Question 2

All of the following will terminate an offer EXCEPT:

a.Death of the offeree.

b.Destruction of the subject matter of the offer.

c. Revocation by the offeror.

d. Counteroffer by the offeree.

Question 3

Some contracts are bilateral and others are unilateral.The terms "bilateral" and "unilateral" as applied to contracts are based on:

a.The number of parties in a contract.

b.The number of attempts made to form a contract.

c.The number of promises that are made in connection with a contract.

d.The number of parties who make a promise in the formation of a contract.

Question 4

Minors have choices under contract law.When a minor becomes an adult and wants to honor his/her contract that was made when he/she was a minor, he/she must:

a.Give back the goods or services received as a minor.

b.Disaffirm the contract.

c.Bring a legal action (file a lawsuit) to verify the contract.

d.Ratify the contract.

Question 5

Louisa enters into a contract with HEB Groceries, Inc., in which she promises to purchase groceries "as she determines appropriate in the future" from HEB, and HEB promises to sell such groceries to Louisa. This is an example of:

a.Adequate consideration; a promise for a promise.

b.An option contract.

c.A requirements contract.

d.An illusory promise by Lisa.

8. Question 8

Sara lost her pet dog, Spot, when thunder and lightning spooked him and he ran away from her in the park.She offers a reward for the return of Spot. Fred finds Spot and returns, looks at the ID tag on Spot's collar, which included Sara's address.Fred returns Spot to Sara. Which of the following is relevant in deciding whether Sara is legally obligated to pay the reward to Fred?

A.Whether Fred knew about the reward when he returned Spot to Sara.

B.Whether Fred intended to get the reward.

C.Whether Fred is a minor.

D.Whether the offer for the reward was in writing

9. Question 9

In the study of law, we frequently focus on basic building blocks, or elements, of something.To createan enforceable contract, which of the following elements or building blocks are needed?

A.Agreement and consideration.

B.Agreement.

C.Agreement, consideration, contractual capacity, and a lawful objective.

D.Agreement, consideration, and contractual capacity

Question 11

Julie buys an auto from John when she is 17. When she turns 21, Julie decides that she does not want the automobile. The age of majority in Julie's state is 18. Can Julie disaffirm this contract?

A.Yes; all contracts made while a minor may be disaffirmed.

B.Yes; Julie has a "reasonable time" after reaching majority to disaffirm this contract, and she acted within a "reasonable time."

C.No; Julie had a "reasonable time" within which to disaffirm the contract, but a "reasonable time" has passed.

D.No; to disaffirm the contract, Julie must have acted before she turned 18. Now it is too late.

Question 15

Sometimes we look to fairness concepts, or equitable doctrines, in the world of contracts, even if no contract actually exists.Which of the following is an equitable doctrine designed to prevent unjust enrichment and unjust detriment where no contract exists?

a. An express contract.

b. Implied-in-law contract.

c. The doctrine of formal contracts.

d. Quantum meruit.

16. A covenant not to compete is enforceable if it is reasonable in each of the following aspects EXCEPT:

a. Geographic area of the restriction.

b. Scope (i.e., activities affected) of the restriction.

c. Length of time the restriction is in effect.

d. Amount paid to the one who gives up the right to compete.

Question 19

In this scenario, Wanda is having lunch with Ruthie and says to her, "I will sell you my car for $10,000. You have until Friday to decide." As of Wednesday, Ruthie has paid nothing to Wanda and has not indicated if she is interested in buying the car. At this point, which is true?

a.Wanda can revoke the offer on Wednesday.

b.Ruthie could send $250 to Wanda, which would make the offer irrevocable.

c.Wanda cannot revoke the offer on Wednesday.

d.Ruthie must reject Wanda's offer by Friday, or else she has bought the car.

Question 20

Not all offers are valid.There are certain requirements that must be met for an offer to be valid.These requirements include all of the following to be met except:

a.There is an objective intent by the offeror to enter into a contract.

b.The offer must be communicated to the offeree.

c.The offer must be in writing and signed by the offeror.

d.The offer must be certain enough that most people can figure out what is being offered.

Question 21

On a valid delegation, if the delegatee fails to perfom

a.the delegator is off the hook!

b.the delegator remains legally liable under the terms of the contract!

c.the delagatee is not legally liable for messing up!

d.the delegator remains legally liable and the delegatee is most likely legally liable, too!

Question 22

In an ordinary contract assignment, the assignee:

a.acquires the rights of the assignor, but nothing more

b.is released from liability

c.assumes the assignor's duty by operation of law

d.assumes no liability pursuant to the UCC

Question 24

Freddy is ready to move and offered to sell his house to Bill. Before Bill could accept, one of the parties was killed in a car accident. The remaining party wishes to go through with the contract. Which of the following best describes this situation?

A.If Freddy died, Bill can still accept the offer; Freddy's estate will be liable for the contract.

B.If Bill died, Bill's heirs can still accept the offer.

C.The death of either party terminated the offer.

D.If Freddy died, the offer is terminated; if Bill died, Bill's heirs can still accept the offer.

Question 26

In a conversation with you, I say, "If you pick up my new suit for me at the mall tomorrow, I'll pay you $20." You reply, "I don't know if I'll have time to get it, but I'll see if I get a chance." As a result of this conversation:

A.You and I have formed a bilateral contract.

B.A contract will be formed only if you pick up the suit.

C.You have a legal obligation to use your best efforts to pick up the suit.

D.The contract we formed is voidable because you did not obligate yourself.

Question 27

Undue influence is characterized by one party being put at a disadvantage in a contract due to:

A.A party taking advantage of it being less urgent for that party to reach an agreement.

B.A party taking advantage of a fiduciary relationship.

C.A party taking advantage of superior knowledge about the subject matter in a contract.

D.A party taking advantage of the other party's legal circumstances.

Question 31

Which of the following best describes duress?

A.A situation where a trust relationship has been violated in forming a contract.

B.A situation where, after the contract was negotiated, circumstances have changed so that one of the parties is in a desperate circumstance and cannot reasonably perform.

C.A situation where a party has improperly given the other party no alternative but to enter into a contract.

D.A situation where one party has lied to the other to lead them to enter into a contract.

Question 33

Sally enters into a written contract with Roberta. Under the terms of the contract, Roberta promises to sell and Sally promises to buy a specific piece of land for $7,000. There is adequate consideration, the contract is legal, and both parties have contractual capacity. The contract is fully performed by both parties on January 1. Which of the following best describes this contract as of January 2?

A.Bilateral, express, executed, valid.

B.Unilateral, express, executory, valid.

C.Unilateral, implied, executory, valid.

D.Unilateral, express, executed, valid.

Question 34

What are liquidated damages in connection with a contract?

a.damages that are used to punish the nonbreaching party

b.damages that are set at a fixed amount in advance in the contract

c.damages that are used when there are no actual damages

d.damages that require apporval in advance from the court

Question 40

When one party intentionally makes a false statement of fact with the intent to deceive the other party to enter into an agreement, that other party would have a claim based on:

A.Undue influence.

B.Duress.

C.Fraud

D.Mistake

Question 41

Every large city has a poor area.Lucero owns a house in on such area in Chicago. A salesman visits his home, selling storm windows. Lucero buys and signs a contract, which calls for a price of $25,000 to be paid in monthly installments of $500 for 20 years. Lucero only earns $1,000 per month. In addition, his home is only worth about $40,000. The windows are worth no more than $8,500. Lucero speaks and reads very little English and he truly believed he was signing a receipt for a free gift. Which of the following best describes this contract?

A.The contract is unenforceable because it is illusory.

B.The contract is unenforceable because it is exculpatory.

C.The contract is fully enforceable as written.

D.The contract is unenforceable because it is unconscionable.

Question 19

In this scenario,Wanda is having lunch with Ruthie andsays to her, "I will sell you my car for $10,000. You have until Friday to decide." As of Wednesday, Ruthie has paid nothing to Wanda and has not indicated if she is interested in buying the car. At this point, which is true?

A.Wanda can revoke the offer on Wednesday.

B.Ruthie could send $250 to Wanda, which would make the offer irrevocable.

C.Wanda cannot revoke the offer on Wednesday.

D.Ruthie must reject Wanda's offer by Friday, or else she has bought the car.

Question 20

Not all offers are valid.There are certain requirements that must be met for an offer to be valid.These requirements include all of the following to be metexcept:

A.There is an objective intent by the offeror to enter into a contract.

B.The offer must be communicated to the offeree.

C.The offer must be in writing and signed by the offeror.

D.The offer must be certain enough that most people can figure out what is being offered.

Question 21

On a valid delegation, if the delegatee fails to perfom

a.

the delegator is off the hook!

b.

the delegator remains legally liable under the terms of the contract!

c.

the delagatee is not legally liable for messing up!

d.

the delegator remains legally liable and the delegatee is most likely legally liable, too!

HELP

Question 22

In an ordinary contract assignment, the assignee:

a.

acquires the rights of the assignor, but nothing more

b.

is released from liability

c.

assumes the assignor's duty by operation of law

d.

assumes no liability pursuant to the UCC

Question 24

Freddy is ready to move andoffered to sell his house to Bill. Before Bill could accept, one of the parties was killed in a car accident. The remaining party wishes to go through with the contract. Which of the following best describes this situation?

A.If Freddy died, Bill can still accept the offer; Freddy's estate will be liable for the contract.

B.If Bill died, Bill's heirs can still accept the offer.

C.The death of either party terminated the offer.

D.If Freddy died, the offer is terminated; if Bill died, Bill's heirs can still accept the offer.

Question 26

In a conversation with you,I say, "If you pick up my new suit for me at the mall tomorrow, I'll pay you $20."Youreply, "I don't know if I'll have time to get it, but I'll see if I get a chance." As a result of this conversation:

A.You and Ihave formed a bilateral contract.

B.A contract will be formed only if you pick up the suit.

C.You havea legal obligation to use your best efforts to pick up the suit.

D.The contract we formed is voidable because you did not obligate yourself.

Question 27

Undue influence is characterized by one party being put at a disadvantage in a contract due to:

A.A party taking advantage of it being less urgent for that party to reach an agreement.

B.A party taking advantage of a fiduciary relationship.

C.A party taking advantage of superior knowledge about the subject matter in a contract.

D.A party taking advantage of the other party's legal circumstances.

Question 31

Which of the following best describes duress?

A.A situation where a trust relationship has been violated in forming a contract.

B.A situation where, after the contract was negotiated, circumstances have changed so that one of the parties is in a desperate circumstance and cannot reasonably perform.

C.A situation where a party has improperly given the other party no alternative but to enter into a contract.

D.A situation where one party has lied to the other to lead them to enter into a contract.

Question 33

Sally enters into a written contract with Roberta.Under the terms of thecontract,Robertapromisesto sell and Sally promises to buy a specific piece ofland for $7,000. There is adequate consideration, the contract is legal, and both parties have contractual capacity. The contract is fully performed by both parties on January 1. Which of the following best describes this contract as of January 2?

A. Bilateral, express, executed, valid.

B. Unilateral, express, executory, valid.

C. Unilateral, implied, executory, valid.

D.Unilateral, express, executed, valid.

Question 34

What are liquidated damages in connection with a contract?

a.

damages that are used to punish the nonbreaching party

b.

damages that are set at a fixed amount in advance in the contract

c.

damages that are used when there are no actual damages

d.

damages that require apporval in advance from the court

Question 40

When one party intentionally makes a false statement of fact with the intent to deceive theother party to enter into an agreement,that other party would have a claim based on:

A.Undue influence.

B.Duress.

C.Fraud

D.Mistake

Question 41

Every large city has a poor area.Luceroowns a house in on such area in Chicago.A salesman visits his home, selling storm windows.Lucero buys and signs a contract, which calls for a price of $25,000 to be paid in monthly installments of $500 for 20 years.Lucero only earns $1,000per month. In addition,his home is only worth about $40,000. The windows are worth no more than $8,500.Lucero speaks and reads very little English and he truly believedhe was signing a receipt for a free gift. Which of the following best describes this contract?

A. The contract is unenforceable because it is illusory.

B. The contract is unenforceable because it is exculpatory.

C. The contract is fully enforceable as written.

D.The contract is unenforceable because it is unconscionable.

Question 42

If someone is attempting tosay there isn't a contract because he/she wasintoxicated, the level of intoxication must have been:

A.At least as high as that of the other party.

B.Only high enough that he was able to notice it.

C.So great that he didn't comprehend the nature of the agreement he was entering into.

D.At or above the legal limit.

Question 43

When in general, are equitable remediesavailable to a plaintiff?

a.

they are usually the first remedy that a court will try to apply to the case

b.

they are required to be used along with any monetary remedy

c.

they are only used when a breach of contract case has been appealed to a higher court

d.

they are used when the monetary remedy does not adequately compensate the nonbreaching party

REMEDY

Question 45

What does themailbox rule mean?

A.Offers and acceptances are effective when placed in the mail.

B.A revocation is effective when sent.

C.Offers and acceptances must be communicated through the mail in order to be effective.

D.A properly dispatched acceptance is effective even if the offeror never receives it.

Question 48

When a court orders specific performance as a remedy, it is odering that:

a.

monetary damages (money) are to be paid by the breaching party to the nonbreaching party

b.

the contract terms be modified in order to maximize the fairness to both parties

c.

a party to a contract needs to do exactly what was called for in the contract

d.

a party needs to return any and all consideration already received

Question 49

You are serious about your new found love of running.So,yougo to the Stellar Runners Supply Store in Houston. The salesperson shows you some shoes and says, "In a race, these shoes pick up the stellar energy from the runners around you and channel it into your own legs. This causes everyone with these shoes to run twice as fast as in normal shoes." In your next race, you do only slightly better than usual and sue for fraud.

A. Proving only that the salesperson intended to deceive you is enough to win your fraud case.

B. You would lose because the statement did not contain a factual assertion.

C. You would win if most runners do not go twice as fast in the stellar shoes.

D.You would lose because your reliance was not justified.