Chapter 10- Study Guide

What is a contract?

• A voluntary, legally enforceable promise between two competent parties

• A mandatory agreement between any two parties

• A verbal agreement with no legal standing

• A promise made without consideration

Which of the following is NOT a requirement for a valid contract?

• Voluntary

• For illegal act

• Made by legally competent parties

• Supported by legal consideration

What is an express contract?

• A contract created by words, either oral or written

• A contract created by actions or conduct

• A one-sided contract with no obligations

• A contract that is not legally enforceable

How is an implied contract created?

• By actions or conduct

• By written agreement

• By verbal promise

• By legal enforcement

What is a unilateral contract?

• A one-sided contract where one party makes a promise to induce another party

• A contract where both parties exchange promises

• A contract that is not legally binding

• A contract that is fulfilled by all parties

What characterizes a bilateral contract?

• Two promises being exchanged between parties

• A single promise with no exchange

• A contract fulfilled by one party only

• A contract with no legal obligations

What is an executed contract?

• A contract in which all parties have fulfilled their promises

• A contract that is still pending fulfillment

• A contract that is not legally binding

• A contract that is only partially completed

What is a valid contract?

• A contract that has no legal force or effect

• A contract that complies with all the essentials and is binding

• A contract that seems valid but can be rejected

• A contract that cannot be enforced in court

Which type of contract has no legal force or effect?

• Valid contract

• Void contract

• Voidable contract

• Unenforceable contract

What is a voidable contract?

• A contract that is binding and enforceable

• A contract that has no legal force

• A contract that seems valid but can be rejected

• A contract that cannot be enforced in court