BLR 235- Exam #2
The elements of a contract (that is, the contract "formula"): - correct answer-K = O + A + C +
(leg. + cap.)
Chris gets down on one knee, late at night at O'Flanigans, and decides to propose to Krystal,
his hostess. He just met her. Anyway, he says to Krystal, "Will you marry me?" Krystal looks
at him (pathetically) and says nothing. She's in shock. Actually, she's insulted. She still says
nothing but folds her arms instead. Chris gets nervous. He knows that this is not a good
situation. He also knows, from his law class that the typical rule about silence is: - correct
answer-Silence is ordinarily not considered an acceptance.
Which of the following cases dealt with the issue of intoxication as a defense to a contract in
which one of the parties attempted to state that they did not have the competence to enter
into the agreement because they were "as high as a Georgia pine": - correct answer-Lucy v.
Zehmer
A quasi contract may be defined as: - correct answer-An implied contract
Rachele offers to sell Allie her collection of rare books. Before Allie even has a chance to
accept, Rachele says, "Sorry, I changed my mind, no deal." This is an example of: - correct
answer-A revocation
Which of the following cases dealt with the issue of promissory estoppel and involved a case
from Wisconsin? - correct answer-Hoffman v. Red Owl Stores
If the terms of a written contract are clear and unambiguous, a court may not consider
extrinsic (outside) oral evidence (any evidence not contained in the contract itself) when
interpreting the document. This is known most closely as: - correct answer-The parol
evidence rule
Contracts in the United States are governed by: - correct answer-The common law-unless
modified by a statute or a model act such as the UCC
An executory contract is: - correct answer-A contract not yet fully performed
A formal contract requires which of the following? - correct answer-It must be in a special
format or be created using a special method
An example of a void contract would be: - correct answer-A contract formed for an illegal
purpose
Nicole, a college student, offers to sell her 2010 Toyota Camry, which has been driven
24,000 miles and has no mechanical problems that she is aware of, to her friend Jaime for
$12,000. Jaime accepts Nicole's offer but has not yet received the car. This is an example of
(choose BEST answer): - correct answer-An express contract
, Under the doctrine of quasi contract, a plaintiff may recover in quantum meruit, a Latin
phrase that means: - correct answer-"As much as he deserved"
In order for an offer to be effective, which of the following is NOT necessary? - correct
answer-The price requested must be acceptable by an unreasonable person
In contract law, consideration means: - correct answer-The "price" of a promise
In order to determine a party's intent in a contract case before it, a court will apply: - correct
answer-The objective theory of contracts
A contract may be defined as: - correct answer-A legally binding agreement, or a promise or
agreement that may be enforced in court
When two parties are negotiating a draft agreement, especially by email, it is sometimes not
necessarily clear when the parties have actually reached the stage of an enforceable
contract. Thus, _____ are often summaries of a conversation or communication and provide
the basics and the essence of the deal: - correct answer-LOI
Which of the following IS NOT a basic element of a valid contract? - correct answer-Integrity
If you promise to give Jackie $50 for her used business law text and she promises to sell it to
you for that amount, you and Jackie have formed: - correct answer-A bilateral contract
One of the main purposes of contract law is: - correct answer-To ensure that certain
promises made among private parties are enforced
The two industries which appear to view the phrase "executed contract" differently than other
industries are: - correct answer-Entertainment and Insurance
Pacta sunt servanda most closely means: - correct answer-Agreements must be enforced
In the classic contract case of Hamer v. Sidway, what was the issue? - correct
answer-Whether, based on an uncle's promise to pay $5,000, a nephew's abstention (giving
up) from a certain behavior for a number of years constituted sufficient consideration
Heather offers to sell Jason her car. In this case, Heather: - correct answer-Is the offeror
Which of the following is NOT one of the main categories of tort law: - correct
answer-Contract
Also known as the "four corners" rule, the _______________ rule is a rule of evidence that
excludes the "he said, she said," and is often solved by contract drafters by using a merger
clause, (sometimes called an entire agreement clause or an integration clause): - correct
answer-Parol evidence
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