Q&A Hero

Q: Which of the following statements is true about a promise to make a gift? A. Upon delivery of the item, a true gift can be enforceable as a property transfer. B. Promissory estoppel prevents a gift from being enforceable. C. A promise to make a gift is binding as a contract as it usually supports the bargain. D. A promise to make a gift becomes an option when it has a clause in the agreement that revokes the gift. E. Insignificant consideration in return for a great one raises concerns that the exchange is actually not a gift.

Q: Which of the following statements is true about minors as parties to a contract? A. A contract into which a minor has entered is voidable at the election of the minor. B. A minor can be legally bound to contractual promises involving necessaries of life such as shelter and medical care. C. In a number of states, courts do not hold a minor who has misrepresented his or her age. D. A minor can explicitly ratify a contract and forego disaffirmance even before reaching the age of majority. E. Upon ratification, a minor gains the right to disaffirm.

Q: Which of the following statements is true about adhesion contracts? A. They are a common type of unconscionability. B. They exclude any standard form contracts. C. They are generally unenforceable in a court of law. D. They provide substantial opportunity for revision for all parties involved in a contract. E. They are usually drafted by multiple parties in a contract.

Q: Which of the following statements is true about intoxicated and mentally incompetent persons in a contract? A. A court of law legally terms mentally incompetent persons as infants to a contract. B. A court prevents intoxicated persons from making a contract voidable in any circumstance. C. The capacity to contract is simply lost due to intoxication and mental incompetency even before a court can adjudge a person of such mental incompetency. D. A court measures capacity to contract by whether an adult is capable of understanding the nature and purpose of the contract. E. The complexity of a contractual transaction and the mental capacity of an adult are irrelevant in controlling the right to disaffirm a contract.

Q: Vincent agrees to sell 10 cartons of footwear to a local retail outlet at $150 for each carton. Each carton is to contain 30 pairs of footwear, but the local retail outlet finds that most of the cartons have only 25 pairs of footwear. The retail outlet decides to sue Vincent, but they decide to settle the matter outside the court in order to reduce the expenses involved in a lawsuit. Both parties finally agree to revise the rate of each carton to $135 with each carton containing 25 pairs of footwear. This settlement is an example of ______. A. accord and satisfaction B. duress C. mutual mistake D. undue influence E. promissory estoppel

Q: Miguel offers to sell Nisha 100 laptops at $50 each. Nisha ponders over the offer but mails her acceptance that evening to Miguel. Before her acceptance reaches Miguel, Miguel finds another buyer who is willing to pay $70 each for the laptops. Miguel sends a revocation mail the next day to cancel his initial offer to Nisha, but a storm has hit the city causing the mail services to halt temporarily. Which of the following statements is true about this situation? A. As per the mirror image rule, Nisha cannot sue Miguel for revoking his initial offer. B. Miguel can use the doctrine of the promissory estoppel to defend his right to find and sell his laptops to another buyer. C. As per the mailbox rule, Miguel cannot revoke his initial offer to Nisha as she had accepted his offer. D. Nisha cannot sue Miguel as the deposited acceptance does not create a binding contract despite Miguels revocation. E. Nisha cannot sue Miguel as the storm prevents Miguel from mailing his revocation.

Q: Tristam, an insurance agent, wants Philomena to purchase the insurance policy of his choice. Despite Philomenas resistance to accept his offer, Tristam compels her to purchase the policy by exerting his physical force on her and forces her to sign the insurance documents. Which of the following has been most likely used by Tristam to complete the contract arrangements? A. duress B. misrepresentation C. undue influence D. misstatement E. fraud

Q: Tonys Carpets Inc. wants to charge $9.80 a yard for installing a carpet for Serenity Bookstore but accidentally states $8.90 a yard in the bid. Serenity Bookstore accepts Tonys Carpets bid. Tonys Carpets made a ______. A. bilateral mistake B. unilateral mistake C. mutual mistake D. rescission mistake E. contractual mistake

Q: Which of the following terms refers to force or threat of force? A. rescission B. misrepresentation C. undue influence D. duress E. revocation

Q: Which of the following statements is true about the acceptance of an offer? A. Bilateral contracts are predominantly accepted by the offeree performing the act. B. Unilateral contracts are accepted by making a promise. C. The language of an offer is optional in determining the nature of contract and its acceptance. D. Counteroffer usually means an acceptance of an offer. E. Acceptance must follow the mirror image rule to create a binding contract.

Q: Which of the following statements is true about the consideration in a contract? A. Courts usually enforce contractual promises in the absence of consideration. B. The amount of the consideration is the most important and relevant part of a contract for a legal action. C. The consideration must be contemporaneous and a part of both parties understanding of the contract terms. D. The consideration in any unilateral contract is usually absent. E. Performance made before parties discuss their agreement counts as a consideration.

Q: If a minor fails to disaffirm a contract within a reasonable time after reaching majority, the minor is said to ______ the contract. A. transcend B. terminate C. rescind D. ratify E. breach

Q: Dustin, who is 17 years old, purchased a car from Speed Auto Sales Inc. for $1,000. The following year, Dustins father gifted him a brand new car on his 18th birthday. Dustin returned the car that he had purchased to Speed Auto Sales the next day, and he demanded his money back. At the time of disaffirmance, Dustin was 18the age at which he was considered an adult in his jurisdiction. Will this disaffirmance be enforceable in the court of law? A. The disaffirmance will not be enforceable since Dustin did not give Speed Auto Sales a signed revocation. B. The disaffirmance will be enforceable since Dustin disaffirmed during the year he attained adulthood. C. The disaffirmance will not be enforceable since the disaffirmance must be written when the price exceeds $500. D. The disaffirmance will be enforceable since courts and laws always rule in the favor of minors. E. The disaffirmance will not be enforceable since Dustin attained adulthood, and disaffirmance can be expressed only by a minor.

Q: Systek 22 Inc. made a promise to Garrett offering him a job with an annual salary of $150,000 and at least two years of employment. Since Garrett had to move to New York for the new job, Systek 22 also offered to reimburse all of his moving expenses. Based on this promise, Garrett resigned from his job at another firm that offered him an annual salary of $100,000. When Garrett moved to New York, his employment with Systek 22 was terminated, because the company found a candidate who was willing to work for a lesser salary. Which of the following is true of this situation? A. Garrett cannot sue Systek 22 since the promise was oral. B. Garrett can sue Systek 22 under the doctrine of promissory estoppel. C. Garrett cannot file a lawsuit since a promise of employment is always subject to market conditions. D. Garrett can sue Systek 22 only for the moving expenses that Garrett can prove he incurred. E. Garrett cannot sue Systek 22 since the reasons for termination will be accepted in court as a legal detriment.

Q: Which of the following terms refers to a persons ability to be bound by a contract? A. legality B. capacity C. usability D. negotiability E. measurability

Q: The legal mechanism for evaluating the existence of an incentive for a persons promise to establish a binding contract and acts as a receipt of a legal benefit or the suffering of a legal detriment is ______. A. collusion B. accord and satisfaction C. consideration D. reversion E. novation

Q: In which of the following cases does the legal power of the offeree to bind the offeror end? A. When the offeree accepts the offer B. When the offeror is declared insane before acceptance of the offer by the offeree C. When the subject matter of the contract is destroyed after the acceptance of the offer D. When the offeror accepts the counteroffer E. When the offeror attempts to retract the offer after its acceptance by the offeree

Q: Smith Inc. sends a letter dated August 1 to Cervaille Stores, offering to sell 20 table lamps to Cervaille Stores at $80 each. Cervaille Stores provides a consideration of $160 to Smith Inc. to keep the offer open for at least two weeks. In the second week of August, Smith Inc. receives an offer from Shine Retailers Inc. to purchase the table lamps at a price of $85 each. Can Smith withdraw its offer made to Cervaille Stores? A. Smith cannot withdraw its offer as the agreement is in the form of an option. B. Smith cannot withdraw its offer since the doctrine of promissory estoppel is applicable. C. Smith can withdraw its offer as the offer was simply an invitation to negotiate. D. Smith cannot withdraw its offer as this is a firm offer. E. Smith can withdraw its offer as the consideration makes it enforceable as a property transfer.

Q: In contracts that are not between merchants selling goods, a promise to keep an offer open for a certain time period must be supported by the offerees consideration. Such agreement to not revoke an offer is called a(n) ______. A. firm offer B. option C. promissory estoppel D. novation E. accord

Q: An important exception to the rule requiring consideration to support a promise is the doctrine of ______. This doctrine arises when a promisee justifiably relies on a promisors promise to his or her economic injury. A. firm offer B. consideration C. termination D. promissory estoppel E. accord and satisfaction

Q: Which of the following statements is true of silence as a method of acceptance? A. An offerees silence implies that the offeree will make a counter offer. B. Silence may well imply acceptance if the parties previously dealt with each other. C. When an offer specifies that silence indicates acceptance, the offeree has to respond. D. Silence alone can be acceptance and the basis of a binding contract. E. Silence leads to acceptance of an offer due to the mirror image rule.

Q: The deposited acceptance rule is also known as the ______. A. mirror image rule B. mailbox rule C. unilateral rule D. bilateral rule E. negotiation rule

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

Q: Brandie is facing financial difficulties. Warren wants to help Brandie, and tells her that he will loan her $1,000. Later, Warren refuses to loan the promised money to Brandie. In the context of this scenario, which of the following statements is true? A. Warren must loan the money to Brandie because a promise is made and consideration has nothing to do with the agreement. B. Warren need not loan the money to Brandie because Brandie did not promise anything in return. C. Warren must loan the money to Brandie because he has entered into an implied-in-fact contract by promising her the money. D. Warren does not have to loan the money to Brandie because of the mirror image rule. E. Warren must loan the money to Brandie because he has entered into an executory contract by promising her the money.

Q: Robert is about to graduate from his university. His parents tell him that as 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 receive his gift. On graduation day, his parents tell him that they have decided to use the car money for a vacation and that there will be no car. In this situation, can Robert sue his parents? 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 did not follow the mailbox rule. 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 it is an implied-in-fact contract.

Q: Valid consideration can include any promise to do something one has no obligation to do, refrain from doing something one has the right to do, or in the case of a unilateral contract, a performance when there is no obligation to do so. This is known as a(n) ______. A. exculpation B. legal detriment C. release D. negotiation E. promissory estoppel

Q: Aria asks Jessica if she can borrow an outfit for an office party and Jessica agrees. When Aria picks an outfit, Jessica refuses to give it to her. Which of the following statements is true of this situation? A. Jessica has committed a breach of contract. B. A bargained-for exchange has not occurred, so Jessica does not have to loan the outfit to Aria. C. Jessica has promised Aria something of value, so she must loan her the outfit. D. The contract between Aria and Jessica is terminated as Aria makes a counteroffer. E. Jessica has given a valid consideration, thereby making the agreement between her and Aria a binding contract.

Q: Josh announces a reward of $500 for his dog, Ginger, that ran away from his house. Josh spreads the word only by pinning up posters in his neighborhood. Amanda, Joshs colleague, sees Ginger and brings her back to Josh without ever seeing the poster. After returning the dog, Amanda sees one of the reward posters and returns to claim the money. In the context of this scenario, which of the following statements is true? A. Amanda is not entitled to the money because the offer was not communicated to her. B. Amanda is not entitled to the money because she is Joshs colleague and acted in good faith. C. Amanda is entitled to the money because the poster constituted an offer and is effective for the entire neighborhood. D. Amanda is entitled to the money since performance of the requested act in the poster indicates acceptance. E. Amanda is not entitled to the money since she did not communicate the acceptance of the offer in writing.

Q: According to the mirror image rule, ______. A. the acceptance must exactly match the offer B. a contract must be accepted in writing by both the parties involved to make it enforceable in the court of law C. the acceptance of an offer involves changing the terms of the offer or adding new terms D. one of the parties to a contract should be a minor E. there has to be at least two or more counteroffers to bind a contract

Q: Mayra offers to sell her home to Hanna for about $100,000 plus closing costs. Hanna accepts Mayras offer. Later, a dispute arises over the precise dollar amount of the purchase price. How will a court most likely 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 Mayras price. E. The court will declare the purchase price and terms too indefinite to create a binding contract.

Q: In the context of termination of an offer, ______ occurs when an offeror retracts the offer before the acceptance. A. rejection B. reversion C. novation D. revocation E. rescission

Q: Brett offers to sell his old but functioning 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 exculpatory rule. D. entered into an option contract. E. entered into an executory contract.

Q: A(n) ______ is an agreement when one party has the right to withdraw from the promise made without incurring any legal liability. A. executed contract B. voidable contract C. void contract D. implied-in-fact contract E. reciprocal contract

Q: Laborers working on a building are promised by their contractors that their wages would be paid at the end of every month. The laborers also in return promise to work from the beginning of the subsequent month. When the laborers have worked for the entire duration of the month and are awaiting their wages at the end of the month, the contract is ______. A. void B. executory C. implied D. executed E. unilateral

Q: In the context of implied warranties as defined by the Uniform Commercial Code (UCC), which of the following refers to the merchantability of goods? A. The goods will be of fair average quality and conform to any labeling. B. The goods will be suitable for the buyers purpose if the seller is aware of it. C. The goods will be delivered within two weeks of order. D. The goods will be worth at least $500 or more. E. The goods will be sold within states and not across states.

Q: In the context of contracts formed by interactions of parties, which of the following arises from the conduct of the parties rather than from words? A. express contracts B. implied-in-fact contracts C. executed contracts D. void contracts E. adhesion contracts

Q: A(n) ______ contains a specific promise and a specific demand. A. consideration B. revocation C. offer D. capacity E. exculpation

Q: A(n) ______ is one in which the promised terms of the contract are discussed by the parties. A. express contract B. reciprocal contract C. implied contract D. bilateral contract E. unilateral contract

Q: The doctrine of quasi-contracts is predominantly based on a(n) A. reciprocal contract. B. implied-in-law contract. C. express contract. D. bilateral contract. E. unilateral contract.

Q: The remedy of quasi-contract generally applies only when A. there are more than three parties in a contractual agreement. B. no actual contract exists to cover the dispute. C. the contract is bilateral in nature. D. no more than two parties expressly discuss the terms of their agreement. E. implied warranties are included in a contract.

Q: The ultimate purpose of a contract is the creation of an agreement that courts will order parties to perform or to pay consequences for the failure of performance. When courts uphold the validity of such promises, the resulting agreement is a(n) ______. A. absolute contract B. differentiated contract C. void contract D. relative contract E. enforceable contract

Q: A(n) ______ is one that appears to be an agreement but lacks an essential requirement for validity and enforceability. A. voidable contract B. unenforceable contract C. void contract D. valid contract E. executed contract

Q: A(n) ______ is one when parties have not performed their agreement. A. executed contract B. executory contract C. express contract D. exculpatory contract E. unenforceable contract

Q: Madison promises Grace $10 if Grace collects her dry cleaning for her. This is an example of a(n) ______ contract. A. bilateral B. unilateral C. voidable D. void E. unenforceable

Q: Fred takes Betty to dinner at a very expensive and exclusive restaurant. The menu does not mention the prices. The server takes their order and both Fred and Betty enjoy the meal immensely. When the bill arrives, Fred refuses to pay because the menu had no prices and because he and the server never engaged in language indicating an offer and acceptance. The server said, Are you ready to order? and when Fred said Yes, the server merely asked, What may I get you tonight? In the context of this scenario, which of the following statements is true? A. Fred must pay based on an implied-in-fact contract theory. B. Fred must pay based on a promissory estoppel theory. C. Fred must pay based on an express contract theory. D. Fred is correct because no contract was formed. E. Fred is correct because he and the server entered into an agreement without a written document.

Q: The doctrine of part performance creates an exception to the requirement that sales of interests in land must be in writing.

Q: Contracts are A. legally enforceable promises. B. always required to be written as per the Uniform Commercial Code (UCC) law. C. a form of a circular. D. enforceable in supreme courts but not in lower courts. E. always informal agreements.

Q: Which of the following statements is true about contract laws? A. Their application is confined to formally written documents. B. They must be formal in order to be valid. C. They enable private agreements to be legally enforceable. D. They are applicable to all business dealings that are against public policy too. E. They are invalid in instances that involve implied promises.

Q: In the context of contracts formed by promises, which of the following is an agreement containing mutual promises? A. unilateral contract B. quasi-contract C. express-in-fact contract D. bilateral contract E. implied-in-fact contract

Q: A minor can disaffirm a contract and legally recover any consideration that has been given to an adult, even if the minor cannot return the adults consideration.

Q: A party who makes a unilateral mistake can void the contract.

Q: A party who is injured due to anothers fraud generally has the option to avoid the contract and seek return of any consideration conveyed.

Q: When there is a mutual mistake as to a material fact relating to a contract, rescission is inappropriate.

Q: A collateral promise is a secondary or conditional promise.

Q: Fixman Inc. agrees to renovate Melanies house for $50,000. During the renovation, Fixman demands an additional $10,000 to complete the work, to which Melanie agrees. Fixman can sue Melanie if she fails to pay the additional amount.

Q: Casper offers to sell a car to Amanda for $1,000, to which Amanda agrees. Both the parties sign a contract with all the details of the transaction that will be executed in 1 day. This contract is an example of a firm offer.

Q: Under the Uniform Commercial Code (UCC), all contracts and contract offers must have consideration.

Q: An option offer is open for a certain time period and is supported by the offerees consideration.

Q: Promissory estoppel often is used to prevent a party who has made a unilateral offer from withdrawing the offer after the requested work has begun.

Q: According to the mailbox rule, a deposited acceptance creates a binding contract even if there is a revocation in the mail.

Q: A promise to make a gift is not binding as a contract because no bargained-for consideration supports the promise.

Q: Juan offers to sell his cycle to Charles for $1,000. Charles agrees saying, I will pay you $1,000, if you give me an extra tire with the cycle. This is an example of a binding contract that is created between Juan and Charles as a result of the mirror image rule.

Q: The advantage of the mailbox rule is that the offeror can revoke the offer even when the offeree has accepted it.

Q: Performance made before parties discuss their agreement counts as a valid consideration.

Q: Adhesion contracts are those that are drafted by one party and presented to the other without a substantial opportunity for revision.

Q: Shane wants to sell his car. He accepts Laylas offer and sells the car at $15,000. Layla is the offeree.

Q: Isla mails Taylor offering to sell her house at a reasonable price. Taylor mails his acceptance. Isla and Taylor are bound by a valid contract.

Q: Under the Uniform Commercial Code (UCC), contracts for the sale of real estate can leave open nonquantity terms to be decided at a future time.

Q: The legal power created in the offeree to bind the offeror in a contract lasts forever.

Q: Ana offers Corey her vacuum cleaner for $300. Corey rejects the offer, so Ana promises to sell the vacuum cleaner to Abey. However, a day later, Corey decides to buy the vacuum cleaner and informs Ana of his acceptance. Ana must sell the vacuum cleaner to Corey.

Q: Darcy offers Kate his farm house for $200,000. However, before Kate communicates her acceptance, the farm house is destroyed in a fire. In this situation, Kate can sue Darcy for breach of contract.

Q: The mirror image rule is the same under common law rules and the Uniform Commercial Code (UCC).

Q: If a debtor overpays a creditor by $5,000, the debtor can force the creditor to return that amount by suing under quasi-contract.

Q: A voidable contract is an agreement when at least one party has the right to withdraw from the promise made without incurring any legal liability.

Q: An executed contract is one in which the parties are yet to perform their promises.

Q: Quasi-contracts are usually applied by courts in cases where the contract is unenforceable for some reason, such as a lack of capacity of a party in a contract.

Q: Thomas asks Alicia, an accountant, for professional advice about his portfolio. Thomas is not obligated to pay Alicia since he does not express a promise to pay for her advice.

Q: Contract law enables private agreements to be legally enforceable.

Q: The Uniform Commercial Code (UCC) applies to individuals as well as firms.

Q: A unilateral contract is an agreement containing mutual promises.