Question 1

Which one of the following is not a requirement for all contracts?

written document

contractual capacity

agreement

consideration

Question 2

Under the ____________ theory of contracts, a party's intention to enter into a contract is judged by outward, objective facts.

subjective

bilateral

objective

unilateral

Question 3

On June 1, Garden Supply and Plant Company agree during a phone call that Garden Supply will pick up from Plant Company a shipment of plants. Under the agreement, Garden Supply will pay for the plants by June 30. Today is June 10, and Garden Supply has picked up the plants, but not yet paid for the them. This contract is:

bilateral, informal, and implied

unilateral, formal, and implied

unilateral, formal, and express

bilateral, informal, and express

Question 4

Amazing Airlines offers its customers a "buy three roundtrip tickets within one year and get one rountrip ticket free." Customer Joe purchases three roundtrip tickets within one year. As a result:

a bilateral contract is created

the doctrine of quasi-contract applies

a unilateral contract is created

no contract is created

Question 5

Sam tells John, "If you promise to walk my dog every morning during the month of June, I will pay you $300." John tells Sam, "We have a deal." John walks Sam's dog every morning in June. On June 30, Sam pays John $300. At what point did the contract come into existence?

when John told Sam they had a deal

there is no contract

June 15

On June 30

Question 6

A contract that has been fully performed on both sides is called __________________________.

a subjective

an objective

an executed contract

an executory contract

Question 7

Which one of the following is not always a requirement of an offer?

offeror must have a serious intention to be bound by the offer

terms of the offer must be reasonably certain

offer must be communicated to the offeree

in writing

Question 8

The party to whom the offer is made is called the __________________________.

offeree

judge

mailbox rule

offeror

Question 9

True or False?

Advertisements are always treated as offers to contract.

True

False

Question 10

The offeror's act of withdrawing an offer is called ___________________________.

revocation

rejection

destruction

counteroffer

Question 11

The _______________ may reject an offer, which terminates the offer.

mirror image rule

offeror

offeree

judge

Question 12

A ____________________ is a rejection of the original offer and the simultaneous making of a new offer.

rejection

counteroffer

revocation

destruction of subject matter

Question 13

True or False?

An offer is automatically terminated if the specific subject matter of the offer is destroyed before the offer is accepted.

False

True

Question 14

A __________________________ that makes an offer illegal automatically terminates the offer.

statute or court decision

death

mailbox rule

objective theory of contracts

Question 15

The requirement that the offeree must accept an offer unequivocally without changing the terms of the offer is called:

the mirror image rule

the objective theory of contracts

an option contract

the mailbox rule

Question 16

If the authorized mode of communication is the mail, then an acceptance becomes valid when it is dispatched (placed in the control of the U.S. Postal Service). This is called:

the mirror image rule

the objective theory of contracts

the supervening illegality rule

the mailbox rule

Question 17

The elements of consideration are:

capacity and legal purpose

counteroffer and acceptance

something of legally sufficient value and a bargained-for exchange

offer and acceptance

Question 18

The refraining from an action that one has a legal right to undertake is called:

an option contract

a duty

a forbearance

the offeror

Question 19

Is the promise below legally enforceable?

A mother says to her son, "In consideration of the fact that you are not as wealthy as your brothers, I will pay you $5,000."

No

Yes

Question 20

Alex's father is in the hospital. As a surprise, Alex builds a tool shed for his father. When Alex's father gets home from the hospital, he tells Alex, "I'm so happy with the tool shed. In consideration of your hard work, I promise to pay you $300 next month." Is Alex's father's promise legally enforceable?

No, because it is illusory.

No, because is is based on something that happened in the past.

No, because it is not in writing.

Yes.

Question 21

Virus Recovery Company promises its employees a 10 percent raise at the end of the year if management feels like rewarding the employees. Is this promise legally enforceable?

Yes.

No, because it is not in writing.

No, because Virus Recovery Company has a legal duty to give its employees a 10 percent raise.

No, because it is an illusory promise.

Question 22

Todd, a police officer, agrees to patrol Sue's neighborhood while on duty as a police officer, for $100 a week to be paid by Sue. Todd is a police officer in the city where Sue lives. Does this agreement create a legally enforceable contract?

No, because Todd has a preexisting duty to patrol neighborhoods while on duty as a police officer.

Not unless Sue agrees to pay Todd at least $500 a week.

Yes.

No, because the agreement is illusory.

Question 23

In ________________________________, a debtor offers to pay, and a creditor accepts, a lesser amount than the creditor originally claimed was owed.

a release

an accord and satisfaction

a liquidated debt

a covenant not to sue

Question 24

True or False?

Under the doctrine of promissory estoppel, a promise not supported by consideration may be enforceable if the requirements for promissory estoppel are met.

False

True

Question 25

The legal avoidance, or setting aside, of a contractual obligation is referred to as:

ratification

a lawsuit

acceptance

dissaffirmance