BUSA 2106 TEST 3 QUESTIONS WITH VERIFIED
ANSWERS
According to your PowerPoint Lecture, which of the following is accurate regarding
contracts?
A) they are an exchange of promises
B) they must be in writing
C) they must be formal - Answers - A
A contract in which contains one promise conditioned on an act (Hint: Pat promises to
pay $1,000 to Alex upon performance i.e. meeting a sales goal)?
A) bilateral contract
B) unilateral contract - Answers - B
What type of contract may arise from the conduct of the parties rather than words (i.e.
your cell phone contract expires on 12/31/XX but you keep using your phone and AT&T
keeps billing you)?
A) express contract
B) implied in law contract
C) implied in content contract
D) implied in fact contract - Answers - D
You overpay your power bill by $50 (unjustly enriched). What contractual concept
requires that the utility refund your money or offer you a credit on a future bill?
A) implied in fact contract
B) implied in law contract
C) express contract
D) implied in the future contract - Answers - B
A contract that is missing one or more of the 5 essential elements is?
A) voidable
B) valid
C) void - Answers - C
Which one of the following is NOT one of the 5 essential elements of a contract?
A) consideration
B) completion
, C) offer
D) capacity
E) legality of subject matter - Answers - B
A _______ contract is an agreement when at least one party has the right to withdraw
from the promise made without incurring any legal liability.
A) excusable
B) justifiable
C) voidable
D) forgivable - Answers - C
A(n) ________ contract is one in which the parties have performed their promises.
A) executory
B) executed
C) closed
D) final - Answers - B
An offer must be?
A) definite and specific
B) open and obvious
C) reasonable and specific
D) bargained for and reasonable - Answers - A
An offer is terminated by all of the following EXCEPT?
A) counteroffer
B) lapse of time
C) secondary offer
D) revocation - Answers - C
Which one of the following IS accurate regarding acceptance?
A) the deposited acceptance rule is also known as the postal stamp rule
B) silence is an acceptance
C) the acceptance does not have to "mirror" the offer
D) silence is not an acceptance - Answers - D
Jessie is 14 but looks 21. He wants to buy a car with money that he has inherited from
his late grandfather. Jessie's friend Joy drives him to the local car dealership where
Jessie purchases an automobile. The next day Jessie wakes up and can't believe what
he did. Jessie returns the car.
What contractual concept allow him to do so (i.e. makes this contract voidable)?
ANSWERS
According to your PowerPoint Lecture, which of the following is accurate regarding
contracts?
A) they are an exchange of promises
B) they must be in writing
C) they must be formal - Answers - A
A contract in which contains one promise conditioned on an act (Hint: Pat promises to
pay $1,000 to Alex upon performance i.e. meeting a sales goal)?
A) bilateral contract
B) unilateral contract - Answers - B
What type of contract may arise from the conduct of the parties rather than words (i.e.
your cell phone contract expires on 12/31/XX but you keep using your phone and AT&T
keeps billing you)?
A) express contract
B) implied in law contract
C) implied in content contract
D) implied in fact contract - Answers - D
You overpay your power bill by $50 (unjustly enriched). What contractual concept
requires that the utility refund your money or offer you a credit on a future bill?
A) implied in fact contract
B) implied in law contract
C) express contract
D) implied in the future contract - Answers - B
A contract that is missing one or more of the 5 essential elements is?
A) voidable
B) valid
C) void - Answers - C
Which one of the following is NOT one of the 5 essential elements of a contract?
A) consideration
B) completion
, C) offer
D) capacity
E) legality of subject matter - Answers - B
A _______ contract is an agreement when at least one party has the right to withdraw
from the promise made without incurring any legal liability.
A) excusable
B) justifiable
C) voidable
D) forgivable - Answers - C
A(n) ________ contract is one in which the parties have performed their promises.
A) executory
B) executed
C) closed
D) final - Answers - B
An offer must be?
A) definite and specific
B) open and obvious
C) reasonable and specific
D) bargained for and reasonable - Answers - A
An offer is terminated by all of the following EXCEPT?
A) counteroffer
B) lapse of time
C) secondary offer
D) revocation - Answers - C
Which one of the following IS accurate regarding acceptance?
A) the deposited acceptance rule is also known as the postal stamp rule
B) silence is an acceptance
C) the acceptance does not have to "mirror" the offer
D) silence is not an acceptance - Answers - D
Jessie is 14 but looks 21. He wants to buy a car with money that he has inherited from
his late grandfather. Jessie's friend Joy drives him to the local car dealership where
Jessie purchases an automobile. The next day Jessie wakes up and can't believe what
he did. Jessie returns the car.
What contractual concept allow him to do so (i.e. makes this contract voidable)?
