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Contract Law Test

Total questions: 20

Worksheet time: 30mins

Name
Class
Date
1.

When Ken collapsed after a workout, he was lucky that a doctor was on hand to help him. The doctor provided immediate medical care and sent Ken the bill afterwards. Ken refused to pay because he did not ask for medical care from the doctor. Ken is obligated to pay because:

a)

An implied in-law contract was established.

b)

An implied in-fact contract was established.

c)
  1. An express contract was established.

d)

An oral agreement was established.

2.

The act of both parties agreeing to carry out their promise is which element of a contract?

a)

Acceptance

b)

Offer

c)
  1. Consideration

d)

Intent

3.

When a Kameron enters a bar and orders a few drinks, she is expected to pay because:

a)

An implied in-law contract was established.

b)

An implied in-fact contract was established.

c)

An express agreement was made.

d)
  1. An oral agreement was made.

4.

Which of the following must be part of a contract for it to be enforceable?

a)

A third party witnesses the signing.

b)

An offer that details what one party will give up.

c)

Consideration is exchanged.

d)
  1. At least one of the parties is of legal age.

5.

PJ told his coworkers that if he wins at the casino, he will, in his own words, 'help them out financially'. What can this be considered as?

a)

An Illusory promise.

b)

An implied in-Fact contract.

c)

An oral contract.

d)
  1. A binding contract.

6.

A ______ is a written or expressed agreement between two parties to provide a product or service. There are essentially six elements of a contract that make it a legal and binding document.

a)

Contract

b)

Agreement

c)

Report

d)

Answer not listed

7.

An _______ contract is the most common contract type. In this type of contract, all elements are specifically stated. This can be written or done orally. Either way, offer, acceptance and consideration must bind the parties together legally. And both parties must clearly understand the terms and conditions each is agreeing to.

a)

Express

b)

Implied In-Fact

c)

Implied In-Law

d)

Answer not listed

8.

When LaBraxton decided to rent an apartment from Landlord Sidney, he signed a lease. In the lease, it stated the amount of the rent, the length of the lease and what amenities are included in the rent. LaBraxton gave Sidney a down payment equal to one month's rent to secure the apartment, signed the agreement and Sidney handed over the keys and rights to occupy the place for a period of time written into the lease agreement. LaBraxton and Sidney entered into an _______ contract for the rental of an apartment.

a)

Express

b)

Implied In-Fact

c)

Implied In-Law

d)

Answer not listed

9.

An ______ contract binds parties together through a mutual agreement and intent, but there are no expressed terms of the agreement. The agreement holds mutual intention based on facts and circumstances and a reasonable assumption from the circumstances and relations between the parties.

a)

Implied In-Fact

b)

Express

c)

Implied In-Fact

d)

Answer not listed

10.

For an implied in-fact contract to be enforceable, Which few elements must be present. Select all that apply.

a)
  1. An unambiguous offer and acceptance

b)
  1. Mutuality of both parties to be bound to the contract

c)
  1. Consideration

d)
  1. Capacity of the parties in terms of age and mental ability

11.

Which of the following is an example of a contract?...

a)

I offer to rent you a room in my house and you accept the offer

b)

I bring a cup of coffee to the cash desk in your store and hand you some money, which you accept.

c)

 I make a promise to a religious order to enter it and become a member of it, and I later become a member of that order

12.

Sarah promised her mother that she would commit herself to the Jewish faith once she turned 21 years old. Is this an enforceable contract?

a)

No, because Sarah cannot promise anything unless it is in writing

b)

No, because this is considered to be a moral vow and moral vows are not legally enforceable.

c)

a person suffering from advanced Yes, because there was a meeting of the minds between Sarah and her mother disease

d)

Yes, because 21 is the legal age to contract and Sarah would be bound at that time

 

13.

Rita offered her car to Rucan for $500. Rucan was excited about the offer and replied that he would gladly accept the car for $475 and walked off, not waiting for a response. The following day, Rucan decided he did not want to buy the car. When he told Rita this, she replied that he is bound by the contract and must pay the outstanding balance. In this situation:

a)

a contract has been formed because Rucan accepted Rita's offer

b)

there was no contract formed for $500 because Rucan made a counteroffer

c)

there was no contract formed because Rita did not have Rucan's acceptance in writing

d)

there was no contract formed because Rita did not have Rucan's acceptance in writing

14.

Which of the following is an example of an enforceable contract?

a)

Two competitors agree on the price they will charge to the public for goods they both sell.

b)

Zakhia agrees not to report a theft by Symaria, if Symaria repays what she has stolen.

c)

A plumber who is unlicensed sues for the price of goods supplied where he is supplying goods and plumbing services.

d)

Craig agrees to lend Damian money at 120 percent interest per year.

15.

Harrison and Benedek have been negotiating over the sale of a powerboat. There have been lengthy negotiations by email, and a price is agreed to of US$14,000. The printed contract records the price, in error, in Canadian dollars.

a)

No remedy is available—the deal is in Canadian dollars because that is what the contract says.

b)

Evidence of the intended price can be introduced using the emails to rectify the error in the contract.

c)

As the parties have not reached agreement on price, there is no contract

d)

None of the above.

16.

The purpose of a contract is to distress the parties if either party does not fulfill its promises.

a)

True

b)

False

17.

The (a)   definition refers to the governing body that will enforce and interpret contractual agreements. (lower case)

18.

  1. Most contract laws are bound by the (a)   in which the contract was created. (lowercase)

19.

Specific performance exists in the contract space, particularly that of (a)   . (lowercase)

20.
  1. If someone is trying to take advantage of a family member and threatening them to sign a contract, that would constitute _____ and there would not be a true understanding and free will that is necessary for a valid contract.

a)

neglect

b)

undue influence

c)

free will

d)

answer not listed