ch10

Even when the requirements of a valid contract are satisfied, a contract may be unenforceable because of two major defenses. First, there may be problems with the____ of the contract. Second, there may be something to indicate a lack of ____ .

form voluntary consent

The requirements for a valid contract include which four of the following? a. contractual capacity b. consideration c. kindness d. fair price e. agreement f. legality

a, b, e, f

All contracts include which of the following implied terms? a. a covenant of good faith and fair dealing b. a covenant of clean action and faithful service c. a promise of quick and prompt attention d. a promise for payment in American dollars

a. a covenant of good faith and fair dealing

An agreement is composed of: a. an offer and an acceptance b. age and specific terms c. communication and mutual promises

a. an offer and an acceptance

The intent of the parties may be determined by evaluating what the parties said, how the parties acted, and: a. the circumstances surrounding the transaction b. the age of the parties involved in the transaction c. the amount of money at stake in the transaction

a. the circumstances surrounding the transaction

A contract is an agreement that

can be enforced in court

To assist with contract interpretation, the federal government and a majority of the states have enacted ____laws.

plain landuage

a contract that requires a special form:

Foemal

a promise for an act;

Unilateral

Any promises made by the parties must be supported by legally sufficient value that is bargained for.

Consideration

both parties entering into the contract must be recognized by the law as possessing characteristics taht qualify them as competent parties.

Contractual capacity

a contract formed by words:

Express

a contract formed by the conduct of the parties:

Implied

a contact that requires no special form:

Informal

The contract's purpose must accomplish some foal that is not illegal or against public policy.

Legality

Contract law is unnecessary to ensure compliance with a promise or to entitle an innocent party to some form of relief. a. True b. False

f

If the offeree can accept the offer with a return promise to perform, then the contract is unilateral. a. True b. False

f

Implied contracts and quasi contracts are the same. a. True b. False

f

Legalese was developed to help clarify the meaning of terms in a contract and often simplifies interpretation. a. True b. False

f

Most contracts are in writing, and so are considered formal contracts. a. True b. False

f

When possible, a ____ meaning will be given to a contract's terms. In addition, contracts will be interpreted____ . Words will be given their ____ meanings unless it is clear that the parties meant something else. ____ words will be given greater consideration than ____ language. Finally, ____ terms will prevail over ____ terms.

reasonable as a whole ordinary Specific general written preprinted

Contract law is designed to provide ____ and ____ for both buyers and sellers by assuring the agreement will be enforced.

stability predictability

Consideration must be legally ____ and the result of a____

sufficient bargain

The common law governs all contracts except when it has been modified or replaced by statutory law or administrative agency regulations. a. True b. False

t

If the terms of a contract are ____ , a court ____ use ____ evidence, or evidence outside the express terms of the contract.

ambiguous ? extrinsic

Which of the following is not a requirement for an implied contract? a. The plaintiff furnished some service or property to the defendant. b. The defendant had no chance to reject service or property furnished by the plaintiff. c. The defendant had a chance to reject the service or property but did not do so. d. The plaintiff expected to be paid and the defendant knew, or should have known, that the plaintiff expected to be paid.

b. The defendant had no chance to reject service or property furnished by the plaintiff.

If one party has the legal option not to perform a contract and to have the contract declared unenforceable, the contract is called a ____________ contract. a. valid b. voidable c. void d. quasi

b. voidable

The Latin phrase meaning "as much as he or she deserves" is: a. caveat emptor b. quid pro quo c. quantum meruit d. respondeat superior

c. quantum meruit

Under the____view of revocation, an offeror ____ revoke an offer for a ____ contract if the offeree has ____ performed.

modern ? ? substantially

a promise for a promise:

Bilateral

Includes an offer and an acceptance. One party must offer to enter into a legal agreement, and another party must accept the terms of the offer.

Agreement

The element of____ is of key importance in determining if a contract has been formed. Intent is determined by the ____ theory of contracts.

intent objective

When a person selects the right lottery ticket numbers, the lottery commission ____ legally required to pay the money. This is an example of ____ contract.

is a unilateral contract