Question 1

An unenforceable contract is one that cannot be enforced because of certain legal defenses against it.

Accepted Answer

A) True 
 B)False

Question 2

Performance can constitute the consideration that creates a contractual obligation.

Accepted Answer

A) True 
 B)False

Question 3

After an accident with a vehicle licensed to Guardian Security Company,Heidi signs a covenant not to sue Guardian Security for damages in a tort action if it pays for the damage to her car.This covenant is​

Accepted Answer

A)  a bar to recovery if Guardian Security pays.
B)  an illusory contract.
C)  barred by the preexisting duty rule.
D)  barred by the doctrine of promissory estoppel.E) All of the above
F) A) and D) A

Question 4

Leon contracts to install automatic watering troughs in Kendall's dairy barn.Leon then becomes seriously ill and contracts with Jake to install the troughs.Jake is unreliable and never shows up to perform the contract.Kendall can sue​

Accepted Answer

A)  no one.
B)  Jake only.
C)  Leon only.
D)  Jake or Leon.E) None of the above
F) A) and D)

Question 5

If no time for acceptance is specified in an offer,the offer terminates after a reasonable length of time.

Accepted Answer

A) True 
 B)False  True

Question 6

Anton tells Brooke,who has no knowledge of Shakespearean comedy,that he will tutor her in the subject for $50.As an offer,this is​

Accepted Answer

A)  effective.
B)  not effective because comedy is not a serious subject.
C)  not effective because Anton's tutoring will be subjective.
D)  not effective because Brooke has no knowledge of the subject.E) A) and D)
F) A) and C)

Question 7

Both intended and incidental beneficiaries acquire legal rights in a contract.

Accepted Answer

A) True 
 B)False

Question 8

There are no revocable offers.

Accepted Answer

A) True 
 B)False

Question 9

If a bargain is grossly unfair,it is unconscionable.

Accepted Answer

A) True 
 B)False

Question 10

Marketing Solutions Inc.promises to employ Niki as a software engineer.In reliance on the promise,Niki quits her job with Online Ad Company,but Marketing Solutions does not hire her.Most likely,Marketing Solutions is​

Accepted Answer

A)  liable to Niki under the concept of rescission and new contract.
B)  liable to Niki under the doctrine of promissory estoppel.
C)  liable to Niki under the preexisting duty rule.
D)  not liable to Niki.E) C) and D)
F) A) and D)

Question 11

A covenant not to compete included in the sale of an ongoing business is never enforceable.

Accepted Answer

A) True 
 B)False

Question 12

Under the doctrine of promissory estoppel,a promise will not be enforced unless it is supported by consideration.

Accepted Answer

A) True 
 B)False

Question 13

A release does not require consideration to be legally binding.

Accepted Answer

A) True 
 B)False

Question 14

K'Nect,Inc. ,makes an offer to Lori to enter into a contract to work as a salesperson for a certain salary plus commission for ninety days subject to a one-year renewal based on her performance.Lori accepts the offer.A valid contract requires​

Accepted Answer

A)  a price and a subject.
B)  a duration and a termination.
C)  an offer and an acceptance.
D)  all of the choices.E) A) and B)
F) A) and D)

Question 15

Oceans Inc. ,a seafood distributor,agrees to buy from Paul,a commercial fisherman,any "overstock" of fish that Paul catches in excess of his legal limit.This agreement is most likely​

Accepted Answer

A)  enforceable.
B)  valid.
C)  void.
D)  voidable.E) C) and D)
F) B) and D)

Question 16

Revenue & Sales Corporation and Software,Inc. ,enter into a contract for the design of custom software for which Revenue & Sales agrees to pay $64,500.Software transfers the right to payment under the contract to CreditLine LLC.This transfer is​

Accepted Answer

A)  a delegation
B)  an assignment.
C)  prohibited.
D)  a third-party beneficiary contract.E) B) and C)
F) None of the above

Question 17

Kevin obtains a loan from Liberty Credit Bank at an interest rate that exceeds the state's maximum.Liberty has​

Accepted Answer

A)  none of the choices.
B)  engaged in a restraint of trade.
C)  violated a licensing statute.
D)  committed usury.E) B) and D)
F) A) and D)

Question 18

Kim enters into a contract to lease an apartment from Laurel Wood Apartments.The lease contains an exculpatory clause.This clause is​

Accepted Answer

A)  enforceable as a matter of public policy.
B)  enforceable if it releases the landlord from liability regardless of fault.
C)  enforceable if an event occurs to which the clause applies.
D)  generally unenforceable.E) C) and D)
F) None of the above

Question 19

Fresh Gro,Inc. ,offers to deliver produce to the customers of Grocer's Mart for a certain price.Fresh's intent to extend a serious offer to Grocer's Mart is determined by reference to Fresh's​

Accepted Answer

A)  assumptions.
B)  beliefs.
C)  intentions.
D)  words and action.E) None of the above
F) B) and D)

Question 20

Most ads-"this property for sale"-are offers.

Accepted Answer

A) True 
 B)False  False

Exam 12: Formation of Traditional and E-Contracts

An unenforceable contract is one that cannot be enforced because of certain legal defenses against it.

Correct AnswerverifiedShow Answer

Performance can constitute the consideration that creates a contractual obligation.

Correct AnswerverifiedShow Answer

After an accident with a vehicle licensed to Guardian Security Company,Heidi signs a covenant not to sue Guardian Security for damages in a tort action if it pays for the damage to her car.This covenant is​

Correct AnswerverifiedA

Leon contracts to install automatic watering troughs in Kendall's dairy barn.Leon then becomes seriously ill and contracts with Jake to install the troughs.Jake is unreliable and never shows up to perform the contract.Kendall can sue​

Correct AnswerverifiedShow Answer

If no time for acceptance is specified in an offer,the offer terminates after a reasonable length of time.

Correct AnswerverifiedTrue

Anton tells Brooke,who has no knowledge of Shakespearean comedy,that he will tutor her in the subject for $50.As an offer,this is​

Correct AnswerverifiedShow Answer

Both intended and incidental beneficiaries acquire legal rights in a contract.

Correct AnswerverifiedShow Answer

There are no revocable offers.

Correct AnswerverifiedShow Answer

If a bargain is grossly unfair,it is unconscionable.

Correct AnswerverifiedShow Answer

Marketing Solutions Inc.promises to employ Niki as a software engineer.In reliance on the promise,Niki quits her job with Online Ad Company,but Marketing Solutions does not hire her.Most likely,Marketing Solutions is​

Correct AnswerverifiedShow Answer

A covenant not to compete included in the sale of an ongoing business is never enforceable.

Correct AnswerverifiedShow Answer

Under the doctrine of promissory estoppel,a promise will not be enforced unless it is supported by consideration.

Correct AnswerverifiedShow Answer

A release does not require consideration to be legally binding.

Correct AnswerverifiedShow Answer

K'Nect,Inc. ,makes an offer to Lori to enter into a contract to work as a salesperson for a certain salary plus commission for ninety days subject to a one-year renewal based on her performance.Lori accepts the offer.A valid contract requires​

Correct AnswerverifiedShow Answer

Oceans Inc. ,a seafood distributor,agrees to buy from Paul,a commercial fisherman,any "overstock" of fish that Paul catches in excess of his legal limit.This agreement is most likely​

Correct AnswerverifiedShow Answer

Revenue & Sales Corporation and Software,Inc. ,enter into a contract for the design of custom software for which Revenue & Sales agrees to pay $64,500.Software transfers the right to payment under the contract to CreditLine LLC.This transfer is​

Correct AnswerverifiedShow Answer

Kevin obtains a loan from Liberty Credit Bank at an interest rate that exceeds the state's maximum.Liberty has​

Correct AnswerverifiedShow Answer

Kim enters into a contract to lease an apartment from Laurel Wood Apartments.The lease contains an exculpatory clause.This clause is​

Correct AnswerverifiedShow Answer

Fresh Gro,Inc. ,offers to deliver produce to the customers of Grocer's Mart for a certain price.Fresh's intent to extend a serious offer to Grocer's Mart is determined by reference to Fresh's​

Correct AnswerverifiedShow Answer

Most ads-"this property for sale"-are offers.

Correct AnswerverifiedFalse

Correct Answer
verified

Correct Answer
verified

After an accident with a vehicle licensed to Guardian Security Company,Heidi signs a covenant not to sue Guardian Security for damages in a tort action if it pays for the damage to her car.This covenant is

Correct Answer
verified
A

Leon contracts to install automatic watering troughs in Kendall's dairy barn.Leon then becomes seriously ill and contracts with Jake to install the troughs.Jake is unreliable and never shows up to perform the contract.Kendall can sue

Correct Answer
verified

Correct Answer
verified
True

Anton tells Brooke,who has no knowledge of Shakespearean comedy,that he will tutor her in the subject for $50.As an offer,this is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Marketing Solutions Inc.promises to employ Niki as a software engineer.In reliance on the promise,Niki quits her job with Online Ad Company,but Marketing Solutions does not hire her.Most likely,Marketing Solutions is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

K'Nect,Inc. ,makes an offer to Lori to enter into a contract to work as a salesperson for a certain salary plus commission for ninety days subject to a one-year renewal based on her performance.Lori accepts the offer.A valid contract requires

Correct Answer
verified

Oceans Inc. ,a seafood distributor,agrees to buy from Paul,a commercial fisherman,any "overstock" of fish that Paul catches in excess of his legal limit.This agreement is most likely

Correct Answer
verified

Revenue & Sales Corporation and Software,Inc. ,enter into a contract for the design of custom software for which Revenue & Sales agrees to pay $64,500.Software transfers the right to payment under the contract to CreditLine LLC.This transfer is

Correct Answer
verified

Kevin obtains a loan from Liberty Credit Bank at an interest rate that exceeds the state's maximum.Liberty has

Correct Answer
verified

Kim enters into a contract to lease an apartment from Laurel Wood Apartments.The lease contains an exculpatory clause.This clause is

Correct Answer
verified

Fresh Gro,Inc. ,offers to deliver produce to the customers of Grocer's Mart for a certain price.Fresh's intent to extend a serious offer to Grocer's Mart is determined by reference to Fresh's

Correct Answer
verified

Correct Answer
verified
False