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Review Key Concepts: Chapter 7 Legal Terms-Contract Law

Total questions: 28

Worksheet time: 56mins

Name
Class
Date
1.

A contract between two parties for illegal activities is not valid.

a)

True

b)

False

2.

A minor has the capacity to contract when...

a)

Always

b)

Only valid on contracts valuing over $1 Million

c)

For necessities like food, clothing, and lodging

d)

It depends on the state you live in

3.

Which of the following is a contract?

a)

Betty offers to give a book to Lou. Lou accepts.

b)

Betty offers Lou the book in exchange for Lou’s promise to pay twenty-five dollars. Lou accepts.

c)

Betty offers to give Lou the book if Lou promises to pick it up at Betty’s house. Lou agrees.

d)

None of the above

4.

Consideration is...

a)

a set of mutual promises in which each party agrees to give up something to the benefit of the other.

b)

The amount of time one has to accept an offer.

c)

The 5 minutes following an offer that must elapse before an acceptance can take place.

d)

The element of a contract that says the value of what each party is giving up must be equal.

5.
The person receiving a gift is legally known as 
a)
the donor
b)
the donee
c)
the giftee
d)
the giftor
6.
The specific time limit for bringing a lawsuit is set down in the statute of 
a)
litigations
b)
limitations
c)
estoppel
d)
release
7.
A promise unsupported by consideration is generally unenforceable. 
a)
True
b)
False
8.
When consideration is provided to keep an offer open, it creates
a)
an option contract
b)
a firm offer
c)
a promissory estoppel
d)
an illusory contract
9.

_________________ is the legal ability to enter into a contract, so minors and those with mental impairments lack it.

a)

Executory

b)

Consent

c)

Acceptance

d)

Capacity

10.

The purpose of contract needs to be for a lawful purpose.

a)

TRUE

b)

FALSE

11.

In an express contract, the two parties state all the important terms of their agreement.

a)

TRUE

b)

FALSE

12.

In order for _______________ to be present in a contract, the offeree must say or do something to accept.

a)

Void

b)

Bilateral

c)

Acceptance

d)

Writing

13.

“I'll pay you $2 million to star in my new romantic comedy, which we are shooting three months from now in Santa Fe.” Gloria says, “It’s a deal.” This is an example of _____________ contract.

a)

Acceptance

b)

Void

c)

Writing

d)

Bilateral

14.

Fraud, Mistake and Duress are three claims that can be used to void contracts based on the lack of valid _______________.

a)

Implied

b)

Unilateral

c)

Consent

d)

Consideration

15.

In an implied contract, the words and conduct of the parties indicate that they intended an agreement.

a)

TRUE

b)

FALSE

16.

Some types contracts cannot be enforced if they are not in ___________.

a)

Bilateral

b)

Writing

c)

Acceptance

d)

Void

17.

A ____________ contract occurs when one of the parties commits fraud, or when an agreement has been signed under duress.

a)

Valid

b)

Voidable

c)

Implied

d)

Express

18.

_____________________ is the central idea that both parties in a contract need to benefit from it.

a)

Consent

b)

Implied

c)

Unilateral

d)

Consideration

19.

What is the definition of an offer?

a)

An expression of willingness to negotiate.

b)

A declaration that one party will contract with another.

c)

Expression of willingness to contract with the party to whom it is addressed, as soon as the latter accepts its terms.

d)

An invitation for other parties to consider whether they are able to purchase the goods/services.

20.

What is required to form a legally binding contract?

a)

Offer, Acceptance, Consideration, Intention, Certainty.

b)

Duty, Breach, Causation, Damages

c)

Offer, Acceptance, Collateral, Sufficiency.

d)

Invitation to treat, Offer, Counter Offer, Acceptance.

21.

What is a union?

a)

Federal agency overseeing most employment discrimination law

b)

Federal agency regulating and investigating workplace incidents

c)

A group formed by employees to negotiate with the employer

d)

A group formed by employers to negotiate with employees

22.
All serious agreements are contracts.
a)
True
b)
False
23.
The offeree is the one accepting the offer.
a)
True
b)
False
24.
When the offeror communicates an offer to contract, the offeree is not required to accept it, but he or she may choose to do so.
a)
True
b)
False
25.
The offeror is the one making the offer,
a)
True
b)
False
26.

If you wait too long to bring a lawsuit, the court may not uphold it because it could be

a)

unenforceable

b)

limited

c)

voidable

d)

fraudulent

27.

A contract that comes about from the action of the parties.

a)

express contract

b)

implied contract

c)

unilateral contract

d)

bilateral contract

28.

A contract that amounts to nothing and has no legal effect is

a)

unenforceable

b)

voidable

c)

void

d)

unilateral