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, sbecause sthere swas sbargain smade sbetween sAlbert sand shis smother.
sThe sparties shave san sformal srelationship s(mother sand sson) sthat scould sbe
sconsidered slegally sbinding
Yes, sbecause sthere swas sa sbargain smade sbetween sAlbert sand shis
smother. s No, sbecause sthere swas sno sbargain smade sbetween sAlbert
sand shis smother.
The s parties shave san sinformal srelationship s(mother s and sson) sand s do snot
s intend
to sbe slegally
sbinding scorrect
Scenario s2
2/2 spoints s(graded)
Reconsider sthe sinvitation sto sdinner swith sslightly srevised sfacts. sPortia
sdoes snot sknow sProfessor sFried, sbut sstill swants shim sto sattend sher sdinner
sto simpress sVincent. sShe semails sProfessor sFried, sintroducing sherself,
sextending san sinvitation sto sdinner, sand soffering sto simmediately spay
sProfessor sFried s$500 sif she swill sattend sthe sdinner. sProfessor sFried
saccepts, sbut sagain sdecides snot sto sattend sthe sdinner sat sthe slast sminute.
, What swere sthe spromises smade? sCheck sAll sThat
sApply sProfessor sFried swill sattend sdinner.
Vincent swill smeet sProfessor sFried.
Professor sFried swill scontact sPortia sif shis splans schange.
Portia swill spay sProfessor sFried s$500 sfor
sattending sdinner. scorrect
Was sthere san sintent sto screate slegal srelations? sWhy sor sWhy sNot?
Yes, sthere swas san sintent sto screate slegal srelations sbecause sthere
swas sa sbargain sbetween sProfessor sFried sand sPortia. scorrect
No, sthere sno sintent sto screate slegal srelations, sbecause sthere swas sno
sformal sagreement sbetween sProfessor sFried sand sPortia.
Frolic sand sBanter?
1/1 s point s (graded)
The slaw swon't senforce scontracts sthat sare smerely s"frolic sand sbanter" s--
sthat sneither sside stakes sseriously. sWhy sdo syou sthink sthat sis? sPlease
schoose sthe soption syou sthink sis sbest, sand sexplain syour sreasoning sin sthe
sdiscussion s below.
Courts sdo snot slike sbeing sin sthe sbusiness sof sdetermining swhat sis sa sjoke
sand swhat s is s not, s so s the s burden s should s be s on s the s people s making s the
s agreement sto smake sit sclear sthat sthe sagreement sis snot sa sjoke. scorrect
People s should s be s free s to s be s silly s without s fear s of s legal s retribution.
It swould sbe sridiculous sfor scourts sto senforce scontracts smeant sas
sjokes, sand ssociety swouldn't sstand sfor sit sif scourts stried sto senforce
sthem.
Other s reason s (please s explain s in s the s discussion s below)
Legally sEnforceable sContracts?
3/3 spoints s(graded)
Which s of s these s three s situations s could s be s a s legally s enforceable
s contract? sRead sthrough seach ssituation sand sdecide sfor syourself.
You sand syour sfather shave sbeen sdiscussing sBill, sa sfriend sof syours swhom syour
sfather shas salways sconsidered squite sdimwitted. sYou sdefend sBill's sdrive,
scapabilities, sand sprospects sat shis snew sjob, sbut syour sfather ssays sto syou, s"If
sBill sever sgets spromoted, sI'll sgive syou sa smillion sdollars."
Is sthis sa ssituation sthat scan sbe sa slegally senforceable scontract?
Yes
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, sbecause sthere swas sbargain smade sbetween sAlbert sand shis smother.
sThe sparties shave san sformal srelationship s(mother sand sson) sthat scould sbe
sconsidered slegally sbinding
Yes, sbecause sthere swas sa sbargain smade sbetween sAlbert sand shis
smother. s No, sbecause sthere swas sno sbargain smade sbetween sAlbert
sand shis smother.
The s parties shave san sinformal srelationship s(mother s and sson) sand s do snot
s intend
to sbe slegally
sbinding scorrect
Scenario s2
2/2 spoints s(graded)
Reconsider sthe sinvitation sto sdinner swith sslightly srevised sfacts. sPortia
sdoes snot sknow sProfessor sFried, sbut sstill swants shim sto sattend sher sdinner
sto simpress sVincent. sShe semails sProfessor sFried, sintroducing sherself,
sextending san sinvitation sto sdinner, sand soffering sto simmediately spay
sProfessor sFried s$500 sif she swill sattend sthe sdinner. sProfessor sFried
saccepts, sbut sagain sdecides snot sto sattend sthe sdinner sat sthe slast sminute.
, What swere sthe spromises smade? sCheck sAll sThat
sApply sProfessor sFried swill sattend sdinner.
Vincent swill smeet sProfessor sFried.
Professor sFried swill scontact sPortia sif shis splans schange.
Portia swill spay sProfessor sFried s$500 sfor
sattending sdinner. scorrect
Was sthere san sintent sto screate slegal srelations? sWhy sor sWhy sNot?
Yes, sthere swas san sintent sto screate slegal srelations sbecause sthere
swas sa sbargain sbetween sProfessor sFried sand sPortia. scorrect
No, sthere sno sintent sto screate slegal srelations, sbecause sthere swas sno
sformal sagreement sbetween sProfessor sFried sand sPortia.
Frolic sand sBanter?
1/1 s point s (graded)
The slaw swon't senforce scontracts sthat sare smerely s"frolic sand sbanter" s--
sthat sneither sside stakes sseriously. sWhy sdo syou sthink sthat sis? sPlease
schoose sthe soption syou sthink sis sbest, sand sexplain syour sreasoning sin sthe
sdiscussion s below.
Courts sdo snot slike sbeing sin sthe sbusiness sof sdetermining swhat sis sa sjoke
sand swhat s is s not, s so s the s burden s should s be s on s the s people s making s the
s agreement sto smake sit sclear sthat sthe sagreement sis snot sa sjoke. scorrect
People s should s be s free s to s be s silly s without s fear s of s legal s retribution.
It swould sbe sridiculous sfor scourts sto senforce scontracts smeant sas
sjokes, sand ssociety swouldn't sstand sfor sit sif scourts stried sto senforce
sthem.
Other s reason s (please s explain s in s the s discussion s below)
Legally sEnforceable sContracts?
3/3 spoints s(graded)
Which s of s these s three s situations s could s be s a s legally s enforceable
s contract? sRead sthrough seach ssituation sand sdecide sfor syourself.
You sand syour sfather shave sbeen sdiscussing sBill, sa sfriend sof syours swhom syour
sfather shas salways sconsidered squite sdimwitted. sYou sdefend sBill's sdrive,
scapabilities, sand sprospects sat shis snew sjob, sbut syour sfather ssays sto syou, s"If
sBill sever sgets spromoted, sI'll sgive syou sa smillion sdollars."
Is sthis sa ssituation sthat scan sbe sa slegally senforceable scontract?
Yes
