Business Law

Front 1

All promises are legal contracts?
True or false

Back 1

FALSE
All contracts invovle promises, but all promises do not establish contracts (A contract is an agreement that can be enforced in court.)

Front 2

A unilateral contract is accepted by a promise to perform?
True or False

Back 2

FALSE
A bilateral contract is accepted by a promise to perfrom. A unilateral contract is formed when the offeree completes the requested act or other performance.

Front 3

A quasi contract arises form a mutual agreement between 2 parties?
True or False

Back 3

FALSE
In the absence of an actual contract, a court may impose a quasi contract to avoid the unjust enrichment of 1 party at the expense of another.

Front 4

When the language in a contract has more than one meaning, it will be interpreted against the party who drafted the contract?
True or False

Back 4

TRUE

Front 5

Julio, a medical doctor, renders aid to John,who is injured. Julio can recover the cost of services rendered to John:
A.even if John was not aware of Julio's Help.
B.only if John was aware of Julio's Help.
C.only if John was not aware of Julio's help.
D.under no circumstances.

Back 5

A.even in John was not aware of Julio's help.

Front 6

Rita callls Sam on the phone and agress to buy his laptop for $500. This is:
A.express contract
B.implied-in-fact contract
C.an implied-in-law conract
D.a quasi contract.

Back 6

A.Express contract
An express contract fully and explicitly states the terms of an agreement in words.

Front 7

Bo's Contract with UNL is voidable. If the contract is avoided,
A.both parties are released from it.
B.neither party is relased from it.
C.only Bo is released from it.
D.only UNL is released from it.

Back 7

A.both parties are released from it.
Void contract has no legal force or binding effect.

Front 8

There are no irrevocable offers.
True or False

Back 8

False
Irrevocable offers (offers that must be kept open for a period of time) include option contracts.

Front 9

Beth offers to buy from Chris a used computer, monitor, and printer for $400. Chirs says, "Ok, but $200 more for the monitor and printer." Chris has.
A.accepted the offer.
B.made a counteroffer without rejecting the offer.
C.rejected the offer and made a counteroffer.
D.rejected the offer without making a counteroffer.

Back 9

C.rejected the offer and made a counteroffer.

Front 10

John's brand new 2011 Jaguar XJ% doesn't start one morning and he yells in anger, "I'd sell this piece of junk to anyone for $10." Liz hands John $10. Does the car now belong to Liz?
Yes or No

Back 10

No.

Front 11

A promise has no legal value as consideration.
True or False

Back 11

False
Something of legal value must be given in exchange for a promise.

Front 12

Past consideration is legally sufficent, bargained-for consideratiion.
True or False

Back 12

False
Promise made with respect to events that have already taken place are unenforceable.

Front 13

Jay is trying to avoid peforming on a promise to pay Karen $150. Jay is claiming lack of consideration on Karen's part. Jay will win if he can show.
A.before Jay's promise, Karen had already performed the requested act.
B.Karen's only claim of consideration was the relinquishment of a legal right.
C.Karen's asserted consideration is only worth $50.
D.Jay entered into a quasi contract with Karen.

Back 13

A.before Jay's promise, Karen had already performed the requested act.

Front 14

While drunk, Don agrees to sell his warehouse for half its assessed value. The contract is
A.enforceable even if Don did not understand its legal consequences.
B.enforceable only if Don understood its legal consequences
C.unenforceable because it is obviously favors the buyer
D.unenforceable under any circumstance

Back 14

B.enforceable if Don understood its legal consequence.

Front 15

Ed is adjudged mentally incompetent. Fram is appointed by the court to act as Ed's guardian. Ed signs a conract to sell his house. This contract is
A.enforceable if Ed comprehended the consequences
B.enforceable if Ed knew he was entering into a contract.
C.enforceable if the house was entirely piad for.
D.Void

Back 15

D.Void

Front 16

If a person believes a statement to be true, that person cannot be held liable for misrepresentation.
True or False

Back 16

True

Front 17

Lou and Mai enter into a contract. Lou tells Mai that if she does not perform her part of the deal, he will sue her Mai can
A.avoid the contract on the basis of duress.
B.avoid the contract on the basis of fraudulent misrepresentation.
C.avoid the contract on the basis of undue influence.
D.not avoid the contract.

Back 17

D.Not avoid the contract

Front 18

Jack and Kim enter into a contract for Jack's sale to Kim of 2 computers for $200 each. After Kim takes possession, but before she makes payment, this contract is enforceable
A.only if it is in writing
B.only if it is oral
C.whether it is oral or written
D.under no circumstances

Back 18

C.whether it is oral or written

Front 19

All rights can be assigned.
True or False

Back 19

False

Front 20

Contracts are great.
True or False

Back 20

True

Front 21

Lauren and Eli decide to get married. Lauren, a wealthy millionaire, wants Eli, a struggling musician, to a pre-nuptial agreement. To be enforceable, must this contract be writings?
Yes or No

Back 21

Yes

Front 22

Discharge of a party's obligations arising under a contract occurs when both parties have fully performed their contractual obligations.
True or False

Back 22

True

Front 23

If Melissa's Button shop contracts to buy all of the buttons she needs from Tricky's Button factory, the court will not uphold the contract because there is no consideration.
True or False

Back 23

False

Front 24

Bob and Terry enter into a contract wherein Bob promises to hire Terry as a driver as soon as Terry gets his drivers license. This is an example of a
A.condition subsequent
B.condition precedent
C.concurrent condition

Back 24

B. Condition precedent
A condition in a contract that must be met before a party's promise becomes absolute.

Front 25

Mary and Sue enter into a contract wherein Mary agrees to let Sue stay in Mary's spare room for as long as Sue remains unmarried. This is an example of
A.condition subsequent
B.condition precedent
C.concurrent condition

Back 25

A.condition Subsequent
a condition in a contract that operates to terminate a party's absolute promise to perform.

Front 26

Nikki and Tina enter into a contract wherein Nikki offers to pay Tina $100 in exchange for Tina's class ring. This is an example of
A.condition subsequent
B.condition precedent
C.concurrent condition

Back 26

C.concurrent condition
conditions in a that must occur or be performed at the same time; they are mutually dependent. No obligations arise until these conditiond are simultaneously performed.

Front 27

If a party fails to substantially perform, the other party's remaining contractual obligations, if any, are discharged.
True or False

Back 27

True

Front 28

Joe hires Gina to paint a portrait of his bloved dog, Pinky. The contract states that Joe must be personally satisfied with Gina's work this is an example of
A.subjective satisfaction
B.objective satisfaction
C.satisfaction of a third party
D.satisfaction and accord.

Back 28

A.Subjective Satisfaction

Front 29

Despite deviations from the specifications in a construction contract, a builder can be considered to have sunstantially performed,
True or False

Back 29

True

Front 30

When a contract alters a written contract, the other party must adapt his or her performance accordingly.
True or False

Back 30

False

Front 31

Belle enters into a contract to subdivide and sell housing lots in Cole's hillside field if Dell City annexes the property within the next year. Belle's duty to perform is
A.absolute
B.conditional
C.illusional
D.irresolute

Back 31

B.Conditional
Is a possible future event, occurrence or nonoccurrence of which triggers performance of an obligation or terminates an obligation.

Front 32

Rescission is the dissolution of a contract that returns the parties to the positions they held before the contract.
True or False

Back 32

True

Front 33

Ida promises to pay Jon, her son, $15,000 if obtains his degree at Kappa University, where he is currently in his second year. Jon graduates. Ida is:
A.not required to pay, because Jon is her relative.
B.not required to pay, because obtaining a degree benefits Jon.
C.required to pay, because a job can be hard to find after college.
D.required to pay, because Jon obtained a degree at Kappa.

Back 33

D.Required to pay, because Jon obtained a degree at Kappa.

Front 34

Altering contract terms to reflect the true intentions of the parties is a recission.
True or False

Back 34

False
Is an action to undo, or cancel, a contract-to return a nonbreaching party to the position he or she occupied before the transaction.

Front 35

Jill and Karl contract for sale of Jill's horse for $1,000. Unknown to either party, the horse has died. Karl is
A.entitled to another horse of equivalent value.
B.not requried to pay due to the mutual mistake.
C.not required to pay due to the unilateral mistake.
D.required to pay because she assumed the risk the horse might die.

Back 35

B.not required to pay due to the mutual mistake.

Front 36

A Contract that by its own terms cannot be performed within a year must be in writing to be enforceable.
True or False

Back 36

True

Front 37

Evidence of prior agreements that differ from the written terms of a contract can be introduced in court to alter the contract.
True or False

Back 37

True

Front 38

Compensatory damages compensate the nonbreaching party for injuries or damages sustained by that party.
True or False

Back 38

True

Front 39

A party who substantially performs his or her duties under a contract can enforce the contract against the other party.
True or False

Back 39

True