Contracts part 1 (5-6)

The failure of a party to perform the obligations assumed under a contract is known as a(n):

• fraud
• misrepresentation
• intrinsic pledge
• breach of contract 

Which of the following is true of unenforceable contracts?

• They are not valid contracts.
• They are the same as voidable contracts.
• They can be made enforceable by making a few changes to them.
• They are contracts made for an unlawful purpose and the parties can be imprisoned.

Which of the following best describes the term “recognizance”?

• It refers to the conditions of a formal or simple contract that an adult signs with a minor.
• It refers to the obligations that people enter into before a court to do an act required by law.
• It refers to the penalties that a party faces if the party fails to honor the obligations of a contract.
• It refers to negotiable instruments such as checks, notes, drafts, and certificates of deposit.

Informal contracts are also known as _____ contracts.

• express
• implied
• sealed
• simple 

An executory contract is defined as:

• a contract that may be set aside or avoided by one of the parties.
• a contract where the terms of the agreement are specified in words.
• a contract that is required to be created in a special form or manner of creation.
• a contract in which the terms have not been fully carried out by all parties.

Which of the following is not a true contract and has been imposed by law in order to prevent one party benefiting unfairly at another’s expense?

• A voidable contract
• An informal contract
• A quasicontract
• A unilateral contract

Which of the following is true of quasi-contracts?

• It is an unenforceable contract.
• It generally offends ethical principles.
• It is always formed by an adult with a minor.
• It prevents the unjust enrichment of a party.

Which of the following is true of a valid offer?

• It is indefinite in nature.
• It is instituted by the offeree to the offeror.
• It is seriously intended.
• It can be accepted by anyone who hears about it.

Ryan, a college student, intends to sell his car. He contacts his friend Luiz and enquires whether he is interested in buying the car. Luiz finds the quoted price reasonable and buys the car from Ryan. In this scenario, Ryan is the _____.

• claimaint
• offeror
• acceptor
• summoner 

Which of the following is true of offers and invitations?

• Window displays and catalogs are examples of personal invitations.
• Letters addressed to a specific person automatically makes them personal sales letters.
• The general rule is that circulars are offers made to specific customers.
• Circulars are invitations to the recipients to make an offer.