Reference no: EM13147091

1. Madison promises Grace $10 if Grace will pick-up her dry cleaning for her. This is an example of a ______ contract.
a. bilateral
b. unilateral
c. voidable
d. void E. unenforceable

2. A(n)________ contract is one that appears to be an agreement but lacks an essential requirement for validity and enforceability.
a. Voidable
b. unenforceable
c. void
d. validE. unapplied

3. Mayra offers to sell her home to Hanna for "about $100,000 plus closing costs." Hanna accepts Mayra's offer but later, a dispute arises concerning the precise dollar amount of the purchase price. How will a court resolve this dispute?
a. The court will determine a reasonable price to be paid by Hanna.
b. The court will determine that Hanna pay only the figures mentioned in the contract.
c. The court will appoint a licensed real estate appraiser to determine the price to be paid by Hanna.
d. The court will require Hanna to pay the average of her price and Mayra's price.
e. The court will declare the purchase price and terms to indefinite to create a binding contract.

4. In case an offeror withdraws his/her offer, it is called ______.
A. Rejection B. Reversion C. Novation D. Revocation E. triangulation

5. Brett offers to sell his old, but working, cell phone to James for $65. James says he will accept the offer if Brett lowers the price to $60. James has:
a. made an unequivocal acceptance
b. made a counteroffer
c. demonstrated the mirror image rule
d. entered in an option contract
e. entered into an executory contract

6. According to the mirror image rule, _____.
a. the acceptance must exactly match the offer
b. to be enforceable, a contract must e accepted in writing by both the parties involved
c. the acceptance of an offer involves changing the terms of offer or adding new terms
d. terms of contract must be definite to be clear and enforceable
e. the contract becomes enforceable by performing a requested act, not by making a promise

7. The deposited acceptance rule is also known as the _____ rule.
A. mirror image B. mailbox C. unilateral D. bilateral E. negotitation

8. According to the mailbox rule:
A. a contract is formed when the offer is mailed
B. a contract is formed when the offer is received
C. a contract is formed when the acceptance is received
D. a contract is formed when the acceptance is mailed
E. a contract is formed when the offer is converted in a written document

9. Brandie is facing financial difficulties. Warren wants to help Brandie and tells her that he will pay her $1,000. But afterwards Warren refuses to pay the promised money to Brandie. Which of the following statements is correct?
a. Brandie is entitled to the payment because a promise is made and consideration has nothing to do with the agreement
b. Warren need not pay Brandie because Brandie did not promise anything in return
c. Warren must pay the money to Brandie because by promising her the money he has entered into an implied-in-fact contact
d. Warren does not have to pay because of the mirror image rule.
e. Warren must pay the money to Brandie because by promising her the money he has entered into an executory contract

10. Robert is about to graduate from his university and his parents tell him that because he is the first member of the family to graduate college, they want to buy him a new but inexpensive car. They have the money to buy the car and Robert is excited to get his gift. On graduation day, his parents tell him that they have decided to use the car money for a vacation and there will be no car.
a. Robert can successfully sue based on promissory estoppel
b. Robert can successfully sue based on the promise of a gift.
c. Robert cannot sue because the promise was not reasonable and would not support promissory estoppel.
d. Robert cannot sue because he did not suffer any legal detriment in the receipt of the promise.
e. Robert can sue since the promise is his legal benefit and he suffered legal detriments.

11. There must be some incentive or inducement for a person's promise or it is not binding. The legal mechanism for evaluating the existence of this incentive is "_____" which refers to the receipt of a legal benefit of the suffering of a legal detriment.
a. collusion
b. promissory estoppel
c. consideration
d. reversion
e. novation

12. A(n) _____ is an agreement containing mutual promises.
a. unilateral contact
b. quasi-contact
c. express-in-fact contract
d. bilateral contract
e. implied-in-fact contract

13. Contracts are:
a. legally enforceable promises
b. always required to be written
c. a form of a circular
d. enforceable only in the supreme court
e. informal agreements

14. Contract law applies to:
a. only formally written documents
b. documents that use the word 'contract'
c. private agreements, making them legally enforceable
d. all business dealing, covering those that are against public policy
e. only oral agreements and contracts

15. A(n)____ contract is the one in which the promised terms of the contract have been discussed by the parties.
a. Expressed
b. Reciprocal
c. implied
d. bilateral
e. unilateral

16. Legal value, bargained for and given in exchange for an act or promise is called
a. composition
b. moral obligation
c. forbearance
d. consideration

17. Identify the legal term for settling a dispute claim?

18. Bill says to his daughter, "i"m glad you stopped hanging out with Tom, I will give you 50$". Bill has
a. Made valid consideration
b. Not given any consideration because his daughter did not stop hanging around Tom in exchange for his promise
c. Not given any consideration because he has not paid the $50 yet.
d. Made this promise due to his moral obligation and hence it automatically becomes a valid consideration.

19. Forbearance occurs when:
a. Agreements between a debtor and two or more creditors who agree to accept a stated percentage of their bauidated claims against the debtor.
b. Someone promises not to file a legal suit in exchange for a promise to pay a certain sum of money or some other consideration.
c. Promises are worded in a way that allows the promisor to decide whether or not to perform the promise.
d. There is no dispute about the existence or the amount of the debt.

20.Past consideration:
a. Is sometimes excepted for official duties
b. Is sometimes excepted for legal obligations
c. Is sometimes excepted for moral obligations
d. Is sometimes excepted for charitable donations

21. Which of the following is worded in a way that allows the promisor to decide whether or not to perform the promise?
a. Novations
b. Compositions
c. Illusory promises
d. Modifications

22. Which of the following used to enforce promises is not supported by consideration?
a. Promissory estoppel
b. A relied on charitable subscription
c. Promises not to commit crimes or torts
d. New promise to pay discharged debt if in writing or meets the requirements of the Bankruptcy act

23. If one or both parties to a form contract are non-merchants, the additional terms proposed by one of the parties are treated as:
a. Void
b. Proposals for addition to the contract
c. Revocation
d. Expressly conditional

24. If Jane hands Mark a detailed offer for the purchase of Mark's house and Mark signs the offer without changing any of its terms, both parties are bound on the terms of the offer. This is an example of a:
a. Bilateral contract
b. Unilateral contract
c. Contingent contract
d. Multilateral contract

25. If Peggy tells Larry, "I'll give you $50 if you stand on your head for one hour":
a. Larry must verbalize his assent in order to render effective acceptance
b. Larry must stand on his head to accept Peggy's offer
c. The parties have created a contingent contract
d. The parties have created a unilateral contract

26. To create acceptance to an offer for a bilateral contract:
a. The offeree must perform the act requested by the offeror
b. Silence will never constitute acceptance of an offer
c. Acceptance must always be properly communicated to the offeror
d. An offeror is allowed to word his or her offer so that the offeree will be bound to the contract

27. A stipulation
a. Is a condition made by the offeror about the manner in which the offer must be accepted
b. is a contingency clause built into a unilateral contract
c. Requires acceptance in writing
d. Needs a timely expression of acceptance

28. The offeree may accept an offer within a reasonable time by any reasonable means of communication:
a. If the parties are dealing by telephone
b. If the written offer is lost in transit
c. If the offer merely suggests a method of communication
d. If the offer merely suggests a method or place of communication or is silent on these points

29. An acceptance is effective as soon as it is dispatched:
a. If the offeree uses only an authorized means of communication
b. If the offeree uses only a stipulated means of communication
c. If the offeree uses an authorized as well as the stipulated means of communication
d. If the offeree uses any reasonable means of communication

30. When an offeree uses an unauthorized means of acceptance, the acceptance is:
a. Effective upon dispatch
b. Illegal
c. Not effective upon receipt by offeror
d. Effective upon receipt by the offeror

31. An acceptance is valid if:
a. The intent is subjectively manifested
b. There are material changes from the offer
c. The acceptance is properly communicated to the buyer
d. The communication by nonauthorized means is effective when received

32. In a contract made by a minor:
a. The contract is voidable
b. the contract is inherently void
c. The contract will forever be barred from ratification
d. Capacity to contract is never presumed

33. When a minor reaches the age of majority:
a. The person may disaffirm a contract for a reasonable time after reaching majority
b. The person can no longer disaffirm
c. The person must put his intent to disaffirm in writing shortly before reaching majority
d. The person should renew his contract in order to disaffirm the contract legally

34. What is the term used for the willingness to abide by contractual obligations?
a. Ratification
b. Rescission
c. Emancipation
d. Forbearance

35. What is the term used to describe the termination of a parents right to receive services and wages from a child and to generally control him?
a. Emancipation
b. Disaffirmation
c. Ratification
d. Incapacity

36. For the purposes of minors contracting for necessaries, it would include all of the following except:
a. Shelter
b. Food
c. IPod
d. Medical care

37. When a person has been adjudicated insane:
a. The court has determined that the person was of unsound mind but has lucid moments
b. Most states hold that the contracts of such persons are voidable
c. The court has appointed a guardian or conservator for the person's estate
d. The court has determined that the person is liable for any value of necessaries

38. The right to disaffirm a contract applies to all of the following except
a. To a person who is dead
b. To minors who attain majority
c. To the person's personal representative
d. To persons lacking mental capacity

39. A contact is not voidable in all of the following instances except when:
a. It is for necessaries
b. It is ratified on reaching majority
c. The minor lied about her age
d. The minor is married

40. People lacking mental capacity:
a. Have been judged to be permanently insane
b. Cannot disaffirm their contracts
c. Can disaffirm their contracts
d. Should not return any consideration they received