Practice Quiz #2 (9-14)

Question 1

A contract may be formed orally or by writing, but it may NOT be inferred merely from the conduct of the parties. True or false?

Answer 1

False.

Implied in fact contract is a contract in which an agreement of the parties is inferred from their conduct.

Question 2

A bilateral contract results from the exchange of a promise for an act, whereas a unilateral contract results from the exchange of a promise for a return promise. True or false?

Answer 2

False. it’s the opposite.

Question 3

And executory contract is one in which there are one or more on performed promises by any party to the contract. True or false?

Answer 3

True

Question 4

Quasi contract is not a contract, but rather is an obligation imposed regardless of the intention of the parties in order to ensure a just and equitable result. True or false?

Answer 4

True. A quasi-contract is not a contract at all but is based in restitution.

Question 5

A voidable contract is an agreement that does not meet all of the requirements of a binding contract, it is no contract at all and has no legal effect. True or false?

Answer 5

False. It’s a contract that can be voided.

Question 6

In certain circumstances, non-contractual promises are in forced under the doctrine of promissory estoppel in order to avoid injustice. True or false?

Answer 6

True

Question 7

In order for an offeror’s revocation of the offer to be effective, notice of the revocation must be directly communicated to the offeree before acceptance. True or false?

Answer 7

True

Question 8

A rejection is effective at the moment of its dispatch by the offeree. True or false?

Answer 8

False. A rejection of an offer by the offeree is effective at the moment that the offeror receives the notice of rejection.

Question 9

Under the common law mirror image rule, and offeree’s acceptance will not be effective if it deviates from the exact terms of the offer. True or false?

Answer 9

True

Question 10

Although an offer free is generally under no duty to reply to an offer, by custom, usage, or course of dealing, silence or an action by the offeree may operate as an acceptance. True or false?

Answer 10

True. Silence or an action does not indicate acceptance of the offer. However, by custom, usage, or course of dealing, the offer is silence or an action may operate as an acceptance.

Question 11

Duress in the form of physical force renders the resulting agreement voidable. True or false?

Answer 11

False. If it’s a threat it’s voidable, if it’s physical threat, it’s void.

Question 12

Fraud in the inducement will result in the contract being avoidable. True or false?

Answer 12

True

Question 13

Harold Homeowner went to Al’s Auto Dealership to look at cars. Harold found a 1980 Plymouth Horizon that he thought would be a good car for his teenagers to drive to school. Al said, “This is the best car in town.” Harold buys it for $1,000. Two weeks later, the car breaks down. Al is guilty of fraud in the inducement. True or false?

Answer 13

False. This is puffing. Fraud in the inducement must be a fact (voidable). Fraud in the execution (void).

Question 14

The adequacy of consideration is the same as the legal sufficiency of consideration. True or false?

Answer 14

False.
Legal sufficiency has nothing to do with adequacy of consideration. The items or actions that the parties agree to exchange do not need to have the same value. Rather, the law will regard the consideration as adequate if the parties have really agreed to the exchange.

Question 15

The court will not enforce an agreement declared illegal by statute. True or false?

Answer 15

True

Question 16

As a general rule, a contract entered into by a minor is voidable at the minor’s option. True or false?

Answer 16

True

Question 17

A minor has the option of ratifying a contract after reaching majority, which makes the contract binding from the beginning. True or false?

Answer 17

True. When a minor comes of age, if he chooses to ratify the contract, in which case he surrenders his power of avoidance and becomes bound by his ratification.
Ab inicio

Question 18

In order to prove that a person with a mental deficit lacks the necessary capacity to enter into a contract, it must be shown that the person is permanently insane. True or false?

Answer 18

False.
Though he need not be proved permanently mentally incompetent to avoid the contract, his mental defect must be something more than a weakness of intellect or a lack of average intelligence.

Question 19

A minor who contracts for a necessity will be liable for the full contract price. True or false?

Answer 19

False. They will be liable for the market value.

Question 20

To avoid a contract, and intoxicated person must act promptly, upon regaining capacity, to disaffirm. True or false?

Answer 20

True.

Question 21

An executed contract is one in which…

Answer 21

All duties under it have been performed by all parties to the contract.

Question 22

Kay, an art collector, promised Hammer, an art student, that if Hammer could obtain certain rare artifacts within two weeks, Kay would pay for Hammer’s post-graduate education. At considerable effort and expense, Hammer obtained the specified artifacts within the two-week period. When Hammer requested payment, Kay refused and claimed that there was no consideration for the promise. Hammer would prevail against Kay based on:

• Unilateral contract
• Unjust enrichment
• Public policy
• Quasi contract

Answer 22

Unilateral contract

Question 23

Each of the following is an essential element of a binding promise EXCEPT:

• Mutual assent
• Consideration
• Capacity
• A writing signed by the parties

Answer 23

A writing signed by the parties.

Question 24

A contract in which both parties exchange promises is a(n):

• formal contract
• quasi contract
• implied in fact contract
• bilateral contract

Answer 24

Bilateral contract

Question 25

Which of the following would be an offer? - Will you buy my computer for $1000? - I sure would like to sell this computer for $1000 - I will sell you this computer for $1000. - none of the above are offers.

Answer 25

I will sell you this computer for $1000.

Question 26

A rejection of an offer by an offeree is effective: - At the moment that the offeree signs the notice of rejection - At the moment that the offeree dispatches the notice of rejection - At the moment that the offeror receives the notice of rejection - None of the above

Answer 26

At the moment that the offeror receives the notice of rejection.

Question 27

On April 1, Fine Corporation faxed Moss an offer to purchase Moss' warehouse for $500,000. The offer stated that it would remain open only until April 4 and that acceptance must be received to be effective. Moss sent an acceptance on April 4 by overnight mail and Fine received it on April 5. Which of the following statements is correct? -No contract was formed because Moss sent the acceptance by an unauthorized method -No contract was formed because Fine received Moss' acceptance after April 4 -A contract was formed when Moss sent the acceptance -A contract was formed when Fine received Moss' acceptance

Answer 27

No contract was formed because Fine received Moss’ acceptance after April 4

Question 28

Pat mails Trish an offer to buy Blackacre. Trish receives the offer on May 1. On May 2, Trish delivers a letter of acceptance to National Express, but due to their error the letter is not sent by the company until May 3. Pat receives the acceptance on May 4. A contract is formed on: - May 1 - May 2 - May 3 - May 4

Answer 28

May 2 (mailbox rule)

Question 29

Opal offered, in writing, to sell Larkin a parcel of land for $300,000. If Opal dies, the offer will: -Terminate prior to Larkin's acceptance only if Larkin received notice of Opal's death -Remain open for a reasonable period of time after Opal's death -Automatically terminate despite Larkin' prior acceptance -Automatically terminate prior to Larkin's acceptance

Answer 29

Automatically terminate prior to Larkin's acceptance

Question 30

A contract assented to by a party acting under improper physical coercion is:

Answer 30

Void

Question 31

Which of the following would be a statement of fact? - For the price, this is the best typewriter available - This is the one that I would recommend - This furniture was refinished last year - With a few more lessons, you should be able to complete in the regional dance competition.

Answer 31

This furniture was refinished last year.

Question 32

Which of the following will be legally binding on all the parties despite the lack of consideration? -A promise to donate money to a charity which was relied upon by the charity in incurring large expenditures -An employer's promise to pay an employee an additional $400/month for the remainder of the employee's agreed upon year of employment -A material modification signed by the parties to a contract to purchase and sell a parcel of land

Answer 32

A promise to donate money to a charity which was relied upon by the charity in incurring large expenditures.

Question 33

Colleen agrees to pay $10 for David's computer which is worth $300. Colleen's consideration: - Is not legally sufficient - Appears to be inadequate but is probably legally sufficient - Is a forbearance - Is inadequate but the contract will be enforced based on moral obligation

Answer 33

Appears to be in adequate but is probably legally sufficient.

Question 34

A minor may disaffirm a contract for a personal property: - Before attaining majority - On the day of attaining majority - Within a reasonable time after reaching majority - All of the above

Answer 34

All of the above.