Question 1

A letter of intent summarizes progress made during business negotiations, but more importantly, it creates a binding contract.

Accepted Answer

A) True 
 B)False

Question 2

In the historic case of Hamer v. Sidway, the nephew

Accepted Answer

A)  lost, as the Court found there  was no consideration.
B)  lost, as the uncle was dead.
C)  won, as the Court found there  was consideration.
D)  won, as there was a completed gift.E) A) and B)
F) None of the above

Question 3

Jerry offers to shovel the snow from Ben's driveway for $35. Ben replies "OK." This is an example of

Accepted Answer

A)  an implied, unilateral contract.
B)  an express, unilateral contract.
C)  an implied, bilateral contract.
D)  an express, bilateral contract.E) C) and D)
F) B) and C) D

Question 4

A valid contract can legally be voided by either party.

Accepted Answer

A) True 
 B)False

Question 5

A forbearance is, in essence, the opposite of an act.

Accepted Answer

A) True 
 B)False

Question 6

When Olga asks Sven if he wishes to sell his Harley motorcycle, he replies that he would not sell it "for less than $2,000." Olga replies, "I accept," and hands him $2,000. A contract exists.

Accepted Answer

A) True 
 B)False

Question 7

The basic distinction between an executory contract and an executed contract is that

Accepted Answer

A)  one is enforceable, the other is not.
B)  only one promise is involved in an executory contract.
C)  one is legal, the other is not.
D)  all parties have fulfilled their obligations in an executed contract.E) A) and C)
F) A) and D)

Question 8

Some of the elements of a contract are acceptance, consideration, legality, and capacity.

Accepted Answer

A) True 
 B)False

Question 9

Alex promises to pay $100 to anyone who finds his lost watch. Kate finds and returns the watch to Alex after hearing of the reward money. Alex and Kate have an enforceable unilateral contract.

Accepted Answer

A) True 
 B)False

Question 10

Nunnsky's Retail sent out newspaper inserts advertising wool suits for $50. In fact, the store had only two, out-of-style suits for sale at this price. Their other wool suits started at $175. This constitutes bad faith in its advertising, so consumers may have protection through state consumer protection statutes.

Accepted Answer

A) True 
 B)False

Question 11

When promissory estoppel is used by the courts, it is because there is NOT an enforceable contract present.

Accepted Answer

A) True 
 B)False  True

Question 12

The courts will find an implied contract when

Accepted Answer

A)  justice demands it.
B)  conduct of the parties indicates they intended an agreement.
C)  there is promissory estoppel.
D)  there is undue influence.E) C) and D)
F) A) and C)

Question 13

Which of the following is an example of an implied contract?

Accepted Answer

A)  Alberto visits his physician to be treated for a sinus infection. They do not discuss payment, but the following week Alberto receives a bill from his physician for services rendered.
B)  Midori offers to sell a necklace to Patricia for $50; Patricia agrees to pay $50 for the necklace.
C)  Amy tells her neighbor Tom, "If you rake up my leaves, I'll bake you a batch of brownies." Tom accepts the offer.
D)  Miguel wants to purchase his first home. When he found the perfect place, he signed a contract for purchase and closed on the home within a month.E) A) and B)
F) A) and C)

Question 14

Yolanda was shoveling snow from her sidewalk, and just to be nice, she also shoveled snow from her neighbor Melody's walk. The next day, Melody promises that she will pay Yolanda $25 for shoveling snow from her walk. Has a contract been created?

Accepted Answer

A)  No, Yolanda had a preexisting duty to shovel Melody's walk.
B)  No, past consideration is not valid consideration.
C)  Yes, Melody made a promise and that created the contract.
D)  Yes, Melody has a moral obligation to pay for the work, even if she didn't request it.E) None of the above
F) All of the above

Question 15

If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000, the agreement is

Accepted Answer

A)  enforceable because Becky is giving up the right to do something she would otherwise be entitled to do.
B)  enforceable because the agreement accomplishes Ben's goal of keeping Becky from drinking.
C)  not enforceable because Becky does not have a legal right to drink alcohol.
D)  not enforceable because Becky is a minor and could disaffirm the contract.E) A) and B)
F) A) and C)

Question 16

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales' business,

Accepted Answer

A)  the contract may indicate a method for determining the price, without stating a definite price.
B)  Morales and Rolfes must depend on the UCC's gap-filler provisions to determine a price since the fuel is a "good" covered by Article 2 of the UCC.
C)  the contract price must remain the same for the entire three-year contractual period.
D)  their contractual requirements regarding definiteness would be the same under the UCC and the common law.E) A) and B)
F) A) and C)

Question 17

Revocation is the withdrawal of an offer by the offeror.

Accepted Answer

A) True 
 B)False

Question 18

Regarding consideration, an act occurs when a person

Accepted Answer

A)  complies with the law.
B)  fulfills an obligation under an existing contract.
C)  does something not legally required.
D)  All of these are correct.E) A) and D)
F) B) and C) C

Question 19

Software clickwrap and browsewrap agreements limiting the manufacturer's maximum responsibility to a refund of the purchase price even if the software destroys your hard drive have generally been found to be binding against consumers.

Accepted Answer

A) True 
 B)False

Question 20

Larry goes to his barber who has cut his hair for the past several years. The barber proceeds to cut his hair as they talk about the most recent snow storm to hit the area. This is an example of a

Accepted Answer

A)  unilateral, implied contract.
B)  bilateral, implied contract.
C)  unilateral, express contract.
D)  bilateral, express contract.E) All of the above
F) A) and B)

Exam 10: Introduction to Contracts

A letter of intent summarizes progress made during business negotiations, but more importantly, it creates a binding contract.

Correct Answer
verified

In the historic case of Hamer v. Sidway, the nephew

Correct Answer
verified

Jerry offers to shovel the snow from Ben's driveway for $35. Ben replies "OK." This is an example of

Correct Answer
verified
D

A valid contract can legally be voided by either party.

Correct Answer
verified

A forbearance is, in essence, the opposite of an act.

Correct Answer
verified

When Olga asks Sven if he wishes to sell his Harley motorcycle, he replies that he would not sell it "for less than $2,000." Olga replies, "I accept," and hands him $2,000. A contract exists.

Correct Answer
verified

The basic distinction between an executory contract and an executed contract is that

Correct Answer
verified

Some of the elements of a contract are acceptance, consideration, legality, and capacity.

Correct Answer
verified

Alex promises to pay $100 to anyone who finds his lost watch. Kate finds and returns the watch to Alex after hearing of the reward money. Alex and Kate have an enforceable unilateral contract.

Correct Answer
verified

Correct Answer
verified

When promissory estoppel is used by the courts, it is because there is NOT an enforceable contract present.

Correct Answer
verified
True

The courts will find an implied contract when

Correct Answer
verified

Which of the following is an example of an implied contract?

Correct Answer
verified

Yolanda was shoveling snow from her sidewalk, and just to be nice, she also shoveled snow from her neighbor Melody's walk. The next day, Melody promises that she will pay Yolanda $25 for shoveling snow from her walk. Has a contract been created?

Correct Answer
verified

If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000, the agreement is

Correct Answer
verified

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales' business,

Correct Answer
verified

Revocation is the withdrawal of an offer by the offeror.

Correct Answer
verified

Regarding consideration, an act occurs when a person

Correct Answer
verified
C

Software clickwrap and browsewrap agreements limiting the manufacturer's maximum responsibility to a refund of the purchase price even if the software destroys your hard drive have generally been found to be binding against consumers.

Correct Answer
verified

Larry goes to his barber who has cut his hair for the past several years. The barber proceeds to cut his hair as they talk about the most recent snow storm to hit the area. This is an example of a

Correct Answer
verified

Exam 10: Introduction to Contracts

A letter of intent summarizes progress made during business negotiations, but more importantly, it creates a binding contract.

Correct AnswerverifiedShow Answer

In the historic case of Hamer v. Sidway, the nephew

Correct AnswerverifiedShow Answer

Jerry offers to shovel the snow from Ben's driveway for $35. Ben replies "OK." This is an example of

Correct AnswerverifiedD

A valid contract can legally be voided by either party.

Correct AnswerverifiedShow Answer

A forbearance is, in essence, the opposite of an act.

Correct AnswerverifiedShow Answer

When Olga asks Sven if he wishes to sell his Harley motorcycle, he replies that he would not sell it "for less than $2,000." Olga replies, "I accept," and hands him $2,000. A contract exists.

Correct AnswerverifiedShow Answer

The basic distinction between an executory contract and an executed contract is that

Correct AnswerverifiedShow Answer

Some of the elements of a contract are acceptance, consideration, legality, and capacity.

Correct AnswerverifiedShow Answer

Alex promises to pay $100 to anyone who finds his lost watch. Kate finds and returns the watch to Alex after hearing of the reward money. Alex and Kate have an enforceable unilateral contract.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When promissory estoppel is used by the courts, it is because there is NOT an enforceable contract present.

Correct AnswerverifiedTrue

The courts will find an implied contract when

Correct AnswerverifiedShow Answer

Which of the following is an example of an implied contract?

Correct AnswerverifiedShow Answer

Yolanda was shoveling snow from her sidewalk, and just to be nice, she also shoveled snow from her neighbor Melody's walk. The next day, Melody promises that she will pay Yolanda $25 for shoveling snow from her walk. Has a contract been created?

Correct AnswerverifiedShow Answer

If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000, the agreement is

Correct AnswerverifiedShow Answer

If Morales and Rolfes Supply negotiate for the purchase and sale of a supply of fuel for a three-year period for Morales' business,

Correct AnswerverifiedShow Answer

Revocation is the withdrawal of an offer by the offeror.

Correct AnswerverifiedShow Answer

Regarding consideration, an act occurs when a person

Correct AnswerverifiedC

Software clickwrap and browsewrap agreements limiting the manufacturer's maximum responsibility to a refund of the purchase price even if the software destroys your hard drive have generally been found to be binding against consumers.

Correct AnswerverifiedShow Answer

Larry goes to his barber who has cut his hair for the past several years. The barber proceeds to cut his hair as they talk about the most recent snow storm to hit the area. This is an example of a

Correct AnswerverifiedShow Answer

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D

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True

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C

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