Chapter 4: Contracts and Agency Law - Sample Questions

E. No real commitment to contract

An illusory contract is: A. A valid contract B. A void contract C. A voidable contract D. An unenforceable contract E. No real commitment to contract

C. Partially executed contract

A contract where Tom and Jerry entered into a contract and Tom has fully performed all of the obligations of the contract but Jerry has not completed the requirements of the contract, is called a/an: A. Executed contract B. Executory contract C. Partially executed contract D. Bilateral contract E. Unilateral contract

B. Executory contract

A contract where one party has performed completely, but the other party has not can best be described as a/an: A. Executed contract B. Executory contract C. Partially executory contract D Unilateral contract E. Bilateral contract

C. An equitable remedy called specific performance

A court order forcing someone to perform the obligation to a contract that the party had previously agreed to do and then refused to do, is called: A. An equitable remedy called an injunction B. A legal remedy called an injunction C. An equitable remedy called specific performance D. A legal remedy called specific performance E. A and C

C. Normal advertisements

An example of a situation where the law has determined that there is no legal offer is: A. A counteroffer B. A normal auction C. Normal advertisements D. All of the above are non-offers E. A and C only

D. When you complete a substantial amount of the trip across the high wire

Assuming you live in a minority jurisdiction, if Mary offers you $100 to walk across a high wire from the Wehner Building to the Horticulture Building, when do you accept the unilateral offer? A.. When you start the trip across the high wire B. When you complete twenty-five (25%) of the trip across the high wire C. When you complete fifty (50%) of the trip across the high wire D. When you complete a substantial amount of the trip across the high wire E.When you totally complete the trip across the high wire

B. Implied power

Austin is following Peter's instruction in an agency relationship. Peter has given Austin the specific instructions to drive the car the most direct route using interstate highways when possible. Austin is driving from Houston to Los Angeles. When Austin arrives in El Paso, the interstate is closed due to bad weather so he takes an alternate route. Austin is using: A. Expressed power B. Implied power C. Apparent power D. Actual power E. Agreed power

C. Voidable

If Mary is legally crazy but has not been so determined by the courts until after she enters the contract, the contract as to Mary is: A. Valid B. Void C. Voidable D. Unenforceable E. Illegal

B. Condition subsequent contract

If you agree to a contract and under the terms of the contract you must begin performance immediately and perform under the contract until a stated event in the contract occurs, you have entered into what type of contract? A. Unconditional contract B. Condition subsequent contract C. Condition concurrent contract D. Condition precedent contract E. An illegal contract

B. Principal

If you are dealing with a totally disclosed agency in a contractual transaction where the Agent acted within his/her scope of the agency, who along with the third party is liable under the subsequent contract? A. Agent B. Principal C. Agent and Principal D. Agent and Principal but the Principal would have to indemnify the Agent for his/her losses E. D and D

E. B and D

If you sell your herd of cows at a normal cattle auction and there are several bids on your cattle, you are: A. An offeror B. An offeree C. Involved in a without recourse sale D. Involved in a with reserve sale E. Be and D

A. Discharged as to complete performance

Jack and Jill enter into a contract. If both perform all of the requirements of the contract satisfactorily, the contract is: A. Discharged by complete performance B. Discharged by substantial performance C. A material breach of contract D. Only discharged as to Jill E. Only discharged as to Jack

E. A and B

Junior enters into a contract to buy a car with Sleezy Sam's Used Cars when he is sixteen (16) years old. If he takes the car back to Sleezy Sam's which is true? A. Junior has disaffirmed the contract B. Junior has to pay the restitution that he can pay, if any C. Sleezy Sam can legally demand that Junior continues to pay the contract D. Sleezy Sam can ratify the contract and stop Junior's action E. A and B

B. Compensatory

The most common type of damages in a contract case are: A. Reformation B. Compensatory C. Specific performance D. Injunction E. A and B

D. A mutual mistake of material fact

To be voidable, a mistake must be: A. Unilateral B. Bilateral C. A mutual mistake of value D. A mutual mistake of material fact E. All of the above

C. The Principal's actions or inactions must lead a reasonable third party to believe that the Agent has the Principal's authority

What facts must be present to give rise to an Agency by Estoppel? A. The Agent must have actual authority from the Principal B. The Agent must have implied authority from the Principal C. The Principal's actions or inactions must lead a reasonable third party to believe that the Agent has the Principal's authority D. The Principal must give the Agent the authority after the agent has already acted E. C and D

E. A and C but not B

Which of the following contracts MUST be in writing? A. A contract that cannot be performed in a year B. A contract that was not performed in a year C. An earnest money contract to sell your house D. All of the above E. A and C but not B

E. A, C, and D

Which of the following is an element to an offer: A. Genuine and real intent on the part of the offeror B. Sincerity on the part of the offeree C. Definite terms and conditions D. Communications of the offer to the offeree E. A, C, and D

C. Implied by law contract

Which of the following is not a true contract? A. Expressed contract B. Implied by fact contract C. Implied by law contract D. Unilateral contract E. Bilateral contract

D. A and B

You get the chance to go to Italy for study abroad but you have a lease. You get one of your friends to take over your lease If you get the landlord to release you from the lease and substitute your friend for you in the lease, the landlord has: A. Discharged your contractual obligations B. Entered into a novation C. Entered into a sublease D. A and B E. A, B, and C