1. Matching. This section is worth 20 total points. Each correct answer is worth 2 points. Correspond the letters to the best answer. Use each answer once.

1. Valid B. Void C. Voidable D. Executed E. Executory F. Bilateral G. Uniilateral H. Express

9. Implied J. Parole Evidence

____1. A rule that provides that the terms of a final, complete written contract cannot be added to, modified, or contradicted by evidence of oral statements or writings that were make before, or at the same time, the written contract was made.

____2. A Contract is formed by the offerees accepting an offer by making the requested promise.

____3. Contract that has not been fully performed by the parties, but it is not a breach.

____4. Contract that is created by a written or oral agreement.

____5. A contract that has no legal effect and cannot be enforced in a court of law.

____6. But for a missing contract element, the contract would be valid.

____7. A contract is formed by an offerees accepting an offer by actually doing the requested act.

____8. A legally binding agreement between competent parties who give genuine assent and exchange consideration which is reduced to its proper form.

____9. A contract that has been fully performed.

___10. Contract that is created by the conduct of the parties.

2. True or False. Select the best answer. This section is worth 20 points. Each correct answer is worth 2 points.

____1. All contracts should be made in good faith and honesty.

____2. Every agreement is a valid legally binding contract.

____3. A contract modification can be made without new consideration exchanged.

____4. An offer never has to be communicated.

____5. Only an offeree can revoke an offer.

____6. An Auctioneer at an auction is the offeree.

____7. An offer must be intentional, definite and communicated.

____8. A unilateral mistake will allow the mistaken party to rescind the contract.

____9. An Offeree can only accept an offer if the Offeror gives the time and manner.

___10. Forbearance is promising to refrain from doing an act that one is legally entitled to do.

3. Multiple Choice. This section is worth 20 points. Each correct response is worth 2 points. Choose the best answer. Place the letter in the blank space.

1. An offer can be terminated by the offeror any time prior to the offerees acceptance by_____

1. Counteroffer
2. Lapse
3. Death of Disability of either party
4. Revocation

2. Which of these does not require consideration to be a valid agreement_______________?

1. Preexisting Legal Obligation
2. Illusory promise
3. Past consideration
4. Charitable subscription

3. A contract is illegal if its ____________________

1. formation or its performance is a crime or property violation
2. formation or its performance is unconscionable and violates a state statute
3. formation or its performance is a crime, tort,, unconscionable or violates public policy
4. formation or its performance is a tort or nuisance.

4. The Statute of Frauds governs contracts that_________________

1. Exclude evidence of oral statements or writings that were made before, or at the same time, the written contract was made.
2. Show the intention of the parties
3. Require the contract to be in writing to be enforceable in a court of law.
4. Are valid.

5. Which one of these contracts is not contrary to public policy __________

1. An agreement not to compete
2. An illusory promise
3. A usurious agreement
4. An agreement to violate a licensed calling or dealing

6. An offeree can accept an offer in any way the offeree choses unless________________

1. The acceptance is express
2. The mailbox rule applies
3. The acceptance is waived
4. The offeror gives time and manner of acceptance

7. A mutual mistake as to a material matter of fact of law requires the parties to __________ the contract and put the parties ______________________.

1. Waive/in the position they would have been in prior to contracting
2. Reform/in the position they would have been in prior to contracting
3. Rescind/in the position they were in prior to contracting
4. Rescind/in the position they would have been in if the contract had been performed

8. The default for fraud is ___________________

1. Intentional misrepresentation
2. Nondisclosure
3. Undue influence
4. Duress

9. Consideration is__________________

1. An exchange of something of value in exchange for something of value
2. Forbearance
3. A promise for performance
4. All of the above

10. An agreement that charges a rate of interest in excess of the rate permitted by law is___________

1. An agreement not to compete
2. A usurious agreement (Usury)
3. Gambling, wagers, and lotteries
4. An agreement contrary to public policy

4. Short answers. This section is worth 40 points. Each short answer is worth 5 points.

1. Please list the elements of a valid contract

2. Please list the elements of Fraud.

3. If Lisa is 17 and 360 days old and makes a contract with RentACenter, what are the ramifications of her actions?

1. Can Lisa make a valid contract? Why or why not?

2. What happens if she contracts, pays, reaches the age of majority and pays?

3. What happens if she contracts, doesnt pay, reaches the age of majority and doesnt pay?

4. In what scenario would Lisa have to pay a creditor?

5. What type of incapacity defines a minors contractual capacity?

4. What are the three requirements for a valid offer?

5. List the five contracts that must be in writing? (Hint: Statute of Frauds)

6. Aries Inc. took the following actions regarding its employees: (a) Aries agreed to pay Randy a $5,000 bonus for extra services that Randy voluntarily performed the previous year; (b) Aries agreed to pay Fred a $1,00 bonus in exchange for his promise not to breach an existing contract with Aries; and Aries refused to perform a one-year contract with Hill because Areies had contractually agreed to pay Hill $30,000 pursuant to this contract, but his services were only worth $15,000.

1. Is the agreement with Randy legally binding? Explain your answer.
2. Is the agreement with Fred legally binding? Explain your answer.
3. Is Aries entitled to refuse to perform its contract with Hill because the consideration it is receiving is inadequate. Explain your answer.

7. List the six ways that an offer can be terminated.

8. List the eight ways that contracts are discharged by agreement.

Extra Credit. Please list on the cover name sheet above that you have completed the extra credit. Please be honest. What can Professor Lee do to improve this class to make it a more pleasant learning experience for the students? Do not place your name on the extra credit sheet. Please turn in the extra credit at the beginning of the next class.