LSTD: Chapter 6 SmartBook
Which of the following statements are true regarding contracts?
A contract is a set of promises enforceable by law.
Which of the following are considered in determining the source of law for a hybrid contract?
Allocation of price in the contract Uniqueness of the services
Which of the following is most likely to violate the requirement of legality?
An agreement to buy alcohol for a minor in exchange for $50
______ is the power or legal ability to enter into a contract.
Capacity
True or false: A promise in exchange for a promise is not enough to create a bilateral contract; a bilateral contract is created by a promise in exchange for an action.
False
True or false: All contracts must be in writing to be valid.
False
______ refers to the requirement that a contract must not violate the law.
Legality
Which of the following are true regarding the enforceability of quasi-contracts?
One party has suffered a loss. One party has been unjustly enriched.
______ contracts must be in writing to be valid.
Some
A valid offer creates the power of ______ for the offeree.
acceptance
A ______ contract involves two promises and two performances.
bilateral
A(n) ______ contract is one in which all the terms and conditions are spelled out between the parties.
express
Generally, contracts for ______ are governed by statutory law.
goods
A contract which involves both goods and services is known as a ______ contract Multiple choice question.
hybrid
Contracts are:______
important to business owners and managers. typically seen on a day-to-day basis.
Under the ______ rule, any deviation from the original offer results in a rejection and ______.
mirror-image, counteroffer
Most advertisements appearing in the mass media, in store windows, or in display cases are: ______.
not offers
Oral agreements are ______ enforceable as contracts.
sometimes
An offer of a reward is an example of a promise in exchange for a performance. This is called a(n) ______ contract.
unilateral
Generally, a(n) ________ mistake is not a valid reason to avoid a contract.
unilateral
A(n) ______ contract is one that has all of the basic elements of a contract.
valid
A(n) _________ contract is one that has all of the basic elements of a contract.
valid
A contract is ______ when the law gives one or more parties the right to cancel an otherwise enforceable contract under the circumstances.
voidable
Which of the following is not a question usually associated with the concept of legality?
Are the items to be exchanged of equal legal value?
Which of the following is a proper question regarding contractual capacity?
Are the parties of proper age and mental competence?
Which of the following scenarios best describes an unenforceable contract? Multiple choice question.
Betty promises to pay Kate $20 if she will break into Betty's ex-boyfriend's apartment and throw his clothes out the window. Kate happily agrees.
Which of the following is most likely to form a quasi-contract?
Bill watches as Ben's Paving repaves his driveway, knowing that he did not order the service.
True or false: Capacity refers to the equality of value of items exchanged in a contractual agreement.
False
True or false: Consideration refers to the process by which one party decides if he wants to accept an offer.
False
True or false: The source of law for a hybrid contract is always statutory.
False
Which of the following subjects would likely be governed by state common law?
Hiring an attorney to draft a will Hiring an accountant to prepare your tax return A lease on a business location
Which of the following are not elements of a contract?
Illegal purpose
Which of the following statements are true regarding the Uniform Electronic Transactions Act (UETA)?
Most states have adopted the UETA. The UETA essentially provides formal recognition of electronic signatures.
Which of the following are elements of a contract?
Mutual assent Capacity Consideration
______ arises in a situation where an employer makes a promise of employment to an at-will employee candidate and then revokes the promise before the employee's start date (or soon thereafter). Multiple choice question.
Promissory estoppel
Which of the following subjects would likely be governed by statutory law?
Purchasing your groceries at a local big box store Purchasing 300 computers for a school
List all the ways an offer can be terminated by the parties.
Revocation Rejection Counteroffer
Mutual assent is reached by a process of offer and acceptance.
True
True or False: Contracts for services are governed by state common law.
True
True or false: A contract is a set of promises enforceable by law.
True
True or false: Quasi-contracts are often referred to as being implied in law.
True
True or false: The Babylonians were enforcing contracts as early as 1780 BC, per the Code of Hammurabi.
True
The ______ gives formal legal recognition of electronic records, signatures and contracts.
UETA (The Uniform Electronic Transactions Act)
Which of the following best describes a bilateral contract? Multiple choice question.
Which of the following best describes a bilateral contract? Multiple choice question.
Which of the following statements is correct regarding contracts?
Which of the following statements is correct regarding contracts?
Another way of stating mutual assent is for the parties to have ______ and agree to be bound by certain promises and obligations.
a "meeting of the minds"
If the offeror has not set a time limit, on the offer, the offer will still expire after: ______.
a reasonable time
The mailbox rule provides that the ______ of an offer is generally effective upon ______ of the acceptance when sent in a commercially reasonable manner.
acceptance, dispatch
The power of acceptance is terminated when the offer is terminated either through ______ or by operation of law.
actions of the parties
Generally, ______ do not constitute an offer because they do not contain a specific commitment to sell.
advertisements
In the event that the offeror (or the offeree) dies before acceptance, the offer: ______.
automatically terminates
A potential buyer of real estate offers to purchase an office building from its current owner for a price of $300,000 and the owner accepts. This promise in exchange for a promise creates a(n) ______ contract.
bilateral
The mirror image rule applies to ______ contracts - not ______ contracts.
common law, UCC
In addition to the existence of an agreement between parties to a contract, the agreement must be supported by ______ or something of value bargained for in the agreement.
consideration
The necessary elements of a contract include __________, meaning there must be a bargained-for exchange of goods and/or services.
consideration
When determining the source of law governing a hybrid contract, which of the following factors will not be examined by the courts?
contract period
A(n) ______ contract is one which involves both goods and services.
hybrid
In a(n) ______ contract involving terms for both goods and services, the governing source of law is established by determining the predominant thrust of the contract subject matter.
hybrid
A(n) ______ contract is one in which the terms and conditions are found in the actions of the parties.
implied
An ______ -in-law recovery occurs when one party does not request a certain service but still benefits from the services rendered.
implied
The _____ rule governs ______ contracts and is a rule that determines when a contract is considered to be deemed accepted by the offeree.
mailbox, common law
A ______, in which both parties hold an erroneous belief, may be the basis for ______ a contract (also called avoiding the contract).
mutual mistake, canceling
So long as the offer has ______, the offeree may accept the terms of the offer, thereby forming an agreement.
not been terminated
When the offeree rejects the original offer and proposes a new offer with different terms, the offeree is said to be the ____ who has created a(n) ______.
offeror, counteroffer
In ______ cases, courts generally award damages equal to the ______ plus what the employee lost in quitting her job and declining employment elsewhere.
promissory estoppel, out-of-pocket costs
The law enforces an agreement to avoid unjust enrichment of one party at the expense of another in a(n): ______.
quasi-contract.
A(n) ______ occurs when changes in the law make a previously legal offer illegal.
supervening illegality
Once the offer has been ________, the offeree loses the power to accept and form an agreement.
terminated
Contracts have been enforced since at least the: ______.
time of the Babylonians.
A(n) ______ contract is one that meets the elements for an otherwise binding agreement but is subject to a legal defense.
unenforceable
A(n) ______ contract is one that may not be enforced by either party because it is lacking one or more of the basic elements of a contract.
void
When the law gives one or more parties the right to cancel an otherwise valid contract under the circumstances, the contract is known as a(n) ______ contract.
voidable