LSTD 2106 PRACTICE EXAM 4 WITH
CORRECT QUESTIONS AND ANSWERS
T/F Without any exception, courts will enforce a contract in which the offer states that
failure to respond will be considered an acceptance of the offer - ANSWER-False
T/F A contract is simply an agreement that a court of law will recognize and enforce. -
ANSWER-True
T/F Only written contracts are considered to be enforceable. - ANSWER-False
T/F Robert called a cleaning service and hired them to clean his apartment. The service
staff mistakenly cleaned Brandon's apartment, which was situated directly above
Robert's. The category of contracts that will require Brandon to pay the cleaning service
even though he did not ask for it is a quasi-contract. - ANSWER-True
T/F A nominal amount of money, such as one dollar, is sufficient consideration to form a
valid contract. This is true even if the other party's consideration is much more valuable.
- ANSWER-True
Which of the following elements of a contract pertains to the fact that there is an offer
and agreement between the involved parties? - ANSWER-Mutual assent
Which of the following is true of contracts with minors? - ANSWER-A minor may force
the concerned adult to complete the contract.
If a hybrid contract is predominantly for services, and the goods are incidental, then the
contract is governed by _____. - ANSWER-common law
Which of the following is most likely to be considered void automatically? - ANSWER-A
contract that violates a public policy.
Builders Inc., an experienced contractor, requested a bid from a supplier for lumber
needed to complete a project. When responding to the bid, the supplier made a clerical
error, and offered $30,000 worth of lumber for $3,000. Builders sent an e-mail accepting
the offer. If this situation turns into a legal dispute - ANSWER-the Court is likely to find
that this is a unilateral mistake. However, since Builders knew (or should have known)
that there was a mistake, the supplier will not be held to the $3,000 quote
T/F Susan offered to pay Roger $50 to walk her dog for the next 8 days. Roger
responded that he was available to walk the dog for the next 8 days for a fee of $60.
Roger's statement is an acceptance of Susan's offer. - ANSWER-False
, T/F If an individual was legally declared to be incompetent by a court prior to entering
into a contract, most states will consider the contract to be voidable. - ANSWER-False
T/F The mailbox rule governing common law contracts provides that the acceptance of
an offer is generally effective as soon as the acceptance is received by the offeror. -
ANSWER-False
T/F Implied contracts are formed to remedy situations in which one party suffers losses
as a result of another party's unjust enrichment - ANSWER-False
T/F Mutual assent refers only to the written acceptance of an offer. - ANSWER-False
Linda has signed a two-year-long contract with HNS Inc., a clothing retail store, to work
as a sales trainee. Linda's parents are outraged because Linda is not yet 18 years of
age. In this scenario, which of the following elements of the contract between Linda and
HNS Inc. has most likely been missed? - ANSWER-Capacity to contract
Which of the following factors will a court most likely examine to determine the source of
law governing a hybrid contract? - ANSWER-The value of goods versus the value of
services.
Todd offers to shovel the snow off Maria's patio for $25. Maria agrees verbally and
shakes Todd's hand to sign off on the agreement. When Todd has completed the
shoveling job, Maria pays him the $25. This scenario best illustrates a(n) _____. -
ANSWER-express, bilateral contract
A(n) _____ is created when the parties involved have knowingly and intentionally
agreed on the promises and performances. - ANSWER-express contract
A(n) _____ is best defined as a contract that one party may, at its option, either
disaffirm or enforce. - ANSWER-voidable contract
T/F Deviation from the required performance pertaining to a contract is said to be
material when the deviation does not result in a substantial change in value of the
contract. - ANSWER-False
T/F The statute of frauds does not apply to contracts made in consideration of marriage.
- ANSWER-false
T/F Independent agencies are designated by Congress as independent of the executive
branch of the government and do not exist by virtue of the authority of the president -
ANSWER-true
T/F One way that administrative agencies monitor the compliance of businesses with
regulatory requirements is through inspection of facilities and business sites under their
jurisdiction. - ANSWER-true
CORRECT QUESTIONS AND ANSWERS
T/F Without any exception, courts will enforce a contract in which the offer states that
failure to respond will be considered an acceptance of the offer - ANSWER-False
T/F A contract is simply an agreement that a court of law will recognize and enforce. -
ANSWER-True
T/F Only written contracts are considered to be enforceable. - ANSWER-False
T/F Robert called a cleaning service and hired them to clean his apartment. The service
staff mistakenly cleaned Brandon's apartment, which was situated directly above
Robert's. The category of contracts that will require Brandon to pay the cleaning service
even though he did not ask for it is a quasi-contract. - ANSWER-True
T/F A nominal amount of money, such as one dollar, is sufficient consideration to form a
valid contract. This is true even if the other party's consideration is much more valuable.
- ANSWER-True
Which of the following elements of a contract pertains to the fact that there is an offer
and agreement between the involved parties? - ANSWER-Mutual assent
Which of the following is true of contracts with minors? - ANSWER-A minor may force
the concerned adult to complete the contract.
If a hybrid contract is predominantly for services, and the goods are incidental, then the
contract is governed by _____. - ANSWER-common law
Which of the following is most likely to be considered void automatically? - ANSWER-A
contract that violates a public policy.
Builders Inc., an experienced contractor, requested a bid from a supplier for lumber
needed to complete a project. When responding to the bid, the supplier made a clerical
error, and offered $30,000 worth of lumber for $3,000. Builders sent an e-mail accepting
the offer. If this situation turns into a legal dispute - ANSWER-the Court is likely to find
that this is a unilateral mistake. However, since Builders knew (or should have known)
that there was a mistake, the supplier will not be held to the $3,000 quote
T/F Susan offered to pay Roger $50 to walk her dog for the next 8 days. Roger
responded that he was available to walk the dog for the next 8 days for a fee of $60.
Roger's statement is an acceptance of Susan's offer. - ANSWER-False
, T/F If an individual was legally declared to be incompetent by a court prior to entering
into a contract, most states will consider the contract to be voidable. - ANSWER-False
T/F The mailbox rule governing common law contracts provides that the acceptance of
an offer is generally effective as soon as the acceptance is received by the offeror. -
ANSWER-False
T/F Implied contracts are formed to remedy situations in which one party suffers losses
as a result of another party's unjust enrichment - ANSWER-False
T/F Mutual assent refers only to the written acceptance of an offer. - ANSWER-False
Linda has signed a two-year-long contract with HNS Inc., a clothing retail store, to work
as a sales trainee. Linda's parents are outraged because Linda is not yet 18 years of
age. In this scenario, which of the following elements of the contract between Linda and
HNS Inc. has most likely been missed? - ANSWER-Capacity to contract
Which of the following factors will a court most likely examine to determine the source of
law governing a hybrid contract? - ANSWER-The value of goods versus the value of
services.
Todd offers to shovel the snow off Maria's patio for $25. Maria agrees verbally and
shakes Todd's hand to sign off on the agreement. When Todd has completed the
shoveling job, Maria pays him the $25. This scenario best illustrates a(n) _____. -
ANSWER-express, bilateral contract
A(n) _____ is created when the parties involved have knowingly and intentionally
agreed on the promises and performances. - ANSWER-express contract
A(n) _____ is best defined as a contract that one party may, at its option, either
disaffirm or enforce. - ANSWER-voidable contract
T/F Deviation from the required performance pertaining to a contract is said to be
material when the deviation does not result in a substantial change in value of the
contract. - ANSWER-False
T/F The statute of frauds does not apply to contracts made in consideration of marriage.
- ANSWER-false
T/F Independent agencies are designated by Congress as independent of the executive
branch of the government and do not exist by virtue of the authority of the president -
ANSWER-true
T/F One way that administrative agencies monitor the compliance of businesses with
regulatory requirements is through inspection of facilities and business sites under their
jurisdiction. - ANSWER-true
