Contract Formation

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Question 1

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Contracts are legally enforceable promises.

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Question 2

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To be enforceable, a contract must contain a written promise.

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Question 3

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Contract law enables private agreements to be legally enforceable.

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Question 4

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A unilateral contract is an agreement with only one promise, and only one party is committed to perform.

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Question 5

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A teacher's promise to pay $5.00 if a student to go to her office to get her some chalk is an example of a unilateral contract.

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Question 6

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Miguel asks Alicia, an accountant, for her professional advice regarding his portfolio, Miguel is not obligated to pay Alicia since he did not express a promise to pay for her advice.

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Question 7

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If a debtor overpays a creditor $5,000, the debtor can force the creditor to return that amount by suing under quasi-contract.

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Question 8

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A voidable contract is an agreement when one party has the right to withdraw from the promise made without incurring any legal liability.

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Question 9

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An executed contract is one that is fully performed.

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Question 10

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Shane wants to sell his car. He accepts Layla's offer and sells the car at $15,000. Layla is the offeree.

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Question 11

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Avery mails Taylor offering to sell her house at a reasonable price. Taylor mails his acceptance. Avery and Taylor are bound by a valid contract.

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Question 12

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According to the UCC, a contract for the sale of goods can be valid even when the acceptance proposes new or different nonquantity terms.

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Question 13

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Ana offers Corey her vacuum cleaner for $300. Corey rejects the offer so Ana promises to sell the vacuum cleaner to Abey. But, a day later, Corey decides to buy the vacuum cleaner and informs Ana of his acceptance. Ana must sell the vacuum cleaner to Corey.

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Question 14

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Darcy offers Kate his farm house for $200,000. However, before Kate communicates her acceptance, the farm house gets destroyed due to a fire. In this situation Kate can sue Darcy for breach of contract.

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Question 15

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The mirror image rule is the same under common law rules and the UCC.

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Question 16

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Juan offers to sell his cycle to Charles for $1000. Charles agrees saying, "I will pay you $1000, if you give me an extra tire with the cycle." This is an example, a binding contract is created between Juan and Charles as a result of the mirror image rule.

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Question 17

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A deposited acceptance creates a binding contract even if there is a revocation in the mail.

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Question 18

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Promises to make gifts are not binding because there is no bargained for exchange.

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Question 19

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Fixman Ltd. agrees to renovate Juan's house for $20,000. During the renovation, Fixman demands an additional $5,000 to complete the work, which Juan agrees. Fixman can sue Juan, if Juan fails to pay the additional amount.

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Question 20

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Casper offers to sell a car to Amanda for $1,000, to which Amanda agrees. Both the parties have signed a contract fully detailing the transaction which will be executed in 24 hours. This contract is an example of a firm offer.

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