Business Law (Chapter 3)

What is the primary purpose of contract law?

• To force people to keep all their promises

• To determine which agreements are worth enforcing

• To limit the types of agreements people can make

• To ensure all contracts are written

Which of the following is NOT one of the seven key elements of a contract?

• Offer

• Consideration

• Negotiation

• Capacity

In a valid contract, "consideration" refers to:

• The fairness of the agreement

• The willingness of the parties to sign the contract

• The legal language used in the contract

• The exchange of something of value between parties

A contract where both parties make a promise is known as a:

• Bilateral contract

• Unilateral contract

• Void contract

• Implied contract

Which of the following is an example of an executory contract?

• A customer pays cash for a sandwich at a deli

• A landlord and tenant have completed their lease agreement

• A company and an employee agree to a one-year employment contract, but the job has not yet started

• You promise to sell your car to a friend for $2,000 next Saturday, and they promise to pay you that amount on Saturday

What does an unenforceable agreement mean?

• It is a contract that satisfies all legal requirements

• It is a contract where neither party can enforce the agreement

• The parties intend to form a valid bargain, but a legal rule prevents its enforcement

• One party has the option to terminate the contract

Which type of contract is created when the words and conduct of the parties indicate an agreement, even if it is not explicitly stated?

• Express contract

• Implied contract

• Void contract

• Bilateral contract

What is the main reason courts sometimes enforce agreements that do not meet standard contract requirements?

• To prevent injustice in certain cases

• To encourage verbal agreements

• To replace standard contract law

• To eliminate the need for written contracts

In a quasi-contract, what must the plaintiff prove to recover damages?

• The defendant benefited from their actions

• The defendant signed a written agreement

• The plaintiff was promised a long-term contract

• The court previously ruled in their favor

What does a quasi-contract seek to prevent?

• Breaches of express contracts

• Undue influence

• Verbal contracts

• Unjust enrichment