Question 1

A check is an informal contract.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

A declaration that binds the person who makes it to do a certain act is a promise.

Accepted Answer

A) True 
 B)False

Question 4

Jana, a nurse practitioner, renders aid to Kurtz, who is injured and unconscious. Jana can recover the cost of the aid from Kurtz

Accepted Answer

A)   on a quasi contract theory.
B)   only if Kurtz recovers because of the aid.
C)   only if Kurtz was aware of the aid.
D)   under no circumstances.E) A) and D)
F) A) and C) A

Question 5

When price changes make performance of a contract costly, compliance with the terms may most certainly be obtained through

Accepted Answer

A)   the adversely affected party's sense of duty.
B)   both parties' good faith.
C)   the principles of contract law.
D)   the innocent party's sense of rightness.E) A) and B)
F) A) and D)

Question 6

What a party said when entering into a contract is a subjective fact.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)   Macy offered to sell the watch.
B)   Macy delivered the watch.
C)   Nona promised to pay for the watch.
D)   Nona paid for the watch.E) B) and C)
F) A) and D)

Question 8

When a rainstorm erupts outside Rita's Clothing Shop, Rita and Shaw enter into an implied contract to split the revenue from Shaw's sale of umbrellas to Rita's customers. The terms of this contract are defined by

Accepted Answer

A)   the conduct of the parties.
B)   the words of the parties.
C)   the unforeseeable storm that gave rise to the deal.
D)   the unexpressed subjective intent of the parties.E) All of the above
F) A) and B) A

Question 9

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have

Accepted Answer

A)   no contract.
B)   an express contract.
C)   an implied contract.
D)   a quasi contract.E) B) and C)
F) A) and D)

Question 10

Red offers to pay Sara to deliver certain documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Red and Sara will have

Accepted Answer

A)   a bilateral contract.
B)   a unilateral contract.
C)   a void contract.
D)   an executive contract.E) C) and D)
F) B) and C)

Question 11

Promises that are legally binding include

Accepted Answer

A)   a promise to take a friend to lunch.
B)   a promise to pay for items ordered online.
C)   a promise to watch a certain sporting event.
D)   all of the choices.E) B) and D)
F) A) and B)

Question 12

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

Accepted Answer

A)   a bilateral contract.
B)   a third-party contract.
C)   a unilateral contract.
D)   no contract.E) B) and D)
F) B) and C)

Question 13

Contract law does not distinguish between moral and legal obligations.

Accepted Answer

A) True 
 B)False

Question 14

In interpreting a contract, a court will give greater weight to the course of performance between the parties than to the express terms.

Accepted Answer

A) True 
 B)False

Question 15

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'

Accepted Answer

A)   intent.
B)   character.
C)   subjective beliefs.
D)   motives.E) B) and D)
F) All of the above

Question 16

Contracting parties are bound only by terms that can be objectively inferred from promises made.

Accepted Answer

A) True 
 B)False

Question 17

Cass, a certified public accountant, agrees to perform an audit for Drone Distribution Inc. These parties are most likely to follow the rules of contract law in order to

Accepted Answer

A)   avoid potential disputes.
B)   acquire business acumen.
C)   obtain confidential information.
D)   satisfy a moral obligation.E) B) and D)
F) B) and C)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)   enforceable.
B)   quasi.
C)   void.
D)   voidable.E) None of the above
F) A) and C)

Question 20

An offer that can be accepted simply by a promise to perform does not create a binding contract.

Accepted Answer

A) True 
 B)False  False

Exam 10: Nature and Classification

A check is an informal contract.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A declaration that binds the person who makes it to do a certain act is a promise.

Correct AnswerverifiedShow Answer

Jana, a nurse practitioner, renders aid to Kurtz, who is injured and unconscious. Jana can recover the cost of the aid from Kurtz

Correct AnswerverifiedA

When price changes make performance of a contract costly, compliance with the terms may most certainly be obtained through

Correct AnswerverifiedShow Answer

What a party said when entering into a contract is a subjective fact.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When a rainstorm erupts outside Rita's Clothing Shop, Rita and Shaw enter into an implied contract to split the revenue from Shaw's sale of umbrellas to Rita's customers. The terms of this contract are defined by

Correct AnswerverifiedA

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have

Correct AnswerverifiedShow Answer

Red offers to pay Sara to deliver certain documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Red and Sara will have

Correct AnswerverifiedShow Answer

Promises that are legally binding include

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Contract law does not distinguish between moral and legal obligations.

Correct AnswerverifiedShow Answer

In interpreting a contract, a court will give greater weight to the course of performance between the parties than to the express terms.

Correct AnswerverifiedShow Answer

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'

Correct AnswerverifiedShow Answer

Contracting parties are bound only by terms that can be objectively inferred from promises made.

Correct AnswerverifiedShow Answer

Cass, a certified public accountant, agrees to perform an audit for Drone Distribution Inc. These parties are most likely to follow the rules of contract law in order to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

An offer that can be accepted simply by a promise to perform does not create a binding contract.

Correct AnswerverifiedFalse

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