SNHU Business Law Exam 2
All contracts involve promises, and every promise is a legal contract. - Answer-F
An agreement includes an offer and an acceptance. - Answer-T
Consideration, in contract terms, refers to a party's competency to enter into a contract. - Answer-F
A unilateral contract involves performance instead of promises. - Answer-T
Formal contracts are contracts between parties who are in formal relationships employer-employee
relationships, for example. - Answer-F
An unenforceable contract is a contract in which one or both of the parties have the option of avoiding
their legal obligations. - Answer-F
A court imposes a quasi contract to avoid one party's unjust enrichment at another's expense. - Answer-
T
An express contract is one in which the terms are fully stated in words. - Answer-T
An oral contract is an implied contract. - Answer-F
Don contracts with Jan to paint Jan's townhouse while she's on vacation. By mistake, Don paints Mick's
town house. Mick sees Don but says nothing. From whom can Don recover?
, a. Jan, because she was the party with whom Don contracted.
b. Jan, under the theory of quasi contract.
c. Mick, because his house was painted.
d. Mick, under the theory of quasi contract. - Answer-d. Mick, under the theory of quasi contract.
Brian offers to sell Ashley his vintage vinyl records collection, forgetting that he does not want to sell
some of the records. Unaware of Brian's forgetfulness, Ashley accepts. Is there a contract including all of
Brian's records?
a. Yes, according to the objective theory of contracts.
b. Yes, according to the subjective theory of contracts.
c. No, because Brian did not intend to sell his favorite records.
d. No, because Ashley had no reason to know of Brian's forgetfulness. - Answer-a. Yes, according to the
objective theory of contracts.
Greg promises to imprint four thousand T-shirts with Rona's logo. Rona pays in advance. Before Greg
delivers the shirts, the contract is classified as
a. executory, because it is executory on Greg's part.
b. executory, because it is executory on Rona's part.
c. executed, because it is executed on Greg's part.
d. none of the above. - Answer-a. executory, because it is executory on Greg's part.
Without mentioning payment, Mary accepts the services of Lee, a contractor, and is pleased with the
work. Is there a contract between them?
a. Yes, there is an express contract.
All contracts involve promises, and every promise is a legal contract. - Answer-F
An agreement includes an offer and an acceptance. - Answer-T
Consideration, in contract terms, refers to a party's competency to enter into a contract. - Answer-F
A unilateral contract involves performance instead of promises. - Answer-T
Formal contracts are contracts between parties who are in formal relationships employer-employee
relationships, for example. - Answer-F
An unenforceable contract is a contract in which one or both of the parties have the option of avoiding
their legal obligations. - Answer-F
A court imposes a quasi contract to avoid one party's unjust enrichment at another's expense. - Answer-
T
An express contract is one in which the terms are fully stated in words. - Answer-T
An oral contract is an implied contract. - Answer-F
Don contracts with Jan to paint Jan's townhouse while she's on vacation. By mistake, Don paints Mick's
town house. Mick sees Don but says nothing. From whom can Don recover?
, a. Jan, because she was the party with whom Don contracted.
b. Jan, under the theory of quasi contract.
c. Mick, because his house was painted.
d. Mick, under the theory of quasi contract. - Answer-d. Mick, under the theory of quasi contract.
Brian offers to sell Ashley his vintage vinyl records collection, forgetting that he does not want to sell
some of the records. Unaware of Brian's forgetfulness, Ashley accepts. Is there a contract including all of
Brian's records?
a. Yes, according to the objective theory of contracts.
b. Yes, according to the subjective theory of contracts.
c. No, because Brian did not intend to sell his favorite records.
d. No, because Ashley had no reason to know of Brian's forgetfulness. - Answer-a. Yes, according to the
objective theory of contracts.
Greg promises to imprint four thousand T-shirts with Rona's logo. Rona pays in advance. Before Greg
delivers the shirts, the contract is classified as
a. executory, because it is executory on Greg's part.
b. executory, because it is executory on Rona's part.
c. executed, because it is executed on Greg's part.
d. none of the above. - Answer-a. executory, because it is executory on Greg's part.
Without mentioning payment, Mary accepts the services of Lee, a contractor, and is pleased with the
work. Is there a contract between them?
a. Yes, there is an express contract.
