Business Law Chapter 11

Any contract that is not in writing is not enforceable. T/F

False

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

False

One of the requirements of a valid contract is an adequate market for the deal's goods or services. T/F

False

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

False

Under the objective theory of contracts, a contract is not enforceable without a clearly defined objective. T/F

False (Intent, not objective)

A promisee has the right to expect or demand that something will or will not happen in the future. T/F

True

An executed contract is one that has been fully performed by both parties to it. T/F

True

By supplying procedures for enforcing private agreements, contract law provides an essential condition for the existence of a market economy. T/F

True

Quasi contract are not actual contracts. T/F

True

If what is written in a contract is clear, a court will enforce the contract according to its obvious terms. T/F

True (Plain Meaning Rule)

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have a. an express contract. b. a quasi contract. c. no contract. d. an implied contract.

a. an express contract

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 a. an implied contract. b. a quasi contract. c. no contract. d. an express contract.

a. an implied contract

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' a. intent. b. objectives. c. subjective beliefs. d. motives.

a. intent

Jana, a nurse practitioner, renders aid to Kurtz, who is injured and unconscious. Jana can recover the cost of the aid from Kurtz a. on a quasi contract theory. b. under no circumstances. c. only if Kurtz recovers because of the aid. d. only if Kurtz was aware of the aid.

a. on a quasi contract theory

Fay offers to pay Grey $50 for a tennis lesson for Hetty. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have a. no contract. b. a bilateral contract. c. a unilateral contract. d. a third-party contract

b. a bilateral conract

Sui enters into a contract with Trey to act as a personal sports trainer. If a dispute later arises over the parties' promises, the court will interpret the contract according to a. what the parties now agree they intended. b. the parties' intent at the time they entered into the contract. c. what the promisor claims was the parties' intent. d. what the promisee claims was the parties' intent.

b. the parties' intent at the time they entered into the contract

On behalf of the jazz group Fusion, their manager Gabe agrees to a performance in Hilltop Amphitheater on July 4. Gabe and Hilltop sign a written copy of the agreement. These parties have a. an implied contract. b. no contract. c. an express contract. d. a quasi contract.

c. an express contract

Sy enters into a contract with Truck Company to work as a driver. If a dispute arises over the deal, under the plain meaning rule, the court cannot consider any evidence not contained in the document if a. a contract term can be interpreted in more than one way. b. the contract lacks a provision on a disputed issue. c. the words in the contract appear clear. d. the parties' intent cannot be determined from the contract's language.

c. the words in the contract appear clear

Macy offers to sell his fitness watch for $50 to Nona. Nona promises to pay Macy the price. Later, they exchange the watch for the funds. A contract was created when a. Macy offered to sell the watch. b. Nona paid for the watch. c. Macy delivered the watch. d. Nona promised to pay for the watch.

d. Nona promised to pay for the watch

Rough Water LLC and Schafer enter into a contract for the delivery of a certain number of river rafts. Until the rafts are delivered and paid for, the parties have a. an executed contract. b. no contract. c. a quasi contract. d. an executory contract.

d. an executory contract