,TestBank For Contract Law for Paralegals: Traditional and e-Contracts 3rd Edition
Chapter 1 Nature of Traditional and Online Contracts
Chapter 1 Nature of Traditional and Online Contracts
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
1) A contract is an agreement between two or more parties that is enforceable by a court of law or 1)
equity.
2) A widely recognized definition of contract is provided by the Restatement (Second) of Contracts: 2)
"A contract is a promise or a set of promises for the breach of which the law gives a remedy or the
performance of which the law in some way recognizes a duty."
3) Under the modern law of contracts, there is substantial government regulation of the right to 3)
contract.
4) There must be at least three parties in order for a contract to be valid. 4)
5) A contract is created regardless of the offer being accepted or not 5)
6) An offer for a unilateral contract cannot be accepted by a mere promise to perform. 6)
7) An offer for a unilateral contract can always be revoked at any time prior to the offeree's 7)
completion of the requested act.
8) One requirement of an express contract is that it be in writing. 8)
9) One of the elements that must be established to create an implied-in-fact contract is that the 9)
plaintiff provided property or services to the defendant.
10) A voidable contract has no legal effect. It is as if no contract had ever been created. 10)
11) With an unenforceable contract, there is some legal defense to the enforcement of the contract. 11)
12) The Uniform Computer Information Transactions Act was drafted by the National Conference of 12)
Commissioners.
13) In addition to digital devices, technology has brought new ways of communicating, such as email 13)
and texting, as well as the use of social networks. A new form of commerce—electronic commerce,
or e-commerce—is flourishing.
14) The U.S. Congress has led the way, enacting many new federal statutes to regulate the digital 14)
environment. In addition, many states have adopted rules that specifically regulate e-commerce
transactions.
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,TestBank For Contract Law for Paralegals: Traditional and e-Contracts 3rd Edition
Chapter 1 Nature of Traditional and Online Contracts
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
15) Every contract has both: 16)
A) A buyer and seller.
B) An initiator and a responder.
C) An offeror and offeree.
D) A breaching party and a non-breaching party.
16) A contract is: 17)
A) A promise or a set of promises for the breach of which the law gives a remedy or the
performance of which the law in some way recognizes a duty.
B) An agreement between two or more parties.
C) Enforceable by a court of law or equity.
D) Statements A, B, and B above are true.
17) To create an enforceable contract, which of the following is(are) needed? 18)
A) Agreement and consideration.
B) Agreement.
C) Agreement, consideration, and contractual capacity.
D) Agreement, consideration, contractual capacity, and a lawful objective.
18) Which of the following is not a basic requirement to be an enforceable contract? 19)
A) The promise must be supported by a bargained-for exchange.
B) The parties must have contractual capacity.
C) The parties need not have assent.
D) The object of the contract must be lawful.
E) There must be an agreement between the parties.
19) Which of the following is true in a unilateral contract? 20)
A) The offeror requests an act as acceptance of his offer.
B) The offeror cannot revoke the offer once the offeree has begun performance or has
substantially completed performance.
C) The offeror will treat either a promise to perform or the actual performance of the act as
acceptance of his offer.
D) A and B only.
E) B and C only.
20) When can an offer to form a unilateral contract be revoked? 21)
A) After the offeree begins performance, but before the performance is completed.
B) Before the offeree begins performance.
C) After completion of performance.
D) Both A and B.
E) A, B, and C.
21) Frank says to Mary, "If you wash every window in my house today, I'll pay you $200. I don't care if 22)
you do it, but there is $200 in it for you if you do." Mary washes 12 of the 20 windows in Frank's
house by 2:00 p.m. At this point:
A) Frank can revoke his offer to pay Mary the $200 for washing the windows.
B) Mary has formed a contract by beginning to wash the windows.
C) Mary is obligated to finish washing the windows.
D) There is no contract yet in this situation.
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, TestBank For Contract Law for Paralegals: Traditional and e-Contracts 3rd Edition
Chapter 1 Nature of Traditional and Online Contracts
22) Jana and Annie enter into a written agreement whereby Jana promises to sell and Annie promises 23)
to buy a certain parcel of land for $5,000. There is adequate consideration, the contract is legal, and
both parties have contractual capacity. The contract is fully performed by both parties on January 1.
Which of the following best describes this contract as of January 2?
A) Unilateral, express, executed, valid. B) Bilateral, express, executed, valid.
C) Unilateral, implied, executory, valid. D) Unilateral, express, executory, valid.
24) What is required for a contract to be an express contract? 24)
A) It is performed immediately after formation.
B) It is performed for mutual benefit.
C) It is written and signed.
D) It is written.
E) It is stated in words.
25) What kind of contract is based on the conduct of the parties? 25)
A) Express.
B) Action-oriented.
C) Quasi-contract.
D) Implied-in-law.
E) Implied-in-fact.
26) Which of the following does not need to be proven by a plaintiff who is claiming that an 26)
implied-in-fact contract exists?
A) The plaintiff provided property or services to the defendant.
B) The defendant was given an opportunity to reject the property or services provided by the
plaintiff but failed to do so.
C) The plaintiff expected to be paid by the defendant for the property or services and did not
intend to provide the property or services gratuitously.
D) The plaintiff and defendant communicated with each other about the property or services.
27) In the case in the text where an author discussed an idea for a book on strategy for the board game 27)
Scrabble, what was the outcome of the case?
A) Because the offer was for a unilateral contract, there was no contract until the book was
completed.
B) The court found that an implied-in-fact contract existed, so the author won the suit.
C) Because there was no express contract, there was no basis for the author to recover.
D) The court found that an implied-in-law contract existed, so the author won the suit.
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