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Contract Basics
Contract Basics
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Contract law #law #contracts #financial Literacy 20
Flashcards
33 cards
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Questions
33
Answers
1
Which of the following is most likely to lead to a case of undue influence?
Molly takes care of her 102 year old grandmother's finances
Tom lives next door to Rob & Sarah and their 4 children
Ann and Jen are best friends, although they live far apart
Craig cuts Kurt's lawn, and Kurt fixes Craig's car
2
Which of the following statements about contracts is true?
minors can be forced to honor their contracts
to be valid there must be an exchange of consideration
oral contracts are not legally binding
anyone can enter into a contract
3
Which of the following does not have to be in writing?
I am buying a car for $12,000
I am hiring a lawn service for the next 8 months
I am buying a vacation home in Arizona
I am paying my nephew's car loan if he can't
4
You hire a student who claims to know sign language. However, you quickly learn he's not as fluid as he indicated.
Frustration
Illegal
Mistake
Misrepresentation
5
Jim offers to pay Shelley $3,000 if she puts Jim's boat into storage. This is a unilateral contract because...
Only Shelley is providing a service
a nice boat needs winter storage
Jim doesn't get any money in the deal.
Shelley is not obligated to store the boat, but if she does, Jim has to pay
6
Ed leaves his job after signing a non-compete agreement. What will the courts
not
evaluate?
Ed's ability to earn a living outside his old profession
How long the noncompete lasts
Geographical restrictions of the noncompte
Ed's hight and weight
7
Joan posts for sale a double bed. However, once you see it, you discover it is a twin and choose not to buy it.
illegal
Misrepresentation
Frustration
Mistake
8
If the terms of a contract are unclear, the courts may look at your past dealings to try to understand what you meant.
False
True
9
Contracts should be?
be in writing and worded to avoid multiple interpretations
be looked over by a lawyer
photo copied and kept in 3 seperate locations
be electronically done for efficiency
10
Which word in a court's ruling indicates you must NOT do something. Ex) not compete or perform for other teams or bands
damages
bilateral
injunction
rescinded
11
Dylan works on her family farm for a seasonal wage over the summer. What type of contract is this?
illegal
unilateral
bilateral
void because she is a minor
12
Which shows intent to contract?
you buy your buddy a winning roll up the rim. The prize should be yours.
You raise your bidding paddle at an auction
While enjoying a soak in a hot tub, you and hubby agree to buy a hot tub.
A personal ad in the paper says, "looking for someone less crazy than me."
13
What does "Duress" mean?
You lie frequently and cannot be trusted
You are considered wealthy
You are intimidated and uncomfortable
You own the product being negotiated
14
The courts order you to complete the job for the pay agreed upon even though you want out. What remedy is proposed here?
damages
injunction
rescission
specific performance
15
The thing of value that is exchanged in a contract is known as the...
Execution
Differentiation
Consideration
Consolidation
16
Before enforcing a contract, the courts would consider
if the contract was written in the last 6 months
if there was intent to contract
if there is a warrant for either party's arrest.
if the court proceedings outweight the value of the contract
17
which is
not
necessary for an agreement to be considered a legal contract?
certainty of terms
offer and acceptance
written document
consideration
18
I steal a diamond necklace and sell it to Bob, but he refuses to pay.
There's no contract, the subject of the contract is illegal
There's no contract because the goods are more than $500
Writing or verbal - Bob has to pay
If the contract was in writing, Bob has to pay
19
Oral contracts are not enforceable.
False
True
20
Which is not a type of contract?
head nod
written
implied
oral
21
Tim is suing Ann for fraud over the sale of jewelry. Which is
not
necessary for Tim to prove?
Ann knew her claim was false when she made it
Tim relied on the false statement
Ann's false claims were material
Ann's false claims were in writing
22
Legally speaking, all contracts are agreements, but not all agreements are contracts.
False
True
23
Steve sells a 2012 Camry to Kris, who thinks it's a 2013 Camry. Steve did not mislead Kris.
This is a bilateral mistake and the contract is void
This is a case of fraud and the contract is voidable by Kris
This is a unilateral mistake and the contract is valid
This is a unilateral mistake and the contract is void
24
Which relationship between parties may influence whether or not the contract is legally binding?
customer and sales rep
seller and buyer
father and son
boss and employee
25
Your dog eats a tide pod and throws up. The dog walker refuses to take him in that condition. Why is this contract void?
misrepresentation
mistake
frustration
illegal
26
An offeror makes an offer to the...
arbitrator
offeree
minor
consideration
27
When a contract appears to be made under duress, the courts would
rescind the contract
issue an injunction
offer time served
offer payment for damamges
28
A contract may be voided when one party ________.
is a minor
is under duress
has been fraudulently misled
all the above
29
For a contract to demonstrate "certainty of terms"...
both parties have the same understanding
No important information is missing from the terms
the language in the contract is clear
30
Your coach asks you to dog watch all weekend without pay. You'd rather not, but feel obligated to. This demonstrates...
duress
unconscionability
injunction
undue influence
31
Which of the following is
not
a way in which an offer can be terminated?
Make a counteroffer
A competing offer from a third party
Subject of the contract is destroyed
Say no
32
Which of the following individuals meets the capacity rule for contracts?
Mentally impaired
Severely intoxicated
Minor
Foreigner
33
Steve offers Amy $50 for a job, and Amy says she'll do it for $55. What did Amy do?
Completed
Executed
Counteroffered
Mediated
