Reference no: EM132201687

1. Bob files a suit against Carol, claiming that she freely entered into a contract with him. Freedom of contract is

a principle that describes contracting parties' intent.

a fundamental public policy in the United States.

a concept no longer followed by the courts.

a foundation for an ethical business practice.

2. Beth offers to sell Chris a certain piece of land. Chris says, "Yes, but $3,000 more for the land and the quarter acre behind it." Chris has

accepted the offer.

made a counteroffer only.

rejected the offer and made a counteroffer.

rejected the offer only

3. Kamil offers to sell Jason his car. In this case, Kamil:

is the donor.

is the offeree.

is the offeror.

is the donee.

4. Pat causes an accident in which Ruth is injured. Ruth accepts Pat's offer of $5,000 to release Pat from further liability. Later, Ruth learns that her injuries are more serious than she realized. Ruth's release of Pat will

not bar a suit against Pat to recover for the injuries if Pat is insured.

not bar a suit against Pat to recover for the injuries.

not bar a suit against Pat to recover for the injuries if Ruth is insured.

prevent Ruth from suing Pat.

5. Jim promises to pay Kay to work for Jim. Kay agrees and quits her job. Jim does not hire Kay. Jim is liable to Kay based on

the doctrine of promissory estoppel.

the concept of accord and satisfaction.

the concepts of rescission and new contract.

Jim's illusory promise.

6. In the case of Jacob & Youngs v. Kent, a building contractor used the wrong grade of pipe in a home. The homeowner refused to pay a part of the contract price. The court held:

the contractor did not show good faith.

the homeowner did not get what he bargained for and thus did not have to pay.

the contractor substantially performed and should be paid.

the contractor acted out of malice.