Chapter 12 quiz

Ron offers to pay Sara to pick up and deliver certain business documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Ron and Sara will have​ A) ​a bilateral contract. ​B) a void contract. ​C) an executive contract. D) a unilateral contract.

a unilateral contract

Digital Enterprise, Inc., promises to pay its employees a year-end bonus "if profits continue to be high and management agrees at the time." This is​ ​A) an enforceable contract. ​B) an option-to-cancel clause. C) an illusory promise. ​D) promissory estoppel.

an illusory promise

Rafi offers a tour of Bay Harbor aboard his sailboat, Sea Siren, to Tiara's Travel Group for $500. Referring to the prices for similar tours, Tiara's says, "We'll pay no more than $400." Rafi's offer is A) revoked. B) terminated C) rejected and subject to a counteroffer. D) still open.

rejected and subject to a counterpffer

In which of the following circumstances would a contract be VOID? A) all of these. B) a person was intoxicated to the point of being unable to understand the consequences of his actions at the time of signing the contract. C) A person had been declared incompetent by a court of law prior to signing the contract. D) a minor was a party to the contract. E) a person was intoxicated at the time of signing the contract.

A person had been declared incompetent by a court of law prior to signing the contract.

Please note - this question should be in the Chapter 13 quiz but was included here in error. I did not remove it because some students have already taken the quiz. Go ahead an click on the correct answer: "Fred believes his new computer system was made in the U.S.A., even though the sales person did not make that claim and written specifications clearly state otherwise. Fred is bound to the terms of the agreement." For students who completed both attempts, I will be adjusting points on this quiz. Question: Which of the following is a unilateral mistake of fact and states the impact of that mistake on the validity of the contract. A) Fred believes his new computer system was made in the U.S.A., even though the sales person did not make that claim and written specifications clearly state otherwise. Fred is bound to the terms of the agreement. B) Fred thinks he paid too much for his new computer. The court will not rescind the contract and Fred is bound to the terms of the agreement. C) Fred believes his new computer system was made in the U.S.A. even though the sales person did not make that claim and the written specifications clearly state otherwise. The court can rescind the contract. D) Fred thinks he paid too much for his new computer. The court can rescind the contract.

Fred believes his new computer system was made in the U.S.A., even though the sales person did not make that claim and written specifications clearly state otherwise. Fred is bound to the terms of the agreement.

Which of the following is most likely an example of undue influence. A) George tells Matt he's a bad actor. As a result, Matt loses confidence in himself and breaches his contract with the movie studio by failing to show up to work. B) George persuades Matt to reduce the cost of his services by threatening to give Matt a bad Yelp review if he doesn't get a discount. C)George threatens Matt that he will burn his house down with his family inside if he doesn't sign a contract with George's movie studio. D) George is Matt's attorney and has gained Matt's trust over the years. George convinces Matt to sign a new contract with a movie studio which gives George an usually high percentage of Matt's acting income.

George is Matt's attorney and has gained Matt's trust over the years. George convinces Matt to sign a new contract with a movie studio which gives George an usually high percentage of Matt's acting income.

Which of the following is an example of past consideration? A) Millie and Mario have an agreement for the purchase of her bicycle for $500. Millie then convinces Mario to pay $600 instead. B) Millie promises to give Mario her bicycle because he did landscaping work for her last week. C) Mario agrees to perform landscaping work for Millie in exchange for her bicycle. D) Mario agrees to pay $500 for Millie's old bicycle.

Millie promises to give Mario her bicycle because he did landscaping work for her last week

Natasha and Melanie have a contract requiring Natasha repair Melanie's refrigerator for $100. Which of the following is an example of a contract lacking consideration based on a pre-existing duty? A) They now agree that Natasha will repair Melanie's stove for $150. B) They now agree that Melanie must pay an additional $50 for Natasha to complete the repair on the refrigerator. C) Natasha fails to complete the repair of the refrigerator. D) They now agree that Natasha has completed the repair on the refrigerator and Melanie has paid the $100 under the terms of their contract.

They now agree that Melanie must pay an additional $50 for Natasha to complete the repair on the refrigerator.

Alice and Bart enter into a contract for the sale of Canyon Ranch. To be enforceable, this contract must be​ A) in writing or evidenced by a written memorandum. ​B) signed in a sufficient manner by both parties. ​C) substantiated by reliable, external evidence. ​D) all of the choices.

in writing or evidenced by a written memorandum.

Marketing Solutions Inc. promises to employ Niki as a software engineer. In reliance on the promise, Niki quits her job with Online Ad Company, but Marketing Solutions does not hire her. Most likely, Marketing Solutions is​ ​A) not liable to Niki. ​B) liable to Niki under the concept of rescission and new contract. C) liable to Niki under the doctrine of promissory estoppel. ​D) liable to Niki under the preexisting duty rule.

liable to Niki under the doctrine of promissory estoppel.

The requirements for a valid offer are: A) serious intent, reasonably definite terms and acceptance. B) serious intent, reasonably definite terms and communication C) transferred intent, reasonably definite terms and communication. D) serious intent, finite terms and communication.

serious intent, reasonably definite terms and communication

Consideration is best defined as: A) something of legally sufficient value given in a bargained for exchange. B) something given in a bargained for exchange. C) placing another party's interest before your own interests. D) something of legally sufficient value.

something of legally sufficient value given in a bargained for exchange.

Industrial Engineering, Inc., promises to give stock options to Jasmine for processes she has already designed for the firm. This promise is enforceable​ ​A) because it is an illusory promise. ​B) because it is a new contract. C) under no circumstances. ​D) because it is supported by past consideration.

under no circumstances

Oceans Inc., a seafood distributor, agrees to buy from Paul, a commercial fisherman, any "overstock" of fish that Paul catches in excess of his legal limit. This agreement is most likely​ ​A) enforceable. ​B) voidable. C) void. ​D) valid.

void

Fresh Gro, Inc., offers to deliver produce to the customers of Grocer's Mart for a certain price. Fresh's intent to extend a serious offer to Grocer's Mart is determined by reference to Fresh's​ A) words and action. ​B) beliefs. ​C) intentions. ​D) assumptions.

words and actions