1) When Sheila is 16 years old (a minor), she enters into a contract to purchase an automobile costing $20,000 from Brian, a competent adult. Brian, who believes that Sheila is an adult, does not ask for verification of her age, and delivers ownership of the automobile to Sheila after he receives her payment of $20,000. Subsequently, before Sheila reaches the age of 18 (the age of majority), she is involved in an automobile accident caused by her own negligence. The automobile sustains $7,000 worth of damage in the accident (the automobile is now only worth $13,000). If Sheila disaffirms the contract and returns the damaged vehicle to Brian, he has to pay her ________.

Select one:

a.

$20,000

b.

$10,000

c.

$7,000

d. $13,000

2) Yasmeen finds a carpenter to do some repairs for her house and tells him that if he finishes the job within Saturday, she would pay him $1,000. This offer creates a(n) ________ contract.

Select one:

a.executed

b.executory

c.unilateral

d.bilateral

3) Tom makes an offer to Jerry to sell his automobile to him for $10,000. In this case, Tom is the offeree and Jerry is the offeror.

Select one:

True

False

4) Jenen pulls her car into a car wash line. She quietly sees her car getting washed by the employees. She then refuses to pay for the service, stating that there was no contract. If a lawsuit is filed, what would the result be?

Select one:

a.

Jenen wins; there can be no contract as she didn't ask them for their service.

b.

The car wash wins; this is an express, unilateral contract that has been accepted.

c.

Jenen wins; there is no contract because the car wash made no promise to wash her car.

d.

The car wash wins; this is an implied-in-fact contract.

5) Essa is a local businessperson, is a good friend of Ali, the owner of a local candy store. Every day on his lunch hour, Essa goes into Ali's candy store and stays about five minutes. After looking at the candy and talking with Ali, Essa usually buys one or two candy bars. One afternoon, Essa goes into ali's candy shop, looks at the candy, and picks up a 1 KD candy bar. Seeing that Essa is very busy, he waves the candy bar at Essa without saying a word and walks out. Is there a contract? If so, what type of contract:

Select one:

a.no contract

b.bilateral contract

c.express contract

d.implied contract

6) Mohammed is a painter who makes a verbal offer to paint Badria's house for $2,000 by May 1st. Badria verbally promises to pay Mohammed $2,000 for the paint job if he completes it by May 1st. This is an example of a(n) ________.

Select one:

a.void contract

b.voidable contract

c.executed contract

d.bilateral contract

7) If a minor does not disaffirm a contract either during the period of a minority or within a reasonable time after reaching the age of majority, the contract is considered ________.

Select one:

a.void contract.

b.voidable contract.

c.ratified contract.

d.Unconscionable