BL-MAL-CH9

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1. A _____ contract is a "promise for an act." a

A.
unilateral
B.
promise for a promise
C.
bilateral
D.
multilateral
E.
quasi-
2. A _____ is an agreement by the issuer of the letter to pay a sum of money on the receipt of an invoice and other documents. c
A.
negotiable instrument
B.
recognizance
C.
letter of credit
D.
contract under seal
E.
reconnaissance
3. A _____ is an agreement by the issuer of the letter to pay a sum of money on the receipt of an invoice and other documents. d
A.
recognizance
B.
reconnaissance
C.
contract under seal
D.
letter of credit
E.
negotiable instrument
4. Alex, the owner of the new restaurant Rock & Shore, says to Gemma, a painter, "If you paint my shop by July 1, I will pay you a
$3,000." If Gemma does not paint the shop by July 1, there has been no acceptance, and Alex cannot sue Gemma for
damages. If Gemma paints the shop by July 1, Alex owes Gemma $3,000. If Alex refuses to pay, Gemma can sue Alex to
collect payment.

Which of the following was created when Alex extended the job offer to Gemma?

a unilateral contract

a bilateral contract

a formal contract

an electronic contract
5. Alex, the owner of the new restaurant, Rock & Shore, says to Gemma, a painter, "If you promise to paint my store by July 1, I a
will pay you $3,000." Alex says, "I promise to do so." If Gemma fails to paint the restaurant, Alex can sue her and recover
whatever damages result from her breach of contract. Similarly, Gemma can sue Alex if he refuses to pay her after she has
performed as promised.

Which of the following was created when Gemma agreed to paint the restaurant?

a bilateral contract

a unilateral contract

a formal contract

an electronic contract
6. A(n) _____ contract has no legal effect. c
A.
executory
B.
implied
C.
void
D.
voidable
E.
informal
7. A(n) _____ contract has no legal effect. d
A.
voidable
B.
implied
C.
executory
D.
void
E.
valid
8. A(n) _____ contract is a contract in which at least one of the parties has the option to void his or her contractual obligations. d
A.
void
B.
executory
C.
implied
D.
voidable
E.
informal
9. A(n) _____ contract is a "promise for a promise." e
A.
multilateral
B.
unilateral
C.
quasi-
D.
implied-in-law
E.
bilateral
10. A(n) _____ contract is entered into by way of an exchange of promises between the contracting parties. a
A.
bilateral
B.
unilateral
C.
promise for an act
D.
virtual
E.
quasi-
11. A(n) _____ contract is stated in oral or written words. e
A.
quasi-
B.
implied
C.
implied-in-law
D.
inferred
E.
express
12. A(n) _____ is a promise or set of promises for the breach of which the law gives a remedy or the performance of which the A
law in some way recognizes a duty.
A.
contract
B.
demand for adequate assurance of performance
C.
stipulation
D.
offer
E.
counteroffer
13. A quasi-contract is also known as a(n) _____ contract. b
A.
implied-in-fact
B.
implied-in-law
C.
voidable
D.
void
E.
express
14. Article _____ of the Uniform Commercial Code prescribes a set of uniform rules for the creation and enforcement of a
contracts for the lease of goods.
A.2A
B.2
C.3B
D.3A
E.3
15. Article _____ of the Uniform Commercial Code prescribes a set of uniform rules for the creation and enforcement of c
contracts for the sale of goods.
A.3
B.9
C.2
D.4
E.1
16. Chapter 9 Video_DirecTV Fine Print Leads to 1 Extraordinary Bill_2.47 mins d
According to the video, television service provider _____ imposed a ______ penalty on the __________ contract that Vanessa and
Jessica Marquez, owners of the "Papa Pita" restaurant, had signed with it.
A.
Dish Network; $15,000; equitable writing
B.
Time Warner Cable; $15,000; implied-in-fact
C.
DirecTV; $1,500; implied-in-law
D.
DirecTV; $15,000; express
E.
Dish Network; $1,500; voidable
17. Chapter 9 Video_DirecTV Fine Print Leads to 1 Extraordinary Bill_2.47 mins a
According to the video, the dispute between DirecTV and "Papa Pita" restaurant was resolved in part, by Vanessa and
Jessica Marquez asserting the principle of defense of ________ ________ How was the dispute resolved?
A.
genuineness of assent; Vanessa and Jessica Marquez negotiated a reduction of the penalty to $5,000, and then paid $1,200
toward the penalty. Ultimately, with media pressure imposed, DirecTV agreed to stop all legal action against the restaurant
and its owners, and erase the remaining $3,800 in fines.
B.
the Restatement of the Law (Second) of Contracts; Vanessa and Jessica Marquez negotiated a reduction of the penalty to
$5,000, and then paid $1,200 toward the penalty. Ultimately, with media pressure imposed, DirecTV agreed to stop all legal
action against the restaurant and its owners, reimburse the restaurant owners the $1,200 paid, and erase the remaining
$3,800 in fines.
C.
the common law of contracts; Vanessa and Jessica Marquez negotiated a reduction of the penalty to $5,000, and then paid
$1,200 toward the penalty. Ultimately, after the parties consented to submit the case to binding arbitration, an arbitrator
ordered DirecTV to stop all legal action against the restaurant and its owners, and erase the remaining $3,800 in fines.
D.
the implied-in fact contract doctrine; Vanessa and Jessica Marquez agreed to pay the $15,000 penalty.
E.
the objective theory of contracts; Vanessa and Jessica Marquez negotiated a reduction of the penalty to $5,000, and then
paid $1,200 toward the penalty. Ultimately, with the assistance of a mediator, DirecTV agreed to stop all legal action against
the restaurant and its owners, and erase the remaining $3,800 in fines.
18. Chapter 9 Video_DirecTV Fine Print Leads to 1 Extraordinary Bill_2.47 mins b
According to the video, tips for dealing with salespersons include all of the following EXCEPT?
A.
read the contract in its entirety
B.
deal directly with the company instead of its salespersons
C.
resist pressure to accept an offer
D.
get promises in writing
E.
compare offers from multiple offerors
19. Chapter 9 Video_DirecTV Fine Print Leads to 1 Extraordinary Bill_2.47 mins b
Based on the facts presented in the video, what is the best legal argument for DirecTV's attempt to recover a $15,000
penalty from "Papa Pita" and its owners?
A.
The contact specified that the DirecTV satellite service was for "commercial use" only, but the service was also being used in
a residential setting. Therefore, the restaurant and its owners were in breach of contract for unlawfulness of the contract.
B.
The contract specified that the DirecTV satellite service was for "residential use" only, but the service was being used in a
commercial setting. Therefore, the restaurant and its owners were in breach of contract for unlawfulness of the contract.
C.
DirecTV was an independent contractor of the Federal Communications Commission (FCC), and therefore authorized to
recover the $15,000 penalty from the restaurant and its owners.
D.
DirecTV was an agent of the Federal Communications Commission (FCC), and therefore authorized to recover the $15,000
penalty from the restaurant and its owners for unlawful use of its services.
E.
The contract specified that the DirecTV satellite service was for "Papa Pita" use only, but was being "shared" with other shops
in the same business complex. Therefore, Papa Pita and its owners were in breach of contract.
20. Chapter 9 Video_DirecTV Fine Print Leads to 1 Extraordinary Bill_2.47 mins a
In the video, the owners of "Papa Pita" restaurant had signed a(n) __________, which is an agreement that is enforceable by
_____.
A.
contract; law or equity
.B.
offer; law but not equity
C.
offer; law or equity
D.
contract; equity but not law
E.
contract; law but not equity
21. Checks, drafts, notes, and certificates of deposit are special forms of contracts recognized by the UCC. They require a a
special form and language for their creation and must meet certain requirements for transfer.

These are examples of which of the following types of formal contracts?

negotiable instruments

letters of credit

recognizances

contracts under seal

22. A completed contract is called a(n) _____ contract. b
A.
quasi-
B.
executed
C.
executory
D.
void
E.
voidable
23. A contract in which one or both parties have the option to void theircontractual obligations is called a(n) ___ contract. a

voidable

valid

void

unenforceable
24. A contract in which the essential elements to create a valid contract are met but there is some legal defense to the a
enforcement of the contract is called a(n)____ contract.

unenforceable

valid

void

voidable
25. A contract is an agreement that is enforceable by a court of _____ or _____. c
A.
tort; equity
B.
procedure; substance
C.
law; equity
D.
tort; crime
E.
crime; equity
26. _____ contracts are implied from the conduct of the parties. c
A.
Formal
B.
Implied-in-law
C.
Implied-in-fact
Your answer is correct.D.
Quasi-
E.
Express
27. Contracts that have an illegal object are _____. c
A.
voidable
B.
enforceable if, despite the illegality, they are consistent with public policy
C.
void
D.
generally enforceable if the consideration exchange is equal (or near-equal) in value
E.
enforceable if, despite the illegality, they are equitable under the circumstances
28. A contract that has no legal effect is called a(n) ___ contract a

void

valid

voidable

unenforceable
29. A contract that is either express or implied-in-fact is called an contract. a

actual

unenforceable

executory

informal
30. A doctrine that permits judges to make decisions based on fairness, equality, moral rights, and natural law is called the a
doctrine of ___ .

equity

implied-in-law contract

contractual capacity

acceptance
31. An equitable doctrine whereby a court may award monetary damages to a plaintiff for providing work or services to a a
defendant even though no actual contract existed is called the doctrine of _____ .

implied-in-law contract

equity

contractual capacity

acceptance
32. The following elements must be established to create a certain type of contract: a

1. The plaintiff provided property or services to the defendant.

2. The plaintiff expected to be paid by the defendant for the property or services and did not provide the property or
services gratuitously.

3. The defendant was given an opportunity to reject the property or services provided by the plaintiff but failed to do so.

These elements are part of which kind of contract?

an implied-in-fact contract

a void contract

an express contract

an executed contract
33. For a contract to be enforceable, something of legal value must be given in exchange for a promise. Money, personal a
property, real property, provision of services, and the like, qualify as consideration.

To which element of an enforceable contract does the scenario refer?

consideration

agreement

contractual capacity

lawful object
34. For which type of contract is no special form or method required for their creation, and thus, the parties to this contract can a
use any words they choose to express their contract?

an informal contract

a formal contract

a bilateral contract

a unilateral contract
35. The goal of the Uniform _____ Code is to create a system of commercial law among the 50 states. d
A.
Merchant
B.
Constitutional
C.
Product
D.
Commercial
E.
Contracts
36. In a _____ contract, the offeror's offer can be accepted only by the performance of an act by the offeree. b
A.
bilateral
B.
unilateral
C.
quasi-
D.
multilateral
E.
promise for a promise
37. The intent to enter into a contract is determined using the _____ theory of contracts. c
A.
personal
B.
profit
C.
objective
D.
subjective
E.
uniform
38. In which of the following does a party acknowledge in court that he or she will pay a specified sum of money if a certain a
event occurs?

a recognizance

a negotiable instrument

a letter of credit

a contract under seal

39. Leases of automobiles, leases of aircraft, and other leases involving goods are subject to which one of the following sources a
of contract law?

Article 2A of the Uniform Commercial Code

the common law of contracts

Article 2 of the Uniform Commercial Code

contractual capacity
40. A major source of contract law is the _____ law of contracts, which developed from early court decisions that became e
precedent for later decisions.
A.
uniform
B.
constitutional
C.
federal
D.
statutory
E.
common
41. Mary, the owner of the Chic Dress Shop, says to Peter, a painter, "If you paint my shop by July 1, I will pay you $3,000." This c
offer creates a _____.
A.
contract subject to a condition subject
B.
bilateral contract
C.
unilateral contract
D.
contract subject to a condition precedent
E.
voidable contract
42. Negotiable instruments are special types of _____ contracts. c
A.
informal
B.
non-commercial
C.
formal
D.
implied
E.
quasi-
43. Negotiable instruments are special types of _____ contracts. d
A.
quasi-
B.
implied
C.
informal
D.
formal
E.
non-commercial
44. An offer is made by an offeror to enter a contract, and that offer is accepted by the offeree. There is mutual assent by a
both parties.

To which element of an enforceable contract does the scenario refer?

agreement

consideration

contractual capacity

lawful object
45. ______ refers to a manifestation of assent by the offeree to the terms of the offer in a manner invited or required by the a
offer as measured by the objective theory of contracts.

Acceptance

An agreement

A contract

Genuineness of assent
46. The sale of equipment, automobiles, computers, clothing, and such involve sales contracts subject to which one of the a
following sources of contract law?

Article 2 of the Uniform Commercial Code

the common law of contracts

Article 2A of the Uniform Commercial Code

genuineness of assent
47. Suppose Mary, the owner of the Chic Dress Shop, says to Peter, a painter, "If you promise to paint my store by July 1, I will a
pay you $3,000." Peter says, "I promise to do so." A _____ was created at the moment Peter promised to paint the dress
shop.
A.
bilateral contract
B.
contract subject to a condition precedent
C.
contract subject to a condition subsequent
D.
counteroffer
E.
unilateral contract
48. The _____ is the party to whom the offer is made. d
A.
offeror
B.
delegatee
C.
assignee
D.
offeree
E.
delegator
49. The _____ is the party who makes an offer to enter into a contract. b
A.
assignor
B.
offeror
C.
delegatee
D.
offeree
E.
delegator
50. The _____ is the party who makes an offer to enter into a contract, and the _____ is the party to whom the offer is made. D
A.
offeree; offeror
B.
assignor; assignee
C.
assignee; assignor
D.
offeror; offeree
E.
delegator; delegatee
51. The _____ theory of contracts states that the intent to contract is judged by the reasonable person standard and not by the d
subjective intent of the parties.
A.
subjective
B.
profit
C.
uniform
D.
objective
E.
personal
52. Two defenses may be raised to the enforcement of contracts: _____ and _____. d
A.
inequality of consideration; writing and form
B.
genuineness of assent; absence of contract-related profit
C.
inequality of consideration; genuineness of assent
D.
genuineness of assent; writing and form
E.
writing and form; absence of contract-related profit
53. Two parties consent to a contract. However, in court, it's found that one of the parties obtained consent through duress. a

This scenario exemplifies which of the following defenses to the enforcement of contracts?

genuineness of assent

writing and form

equity

the objective theory of contracts

54. Which kind of contract meets all of the following characteristics? a

(1) consists of an agreement between the parties,

(2) is supported by legally sufficient consideration,

(3) is between parties with contractual capacity, and

(4) accomplishes a lawful object

a valid contract

a void contract

a voidable contract

an unenforceable contract
55. Which of the following is a model act that establishes uniform legal rules for the formation and enforcement of electronic a
contracts and licenses?

The Uniform Computer Information Transactions Act

The Uniform Commercial Code (UCC)

Traditional contract law

Restatement of the Law of Contracts

56. Which of the following is an agreement by the issuer to pay a sum of money on the receipt of an invoice and other a
documents?

a letter of credit

a negotiable instrument

a recognizance

a contract under seal

57. Which of the following is an INCORRECT statement regarding defenses to the enforcement of a contract? c
A.
If consent is obtained by duress, there is no real consent.
B.
If consent is obtained by undue influence, there is no real consent.
C.
The consent of the parties to create a contract need not be genuin
D.
The law requires that certain contracts be in writing or in a certain form.
E.
If consent is obtained by fraud, there is no real consent.
58. Which of the following is NOT a required element of a contract? A
A.
counteroffer
B.
consideration
C.
agreement
D.
lawful object
E.
contractual capacity
59. Which of the following is NOT a type of formal contract? a
A.
quasi-contract
B.
recognizance
C.
contract under seal
D.
letter of credit
E.
negotiable instrument
60. Which of the following says that the intent to contract is judged by the reasonable person standard and not by the a
subjective intent of the parties?

the objective theory of contracts

the Restatement of the Law of Contracts

the doctrine of quasi contract

the doctrine of equity

61. A written agreement to buy an automobile from a dealership is a(n)_____ contract. b
A.
implied-in-fact
B.
express
C.
implied-in-law
D.
quasi-
E.
voidable
62. You make an verbal agreement to purchase your next-door neighbor's red bicycle. a

Your agreement is an example of which of the following?

an express contract

a void contract

an implied-in-fact contract

an executed contract
63. Your friend Buffy signs a contract to purchase a new BMW automobile from Luxury Motors. Buffy then pays for the car and a
Luxury Motors delivers the car to Buffy.

Buffy's contract is an example of which of the following?

an executed contract

an executory contract

an implied-in-fact contract

a void contract
64. Your friend Buffy signs a contract to purchase a new BMW automobile from Luxury Motors. She has not yet paid for the car, a
and Luxury Motors has not yet delivered the car to Buffy.

Buffy's contract is an example of which of the following?

an executory contract

an executed contract

an implied-in-fact contract

a void contract