chapter 12 quiz Flashcards
Chet, a minor, signs a contract with Denise, an adult. The contract is voidable at the option of
a. either party.
b. Denise only.
c. neither party.
d. Chet only.
d
Clay offers to pay Dian $50 for a golf lesson for Ewan. They agree to meet on Friday to exchange the cash for the lesson. These parties have
a. a unilateral contract.
b. an executive contract.
c. a void contract.
d. a bilateral contract.
d
Digital Enterprise, Inc., promises to pay its employees a year-end bonus “if profits continue to be high and management agrees at the time.” This is
a. an enforceable contract.
b. promissory estoppel.
c. an option-to-cancel clause.
d. an illusory promise.
d
Leon contracts to install automatic watering troughs in Kendall’s dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. In most states, Kendall can sue
a. Jake or Leon.
b. no one.
c. Jake only.
d. Leon only.
a
Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda’s Buns n’ Burgers in exchange for her payment of a debt that Lyle owes to New Credit Corporation. New Credit is
a. an intended beneficiary.
b. an obligor.
c. an incidental beneficiary.
d. a delegatee.
a
Marketing Solutions Inc. promises to employ Niki as a software engineer. In reliance on the promise, Niki quits her job with Online Ad Company, but Marketing Solutions does not hire her. Most likely, Marketing Solutions is
a. liable to Niki under the concept of rescission and new contract.
b. not liable to Niki.
c. liable to Niki under the doctrine of promissory estoppel.
d. liable to Niki under the preexisting duty rule.
c
Orin signs a covenant not to compete with his employer, Product Distribution, Inc. The covenant will be enforced if it
a. relieves the employer from liability for any injury to Orin.
b. none of the choices.
c. does not require either party to obtain a business license.
d. is reasonable with respect to geographic area and duration.
d
Rafi offers a tour of Bay Harbor aboard his sailboat, Sea Siren, to Tiara’s Travel Group for $500. Referring to the prices for similar tours, Tiara’s says, “We’ll pay no more than $400.” Rafi’s offer is
a. still open.
b. revoked.
c. rejected and subject to a counteroffer.
d. terminated.
c
Rob promises to pay Sara, his niece, $5,000 if she obtains her degree at Tech University, where she is in her third year. Sara graduates. Rob is
a. required to pay because a job can be hard to find after college.
b. not required to pay because Sara was already at Tech.
c. not required to pay because obtaining a degree benefits Sara.
d. required to pay because Sara obtained a degree at Tech.
d
Ron offers to pay Sara to pick up and deliver certain business documents within thirty minutes. Sara can accept the offer only by completing the task within the deadline. If she does, Ron and Sara will have
a. a bilateral contract.
b. an executive contract.
c. a void contract.
d. a unilateral contract.
d
