private parties are enforced. c. to discourage harms against society. d. to discourage misuse of the environment.

D

Pam's car was hit while it was parked. Pam calls A-1 Towing, tells the dispatcher the car needs to be towed, and gives her location. Pam never mentions a price and leaves before the tow truck arrives, so she does not talk with the driver or sign any documents. Pam: a. does not owe the company for towing her car, because she did not know that she would have to pay. b. does not owe the company for towing her car, because she did not have a chance to reject its services. c. owes the company for towing her car under an express contract. d. owes the company for towing her car under an implied contract

D

Quasi contracts: a. are legal rather than equitable contracts. arise from agreements made by the parties and imposed by a court. b. allow enrichment to one of the parties even if it is not fair. c. arise from agreements made by the parties and imposed by a court. d. None of these choice

A

Which of the following IS NOT a requirement of a valid contract? a. Both parties must be consenting adults. b. There must be an agreement (offer and acceptance) c. There must be consideration. d. The contract must be formed for a legal purpose.

Contract Law

deals with the formation and keeping of promises

bilateral contract

each party is both a promisor and a promisee

Objective theory of contracts

intent is determined by what is called ... not by the personal or subjective intent or belief or a party.

B

A contract is: a. a promise to act. b. a promise or agreement that can be enforced in court. c. an agreement that always involves parties who are not family members or dependents. d. an agreement that always involves people over the age of twenty one.

Executory Contract

A contract that is partially unperformed by one or more parties.

C

A contract: a. entails a nonbinding promise to act. b. consists of an offer to perform a service. c. is a legally binding agreement between two or more parties agreeing to perform or refrain from some act now or in the future. d. All of these choices.

C

A formal contract requires which of the following? a. It must be signed by the president. b. It must be deposited in the county courthouse. c. It must be in a special form or be created using a special method. d. It need only be signed by the offeror.

C

A quasi contract may be defined as: a. a true contract. b. an actual contract. c. a fictional contract. d. an implied-in-time contract.

C

A quasi contract will not be imposed by a court: a. unless the benefits conferred were unnecessary. b. unless the benefits conferred were due. c. if the benefits conferred were the result of misconduct. d. None of these choices.