WorksheetsAcct 324 exam 1
Total questions: 48
Worksheet time: 24mins
How is an offeror’s intent to be bound by an agreement demonstrated?
The courts determine an offeror’s intent based upon how a reasonable person would interpret the offeror’s words and actions.
The courts determine an offeror’s intent based upon what that person’s subjective principles are.
The courts determine an offeror’s intent based upon his or her demonstrated acceptance of the offer when negotiations began.
The courts determine an offeror’s intent based upon what the offeror’s belief was at the time negotiations began.
If nothing is stated to the contrary in the terms of an auction, the auction is presumed to be ________blank, which means that the seller is merely expressing intent to receive offers.
with reserve
conditional
without reserve
unconditional
George is planning to buy Karl’s car for $10,000. He gives Karl $1,000 to keep the offer open for 30 days. Karl will deduct the $1,000 from the price of the car if George purchases the car within the 30 days. If George does not buy the car during that time, Karl will keep the $1,000 and may then offer the car to someone else. Which of the following contracts does this scenario best illustrate?
Implied contract
Unenforceable contract
Quasi-contract
Option contract
At an auction, if the seller is treated as making an offer to accept the highest bid, then the auction is ________blank.
with stipulation
with reserve
without stipulation
without reserve
an offer is interpreted by the courts on a(n) _________ standard
subjective
objective
personal
judicial
a valid offer includes
vague and ambiguous proposals
offers communicated by the offeror to the offeree's agent
preliminary negotiations and advertisements
expressions of possible interest by the offeror
Formation of a contract begins when the party initiating the contract, called the ________blank, makes an offer to another party, called the ________blank.
grantor; grantee
delegator; delegatee
offeror; offeree
transferor; transferee
Julio agrees to buy Sophia's computer for $1,000. However, Sophia tells Julio that she will only sell the computer to him if he pays $1,200. In this scenario, Sophia makes a(n):
collective bargain
reverse bid
addendum
counteroffer
Jonathan offers to sell Paulette six video poker machines. Before Paulette can accept or reject Jonathan’s offer, the state legislature passes a statute that the purchase, sale, and possession of video poker machines is illegal. In this scenario, Jonathan’s offer terminates due to which of the following rules?
lapse of time
unilateral mistake
subsequent illegality of the subject matter
assumption of the risk
orge offers to build Larry a garage for $20,000. The offer stated that acceptance in person was required. Within a reasonable time, Larry e-mailed Jorge his acceptance. Which of the following statements is true about this situation?
The agreement between Larry and Jorge will be valid but unenforceable.
The acceptance by Larry will be presumed as an implied contract.
Larry has accepted the offer because an e-mail is a reasonable means of acceptance.
Larry has not accepted the offer as required by the offeror, and there is no contract.
When one party gives a promise as consideration and the other party gives a(n) ________blank in consideration, a unilateral contract will result.
agreement
writing
act
promise
Wanda purchases a motorcycle from her friend, Leslie. She pays Leslie $8,000. Later, Wanda realizes that the motorcycle is worth less than $4,000. If Wanda plans to sue Leslie, which of the following statements applies?
Leslie will be held guilty because her action is a breach of promissory estoppel.
Wanda can sue Leslie because the motorcycle was not worth the amount Wanda paid for it.
Wanda cannot sue Leslie because the court seldom considers adequacy of consideration.
The court will hold Leslie not liable as she made a unilateral promise.
Regarding the enforceability of a present promise, which of the following is an accurate statement regarding past consideration?
Past consideration is sufficient consideration to support the enforceability of a present promise.
Past consideration is equitable consideration to support the enforceability of a present promise.
Past consideration is no consideration at all.
Past consideration is conditional consideration to support the enforceability of a present promise.
For an unliquidated debt,
even if the debtor fails to pay a lesser amount as agreed, the creditor cannot sue the debtor for payment.
debtors cannot create an accord and satisfaction by sending the creditor a check with "paid in full" written on it.
once the debtor pays the amount agreed on by both the parties, the debt is fully discharged.
even if the debtor pays the money agreed to, the creditor may still sue for the balance it believes is owed.
The preexisting duty rule means that:
an illusory promise may be enforced if the promise was made before consideration was given.
past consideration is valid if a unilateral contract is involved.
the mutual exchange of promises is not enforceable.
performance of a duty you are obligated to do under the law is not good consideration.
________blank occurs when one party makes a promise knowing the other party will reasonably rely on it, the other party does reasonably rely on it, and the only way to avoid injustice is to enforce the promise.
Forbearance
a crime
a tort
promissory estoppel
Consideration can be anything, as long as it is the product of a(n):
bargained-for exchange
unilateral contract
assignment
bilateral contract
Varun offers to sell Danielle his used smart phone for $150. Danielle says that she will look at the phone the next day, and if she likes it, she will pay $150 for it. At this point, Danielle has not committed to doing anything. This is an example of a(n):
conditional consideration
unilateral contract
illusory promise
option contract
Tate agrees that he owes a creditor $20,000, as the creditor claims. Tate explains to the creditor that he can only pay the bank $12,000 as full payment toward the money he owes. The creditor agrees to accept $12,000 from him. The following month, Tate receives a bill claiming that he still owes the creditor $8,000. Which of the following statements is true of this scenario?
Both Tate and the creditor can settle their dispute through an accord and satisfaction, as this is a case of an unliquidated debt.
Tate can sue the bank based on breach of promissory estoppel.
If Tate does not agree to pay the remaining $8,000, the creditor may sue Tate for the balance it believes is owed.
Tate cannot be sued by the creditor for nonpayment because of the different payment that has already been made by him.
The ________blank is the agreement while payment is the ________blank in an unliquidated debt.
accord; satisfaction
consideration; satisfaction
contract; consideration
satisfaction; agreement
________blank contracts contain multiple parts that can each be performed separately and for which separate consideration is offered.
severable
detachable
dividable
indivisible
Which of the following statements is incorrect concerning contracts made by intoxicated persons?
Courts tend to fairly liberally interpret behavior that appears to ratify the contract once the intoxicated person becomes sober.
Contracts made by intoxicated people are generally considered voidable.
Courts tend to allow the intoxicated person to disaffirm the contract if disaffirmance occurs within one month after the person becomes sober.
Contracts made by intoxicated people are generally considered enforceable if the intoxication merely causes the person to exercise poor judgment unless the other party unfairly capitalized on the impaired judgment.
The term ________blank refers to the fact that the agreement in question is so unfair that it is void of conscience.
conscionable
malconscionable
subconscionable
unconscionable
when is a contract voidable
When the contract is entered into by a minor
When the contract is entered into by a person adjudicated insane
When the contract is entered into by an emancipated minor
When the contract is entered into by an intoxicated person who understands his or her contractual obligations
Covenants not to compete in conjunction with the sale of a business are generally enforceable if which of the following conditions are met?
Provided the covenant not to compete allows the seller of the business to open a new business within the same county, the covenant will be enforceable.
Provided the covenant not to compete is reasonable with regard time and location, the covenant will be enforceable.
Provided the covenant not to compete also involves a covenant not to compete for future employment, the covenant will be enforceable.
Provided the covenant not to compete does not prohibit the seller of the business from opening a new business within one year, the covenant will be enforceable.
In most states, a minor does not have the right to affirm which of the following contracts?
education loan contract
marriage contract
car purchase contract
life insurance contract
legal capacity is
the physical ability of a person to understand his or her rights and obligations under a contract and comply with the terms.
sufficient consideration to enter into a contract.
the mental ability of a person to understand his or her rights and obligations under a contract and comply with the terms.
not required for a valid contract.
If a person has not been adjudicated insane but suffers from a mental illness that prevents her from understanding the nature and obligations of a transaction, the contract is ________
void
voidable
valid
unilateral
When, after reaching the age of majority, the person states orally or in writing that he or she intends to be bound by the contract entered into as a minor, there is a(n) ________
disaffirmance
express ratification
implied ratification
consent
If someone suffering from dementia has been appointed a guardian, which of the following is true regarding that person’s ability to enter into a contract?
The contract will be voidable by the person suffering from dementia.
When someone has been appointed a guardian, that person’s contracts are considered void.
If the guardian ratifies the contract entered into by the person with dementia, the contract is considered valid.
The contract is valid.
________blank contracts contain multiple parts that can each be performed separately and for which separate consideration is offered.
severable
detatchable
dividable
indivisible
Which of the following statements is incorrect concerning contracts made by intoxicated persons?
Courts tend to fairly liberally interpret behavior that appears to ratify the contract once the intoxicated person becomes sober.
Contracts made by intoxicated people are generally considered voidable.
Courts tend to allow the intoxicated person to disaffirm the contract if disaffirmance occurs within one month after the person becomes sober.
Contracts made by intoxicated people are generally considered enforceable if the intoxication merely causes the person to exercise poor judgment unless the other party unfairly capitalized on the impaired judgment.
The term ________blank refers to the fact that the agreement in question is so unfair that it is void of conscience.
conscionable
malconscionable
subconscionable
unconscionable
When is a contract voidable?
When the contract is entered into by a minor
When the contract is entered into by a person adjudicated insane
When the contract is entered into by an emancipated minor
When the contract is entered into by an intoxicated person who understands his or her contractual obligations
Covenants not to compete in conjunction with the sale of a business are generally enforceable if which of the following conditions are met?
Provided the covenant not to compete allows the seller of the business to open a new business within the same county, the covenant will be enforceable.
Provided the covenant not to compete is reasonable with regard time and location, the covenant will be enforceable.
Provided the covenant not to compete also involves a covenant not to compete for future employment, the covenant will be enforceable.
Provided the covenant not to compete does not prohibit the seller of the business from opening a new business within one year, the covenant will be enforceable.
In most states, a minor does not have the right to affirm which of the following contracts?
Education loan contract
Marriage contract
Car purchase contract
Life insurance contract
legal capacity is
the physical ability of a person to understand his or her rights and obligations under a contract and comply with the terms.
sufficient consideration to enter into a contract.
the mental ability of a person to understand his or her rights and obligations under a contract and comply with the terms.
not required for a valid contract.
When, after reaching the age of majority, the person states orally or in writing that he or she intends to be bound by the contract entered into as a minor, there is a(n) ________
disaffirmance
express ratification
implied ratification
consent
If someone suffering from dementia has been appointed a guardian, which of the following is true regarding that person’s ability to enter into a contract?
The contract will be voidable by the person suffering from dementia.
When someone has been appointed a guardian, that person’s contracts are considered void.
If the guardian ratifies the contract entered into by the person with dementia, the contract is considered valid.
The contract is valid.
Implied conditions are those conditions which ________
the parties determine based upon an accord and satisfaction
are not explicitly stated in the contract but are inferred from the nature and language of the contract
are explicitly stated in the terms of the agreement
the parties may choose to enforce before their obligations to perform under the contract arise
performance occurs when nearly all of the terms of the agreement have been completed, the obligor has made a good faith effort to complete all of the terms of the agreement, and no “willful departure” from the terms of the agreement has occurred.
conditional
contractual
substantial
absolute
Which type of damages are foreseeable damages that result from special facts and circumstances arising outside a contract itself?
Consequential damages
Compensatory damages
equitable damages
nominal damages
Money damages are also known as ________blank damages while remedies that result in nonmonetary damages are known as ________blank.
equitable; legal
material; nonmaterial
legal; equitable
complete; substantial
________blank occurs when a party to a contract unjustifiably fails to substantially perform his obligations under the contract.
substantial performance
accord and satisfaction
material breach
novation
Which of the following is a future event that terminates the obligations of the parties to a contract when it occurs?
condition concurrent
condition siccessive
condition subsequent
condition precedent
To justify recovery based on a quasi-contract, a plaintiff must prove all but which of the following elements?
The plaintiff had reasonably expected to be compensated for the benefit conferred on the defendant.
The plaintiff conferred a benefit on the defendant.
The defendant would be unjustly enriched from receiving the benefit without compensating the plaintiff for it.
The defendant would be enriched by receiving the benefit that was the result of a unilateral mistake on behalf of the plaintiff.
______
performance occurs when all aspects of the parties’ duties under the contract are carried out perfectly.
complete
material
whole
perfect
Restitution, as a primary equitable remedy for a breach of contract, is best described as
an order requiring the breaching party to pay some predetermined amount of money to the injured party.
the replacement of one of the parties to a contract.
the return of any property given up under the contract.
an order for the breaching party to perform a new duty as a substitution to an old duty.
