LEB 320F Unit 7 Exam Questions
with Answers 100% Pass
What are the three elements that must be present to make a contract legally
enforceable? - CORRECT ANSWER-consideration, capacity, and legality
What is a bilateral contract? - CORRECT ANSWER-"a promise for a promise."
What is a unilateral contract? Give an example - CORRECT ANSWER-can be
accepted only by the performance of a particular act.
Ex. The promise by a seller of property to pay a real estate agent a commission
when the agent finds a buyer for it. When the broker produces a buyer who is
ready, willing, and able to purchase the property, he or she has earned the
promised commission. A mere promise by an offeree that he or she will bring in
the item later does not result in the formation of a contract
What is an express contract? - CORRECT ANSWER-the intentions of the parties
are stated fully and in explicit terms, either orally or in writing
What is an implied contract? - CORRECT ANSWER-promises (intentions) of the
parties have to be inferred primarily from their conduct and from the
circumstances in which it occurred
,what is a quasi-contract? Give an example - CORRECT ANSWER-exists only in
those exceptional circumstances where a court feels compelled to impose an
obligation upon one person regardless of whether he or she had any intention of
making a contract
ex. When a doctor administers emergency medical care no kind of contract is
created but a court deems the recipient must pay for the services
What is the purpose of quasi-contracts? What is this type of action called? -
CORRECT ANSWER-imposed only in circumstances where the failure to impose
such an obligation would result in one party receiving an "unjust enrichment"—a
benefit which, on the grounds of fairness alone, he or she ought to pay for.
Quantum meruit action - "as much as is deserved."
When is a party not able to collect from a quasi-contract? - CORRECT ANSWER-
when negligence is involved, if an express contract already covers the situation
What is a valid contract? - CORRECT ANSWER-one in which all of the required
elements are present. As a result, it is enforceable against both parties
What is a voidable contract? Who can always withdraw from a voidable contract? -
CORRECT ANSWER-one of the parties to a contract has the legal right to
withdraw from it at a later time without liability. Contracts in which fraud is
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, present fall within this category, because the law permits the one who has been
defrauded to set aside the contract.
What is a void contract? Under what circumstances can a contract be declared
void? - CORRECT ANSWER-so far as the law is concerned, they never existed at
all. Contract can be declared void if: one of the parties is wholly incompetent at the
time of contracting, or the purpose of the contract is totally illegal
What is an unenforcable contract? Give an example. - CORRECT ANSWER-was
valid at the time it was made but was subsequently rendered unenforceable because
of the application of some special rule of law. Ex. People discharged in bankruptcy
What is a contract of adhesion? - CORRECT ANSWER-one party—usually
having greatly superior bargaining power than the other—prepares the terms of a
proposed contract and presents it to the other party on a take-it-or-leave-it basis
Hartland Computers Leasing Corp v. The Insurance Man Inc - premise -
CORRECT ANSWER-Hartland leases a computer to The Insurance Man (TIM).
When the computer stops working TIM stops paying which is a breach of
contract. Hartland sues for the payments not made. The trial judge concludes this
is an adhesion contract, disregards the disclaimers of liability, and rules against
Hartland. Hartland appeals.
Hartland Computers Leasing Corp v. The Insurance Man Inc - outcome -
CORRECT ANSWER-reversed; adhesion contracts are enforceable if they are
reasonable.
with Answers 100% Pass
What are the three elements that must be present to make a contract legally
enforceable? - CORRECT ANSWER-consideration, capacity, and legality
What is a bilateral contract? - CORRECT ANSWER-"a promise for a promise."
What is a unilateral contract? Give an example - CORRECT ANSWER-can be
accepted only by the performance of a particular act.
Ex. The promise by a seller of property to pay a real estate agent a commission
when the agent finds a buyer for it. When the broker produces a buyer who is
ready, willing, and able to purchase the property, he or she has earned the
promised commission. A mere promise by an offeree that he or she will bring in
the item later does not result in the formation of a contract
What is an express contract? - CORRECT ANSWER-the intentions of the parties
are stated fully and in explicit terms, either orally or in writing
What is an implied contract? - CORRECT ANSWER-promises (intentions) of the
parties have to be inferred primarily from their conduct and from the
circumstances in which it occurred
,what is a quasi-contract? Give an example - CORRECT ANSWER-exists only in
those exceptional circumstances where a court feels compelled to impose an
obligation upon one person regardless of whether he or she had any intention of
making a contract
ex. When a doctor administers emergency medical care no kind of contract is
created but a court deems the recipient must pay for the services
What is the purpose of quasi-contracts? What is this type of action called? -
CORRECT ANSWER-imposed only in circumstances where the failure to impose
such an obligation would result in one party receiving an "unjust enrichment"—a
benefit which, on the grounds of fairness alone, he or she ought to pay for.
Quantum meruit action - "as much as is deserved."
When is a party not able to collect from a quasi-contract? - CORRECT ANSWER-
when negligence is involved, if an express contract already covers the situation
What is a valid contract? - CORRECT ANSWER-one in which all of the required
elements are present. As a result, it is enforceable against both parties
What is a voidable contract? Who can always withdraw from a voidable contract? -
CORRECT ANSWER-one of the parties to a contract has the legal right to
withdraw from it at a later time without liability. Contracts in which fraud is
COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED
, present fall within this category, because the law permits the one who has been
defrauded to set aside the contract.
What is a void contract? Under what circumstances can a contract be declared
void? - CORRECT ANSWER-so far as the law is concerned, they never existed at
all. Contract can be declared void if: one of the parties is wholly incompetent at the
time of contracting, or the purpose of the contract is totally illegal
What is an unenforcable contract? Give an example. - CORRECT ANSWER-was
valid at the time it was made but was subsequently rendered unenforceable because
of the application of some special rule of law. Ex. People discharged in bankruptcy
What is a contract of adhesion? - CORRECT ANSWER-one party—usually
having greatly superior bargaining power than the other—prepares the terms of a
proposed contract and presents it to the other party on a take-it-or-leave-it basis
Hartland Computers Leasing Corp v. The Insurance Man Inc - premise -
CORRECT ANSWER-Hartland leases a computer to The Insurance Man (TIM).
When the computer stops working TIM stops paying which is a breach of
contract. Hartland sues for the payments not made. The trial judge concludes this
is an adhesion contract, disregards the disclaimers of liability, and rules against
Hartland. Hartland appeals.
Hartland Computers Leasing Corp v. The Insurance Man Inc - outcome -
CORRECT ANSWER-reversed; adhesion contracts are enforceable if they are
reasonable.
