Contract Basics

Question 1

The Mailbox Rule applies when...

Accepted Answer

written acceptance is sent in the mail

Question 2

Steve offers Amy $50 for a job, and Amy says she'll do it for $55. What did Amy do?

Accepted Answer

Counteroffered

Question 3

Legally speaking, all contracts are agreements, but not all agreements are contracts.

Accepted Answer

True

Question 4

Which of the following is most likely to lead to a case of undue influence?

Accepted Answer

Molly takes care of her elderly grandmother's finances

Question 5

The thing of value that is exchanged in a contract is known as the...

Accepted Answer

Consideration

Question 6

A contract entered into when one party ___________ is voidable by that party.

Accepted Answer

all the above

Question 7

Which of the following does not have to be in writing?

Accepted Answer

I am hiring a lawn service for the next 8 months

Question 8

Which of the following individuals does NOT violate the capacity rule for contracts?

Accepted Answer

Foreign citizen

Question 9

Tim sells his car, a 2020 Honda, to Kris. Kris thinks it's a 2021 Honda. Tim did not mislead her, it was her mistake.

Accepted Answer

This is a unilateral mistake and the contract is valid

Question 10

I steal a diamond necklace and sell it to Bob, but he refuses to pay.

Accepted Answer

There's no contract, the subject of the contract is illegal

Question 11

Tim is suing Ann for fraud over the sale of jewelry. Which is not necessary for Tim to prove?

Accepted Answer

Ann's false claims were in writing

Question 12

Which of the following is not a way in which an offer can be terminated?

Accepted Answer

A competing offer from a third party

Question 13

An offeror makes an offer to the...

Accepted Answer

offeree

Question 14

An offeree has to accept the exact terms given by the offeror. This is known as the...

Accepted Answer

Mirror Image rule

Question 15

An exculpatory clause is a statement dealing with a person's or organization's...

Accepted Answer

Liability

Question 16

Which of the following is not subject to the Statute of Frauds?

Accepted Answer

Service contracts performed by a licensed professional

Question 17

An contract with my business partner, where he agrees to NOT sell his stock for at least 2 years, is an example of...

Accepted Answer

forbearance

Question 18

Ed leaves his job after signing a non-compete agreement. What will the courts not evaluate?

Accepted Answer

Where Ed went to college

Question 19

Mary agrees to buy Tom's collection of 240 rare coins for $9,000.

Accepted Answer

Contract has to be in writing because it's for goods > $500

Question 20

Contracts involving suretyship are required to be in writing. What is suretyship?

Accepted Answer

promise to pay someone's debt

Questions 20