WGU D216 MODULE 4 CONTRACTS EXAM 2025|120
QUESTIONS WITH ACCURATE SOLUTIONS
1. What is the definition of a merchant in the context of contract law?
A legal representative of a business.
A person who only sells goods occasionally.
A consumer who buys goods for personal use.
An expert in the field of goods one purchases and sells.
2. Describe the implications of a shipment contract for the buyer and seller
in terms of liability.
In a shipment contract, both parties share liability for losses during
transit.
In a shipment contract, the buyer assumes liability for losses or
damage once the goods are with the carrier, shifting risk from
the seller to the buyer.
In a shipment contract, the buyer has no liability until the goods
are inspected.
In a shipment contract, the seller retains all liability until the goods
are delivered to the buyer's location.
3. Describe how inducement, price, and motive influence the formation of a
contract.
Motive is the only factor that influences contract formation, while
price and inducement are not important.
Inducement, price, and motive are factors that encourage
parties to enter into a contract, reflecting their intentions and
the value they place on the agreement.
Price is the sole reason for entering into a contract, while
,inducement and motive are secondary.
, Inducement is the only factor that matters in contract formation,
while price and motive are irrelevant.
4. Describe how the objective theory of contracts impacts the
enforceability of agreements.
The objective theory ensures that contracts are enforceable
based on observable actions and statements, not subjective
intentions.
The objective theory disregards the need for mutual consent in
contracts.
The objective theory allows for contracts to be enforced based
on the parties' private discussions.
The objective theory requires all contracts to be in writing to be
enforceable.
5. What is the definition of an unenforceable contract?
Contract that is void from the beginning
Contract that has never been valid
Valid contract rendered unenforceable by statute or law
Contract that is enforceable in court
6. What is the definition of a bilateral contract?
Promise for a performance
Performance for a performance
Promise for a promise
Performance for a promise
7. What type of contract requires the seller to assume liability for losses or
damage to goods until they reach a specified destination?
, Bailment contract
Shipping contract
Sales contract
Destination contract
8. Describe the key characteristic that distinguishes a bilateral contract from
other types of contracts.
A bilateral contract is voidable at the discretion of one party.
A bilateral contract requires one party to perform an act.
A bilateral contract involves mutual promises between parties.
A bilateral contract does not require consideration.
9. Describe the role of common law in contract law and how it differs from
statutory law.
Common law governs all contracts that are not statutory,
focusing on case law and judicial decisions.
Common law is only relevant in international contracts, while
statutory law governs domestic contracts.
Common law is a type of statutory law that applies to all contracts.
Common law applies only to contracts involving goods, while
statutory law applies to services.
10. What is the term used for a contract that has been completed by both
parties?
Executed
Unilateral
Voidable
Breach
QUESTIONS WITH ACCURATE SOLUTIONS
1. What is the definition of a merchant in the context of contract law?
A legal representative of a business.
A person who only sells goods occasionally.
A consumer who buys goods for personal use.
An expert in the field of goods one purchases and sells.
2. Describe the implications of a shipment contract for the buyer and seller
in terms of liability.
In a shipment contract, both parties share liability for losses during
transit.
In a shipment contract, the buyer assumes liability for losses or
damage once the goods are with the carrier, shifting risk from
the seller to the buyer.
In a shipment contract, the buyer has no liability until the goods
are inspected.
In a shipment contract, the seller retains all liability until the goods
are delivered to the buyer's location.
3. Describe how inducement, price, and motive influence the formation of a
contract.
Motive is the only factor that influences contract formation, while
price and inducement are not important.
Inducement, price, and motive are factors that encourage
parties to enter into a contract, reflecting their intentions and
the value they place on the agreement.
Price is the sole reason for entering into a contract, while
,inducement and motive are secondary.
, Inducement is the only factor that matters in contract formation,
while price and motive are irrelevant.
4. Describe how the objective theory of contracts impacts the
enforceability of agreements.
The objective theory ensures that contracts are enforceable
based on observable actions and statements, not subjective
intentions.
The objective theory disregards the need for mutual consent in
contracts.
The objective theory allows for contracts to be enforced based
on the parties' private discussions.
The objective theory requires all contracts to be in writing to be
enforceable.
5. What is the definition of an unenforceable contract?
Contract that is void from the beginning
Contract that has never been valid
Valid contract rendered unenforceable by statute or law
Contract that is enforceable in court
6. What is the definition of a bilateral contract?
Promise for a performance
Performance for a performance
Promise for a promise
Performance for a promise
7. What type of contract requires the seller to assume liability for losses or
damage to goods until they reach a specified destination?
, Bailment contract
Shipping contract
Sales contract
Destination contract
8. Describe the key characteristic that distinguishes a bilateral contract from
other types of contracts.
A bilateral contract is voidable at the discretion of one party.
A bilateral contract requires one party to perform an act.
A bilateral contract involves mutual promises between parties.
A bilateral contract does not require consideration.
9. Describe the role of common law in contract law and how it differs from
statutory law.
Common law governs all contracts that are not statutory,
focusing on case law and judicial decisions.
Common law is only relevant in international contracts, while
statutory law governs domestic contracts.
Common law is a type of statutory law that applies to all contracts.
Common law applies only to contracts involving goods, while
statutory law applies to services.
10. What is the term used for a contract that has been completed by both
parties?
Executed
Unilateral
Voidable
Breach
