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78 terms

CH 10/11

Expert pavers, inc., contracts with fabricated building corporation to repave fabricated parking lot for which fabricated agrees to pay. the elements of this, and any other, contract do not include
a. capacity
b. consideration
c. legality
d. practicality
cathy assures don that she will deliver his products as he directs. an assurance that one will do something in the future is part of the definition of
a. a declaration
b. a moral obligation
c. an ethical principle
d. a promise
bob claims that carol breached their contract. carol responds that she never intended to enter into a contract with bob. the intent to enter into a contract is determined with reference to
a. the conscious theory of contracts
b. the objective theory of contracts
c. the personal theory of contracts
d. the subjective theory of contracts
dalton contracts to tutor ellen in the principles of business law. for the breach of a contractual promise, contract law entitles innocent parties to
a. any relief that a court wants to provide
b. any relief that a defendant wants to concede
c. any relief that a plaintiff wants to seek
d. some forms of relief
laura and mike enter into what laura later claims is a contract. in deciding whether a valid contract was formed, a court will not look at
a. the circumstances surrounding the alleged contract
b. the parties' conduct at the time of the alleged contract
c. the parties' statements at the time of the alleged contract
d. the parties' subjective beliefs at the time of the alleged contract
mona asserts that a deal she entered into with nate is an unenforceable contract. defenses to the enforcement of a contract include
a. desire not to perform
b. adverse economic consequences
c. results that do not match expectations
d. the lack of a party's genuine assent
paco offers to pay quik delivery (QD) $50 if it picks up and delivers to him a package from rick within 30 minutes. QD can accept the offer only by meeting the deadline. If QD performs as directed, thse parties will have
a. a bilateral contract
b. a trilateral contract
c. a unilateral contract
d. no contract
On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. Under the modern-day view, these parties had
a. an expired contract when Neil said that he had changed his mind.
b. a quasi contract when Neil said that he would pay for certain work.
c. a unilateral contract as soon as Outdoor began to perform.
d. no contract.
Freida and Gail enter into a bilateral contract, which is created when Freida gives a promise in exchange for Gail's
a. payment of money only.
b. performance of a par¬ticular act only.
c. promise only.
d. prudent awareness only.
Jack promises to buy Kris's computer for $400. Jack is
a. an executor.
b. an offeree.
c. a promisee.
d. a promisor.
Clay offers to pay Dot $50 for a golf lesson for Eula. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have
a. a bilateral contract.
b. a trilateral contract.
c. a unilateral contract.
d. no contract.
Jill promises to buy Kent's handheld game-player for $75. Kent is
a. an executee.
b. an offeror.
c. a promisee.
d. a promisor.
Lara applies for a firefighter's job with Metro City, which responds with a letter setting an appointment for a medical exam. The letter also states that it is "a conditional employment offer." Based on the court's reason¬ing in Case 10.1, Ardito v. City of Providence, this letter is
a. a bilateral contract that Lara accepted by applying for the job.
b. a quasi contract on which Lara can rely for employment.
c. a unilateral contract that Lara can accept by passing the exam.
d. no contract.
A contract between Gamma Software Company and Omega Designs, Inc., ends with the initials "L.S." These initials
a. emphasize that the parties must sign with "legal signatures."
b. remind the parties that they must have "legal status" to contract.
c. stand for "locus sigilli" and substitute for a seal.
d. underscore that the parties' deal must have "lawful significance."
Opie offers to sell his guitar to Pinky for $100. Pinky agrees. They complete and sign a printed form that includes, near the blanks for their signatures, the word "seal." This is
a. a formal contract.
b. an informal contract.
c. a social contract.
d. no contract
Tom enters a coffee shop in which he has an open account, fills a cup of coffee, holds it so the cashier can see it, acknowledges the cashier's nod, and walks out with the coffee, knowing that he will be billed for it at the end of the month. Tom has formed
a. an express contract.
b. an implied-in-fact contract.
c. an implied-in-law contract.
d. a quasi contract.
Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have
a. an executed contract.
b. an express contract.
c. an implied-in-fact contract.
d. a quasi contract.
Bay Construction, Inc., a contractor, asks Cool Electric, a subcontractor, to provide certain services. Nothing is expressed about payment. Cool provides the services, but Bay refuses to pay. In Cool's suit to recover, the chief issue is most likely to be whether these parties had
a. a formal contract.
b. an actual contract.
c. an implied-in-fact contract.
d. a voidable contract.
Great Marketing Company and Hot Tunes, Inc., sign a document that states Great agrees to create a marketing campaign for Hot and Hot agrees to pay Great for the service. Great and Hot have
a. an executed contract.
b. an express contract.
c. an implied-in-fact contract.
d. a quasi contract.
Macro Corporation and Micro, Inc., enter into an agreement. To consti¬tute a contract
a. all terms must be express.
b. all terms must be implied.
c. the terms may be express, implied, or a mix of both.
d. the terms may be express or implied, but not both.
When Jeff's car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Loyal Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff's obligation to pay the bill, this is
a. an express contract.
b. an implied-in-fact contract.
c. an implied-in-law contract.
d. no contract.
Lou claims that he and Mira entered into an implied-in-fact contract. To establish this contract, it is not necessary to show that
a. a court imposed a promise in the interest of fairness.
b. Lou expected to be paid for providing services or prop¬erty.
c. Lou provided Mira with services or property.
d. Mira failed to reject services or property provided by Lou.
Sam and Tiffany enter into an implied-in-fact contract. This is a contract in which the parties' conduct
a. defines the contract's terms.
b. finds the contract's facts.
c. terminates any unintended consequences.
d. undercuts any terms based on the facts.
Cole drives into Dino's Service Station and asks Erin, the attendant, to fill the tank in Cole's sport utility vehicle. After Erin fills the tank, but before Cole pays for the gas, any contract between Cole and Dino's is
a. executed.
b. executory.
c. quasi.
d. unenforceable.
Delia promises to buy a house from Edwin, who promises to vacate the prop¬erty on July 1. If these promises are in writing, they are most likely
a. enforceable.
b. unenforceable.
c. void.
d. voidable.
Beth claims that her contract with Carl is voidable. If the contract is avoided
a. both parties are released from it.
b. neither party is released from it.
c. only Beth is released from it.
d. only Carl is released from it.
Avatar, Inc., and Bling Corporation sign a contract in which Avatar agrees to deliver t-shirts emblazoned with video game characters in exchange for Bling's prom¬ise to pay. Avatar delivers. The contract is
a. voidable.
b. executed.
c. executive.
d. executory.
Employment Sources, Inc., enters into a .contract with Fred. If Fred is a minor, this contract is most likely
a. enforceable.
b. unenforceable.
c. void.
d. voidable.
Mia, a physician, renders aid to Noel, who is injured and unconscious. Mia can recover the cost of the aid from Noel
a. even if Noel was not aware of the aid.
b. only if Noel recovers because of the aid.
c. only if Noel was aware of the aid.
d. under no circumstances.
Curt promises to buy illegal copies of CDs and DVDs from Donna, who promises to deliver on May 1. These promises are most likely
a. enforceable.
b. valid.
c. void.
d. voidable.
Pete, a judge, can apply the doctrine of quasi contract to a dispute be-tween Quality Service Company and Regulated Office Systems
a. only if there is a valid contract covering the area in question.
b. only if there is not a valid contract covering the area in question.
c. whether or not there is a valid contract covering the area in question.
d. under no circumstances.
Dot, a real estate agent, tells Ed, a home seller, that her commission is 12 percent. Ed agrees that Dot can sell his house but refuses to sign a contract unless the amount of the commission is reduced. After the house is sold, Ed refuses to pay 12 percent. Dot is most likely to recover
a. nothing.
b. on a theory of an express contract.
c. on a theory of an implied-in-fact contract.
d. on a theory of a quasi contract.
Phil enters into a contract with Quality Resorts, Inc., to work as a chef. Under the plain meaning rule, the meaning of this contract must be de-ter¬mined by reference to
a. any available evidence.
b. any relevant extrinsic evidence.
c. the face of the instrument.
d. the later testimony of the parties.
Ada mistakenly pays property taxes that should have been assessed against Bud. Ada can recover the amount from Bud in quantum meriut
a. even if Bud was not aware of the error.
b. only if Bud tried to conceal the error.
c. only if Bud was aware of the error.
d. under no circumstances.
Eve and Frank enter an express contract for the construction of a warehouse. Express contract terms are given
a. less priority than the parties' prior dealing.
b. less priority than the trade usage in that particular industry.
c. less priority than the parties' course of performance.
d. more priority than the prior dealing, course of performance, and trade usage.
Cory enters into a contract with Diane to act as her personal sports trainer. If they later dispute the meaning, and the contract contains un-clear terms, the rules of contract interpretation will give effect to
a. the parties' intent as expressed in their contract.
b. what the defendant claims was the parties' intent.
c. what the plaintiff claims was the parties' intent.
d. what the parties now agree they intended.
National Grocers, Inc., enters into a contract with Overland Shipping Company for the de¬livery of a shipment of fresh produce. If ambiguities appear in the con¬tract, they will be construed against
a. the party who drafted the contract.
b. the party with the greater bargaining power.
c. the promisor.
d. the promisee.
Adams Accounting Services and Best Products, Inc., enter into a con¬tract. Terms in the contract that are the subject of separate negotiation are considered subordinate to
a. standardized terms.
b. terms that can be understood only by lawyers and judges.
c. terms that are not negotiated separately.
d. =one of the choices.
An officer of International Sales Corporation makes overtures to a repre-sentative of Global Distribution, Inc., regarding a business deal. Under the objective theory of contracts, the officer's words and conduct are held to mean whatever
a. the officer subjectively intended them to mean.
b. a reasonable person in the officer's position would think they meant.
c. a reasonable person in the representative's position would think they meant.
d. the representative subjectively thought they meant.
May tries to start her new car with no success. She yells that she will sell the car to anyone for $10. Nick, a passerby who owns Nick's Pre-owned Autos, hands May $10. This is
a. a valid acceptance because May is seriously frustrated.
b. a valid acceptance because Nick is a car dealer.
c. not a valid acceptance because May does not seriously intend to sell.
d. not a valid acceptance because Nick is a car dealer.
Local Delivery Service, Inc., offers to deliver computers to Micro Store's customers for a certain price. Local's intent to extend a serious offer to Micro is determined by reference to Local's
a. assumptions.
b. beliefs.
c. intentions.
d. words and conduct.
Alan, a representative of Beta Services, Inc., makes an offer to Carol, the owner of Delta Products, Inc. The offer is effective even if
a. Alan does not communicate it to Carol.
b. Alan secretly does not intend to be bound by the offer.
c. Carol is not capable of accepting the offer.
d. the terms of the offer are not reasonably definite.
Dona and Eden sign a lease that includes a clause permitting Dona to ex¬tend the lease at an amount of rent to be agreed on at the time of the ex¬ten¬sion. The clause is
a. enforceable, because it is part of a lease.
b. enforceable, if the parties intend the clause to be binding.
c. not enforceable, because it does not include a price term.
d. not enforceable, because it is not in the right form.
Jill tells Ken, who has no knowledge of literary comedy, that she will tutor him in the subject for $50. As an offer, this is
a. effective.
b. not effective, because comedy is not a serious subject.
c. not effective, because Jill's tutoring will be subjective.
d. not effective, because Ken has no knowledge of the subject.
Nate tells Opal, "I might sell the skis that I bought last fall since I haven't used them and the skiing season is almost over." This is
a. an acceptance of an offer.
b. an invitation to accept an offer.
c. an offer.
d. a statement of future intent.
Beth goes to Dr. Carl for surgery. Carl says that Beth should be fully healed within a week. Beth is not healed within a week. With respect to breach of contract, Carl is
a. liable.
b. not liable, because surgery is not a proper sub¬ject for a contract.
c. not liable, because the statement was an opinion.
d. not liable, but Beth is excused from paying Carl.
Royal Properties, Inc., mails a flyer to hundreds of firms, advertising a building for sale. Standard Manufacturing Company responds by saying, "We accept your offer." Between Royal and Standard, there is
a. a contract for the sale of the building.
b. a contract to consider the offer before any others.
c. a contract to negotiate a sale of the building.
d. no contract.
John says to Kris, "I would like to sell you my sports memorabilia collec¬tion." This is not an offer because it
a. does not describe the subject matter specifically.
b. does not include a price term.
c. only expresses an opinion.
d. only invites Kris to negotiate.
Eve tells Frank that she would like to buy his Great Goodies store. Frank declines, but later decides to sell and sends to Eve, and others, a flyer describing the de¬tails. Eve responds with a letter of "acceptance." Eve and Frank have
a. a contract.
b. no contract, because Frank sent the letter to more than one party.
c. no contract, because Frank was only inviting bids.
d. no contract, because the letter was an invitation to negotiate.
Consumer Sales, Inc. (CSI), sends its catalogue to Dean and includes a "person¬alized" letter inviting him to buy any item in the catalogue at the advertised price. This is
a. an offer because of the "person¬alized" letter.
b. an offer because there is no room for price negotiation.
c. an offer only if Dean previously bought items from CSI.
d. not an offer.
Elin decides to try to sell her collection of celebrity memorabilia in an auction "with reserve." If Elin changes her mind, she can withdraw her collection
a. only before the auctioneer announces that the items are sold.
b. only before the auctioneer delivers the items to the buyers.
c. under no circumstances.
d. within thirty days after the auction.
Craig decides to sell his Double-D Ranch in an auction "without reserve." If Craig changes his mind at the auction, he can withdraw his property
a. only before the auctioneer announces that the ranch is sold.
b. only before the auctioneer delivers the deed to the buyer.
c. under no circumstances.
d. within thirty days after the auction.
Yvon asks Zack, "Do you want to buy one of my fishing rods?" This is
a. a valid offer.
b. not a valid offer because the terms are not definite.
c. not a valid offer because Yvon did not state an intent.
d. not a valid offer because Zack did not respond.
Brick Products, Inc., files a suit against City Trucking Service for breach of contract, based on what Brick claims was City's offer. For a court to de¬termine if a contract has been breached, under the common law, the offer must include terms that are
a. exactly precise.
b. reasonably definite.
c. unequivocally approximate.
d. vague or uncertain.
Bob offers to sell Carol his computer but conditions the sale on Carol ac¬cepting the offer by May 1. Bob may revoke the offer
a. before Carol accepts the offer.
b. before May 1, whether or not Carol has accepted the offer.
c. only after Carol accepts the offer.
d. only after May 1.
Geof owns two cars. He offers to sell the Honda for $20,000 to Ilsa, who says, "I'll pay no more than $15,000." Geof offers to sell the Jeep for $20,000 to Kiki, but before Kiki responds, Geof says, "Forget it. I changed my mind." Geof's offer was terminated by
a. Geof and Ilsa.
b. Geof only.
c. Ilsa only.
d. neither Geof nor Ilsa.
Elmo advertises a reward for the return of his lost dog. Floyd, who does not know of the reward, finds and returns the dog. Floyd cannot recover the re¬ward because he
a. did not confer a benefit on Elmo by returning the dog.
b. did not know of the reward when he found and returned the dog.
c. does not need the money.
d. returned the dog.
Quick Transport, Inc., offers to sell a truckload of palettes to Rapid Delivery Company. Before accepting the offer, Rapid learns that the palettes have been sold to Speedy Trucking Corporation. Quick is
a. liable to Rapid for breach of contract.
b. liable to Speedy for breach of contract.
c. not liable, because the sale revoked the offer to Rapid.
d. not liable, if Quick offers substitute goods to Rapid.
Quality Vehicles, Inc., offers to sell a truck to Regional Delivery Company. Before accepting the offer, Regional learns that the truck has been sold to State Trucking, Inc. Quality is
a. liable to Regional for breach of contract.
b. liable to State for breach of contract.
c. not liable, because the sale revoked the offer to Regional.
d. not liable, if Quality offers a substitute truck to Regional.
Corner Convenience Store (CCS) takes out a full-page ad in a local newspaper and runs a thirty-second commercial on a local television station, offering a reward for information lead¬ing to the apprehension of a certain criminal. CCS could normally terminate the offer by placing
a. a full-page ad in the paper and a thirty-second commercial on the local station.
b. a notice in the "Legal Announcements" section of the paper.
c. a notice to the news department of the local stations.
d. any of the choices.
State Trucking Company mails to Transport Delivery, Inc., an offer to sell a delivery truck and to hold the offer open for five days. The five-day period begins to run when the offer is
a. in transit.
b. received.
c. sent.
d. written.
Business Properties, Inc. (BPI), offers to sell a warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This
a. creates an illegal contract by adding a clause to BPI's offer.
b. makes the offer irrevocable for three days if BPI accepts.
c. negates BPI's offer by changing the price term.
d. voids BPI's offer by extending the time term.
Interstate Coffee Brokers, Inc. (ICBI), offers to sell Java Roasters, Inc., fifty bags of coffee beans. Java rejects the offer. The offer is
a. terminated.
b. valid for a reasonable time to give Java a "second chance."
c. valid for the period of time prescribed by a state statute.
d. valid until ICBI revokes the offer.
Kit offers to sell her boat to Liu. Liu accepts and, unknown to Kit, builds a dock for the boat. Kit's later attempt to revoke the offer will be
a. effective because Kit did not build the dock.
b. effective because Kit did not know that Liu would build a dock.
c. ineffective because Liu justifiably relied on Kit's offer.
d. ineffective because Liu showed a serious intent to close the deal.
Optimal Sales Corporation plans to move to a new office. Optimal offers to sell its office furniture to Plentiful Marketing, Inc., but does not specify a time for Plentiful to respond. The offer expires
a. after a reasonable period of time.
b. after thirty days.
c. after thirty minutes.
d. never.
Callie owns two trucks. She offers to sell the Dodge for $20,000 to Evan, who accepts. She offers to sell the Ford for $20,000 to Gwen, who says, "Too much." Callie's offer was terminated by
a. Evan and Gwen.
b. Evan only.
c. Gwen only.
d. neither Evan nor Gwen.
Bill offers to sell his Consumer Service Center business to Dina for $100,000. Dina replies, "The price is too high. I will buy it for $90,000." Dina has
a. accepted the offer.
b. made a counteroffer without rejecting the offer.
c. rejected the offer and made a counteroffer.
d. rejected the offer without making a counteroffer.
New Cell Phone Company offers to buy a laser printer, with a case of paper and an extra car¬tridge, from Office Products, Inc. (OPI), for $200. Paul, OPI's representative, says, "Okay, but no paper and no extra car-tridge." Paul has
a. accepted the offer.
b. made a counteroffer without rejecting the offer.
c. rejected the offer and made a counteroffer.
d. rejected the offer without making a counteroffer.
Kim sends an offer to Leo to cut down and remove a tree for $400. Kim says, "If you say nothing, I will consider you to have accepted my offer." If Leo does not respond, he will be deemed to
a. accept the offer.
b. make a counteroffer.
c. reject the offer.
d. none of the choices.
Eagle Warehouse offers to sell a forklift to Forest Lumber Company, but it is stolen before Forest ac¬cepts. Eagle must obtain
a. a forklift for Forest, if Eagle's insurance covers the loss.
b. a forklift for Forest, if it wants one.
c. nothing for Forest, because that would extend the time of the offer.
d. nothing for Forest, because the theft termi¬nated the offer.
Quik Fix-It, Inc., offers Pam a job as a plumber. No time for acceptance is specified in the offer. The offer will terminate
a. after a reasonable period of time.
b. after a typical work week (five business days).
c. after a usual month (thirty calendar days).
d. never.
First State Bank offers to lend money to Todd at 15 percent interest. Before Todd accepts, a statute is enacted prohibiting loans at interest rates greater than 12 percent. Todd and the bank have
a. have a contract for a loan at 15 percent interest.
b. have a contract for a loan at 12 percent interest.
c. have a contract for a loan at 0 percent interest.
d. no contract for a loan.
Tomato Farms (TF) offers to sell Unified Grocers, Inc., a boxcar load of tomatoes. The offer is sent via overnight delivery because an acceptance is re¬quired urgently. It would be most reasonable for Unified to accept via
a. a fax, a letter, or a phone call to TF within two weeks.
b. a fax sent to TF as soon as the offer is received.
c. a letter mailed to TF within two days.
d. a phone call to TF within five business days.
Eve tells Frank that she will pay Frank $50 if he unloads her truck. Frank's acceptance is complete
a. as soon as Frank says he will unload the truck.
b. once Frank starts to unload the truck.
c. only after Frank unloads the truck.
d. when Frank hears Eve's offer.
Alan offers to transfer Beth's videotapes to CDs for $500. The mailbox rule will not apply if Beth accepts the offer by
a. e-mail.
b. messenger.
c. regular mail.
d. telegram.
Retail Investment Company offers to sell a certain mall to Shopping Stores, Inc., if it accepts before 10 A.M. Monday. A contract is formed if Shopping Stores' acceptance is received
a. any time on Monday.
b. before 10 A.M. Monday.
c. before 11 A.M. Monday.
d. within twenty-four hours of 10 A.M. Monday.
Jane offers to sell Kyle three desks for his Lights & Lamps Company administrative office. Kyle sends a rejec¬tion first, then changes his mind and sends an acceptance. Whether they have a contract is determined by
a. Kyle's rejection.
b. Kyle's subjective intent.
c. whatever Jane decides.
d. whether Kyle's rejection or acceptance is received first.
Fine Mining Corporation offers to sell Great Foundries, Inc., seven tons of aluminum. Great Foundries sends an acceptance via Fine Mining's authorized mode of communication. This acceptance is effective when it is
a. in transit.
b. received.
c. sent.
d. written.