CH 9

Which of the following is needed to impose a quasi-contract? a. A benefit having been conferred and injustice if the benefit were not paid for. b. Actions implying a contract and an agreement as to the price. c. A promise asking for action and the requested action having been completed. d. A benefit having been conferred and objective intent that it be conferred.

a. A benefit having been conferred and injustice if the benefit were not paid for.

When can an offer to form a unilateral contract be revoked? a. Before the offeree begins performance. b. After the offeree begins performance, but before the performance is completed. c. After completion of performance. d. Both A and B. e. A, B, and C.

a. Before the offeree begins performance.

Jana and Annie enter into a written agreement whereby Jana promises to sell and Annie promises to buy a certain parcel of land for $5,000. There is adequate consideration, the contract is legal, and both parties have contractual capacity. The contract is fully performed by both parties on January 1. Which of the following best describes this contract as of January 2? a. Bilateral, express, executed, valid. b. Unilateral, express, executed, valid. c. Unilateral, express, executory, valid. d. Unilateral, implied, executory, valid.

a. Bilateral, express, executed, valid.

An offeree can form a contract by making a promise if the offer to form the contract is: a. Bilateral. b. Unilateral. c. Trilateral. d. Either A or B. e. Neither A, B, nor C.

a. Bilateral.

Over time, most contracts are: a. Executory at one time and executed at another. b. Bilateral at one time and unilateral at another. c. Valid at one time and void at another. d. Implied at one time and express at another.

a. Executory at one time and executed at another.

What is required for a contract to be an express contract? a. It is stated in words. b. It is written. c. It is written and signed. d. It is performed immediately after formation. e. It is performed for mutual benefit.

a. It is stated in words.

The doctrine that applies when one person confers a benefit on another who retains the benefit in a situation where it would be unjust to allow the recipient to retain the benefit without paying for it, is known as: a. Quasi-contract. b. Pseudo-contract. c. Unjust contract. d. Unilateral contract.

a. Quasi-contract.

What is the name of the act recently drafted by the National Conference of Commissioners on Uniform State Laws in response to the growth in business conducted over the Internet? a. The Uniform Computer Information Transactions Act. b. The Standard Internet Commerce Act. c. The Uniform Computer Transaction Code. d. The New Millennium E-Commerce Act.

a. The Uniform Computer Information Transactions Act.

How has the government role in contract regulation changed since the founding of the United States? a. There is greater state and federal government involvement today than in the past. b. There is less state and federal government involvement today than in the past. c. There is approximately the same degree of state and federal government involvement today as in the past. d. There is less state, but more federal involvement today than in the past. e. There is less federal, but more state involvement today than in the past.

a. There is greater state and federal government involvement today than in the past.

Which of the following is true regarding contract validity? a. A void contract is one where a party has the option to avoid his/her contractual liability. b. A voidable contract is one in which a party may avoid his/her obligation under that contract. c. A voidable contract is one that has no legal effect because one of the essential elements is missing. d. An executory contract is also unenforceable. e. A unilateral contract is unenforceable.

b. A voidable contract is one in which a party may avoid his/her obligation under that contract.

Every contract has both: a. A buyer and seller. b. An offeror and offeree. c. A breaching party and a nonbreaching party. d. An initiator and a responder.

b. An offeror and offeree.

Which of the following are two terms for concept or situation? a. Implied-in-law contract and implied-in-fact contract. b. Implied-in-law contract and quasi-contract. c. Implied-in-fact contract and quasi-contract. d. Unilateral contract and informal contract. e. Formal contract and implied-in-law contract.

b. Implied-in-law contract and quasi-contract.

The reasonable person standard is used to decide whether an express contract exists under the: a. Quasi-contract rules. b. Objective theory of contracts. c. Standard offer requirements. d. Contract existence standard guidelines. e. Nondisclosure rules.

b. Objective theory of contracts.

In the case in the text where an author discussed an idea for a book on strategy for the board game Scrabble, what was the outcome of the case? a. Because there was no express contract, there was no basis for the author to recover. b. The court found that an implied-in-fact contract existed, so the author won the suit. c. The court found that an implied-in-law contract existed, so the author won the suit. d. Because the offer was for a unilateral contract, there was no contract until the book was completed.

b. The court found that an implied-in-fact contract existed, so the author won the suit.

Which of the following is not characteristic of a valid contract? a. It can be viewed as private law between the parties. b. The parties must have the contract's terms approved by the appropriate court. c. A court will enforce its terms if the parties do not voluntarily perform. d. It will have at least two parties.

b. The parties must have the contract's terms approved by the appropriate court.

Which of the following does not need to be proven by a plaintiff who is claiming that an implied-in-fact contract exists? a. The plaintiff provided property or services to the defendant. b. The plaintiff and defendant communicated with each other about the property or services. c. The plaintiff expected to be paid by the defendant for the property or services and did not intend to provide the property or services gratuitously. d. The defendant was given an opportunity to reject the property or services provided by the plaintiff but failed to do so.

b. The plaintiff and defendant communicated with each other about the property or services.

What is the purpose of the Uniform Computer Information Transactions Act? a. To ensure that credit card companies process transactions promptly. b. To establish uniform rules for the formation and enforcement of electronic contracts and licenses. c. To convert existing contract law so that all contracts are interpreted as if they were negotiated over the Internet. d. To provide consumers certain rights in their contracts with Internet service providers

b. To establish uniform rules for the formation and enforcement of electronic contracts and licenses.

A contract is formed by the performance of the requested act in what kind(s) of contract? a. Bilateral. b. Unilateral. c. Both A and B. d. Neither A nor B.

b. Unilateral.

Jean says to Joan, "If you'll promise to feed my dog each day while I am out of town next week, I'll pay you $100." Joan replies, "I'll absolutely do that. I hope you have a nice trip." Joan then feeds the dog, after which Jean pays her. At what point did a contract come into existence? a. When Jean made the offer to Joan. b. When Joan said that she would feed Jean's dog. c. When Joan started feeding Jean's dog. d. When Joan completed the final feeding of Jean's dog. e. When Jean paid the $100 to Joan.

b. When Joan said that she would feed Jean's dog.

Otto approaches Edie and says, "If you pick up my new suit for me at the mall tomorrow, I'll pay you $20." Edie replies, "I don't know if I'll have time to get it, but I'll see if I get a chance." As a result of this conversation: a. Otto and Edie have formed a bilateral contract. b. Edie has a legal obligation to use her best efforts to pick up the suit. c. A contract will be formed only if Edie picks up the suit. d. The contract which they have formed is voidable because Edie did not obligate herself.

c. A contract will be formed only if Edie picks up the suit.

What is the distinguishing characteristic that makes a contract a formal contract? a. A signature by both parties. b. The contract being in writing. c. A legal requirement that the contract be in a specific form. d. All possible scenarios are addressed in the contract terms.

c. A legal requirement that the contract be in a specific form. pg. 173 negotiable instruments (certificate of deposit) Letter of credit (pay sum of money) Recognizance (pay court if event occurs) Contracts under seal (wax seal)

Which of the following is not needed in order to have a valid contract? a. Contractual capacity. b. An agreement. c. A signed written document. d. Consideration. e. A legal object.

c. A signed written document.

Mr. Smith awakens one morning to the sound of construction in his back yard. When he looks out the window, he sees Ajax Construction Co. apparently erecting a garage on his property. He had not spoken or contracted with Ajax for this service. However, Mr. Smith really wanted a new garage, so he let them continue. Later, it was discovered that the garage was intended to go next door. Ajax sues Mr. Smith for the value of the garage. What is the probable result? a. Ajax wins; this is a case of a contract implied-in-fact, and Mr. Smith implicitly agreed to pay for the garage. b. Smith wins; there was no contract upon which Ajax could recover, and people are not liable for benefits that are thrust upon them. c. Ajax wins; although there is no real contract, this is a case of unjust enrichment, and because Mr. Smith accepted the garage, he must pay for it. d. Smith wins; unjust enrichment does not apply here because Mr. Smith had no duty to tell Ajax that it had the wrong house.

c. Ajax wins; although there is no real contract, this is a case of unjust enrichment, and because Mr. Smith accepted the garage, he must pay for it.

Under the objective theory of contracts, a contract could result from an offer made: a. In jest. b. In anger. c. Due to a need to sell an item quickly. d. Due to undue excitement.

c. Due to a need to sell an item quickly.

Mike and Ike agreed orally that Mike would tutor Ike in geology for $10 per hour for 3 hours. After Mike has done the 3 hours of tutoring, but before Ike pays him next week, this contract is: a. Executed. b. Implied-in-fact. c. Executory. d. Performed. e. Quasi-executed.

c. Executory.

What kind of contract is based on the conduct of the parties? a. Express. b. Action-oriented. c. Implied-in-fact. d. Implied-in-law. e. Quasi-contract.

c. Implied-in-fact (conduct): provided property or services. expected to be paid. conduct=action. Taco Bell Example. Chihuaha. Implied-in-law (aka Quasi-Contract): allows a court to reward monetary damages to a plantiff for providing work or services even though no contract agreements.

Which of the following is an equitable doctrine designed to prevent unjust enrichment and unjust detriment where no contract exists? a. An express contract. b. The doctrine of formal contracts. c. Implied-in-law contract. d. Quantum meruit.

c. Implied-in-law contract.

The terms "bilateral" and "unilateral" as applied to contracts are based on: a. The number of parties in a contract. b. The number of attempts made to form a contract. c. The number of parties who make a promise in the formation of a contract. d. The number of promises that are made in connection with a contract. e. The number of attempts it took for a contract to be successfully performed.

c. The number of parties who make a promise in the formation of a contract.

The Uniform Commercial Code was first drafted in: a. 1910. b. 1933. c. 1945. d. 1952. e. 1976.

d. 1952.

Which of the following is true in a unilateral contract? a. The offeror requests an act as acceptance of his offer. b. The offeror cannot revoke the offer once the offeree has begun performance or has substantially completed performance. c. The offeror will treat either a promise to perform or the actual performance of the act as acceptance of his offer. d. A and B only. e. B and C only.

d. A and B only.

Which of the following best describes the Restatement of the Law of Contracts? a. It is the supreme legal authority for contract law. b. A law which has been adopted, at least in part, by every state. c. A summary of the constitutional provisions affecting contract law. d. A compilation of contract law that is not itself contract law, but is often referred to by judges.

d. A compilation of contract law that is not itself contract law, but is often referred to by judges.

To create an enforceable contract, which of the following is(are) needed? a. Agreement. b. Agreement and consideration. c. Agreement, consideration, and contractual capacity. d. Agreement, consideration, contractual capacity, and a lawful objective.

d. Agreement, consideration, contractual capacity, and a lawful objective.

Which of the following are valid informal contracts? a. Leases. b. Sales contracts. c. Service contracts. d. All of these are correct.

d. All of these are correct.

Janet pulls her car into a line for a car wash. Janet says nothing and her car is washed by the employees there. Janet then refuses to pay for the car wash, stating that there is no contract. What would the results be in a lawsuit over this situation? a. Janet wins; because she said nothing, there can be no contract. b. Car wash wins; this is an express, unilateral contract that has been accepted. c. Janet wins; because the car wash made no promise to wash her car, there is no contract. d. Car wash wins; this is an implied-in-fact contract that has been accepted.

d. Car wash wins; this is an implied-in-fact contract that has been accepted.

Common law as a source of law for contracts: a. Comes primarily from federal law. b. Comes exclusively from state law. c. Comes exclusively from federal law. d. Comes primarily from state law. e. Comes equally from state and federal law.

d. Comes primarily from state law.

A bail bond is an example of what type of formal contract? a. Letters of credit. b. Contracts under seal. c. Negotiable instrument. d. Recognizances. e. Simple contract.

d. Recognizances.

Which of the following is not a basic requirement to be an enforceable contract? a. There must be an agreement between the parties. b. The promise must be supported by a bargained-for exchange. c. The parties must have contractual capacity. d. The parties need not have assent. e. The object of the contract must be lawful.

d. The parties need not have assent.

Frank says to Mary, "If you wash every window in my house today, I'll pay you $200. I don't care if you do it, but there is $200 in it for you if you do." Mary washes 12 of the 20 windows in Frank's house by 2:00 p.m. At this point: a. Frank can revoke his offer to pay Mary the $200 for washing the windows. b. Mary is obligated to finish washing the windows. c. Mary has formed a contract by beginning to wash the windows. d. There is no contract yet in this situation.

d. There is no contract yet in this situation.

In the case in the text where someone purchased a used safe at an auction for $50, but was later found by the buyers to contain more than $30,000 in cash, how did the court rule? a. There was no contract because the buyer was unjustly enriched. b. There was no contract because the act of opening the safe was not completed before the buyers took the safe. c. This was an implied-in-fact contract and the buyers were required to pay the fair value for the safe and its contents. d. There was objective intent that the parties intended that the safe, and whatever might be in it, be sold for a price of $50.

d. There was objective intent that the parties intended that the safe, and whatever might be in it, be sold for a price of $50.

Lori just purchased a brand new lawnmower for $500. When she got home and tried to use it, it would not work. She became angry and shouted, "I'd sell this thing for $50." Her neighbor heard her and said, "I'll take it," and offered Lori the $50 in cash. Which of the following best describes this situation? a. This is an enforceable bilateral contract. b. This is an express contract. c. If Lori sells the lawnmower for $50, it would be a case of unjust enrichment. d. This situation does not result in the creation of a contract.

d. This situation does not result in the creation of a contract.

What is the common name for an agreement to protect one from having others disclose confidential information or ideas? a. A proprietary secrecy agreement. b. A silence or be-penalized agreement. c. A mute thoughts agreement. d. A hold-information-close agreement. e. A nondisclosure agreement.

e. A nondisclosure agreement.

Which of the following is not a formal contract? a. Contract under seal. b. Recognizance. c. Negotiable instrument. d. Letter of credit. e. New car purchase contract.

e. New car purchase contract.

The original source of the Uniform Commercial Code was: a. The U.S. Constitution. b. Congress. c. The state legislature of Delaware. d. The United Nations. e. The National Conference of Commissioners on Uniform State Laws.

e. The National Conference of Commissioners on Uniform State Laws.