Question-1
Which of the following elements must be established to create an implied-in-fact contract?
A. The plaintiff provided the property or services gratuitously.
B. The plaintiff made the defendant sign the contract and then changed its terms, calling the new terms "previously implied".
C. The defendant was given an opportunity to reject the property or services provided by the plaintiff but failed to do so.
D. The defendant accepted the property or services offered by the plaintiff as a fee for an illegal activity.
Question-2
Which of the following is an acceptable consideration for a contract?
A. arrest
B. penalty
C. money
D. sentence
Question-3
Which of the following statements is true about contracts?
A. Parties to an informal contract can use any words they choose to express their contract.
B. A contract under seal is disclosed only to the offeror of the contract.
C. A letter of credit is an informal contract.
D. A void contract is the same as a voidable contract.
Question-4
Two brothers, Sam and Jim, were fighting over the division of their ancestral property. After ten years of legal battle, a frustrated Sam contacted a powerful politician who subjected Jim to extreme duress in order to make him sign a contract of assent in favor of Sam. When Jim takes this contract to court, the contract will be declared __________.
A. enforceable
B. conditionally enforceable
C. voidable
D. unenforceable
Question-5
The __________ establishes uniform legal rules for the formation and enforcement of electronic contracts and licenses.
A. common law of contracts
B. Restatement of the Law of Contracts
C. UCITA
D. UCC
Question-6
Windsor, the owner of Windsor's Sandwiches, contacts a new supplier named Gary. He tells Gary that he will pay him $375 if Gary delivers 20 pounds of cheese the following morning. Gary promises to make the delivery as requested by Windsor. This creates a __________ contract between them.
A. unilateral
B. bilateral
C. implied-in-law
D. executory
Question-7
Which of the following is true about a trade acceptance?
A. The buyer is the payee.
B. The seller is both the drawer and the payee.
C. The draft is countersigned by the drawee's bank.
D. The draft is only as good as the drawer's creditworthiness.
Question-8
Who is the drawee of a check?
A. The drawer of the check is also its drawee.
B. The financial institution where the drawer has an account.
C. The party to whom the check is written.
D. The financee to whom the check is drawn.
Question-9
Which of the following is an informal contract?
A. check
B. bank draft
C. lease
D. recognizance
Question-10
What is the similarity between a demand draft and a trade acceptance?
A. both are examples of sight drafts
B. both require credit to be extended to the buyer
C. both have the drawer be the payee as well
D. both are considered two-party transactions
Question-11
A sight draft that arises when credit is extended by a seller to a buyer with the sale of goods is known as a __________.
A. check
B. time draft
C. trade acceptance
D. demand draft
Question-12
The __________ states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.
A. Restatement of the Law of Contracts
B. Restatement (Second. of Contracts
C. objective theory of contracts
D. common law of contracts
Question-13
Who is the drawee in a draft transaction?
A. The party who demands the draft.
B. The party who pays the money stated in the draft.
C. The party who writes an order for the draft.
D. The party who receives the money from the draft.
Question-14
A(n. __________ is stated orally or in written words.
A. express contract
B. implied-in-law contract
C. implied-in-fact contract
D. quasi-contract
Question-15
In a(n. __________ contract, agreement between parties is inferred from their conduct.
A. implied-in-law
B. implied-in-fact
C. express
D. formal
Question-16
Which of the following would be a three-party transaction?
A. a promissory note
B. a certificate of deposit
C. an ordinary lease
D. a draft
Question-17
Martha contacts a bakery to get a cake for her son's birthday party. She tells the baker that she will pay him $150 for the cake if he delivers the cake on Friday evening. If the baker does not deliver the cake on Friday evening, which of the following will hold true?
A. Martha can sue the baker to recover $150 in damages.
B. Martha can sue the baker but cannot recover damages.
C. The baker has to give $150 plus the cost of the replacement cake to Martha as he entered into a verbal contract with her.
D. Martha cannot sue the baker at all.
Question-18
Contracts that have been fully performed by one side but not by the other are classified as __________ contracts.
A. executory
B. executed
C. void
D. voidable
Question-19
A contract that has been fully performed by both sides is called an __________ contract.
A. executory
B. executed
C. option
D. executive
Question-20
__________ are a special form of contract that satisfy the requirements established by Revised Article 3 of the UCC.
A. Banknotes
B. Negotiable instruments
C. Letters of credit
D. Stocks
Which of the following elements must be established to create an implied-in-fact contract?
A. The plaintiff provided the property or services gratuitously.
B. The plaintiff made the defendant sign the contract and then changed its terms, calling the new terms "previously implied".
C. The defendant was given an opportunity to reject the property or services provided by the plaintiff but failed to do so.
D. The defendant accepted the property or services offered by the plaintiff as a fee for an illegal activity.
Question-2
Which of the following is an acceptable consideration for a contract?
A. arrest
B. penalty
C. money
D. sentence
Question-3
Which of the following statements is true about contracts?
A. Parties to an informal contract can use any words they choose to express their contract.
B. A contract under seal is disclosed only to the offeror of the contract.
C. A letter of credit is an informal contract.
D. A void contract is the same as a voidable contract.
Question-4
Two brothers, Sam and Jim, were fighting over the division of their ancestral property. After ten years of legal battle, a frustrated Sam contacted a powerful politician who subjected Jim to extreme duress in order to make him sign a contract of assent in favor of Sam. When Jim takes this contract to court, the contract will be declared __________.
A. enforceable
B. conditionally enforceable
C. voidable
D. unenforceable
Question-5
The __________ establishes uniform legal rules for the formation and enforcement of electronic contracts and licenses.
A. common law of contracts
B. Restatement of the Law of Contracts
C. UCITA
D. UCC
Question-6
Windsor, the owner of Windsor's Sandwiches, contacts a new supplier named Gary. He tells Gary that he will pay him $375 if Gary delivers 20 pounds of cheese the following morning. Gary promises to make the delivery as requested by Windsor. This creates a __________ contract between them.
A. unilateral
B. bilateral
C. implied-in-law
D. executory
Question-7
Which of the following is true about a trade acceptance?
A. The buyer is the payee.
B. The seller is both the drawer and the payee.
C. The draft is countersigned by the drawee's bank.
D. The draft is only as good as the drawer's creditworthiness.
Question-8
Who is the drawee of a check?
A. The drawer of the check is also its drawee.
B. The financial institution where the drawer has an account.
C. The party to whom the check is written.
D. The financee to whom the check is drawn.
Question-9
Which of the following is an informal contract?
A. check
B. bank draft
C. lease
D. recognizance
Question-10
What is the similarity between a demand draft and a trade acceptance?
A. both are examples of sight drafts
B. both require credit to be extended to the buyer
C. both have the drawer be the payee as well
D. both are considered two-party transactions
Question-11
A sight draft that arises when credit is extended by a seller to a buyer with the sale of goods is known as a __________.
A. check
B. time draft
C. trade acceptance
D. demand draft
Question-12
The __________ states that the intent to contract is judged by the reasonable person standard and not by the subjective intent of the parties.
A. Restatement of the Law of Contracts
B. Restatement (Second. of Contracts
C. objective theory of contracts
D. common law of contracts
Question-13
Who is the drawee in a draft transaction?
A. The party who demands the draft.
B. The party who pays the money stated in the draft.
C. The party who writes an order for the draft.
D. The party who receives the money from the draft.
Question-14
A(n. __________ is stated orally or in written words.
A. express contract
B. implied-in-law contract
C. implied-in-fact contract
D. quasi-contract
Question-15
In a(n. __________ contract, agreement between parties is inferred from their conduct.
A. implied-in-law
B. implied-in-fact
C. express
D. formal
Question-16
Which of the following would be a three-party transaction?
A. a promissory note
B. a certificate of deposit
C. an ordinary lease
D. a draft
Question-17
Martha contacts a bakery to get a cake for her son's birthday party. She tells the baker that she will pay him $150 for the cake if he delivers the cake on Friday evening. If the baker does not deliver the cake on Friday evening, which of the following will hold true?
A. Martha can sue the baker to recover $150 in damages.
B. Martha can sue the baker but cannot recover damages.
C. The baker has to give $150 plus the cost of the replacement cake to Martha as he entered into a verbal contract with her.
D. Martha cannot sue the baker at all.
Question-18
Contracts that have been fully performed by one side but not by the other are classified as __________ contracts.
A. executory
B. executed
C. void
D. voidable
Question-19
A contract that has been fully performed by both sides is called an __________ contract.
A. executory
B. executed
C. option
D. executive
Question-20
__________ are a special form of contract that satisfy the requirements established by Revised Article 3 of the UCC.
A. Banknotes
B. Negotiable instruments
C. Letters of credit
D. Stocks
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