BLAW Exam 2

Contracts that are implied in law:

All of these: are obligations imposed by law on grounds of justice and equity, do not rest upon the assent of the contracting parties, and are intended to prevent unjust enrichment.

If no time is stated in an offer, the offer remains valid indefinitely.

False

In an auction with reserve, the bidder can withdraw her bid after an acceptance has been indicated from the offeror.

False

The offeree must objectively intend to be bound by the offer for the offer to be effective.

False

Which of the following is true for legally claiming a reward?

Knowledge of the reward before completing the requested act is necessary to claim the reward.

Under the common law, the __________ must be the mirror image of the __________.

acceptance, offer

An invitation to make an offer for the sale of goods is a(n) ________.

advertisement

Will makes an offer to Ike, but before Ike can accept, the state legislature passes a law that makes Will's offer illegal. The new statute:

automatically terminates the offer.

Windsor, the owner of Windsor's Sandwiches, contacts a new supplier, Gary. Windsor tells Gary that he will pay him $375 if Gary delivers twenty (20) pounds of cheese the following morning. Gary promises to make the delivery as requested by Windsor. This creates a(n) ________ contract between them.

bilateral

A response by an offeree that contains terms and conditions different from or in addition to those of the offer is called a(n) ________.

counteroffer

Ron uses his status message on his Facebook account to invite his friends to buy his desktop computer. His friend Carl is interested and calls Ron to express his interest. Ron tells him that he is selling the computer for $400. Carl offers to pay $350 and Ron accepts the offer. Carl's response to Ron's offer to sell for $400 is considered as a(n) ________.

counteroffer

Which of the following is a doctrine that permits judges to make decisions based on fairness, equality, moral rights, and natural law?

equity

Contracts that have been fully performed by only one party to the transaction are ________ contracts

executory

An oral agreement to purchase a neighbor's bicycle is a(n) ________ contract.

express

Kyle goes to a used-car dealership to purchase a sedan. He signs an agreement with the store that indicates the make and model of the car, the price, and other details of the sale. This is an example of a(n) ________ contract.

express

In a(n) ________ contract, an agreement between the parties is inferred from their conduct.

implied-in-fact

The ________ rule states that an acceptance is effective when it is dispatched, even if it is lost in transmission.

mailbox

The mirror image rule states that the ________.

offeree must accept the terms as stated in the offer

An agreement that an offeror will not sell his property for a specified period subsequent to the offeree paying consideration to the offeror is referred to as a(n) ________.

option contract

Stella is injured in an automobile accident, and she arrives at the community hospital by ambulance. Stella subsequently passes into a coma. The doctors and other staff perform the necessary medical procedures to save her life. Stella awakens from her coma two (2) months later, and she is released from the hospital after the doctors are satisfied with her recovery. Under the doctrine of ________ contract, Stella must pay the hospital for its services.

quasi contract

Which of the following is an equitable doctrine whereby a court may award monetary damages to a plaintiff for providing work or services to a defendant, even though no actual contract existed?

quasi contract

An offer is terminated on the grounds of "lapse of time" if ________.

the offer is not accepted within a stated time period

A contract is ________ if the offeror's offer can be accepted only by the performance of an act by the offeree.

unilateral

James offers to sell his fishing boat to Brenda for $3,000. Brenda says she will apply for a loan and will buy the boat within a week. A contract is formed:

when Brenda tells James she will buy the boat.

A contract is created upon an equivocal response to an offer from the offeree.

False

According to the mailbox rule, an acceptance is only effective when it is received.

False

An offer cannot stipulate that acceptance must be by a specified means of communication.

False

An offer to pay a reward for the capture of a criminal is an offer to form a bilateral contract.

False

If there is any ambiguity as to whether a contract is bilateral or unilateral, it is presumed to be a bilateral contract.

True

The common law of contracts refers to contract law developed primarily by state courts.

True

The provision of services qualifies as a consideration for an enforceable contract.

True

If one of the parties to a contract can enforce the contract, it is considered valid.

True.

Which of the following is correct regarding a counteroffer?

A counteroffer terminates the existing offer.

Which of the following is NOT always necessary in order for a valid contract to be formed?

A writing

Albert read ElectroCorp's ad in the local newspaper advertising a music system for $89. Albert rushed to the store to buy the system only to be told by the salesperson that the ad was a misprint and the price should have been $289. Albert gave the salesperson $89 plus sales tax and demanded the music system.

Albert is merely making an offer to ElectroCorp to buy the music system for $89 plus sales tax.

Which of the following is not generally required in order to have a valid contract?

Fairness of the bargain.