contract

1. A contract is:
A) a binding agreement
B) an agreement creating an obligation
C) an agreement that creates enforceable duties and obligations.
D) all of the above.
2.
Mary owes $3,800 on her credit card. She sends the credit card company a check for $800 with the notation “payment in full” on the check. If the credit card issuer cashes the check:
A) Mary’s balance will automatically be paid in full if the $3,800 amount was a liquidated debt.
B) Mary’s balance will automatically be paid in full regardless of whether the amount of $3,800 was liquidated or unliquidated.
C) the check may be subject to a UCC exception to the general rules for accord and satisfaction cases involving checks.
D) Mary’s balance will automatically be paid in full if the $3,800 amount was an unliquidated debt.
3.
The plaintiff in a quasi-contractual action can recover:
A) lost profits.
B) damages for mental distress.
C) the reasonable value of the benefit conferred upon the defendant.
D) for all the damages sustained.
4.
On January 8, Quastrar, Inc. sent Hylavian Company a letter offering to sell $10,000 in restaurant supplies. On January 18, Hylavian mailed a letter to Quastrar accepting the offer. Quastrar received the acceptance letter on January 20. On January 17, Quastrar sent a letter revoking the offer. Hylavian received this letter on January 21. A contract between Quastrar and Hylavian:
A) was not formed because the revocation was effective before the acceptance was sent.
B) was not formed because the revocation was effective before the acceptance was received.
C) was formed on January 18.
D) was formed on January 20.
5.
An offer of a reward for the arrest and conviction of a criminal is an example of a:
A) unilateral contract.
B) bilateral contract.
C) quasi contract.
D) formal contract.
6.
Tuan is president and sole shareholder of Entertainment, Inc. Entertainment, Inc. wishes to borrow money, but to do so, the bank requires Tuan to orally agree to personally pay the debt of the corporation if Entertainment, Inc. cannot. Tuan’s guarantee to repay is:
A) enforceable under the parol evidence rule.
B) unenforceable because there is no insurable interest.
C) enforceable because of the leading object rule.
D) unenforceable because it is a collateral promise.
7.
A customer went into a store and saw a beautiful leather jacket bearing a price tag of $29. The customer handed the cashier a $50 bill and said, “I accept. We have a deal.” The cashier then noticed the price tag and told the customer an error had been made and that the price was $229. In this case:
A) the customer validly accepted the store’s offer..
B) the price tag was a firm offer.
C) no contract was formed because the customer’s offer was refused.
D) the customer is the offeree.
8.
What statute requires banks and other financial institutions to disclose to consumers any non-public information they wish to reveal to third parties?
A) Banking and Financial Institution Privacy Act.
B) Gramm-Leach-Bliley Privacy Act.
C) Electronic Communications Privacy Act.
D) Communications Privacy and Decency Act.
9.
If an offer requires that acceptance be communicated by a specific date and the acceptance is properly dispatched by the offeree on the final date,
A) no contract is formed, since the offeror will undoubtedly receive the dispatched acceptance after the deadline for acceptance
B) a contract is formed, but the contract is voidable at the election of the offeror.
C) the acceptance is timely and a contract is formed, even though the offeror actually receives the acceptance well after the specified date has passed.
D) the acceptance is timely and a contract is formed, but only if the offeror actually receives the acceptance by the deadline specified for acceptance.
10.
A said to B, “I’ll give you $100 for that bracelet.” B replied, “$135.” A said, “No thanks.” B then said that B accepted the $100, but A was no longer interested and said there was no contract. B insists there is a contract. Result?
A) A’s offer of $100 was open and accepted by B, thereby forming a contract.
B) B’s counteroffer of $135 terminated A’s offer of $100.
C) B’s statement, “$135” was a negotiating statement that did not terminate A’s original offer of $100.
D) A’s offer of $100 was irrevocable.
11.
Derek and Abyan were discussing business over lunch when they agreed on the sale of a five-acre parcel of land. Since neither of them had any paper with them, Derek wrote the following on a napkin: “Abyan agrees to purchase from Derek a 5-acre parcel located at the local address of 123 105th Street, St. Joseph, Minnesota, U.S.A. for the price of $4,500 per acre. Transfer of title, payment, and possession to take place on May 1, 2011.” Abyan signed the napkin. On May 1, 2011, Derek was ready to close the deal and transfer title but Abyan refused to pay the purchase price. If Derek sues Abyan for the price of the land, the most likely result will be:
A) Abyan will win because the writing is not sufficient under the statute of frauds.
B) Derek will win because the writing is sufficient under the statute of frauds.
C) Abyan will win because Derek did not sign the writing.
D) Derek will win because the statute of frauds does not apply to this situation.
12.