ACCT 2700 Exam 3 Practice Questions

A promisee has the right to expect or demand that something will or will not happen in the future.

• True

• False

Contracting parties are bound by the terms that can be objectively inferred from promises made.

• True

• False

Only one party to a contract must possess characteristics that qualify him/her as competent for a valid contract to exist.

• True

• False

A verbal contract can never be enforced by a court of law.

• True

• False

Contests and lotteries are unilateral contracts because they can only be accepted by performance.

• True

• False

Yancy agrees to zed.com’s terms of service and downloads the site’s app. Yancy then reverse-engineers the app to create a competing product, which is prohibited by the terms of service. This is:

• Within the rights of a contracting party.

• A fair use of the app, with or without a contract.

• Acceptable as long as the site’s owners are unaware of the activity.

• A breach of contract.

Pavers Inc. contracts with a QuikStop store to repave the store’s parking lot for a certain price. To be enforceable, this contract must include an element of:

• Consideration.

• Acceptability.

• Achievability.

• Practicality.

Juno tells Lou she will give him her old car if he promises to babysit her son on weekday evenings for six months. Lou agrees. Juno and Lou have formed:

• A. A bilateral agreement.

• B. A unilateral agreement.

• C. A void contract.

• D. An unenforceable contract.

Demi buys a lottery ticket. The ticket has the winning numbers for a prize. She submits the ticket to claim the prize. Demi accepted an offer for:

• A. A bilateral contract.

• B. A unilateral contract.

• C. A quasi contract.

• D. An unenforceable contract.

Three Guys Moving promises to deliver a certain table to Holly, who promises to pay for the service. If Three Guys does not perform, it may be required to:

• Make another promise.

• Perform a different service.

• Pay damages to Holly.

• None of the choices.