Question 1

Ellen offers to sell her math textbook to Julia for $50. Julia does not respond. Ellen and Julia do not have a contract because they lack the requirement of

Accepted Answer

A)   agreement.
B)   capacity.
C)   consideration.
D)   legality.E) B) and C)
F) B) and D)

Question 2

Phil agrees to work for Vacation Resorts, Inc., as a chef. In determining whether a contract has been formed, an element of prime importance is

Accepted Answer

A)   the parties' intent.
B)   Phil's rate of pay.
C)   Phil's education.
D)   the terms of Phil's employment.E) All of the above
F) A) and D)

Question 3

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) None of the above
F) A) and B)

Question 4

Bay City Construction, Inc., a contractor, asks Cool Electric, a subcontractor, to provide certain services. Nothing is said about payment. Cool provides the services, but Bay City refuses to pay. In Cool's suit to recover, the chief issue is most likely to be whether these parties had

Accepted Answer

A)   a formal contract.
B)   an express contract.
C)   an implied contract.
D)   a voidable contract.E) A) and B)
F) C) and D)

Question 5

If a voidable contract is avoided, the parties to it are released from it.

Accepted Answer

A) True 
 B)False

Question 6

Bobbie claims that Carly breached their contract. Carly responds that she never intended to enter into a contract with Bobbie. The intent to enter into a contract is determined with reference to

Accepted Answer

A)   the conscious theory of contracts.
B)   the objective theory of contracts.
C)   the personal theory of contracts.
D)   the subjective theory of contracts.E) None of the above
F) A) and C)

Question 7

The person who makes a promise is the promisee.

Accepted Answer

A) True 
 B)False

Question 8

An offeree is a person who makes an offer.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Demi promises to buy a house from Caleb, who promises to vacate the prop?erty on June 1. If these promises are in writing, they are most likely

Accepted Answer

A)   enforceable.
B)   unenforceable.
C)   void.
D)   voidable.E) All of the above
F) A) and B)

Question 11

The term consideration refers to the voluntary consent of all of the parties to a contract.

Accepted Answer

A) True 
 B)False

Question 12

An agreement is NOT one of the requirements of a valid contract.

Accepted Answer

A) True 
 B)False

Question 13

GR8 Marketing Company and Brainfreeze Tunes, Inc., sign a document that states GR8 agrees to create a marketing campaign for Brainfreeze, which agrees to pay GR8 for the service. GR8 and Brainfreeze have

Accepted Answer

A)   an executed contract.
B)   an express contract.
C)   an implied contract.
D)   a quasi contract.E) A) and D)
F) None of the above

Question 14

Jonathon promises to pay child support and alimony to his ex-wife every month after their divorce. Jonathon has

Accepted Answer

A)   only a moral obligation to do keep his promise.
B)   only a legal obligation to keep his promise.
C)   both a legal and a moral obligation to keep his promise.
D)   no obligation to keep his promise.E) A) and B)
F) All of the above

Question 15

A promise is a declaration that something will or will not happen in the future.

Accepted Answer

A) True 
 B)False

Question 16

Debit & Credit Accounting Services and Brickwork Construction Company negotiate a con?tract. Terms in the contract that are the subject of separate negotiation will be con?sidered subordinate to

Accepted Answer

A)   standardized terms.
B)   terms that can be understood only by lawyers and judges.
C)   terms that are not negotiated separately.
D)   none of the choices.E) A) and D)
F) A) and C)

Question 17

A contract can be executed on one side and executory on the other.

Accepted Answer

A) True 
 B)False

Question 18

Livewire Company and McCoy's Candy, Inc., sign a document that states Livewire agrees to design a We

Accepted Answer

A)   an actual contract.
B)   a fictional contract.
C)   an implied contract.
D)   a quasi contract.E) C) and D)
F) B) and D)

Question 19

Cynthia tells Darryl that she will deliver his boxes of Paradise Cookies as he directs. A declaration that one will do something in the future is part of the defini?tion of

Accepted Answer

A)   a prediction.
B)   a premise.
C)   a principle.
D)   a promise.E) None of the above
F) C) and D)

Question 20

Holiday Sales Company and Global Distributors, Inc., enter into a contract for the delivery of imported specialty goods. Until the goods are delivered and paid for, these parties have

Accepted Answer

A)   an executory contract.
B)   no contract.
C)   a quasi contract.
D)   an informal contract.E) C) and D)
F) B) and D)

Exam 8: Nature and Classification

GR8 Marketing Company and Brainfreeze Tunes, Inc., sign a document that states GR8 agrees to create a marketing campaign for Brainfreeze, which agrees to pay GR8 for the service. GR8 and Brainfreeze have

Correct AnswerverifiedShow Answer

Debit & Credit Accounting Services and Brickwork Construction Company negotiate a con?tract. Terms in the contract that are the subject of separate negotiation will be con?sidered subordinate to

Correct AnswerverifiedShow Answer

An offeree is a person who makes an offer.

Correct AnswerverifiedShow Answer

Ellen offers to sell her math textbook to Julia for $50. Julia does not respond. Ellen and Julia do not have a contract because they lack the requirement of

Correct AnswerverifiedShow Answer

Bobbie claims that Carly breached their contract. Carly responds that she never intended to enter into a contract with Bobbie. The intent to enter into a contract is determined with reference to

Correct AnswerverifiedShow Answer

A contract can be executed on one side and executory on the other.

Correct AnswerverifiedShow Answer

An agreement is NOT one of the requirements of a valid contract.

Correct AnswerverifiedShow Answer

Phil agrees to work for Vacation Resorts, Inc., as a chef. In determining whether a contract has been formed, an element of prime importance is

Correct AnswerverifiedShow Answer

If a voidable contract is avoided, the parties to it are released from it.

Correct AnswerverifiedShow Answer

Jonathon promises to pay child support and alimony to his ex-wife every month after their divorce. Jonathon has

Correct AnswerverifiedShow Answer

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

The term consideration refers to the voluntary consent of all of the parties to a contract.

Correct AnswerverifiedShow Answer

Demi promises to buy a house from Caleb, who promises to vacate the prop?erty on June 1. If these promises are in writing, they are most likely

Correct AnswerverifiedShow Answer

The person who makes a promise is the promisee.

Correct AnswerverifiedShow Answer

Bay City Construction, Inc., a contractor, asks Cool Electric, a subcontractor, to provide certain services. Nothing is said about payment. Cool provides the services, but Bay City refuses to pay. In Cool's suit to recover, the chief issue is most likely to be whether these parties had

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A promise is a declaration that something will or will not happen in the future.

Correct AnswerverifiedShow Answer

Holiday Sales Company and Global Distributors, Inc., enter into a contract for the delivery of imported specialty goods. Until the goods are delivered and paid for, these parties have

Correct AnswerverifiedShow Answer

Cynthia tells Darryl that she will deliver his boxes of Paradise Cookies as he directs. A declaration that one will do something in the future is part of the defini?tion of

Correct AnswerverifiedShow Answer

Livewire Company and McCoy's Candy, Inc., sign a document that states Livewire agrees to design a We

Correct AnswerverifiedShow Answer

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