Contracts & Warranties

A contract is

• a promise to do something in the future.
• an agreement between two or more persons to exchange something of value.
• an agreement to pay another person money.
• an obligation to pay another person's legal debts.

What is a consideration?

• awareness of the circumstances of the other party to the contract
• a realistic offer
• something of value
• exact acceptance of the terms of the offer

Which of the following is a characteristic of an offer?

• The offer is made to a specific person.
• The seller accepts the price asked for by the buyer.
• The offer is not directed at anyone in particular.
• The offer establishes a legally binding contract.

Which of the following is an example of consideration?

• money
• the agreement to have another birthday
• a worthless piece of trash
• for a lifeguard to promise a swimmer to rescue him if he gets in trouble;

If Gene was intoxicated when he signed a contract, the contract is

• not enforceable.
• enforceable.
• enforceable only if the other party to the contract did not know that Gene was intoxicated.
• not enforceable unless the other party to the contract knew Gene was intoxicated.

What is a valid acceptance to a contract?

• The person orally agrees to pay the offered price.
• The person says that she will think about it overnight.
• The person asks for a lower price.
• The person states that she is able to pay the offered price.

Minors

• can legally make contracts.
• cannot legally make contracts.
• can force sellers to enter into contracts with them.
• can only enter into legal contracts with an adult cosigner.

Jane runs away from home and stays at a motel for three nights. Since she is a minor, she

• does not have to pay for the motel since she can void her contracts.
• does have to pay for the motel since shelter is a necessity.
• does not have to pay for the motel unless she claimed that she was 18
• does have to pay for the motel because she looked like she was 18

A contract for _____ must be in writing to be enforceable.

• the sale of goods priced at under $500
• the sale of land
• the sale of personal property
• agreements that can be performed within one year from the date of the contract

Aidan sells some stolen CDs for Roger. Aiden knows the CDs are stolen. Aiden refuses to give the money to Roger. Roger can

• sue Aidan for the money.
• enforce the contract with Aidan and get his money.
• cannot enforce the contract because the contract is unconscionable.
• cannot enforce the contract because the contract is illegal.