Chapter 11 Book set

Question 1

If what is written in a contract is clear, a court will enforce the contract according to its obvious terms.

Answer 1

True

Question 2

Contract law does not distinguish between moral and legal obligations.

Answer 2

False

Question 3

A letter of credit is a type of formal contract.

Answer 3

True

Question 4

Contests and lotteries are unilateral contracts.

Answer 4

True

Question 5

Contracts relating to real estate are governed by the common law.

Answer 5

True

Question 6

The term consideration refers to the deference shown by contracting parties to each other.

Answer 6

False

Question 7

One of the requirements of a valid contract is an adequate market for the deal’s goods or services.

Answer 7

False

Question 8

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

Answer 8

True

Question 9

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

Answer 9

False

Question 10

Field Construction Inc. contracts with Mesa Ranch to build a new barn on Mesa’s property for which Mesa agrees to pay. If this is a valid contract, it will be partly because it includes the element of

Answer 10

legality

Question 11

Pavers Inc. contracts with a QuikStop store to repave the store’s parking lot for a certain price. To be enforceable, this contract must include an element of

Answer 11

consideration

Question 12

A contract is considered to be unequivocal even when a term is susceptible to more than one interpretation.

Answer 12

False

Question 13

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

Answer 13

False

Question 14

An agreement to form a contract cannot modify the terms of a previous contract.

Answer 14

False

Question 15

Steel Mill Inc. makes an offer to Tag to enter into a contract to work as a mechanical engineer for a certain salary for one year subject to a five-year renewal based on his performance. Tag accepts the offer. This is a valid contract because it includes

Answer 15

an offer and an acceptance.

Question 16

Movers LLC promises to deliver a certain couch to Nora, who promises to pay for the service. If Movers does not perform, it may be required to

Answer 16

pay damages.

Question 17

Once an offer is made, the offeror cannot revoke it.

Answer 17

False

Question 18

Without a legal framework of reasonably assured expectations within which to make plans, businesspersons would most reliably be able to count only on others’

Answer 18

good faith

Question 19

Juno tells Liu she will give him her old car if he babysits her son Marc weekday evenings for six months. Liu agrees. Juno and Lee have formed

Answer 19

a bilateral contract.

Question 20

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

Answer 20

False

Question 21

A check is an informal contract.

Answer 21

False

Question 22

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

Answer 22

False

Question 23

Promises that are legally binding include

Answer 23

a promise to pay for items ordered online

Question 24

Yuri agrees to zed.com’s terms of service and downloads the site’s app. Yuri then reverse-engineers the app to create a competing product. This is

Answer 24

a breach of contract.

Question 25

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

Answer 25

True

Question 26

By supplying procedures for enforcing private agreements, contract law provides an essential condition for the existence of a market economy.

Answer 26

True

Question 27

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

Answer 27

True

Question 28

If one party to a contract has fully performed but the other has not, the contract is executory.

Answer 28

True

Question 29

A payment of funds or a delivery of goods must take place for a bilateral contract to be formed.

Answer 29

False

Question 30

Anyone can avoid a contractual obligation by claiming that he or she did not read the contract.

Answer 30

False

Question 31

A contract is an implied contract if the conduct of the parties creates and defines some of the terms.

Answer 31

True

Question 32

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

Answer 32

the principles of contract law

Question 33

Ota asserts that a deal entered into with Pai to sponsor and host a motivational conference for independent sales representatives was formed as the result of a mistake. Ota’s best defense to the enforcement of this contract is

Answer 33

the lack of a party’s voluntary consent.

Question 34

A promisee has the right to expect or demand that something will or will not happen in the future.

Answer 34

True

Question 35

Quasi contracts are imposed on parties in the interest of fairness and justice.

Answer 35

True

Question 36

To avoid a contract, both parties must fully perform their respective legal obligations

Answer 36

False

Question 37

Quasi contract are not actual contracts.

Answer 37

True

Question 38

A signed agreement for a video streaming service is an express written contract.

Answer 38

True

Question 39

A contract that only one of the parties can enforce in a court is not valid.

Answer 39

False

Question 40

If a voidable contract is ratified, both parties are released from it.

Answer 40

False

Question 41

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

Answer 41

avoid potential disputes.

Question 42

Any contract that is not in writing is not enforceable.

Answer 42

False

Question 43

Boca claims that he intended to enter into a contract with Carla for tutoring, and she breached it. Carla responds that she never intended to enter into a contract with Boca. Their intent to enter into a contract is determined with reference to

Answer 43

the objective theory of contracts.

Question 44

Insofar as possible, a reasonable, lawful, and effective meaning will be given to all of the terms of a contract.

Answer 44

True

Question 45

The terms of service that a person agrees to before loading an app on a phone are not truly legally binding.

Answer 45

False

Question 46

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

Answer 46

Nona promised to pay for the watch

Question 47

A party who confers a benefit on someone else unnecessarily can obtain its fair value by invoking the doctrine of quasi contract.

Answer 47

False

Question 48

Only one party entering into a contract must possess characteristics that qualify him or her as competent for a valid contract to exist.

Answer 48

False

Question 49

On Monday, Xi tells Yard Work Inc., that he will pay $500 if a variety of tasks are completed by Friday. On Wednesday, when Yard Work is more than half done with the work, Xi says that he has changed his mind. These parties had

Answer 49

a unilateral contract as soon as Yard Work began to perform

Question 50

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’

Answer 50

intent