Harvard edx Contrac Law FULL latest updated 2025
Unit 1
Deadweight Loss Problem 1
2/2 points (graded)
Vera and Vladimir live in the Arctic. Vera is an expert ice fisher, and Vladimir is an
excellent hunter. Neither is any good at the other activity – Vera is a terrible hunter,
and Vladimir is awful at fishing.
Vera can only ice fish in the winter, but she can freeze what she catches to eat
during the summer. Vladimir can only hunt in the summer, but he can’t freeze
what he kills.
It’s winter, and all of the meat that Vladimir killed during the summer has been
eaten or has spoiled. He’s hungry. He sees that Vera is still slowly but surely
catching fish, and that she isn’t eating all of them – she’s freezing the extras. He
asks her if he can have some of her extra fish, but she says no, because she needs
to freeze them so she’ll have something to eat in the summer, when she can’t fish.
As a result, Vladimir doesn’t have anything to eat.
What is the deadweight loss in this situation?
Vera is freezing her extra fish.
Vladimir has nothing to eat in the winter.
correct Vera won't have anything to eat in the
summer.
Vladimir will be unable to eat all of the meat he catches.
Answer
Correct:
You are correct. The food is inefficiently allocated between Vladimir and Vera,
so Vladimir does not have anything to eat during the winter.
Why is this deadweight loss happening?
Vera and Vladimir do not trust each other; therefore, Vladimir cannot
make a promise to give Vera meat in the summer in exchange for fish.
Vladimir cannot fish; therefore, Vladimir is going hungry.
They cannot agree on a fair price for fish, therefore Vera does not want to sell
her fish.
Schlumberger-Private
They cannot trade, therefore they are unable take advantage of the
surplus produced by the other. correct
,Answer
Correct:
This is the correct answer. If Vladimir and Vera figured out a way to trade
their surplus food, they could both have enough to eat throughout the year.
Deadweight Loss Problem 2
2/2 points (graded)
Alex and Amy are at a company dinner, where there is exactly one roll of
silverware per person.
Amy picks up a roll that accidentally contains two knives and no spoon,
and discovers she has no way of eating her soup. Amy buttered and ate
her bread.
Meanwhile, Alex opens his roll to see that he has two spoons and no knife.
He has some trouble buttering his bread, but he figures out a way to
butter it with the spoon. This draws disapproving frowns from those
around him. He has no trouble eating his soup.
The dinner is very large, and Amy tries to search the room for someone
with an extra spoon. But there are too many people, so she gives up.
What are the deadweight losses in this situation? (Select 2 Answers)
Amy could not eat her
soup. Amy ate her
bread.
Alex made a mess buttering his bread.
Amy wasted her time looking for a spoon without any
success. Alex ate his soup.
correct
Answer
Correct
:
Correct. If Amy had the extra spoon, she could have eaten her soup.
Correct. If Alex had Amy's extra knife, he could have buttered his bread
without making a mess.
What is causing it? (Select 1 Answer)
Each person has only one roll of
silverware. Alex has made both of his
spoons dirty.
, The room is too large for Amy and Alex to find each other and trade.
correct
Scenario 1
2/2 points (graded)
Albert is in the fourth grade and loves video games much more than he
loves studying-- so much so that he has consistently been getting 20% on
his homework assignments. Albert’s mother is concerned and tells him that
she wants him to work harder in school. She bribes him, saying that she will
cook Albert whatever he wants for dinner Friday night if he gets 100% on all
of his homework assignments for the week. On Friday afternoon, Albert
comes home from school and proudly shows his mother his last homework
assignment, with yet another 100% written at the top. He then requests that
a seven course steak dinner.
What was the promise made?
Albert's mother promised him a new video game, if he stops getting only
20% on his homework assignments.
Albert’s mother promised to cook him whatever he wants for dinner
Friday night if Albert got 100% on all of his homework assignments for the
week. correct
Albert’s mother promised to cook him whatever he wants for dinner
Friday night if Albert got 100% on his last homework assignment for the
week.
Was there an intent to create legal relations? Why or why not?
Yes, abecause athere awas abargain amade abetween aAlbert aand ahis amother.
aThe aparties ahave aan aformal arelationship a(mother aand ason) athat acould abe
aconsidered alegally abinding
Yes, abecause athere awas aa abargain amade abetween aAlbert aand ahis
amother. a No, abecause athere awas ano abargain amade abetween aAlbert
aand ahis amother.
The a parties a have aan a informal arelationship a(mother a and ason) aand a do anot
a intend
to abe alegally
abinding acorrect
Scenario a2
2/2 apoints a(graded)
Reconsider athe ainvitation ato adinner awith aslightly arevised afacts. aPortia
adoes anot aknow aProfessor aFried, abut astill awants ahim ato aattend aher
adinner ato aimpress aVincent. aShe aemails aProfessor aFried, aintroducing
aherself, aextending aan ainvitation ato adinner, aand aoffering ato aimmediately
apay aProfessor aFried a$500 aif ahe awill aattend athe adinner. aProfessor aFried
aaccepts, abut aagain adecides anot ato aattend athe adinner aat athe alast
aminute.
, What awere athe apromises amade? aCheck aAll aThat
aApply aProfessor aFried awill aattend adinner.
Vincent awill ameet aProfessor aFried.
Professor aFried awill acontact aPortia aif ahis aplans achange.
Portia awill apay aProfessor aFried a$500 afor
aattending adinner. acorrect
Was athere aan aintent ato acreate alegal arelations? aWhy aor aWhy aNot?
Yes, athere awas aan aintent ato acreate alegal arelations abecause athere
awas aa abargain abetween aProfessor aFried aand aPortia. acorrect
No, athere ano aintent ato acreate alegal arelations, abecause athere awas ano
aformal aagreement abetween aProfessor aFried aand aPortia.
Frolic aand aBanter?
1/1 a point a (graded)
The alaw awon't aenforce acontracts athat aare amerely a"frolic aand abanter" a--
athat aneither aside atakes aseriously. aWhy ado ayou athink athat ais? aPlease
achoose athe aoption ayou athink ais abest, aand aexplain ayour areasoning ain
athe adiscussion a below.
Courts ado anot alike abeing ain athe abusiness aof adetermining awhat ais aa
ajoke aand awhat a is a not, a so a the a burden a should a be a on a the a people
a making a the a agreement ato amake ait aclear athat athe aagreement ais anot aa
ajoke. acorrect
People a should a be a free a to a be a silly a without a fear a of a legal a retribution.
It awould abe aridiculous afor acourts ato aenforce acontracts ameant aas
ajokes, aand asociety awouldn't astand afor ait aif acourts atried ato aenforce
athem.
Other areason a (please a explain a in a the a discussion a below)
Legally aEnforceable aContracts?
3/3 apoints a(graded)
Which a of a these a three a situations a could a be a a a legally a enforceable
a contract? aRead athrough aeach asituation aand adecide afor ayourself.
You aand ayour afather ahave abeen adiscussing aBill, aa afriend aof ayours awhom
ayour afather ahas aalways aconsidered aquite adimwitted. aYou adefend aBill's
adrive, acapabilities, aand aprospects aat ahis anew ajob, abut ayour afather asays ato
ayou, a"If aBill aever agets apromoted, aI'll agive ayou aa amillion adollars."
Is athis aa asituation athat acan abe aa alegally aenforceable acontract?
Unit 1
Deadweight Loss Problem 1
2/2 points (graded)
Vera and Vladimir live in the Arctic. Vera is an expert ice fisher, and Vladimir is an
excellent hunter. Neither is any good at the other activity – Vera is a terrible hunter,
and Vladimir is awful at fishing.
Vera can only ice fish in the winter, but she can freeze what she catches to eat
during the summer. Vladimir can only hunt in the summer, but he can’t freeze
what he kills.
It’s winter, and all of the meat that Vladimir killed during the summer has been
eaten or has spoiled. He’s hungry. He sees that Vera is still slowly but surely
catching fish, and that she isn’t eating all of them – she’s freezing the extras. He
asks her if he can have some of her extra fish, but she says no, because she needs
to freeze them so she’ll have something to eat in the summer, when she can’t fish.
As a result, Vladimir doesn’t have anything to eat.
What is the deadweight loss in this situation?
Vera is freezing her extra fish.
Vladimir has nothing to eat in the winter.
correct Vera won't have anything to eat in the
summer.
Vladimir will be unable to eat all of the meat he catches.
Answer
Correct:
You are correct. The food is inefficiently allocated between Vladimir and Vera,
so Vladimir does not have anything to eat during the winter.
Why is this deadweight loss happening?
Vera and Vladimir do not trust each other; therefore, Vladimir cannot
make a promise to give Vera meat in the summer in exchange for fish.
Vladimir cannot fish; therefore, Vladimir is going hungry.
They cannot agree on a fair price for fish, therefore Vera does not want to sell
her fish.
Schlumberger-Private
They cannot trade, therefore they are unable take advantage of the
surplus produced by the other. correct
,Answer
Correct:
This is the correct answer. If Vladimir and Vera figured out a way to trade
their surplus food, they could both have enough to eat throughout the year.
Deadweight Loss Problem 2
2/2 points (graded)
Alex and Amy are at a company dinner, where there is exactly one roll of
silverware per person.
Amy picks up a roll that accidentally contains two knives and no spoon,
and discovers she has no way of eating her soup. Amy buttered and ate
her bread.
Meanwhile, Alex opens his roll to see that he has two spoons and no knife.
He has some trouble buttering his bread, but he figures out a way to
butter it with the spoon. This draws disapproving frowns from those
around him. He has no trouble eating his soup.
The dinner is very large, and Amy tries to search the room for someone
with an extra spoon. But there are too many people, so she gives up.
What are the deadweight losses in this situation? (Select 2 Answers)
Amy could not eat her
soup. Amy ate her
bread.
Alex made a mess buttering his bread.
Amy wasted her time looking for a spoon without any
success. Alex ate his soup.
correct
Answer
Correct
:
Correct. If Amy had the extra spoon, she could have eaten her soup.
Correct. If Alex had Amy's extra knife, he could have buttered his bread
without making a mess.
What is causing it? (Select 1 Answer)
Each person has only one roll of
silverware. Alex has made both of his
spoons dirty.
, The room is too large for Amy and Alex to find each other and trade.
correct
Scenario 1
2/2 points (graded)
Albert is in the fourth grade and loves video games much more than he
loves studying-- so much so that he has consistently been getting 20% on
his homework assignments. Albert’s mother is concerned and tells him that
she wants him to work harder in school. She bribes him, saying that she will
cook Albert whatever he wants for dinner Friday night if he gets 100% on all
of his homework assignments for the week. On Friday afternoon, Albert
comes home from school and proudly shows his mother his last homework
assignment, with yet another 100% written at the top. He then requests that
a seven course steak dinner.
What was the promise made?
Albert's mother promised him a new video game, if he stops getting only
20% on his homework assignments.
Albert’s mother promised to cook him whatever he wants for dinner
Friday night if Albert got 100% on all of his homework assignments for the
week. correct
Albert’s mother promised to cook him whatever he wants for dinner
Friday night if Albert got 100% on his last homework assignment for the
week.
Was there an intent to create legal relations? Why or why not?
Yes, abecause athere awas abargain amade abetween aAlbert aand ahis amother.
aThe aparties ahave aan aformal arelationship a(mother aand ason) athat acould abe
aconsidered alegally abinding
Yes, abecause athere awas aa abargain amade abetween aAlbert aand ahis
amother. a No, abecause athere awas ano abargain amade abetween aAlbert
aand ahis amother.
The a parties a have aan a informal arelationship a(mother a and ason) aand a do anot
a intend
to abe alegally
abinding acorrect
Scenario a2
2/2 apoints a(graded)
Reconsider athe ainvitation ato adinner awith aslightly arevised afacts. aPortia
adoes anot aknow aProfessor aFried, abut astill awants ahim ato aattend aher
adinner ato aimpress aVincent. aShe aemails aProfessor aFried, aintroducing
aherself, aextending aan ainvitation ato adinner, aand aoffering ato aimmediately
apay aProfessor aFried a$500 aif ahe awill aattend athe adinner. aProfessor aFried
aaccepts, abut aagain adecides anot ato aattend athe adinner aat athe alast
aminute.
, What awere athe apromises amade? aCheck aAll aThat
aApply aProfessor aFried awill aattend adinner.
Vincent awill ameet aProfessor aFried.
Professor aFried awill acontact aPortia aif ahis aplans achange.
Portia awill apay aProfessor aFried a$500 afor
aattending adinner. acorrect
Was athere aan aintent ato acreate alegal arelations? aWhy aor aWhy aNot?
Yes, athere awas aan aintent ato acreate alegal arelations abecause athere
awas aa abargain abetween aProfessor aFried aand aPortia. acorrect
No, athere ano aintent ato acreate alegal arelations, abecause athere awas ano
aformal aagreement abetween aProfessor aFried aand aPortia.
Frolic aand aBanter?
1/1 a point a (graded)
The alaw awon't aenforce acontracts athat aare amerely a"frolic aand abanter" a--
athat aneither aside atakes aseriously. aWhy ado ayou athink athat ais? aPlease
achoose athe aoption ayou athink ais abest, aand aexplain ayour areasoning ain
athe adiscussion a below.
Courts ado anot alike abeing ain athe abusiness aof adetermining awhat ais aa
ajoke aand awhat a is a not, a so a the a burden a should a be a on a the a people
a making a the a agreement ato amake ait aclear athat athe aagreement ais anot aa
ajoke. acorrect
People a should a be a free a to a be a silly a without a fear a of a legal a retribution.
It awould abe aridiculous afor acourts ato aenforce acontracts ameant aas
ajokes, aand asociety awouldn't astand afor ait aif acourts atried ato aenforce
athem.
Other areason a (please a explain a in a the a discussion a below)
Legally aEnforceable aContracts?
3/3 apoints a(graded)
Which a of a these a three a situations a could a be a a a legally a enforceable
a contract? aRead athrough aeach asituation aand adecide afor ayourself.
You aand ayour afather ahave abeen adiscussing aBill, aa afriend aof ayours awhom
ayour afather ahas aalways aconsidered aquite adimwitted. aYou adefend aBill's
adrive, acapabilities, aand aprospects aat ahis anew ajob, abut ayour afather asays ato
ayou, a"If aBill aever agets apromoted, aI'll agive ayou aa amillion adollars."
Is athis aa asituation athat acan abe aa alegally aenforceable acontract?
