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Nature and Terminology of Contracts

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Quiz A - Chapter 10 - Nature & Terminology


A1. Expert Pavers, Inc., contracts with Fabricated Building Corporation to

repave Fabricated’s 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.

A2. 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.

A3. Laura and Mike enter into what Laura later claims is a contract. In de-

ciding 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.

A4. Mona asserts that a deal she entered into with Nate is an unenforceable

contract. Defenses to the enforcement of a contract include

a. 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.

A5. 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


c. a unilateral contract as soon as Outdoor began to perform.

d. no contract.

A6. 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 particular act only.

c. promise only.

d. prudent awareness only.

A7. 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


a. a bilateral contract.

b. a trilateral contract.

c. a unilateral contract.

d. no contract.

A8. 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 , 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.

A9. 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.

A10. 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.

A11. 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.

A12. 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.

A13. 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.

A14. Delia promises to buy a house from Edwin, who promises to vacate the

property on July 1. If these promises are in writing, they are most likely

a. enforceable.

b. unenforceable.

c. void.

d. voidable.

A15. 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 promise to pay. Avatar delivers. The contract is

a. voidable.

b. executed.

c. executive.

d. executory.

A16. 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.

A17. 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


d. under no circumstances.

A18. 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-

termined 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.

A19. 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.

A20. National Grocers, Inc., enters into a contract with Overland Shipping

Company for the delivery of a shipment of fresh produce. If ambiguities

appear in the contract, 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.




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