BUL 3310 EXAM PREP WITH COMPLETE
SOLUTION
A contract is:
a. an agreement that always involves parties who are not family members.
b. a promise or agreement that can be enforced in court.
c. a non-binding promise to act.
d. an agreement that always involves people over the age of twenty-one. - =b. a promise or
agreement that can be enforced in court.
In determining whether a contract has been formed, the element of intent is of prime
importance, and the intent is determined by the:
a. objective theory of contracts.
b. belief of a party.
c. subjective intent.
d. personal intent. - =a. objective theory of contracts.
The requirements for a valid contract do not include:
a. agreement.
b. consideration.
c. acceptance.
d. a fair price. - =d. a fair price.
,In contract law, consideration means:
a. something of value received or promised underlying the bargain.
b. the ability of a party to enter into a legal contract.
c. the legality of the subject matter of a contract.
d. the genuine consent of both parties. - =a. something of value received or promised
underlying the bargain.
An express contract is one in which:
a. a contract is implied from the conduct of the parties.
b. a special form is required.
c. the terms of the agreement are explicitly stated.
d. the court implies a contract exists for fairness and justice. - =c. the terms of the agreement
are explicitly stated.
An executory contract is:
a. an offer only.
b. a contract not yet fully performed.
c. a contract between executives.
,d. a fully performed contract. - =b. a contract not yet fully performed.
A contract that can be avoided by one of the parties is a:
a. unenforceable contract.
b. valid contract.
c. void contract.
d. voidable contract. - =d. voidable contract.
A contract that has no legal force is called a:
a. voidable contract.
b. unenforceable contract.
c. void contract.
d. valid contract. - =c. void contract.
John furnishes goods to Barry and expects to be paid for those goods. Barry receives the goods
and knows, or should know, that payment is expected. Barry has a chance to reject the goods
from John but does not. John and Barry do not otherwise communicate. This is known as a(n):
a. unenforceable contract.
b. express contract.
c. implied contract.
d. quasi contract. - =c. implied contract.
When classifying contracts according to their state of performance, a contract that has been
fully performed on both sides is a(n):
, a. executed contract.
b. valid contract.
c. void contract.
d. executory contract. - =a. executed contract
Larry and Leah have a disagreement as to whether they have formed a contract, and a lawsuit is
filed. What will the court look to in determining whether a contract was formed?
a. Both Larry's and Leah's beliefs
b. Leah's intent
c. Larry's intent
d. The reasonable person standard - =d. The reasonable person standard
Tracy owns a 2012 Toyota Camry that has been driven 24,000 miles and, to her knowledge, has
no mechanical problems. She offers to sell the car to her friend Tami for $12,000. Tami accepts
Tracy's offer. Tracy and Tami have:
a. an agreement.
b. an understanding.
c. no agreement.
d. an agreement to agree. - =a. an agreement.
Jessica offers to pay Kevin $50 for his used business law textbook. Kevin agrees to sell it for that
amount. They agree to meet one week later to exchange the money for the book. Kevin and
Jessica have formed:
a. an implied contract.
b. no contract.
c. an express contract.
SOLUTION
A contract is:
a. an agreement that always involves parties who are not family members.
b. a promise or agreement that can be enforced in court.
c. a non-binding promise to act.
d. an agreement that always involves people over the age of twenty-one. - =b. a promise or
agreement that can be enforced in court.
In determining whether a contract has been formed, the element of intent is of prime
importance, and the intent is determined by the:
a. objective theory of contracts.
b. belief of a party.
c. subjective intent.
d. personal intent. - =a. objective theory of contracts.
The requirements for a valid contract do not include:
a. agreement.
b. consideration.
c. acceptance.
d. a fair price. - =d. a fair price.
,In contract law, consideration means:
a. something of value received or promised underlying the bargain.
b. the ability of a party to enter into a legal contract.
c. the legality of the subject matter of a contract.
d. the genuine consent of both parties. - =a. something of value received or promised
underlying the bargain.
An express contract is one in which:
a. a contract is implied from the conduct of the parties.
b. a special form is required.
c. the terms of the agreement are explicitly stated.
d. the court implies a contract exists for fairness and justice. - =c. the terms of the agreement
are explicitly stated.
An executory contract is:
a. an offer only.
b. a contract not yet fully performed.
c. a contract between executives.
,d. a fully performed contract. - =b. a contract not yet fully performed.
A contract that can be avoided by one of the parties is a:
a. unenforceable contract.
b. valid contract.
c. void contract.
d. voidable contract. - =d. voidable contract.
A contract that has no legal force is called a:
a. voidable contract.
b. unenforceable contract.
c. void contract.
d. valid contract. - =c. void contract.
John furnishes goods to Barry and expects to be paid for those goods. Barry receives the goods
and knows, or should know, that payment is expected. Barry has a chance to reject the goods
from John but does not. John and Barry do not otherwise communicate. This is known as a(n):
a. unenforceable contract.
b. express contract.
c. implied contract.
d. quasi contract. - =c. implied contract.
When classifying contracts according to their state of performance, a contract that has been
fully performed on both sides is a(n):
, a. executed contract.
b. valid contract.
c. void contract.
d. executory contract. - =a. executed contract
Larry and Leah have a disagreement as to whether they have formed a contract, and a lawsuit is
filed. What will the court look to in determining whether a contract was formed?
a. Both Larry's and Leah's beliefs
b. Leah's intent
c. Larry's intent
d. The reasonable person standard - =d. The reasonable person standard
Tracy owns a 2012 Toyota Camry that has been driven 24,000 miles and, to her knowledge, has
no mechanical problems. She offers to sell the car to her friend Tami for $12,000. Tami accepts
Tracy's offer. Tracy and Tami have:
a. an agreement.
b. an understanding.
c. no agreement.
d. an agreement to agree. - =a. an agreement.
Jessica offers to pay Kevin $50 for his used business law textbook. Kevin agrees to sell it for that
amount. They agree to meet one week later to exchange the money for the book. Kevin and
Jessica have formed:
a. an implied contract.
b. no contract.
c. an express contract.
