PunjabiKuri
New member
1. W. R. Wright Insurance Company sent Thomas a contract for fire insurance. The contract stated that the company would assume that Thomas agreed to the insurance policy if the company did not receive written notification within thirty days that he did not want it. Thomas ignored the contract when it came in the mail and the insurance company took him to court because he did not pay the bills they sent him. Besides acceptance, what element does not exist in this situation?
a. consideration
b. genuine agreement
c. capacity
d. legality
2. Lisa lives in a very old apartment building on the fourth floor. The building catches on fire one day, and Lisa is caught on the fourth floor with her three-month-old baby. Desperate, she yells out to John, an onlooker who is on the street, "Please, help me save my baby! I'll give you one million dollars if you will save my baby!" John agrees and catches the baby. John wants to collect his money. What element is missing?
a. offer
b. acceptance
c. consideration
d. legality
3. Phillip, a minor, bought a computer from Technology Plus, Inc. Because of the expense, he wanted his parents to cosign with him, but they refused. With false identification, Philip was allowed to finance the computer. After two weeks, Philip decided he wanted out of the contract. Classify the contract with the correct rule of law.
a. void because fraud was committed
b. voidable because contracts with minors may be voided by the minor
c. voidable because contracts with minors may be voided by their parents
d. void because this is an illegal contract
4. Conner, age twenty-five, loses his dog, Barkley. He puts an ad in the newspaper that reads, "Fifty dollar reward for finding my lost dog." Sharlene, a minor, sees the ad and begins searching for Barkley. When she finds the dog, she brings it to Conner to collect the money. Choose the most accurate classification of the contract.
a. The contract is voidable, enforceable, and bilateral.
b. The contract is valid, enforceable, and bilateral.
c. The contract is valid, enforceable, and unilateral.
d. The contract is void, enforceable, and unilateral.
5. Robinson mailed an offer to Gomez to sell his dining room set for $800. Gomez mailed a properly addressed and stamped letter of acceptance 20 minutes before he received a revocation from
Robinson. Was the revocation effective?
a. No, the element of genuine agreement was missing.
b. Yes, when the offeree uses the same method of communication that the offeror used, the contract comes into existence when the acceptance is received.
c. No, when the offeree uses the same method of communication that the offeror used, the contract comes into existence when the acceptance is sent.
6. Julia offered Tyler $250, plus the cost of paint and supplies if Tyler would paint her house yellow. Tyler said nothing but bought the paint and began to paint Julia's house. Is there a contract?
a. No, although the offer was communicated, Tyler did not verbally communicate his acceptance.
b. Yes, in a unilateral contract, an offer that is accepted by an act constitutes a contract; when the act is done, the contract is complete.
c. No, because it does not contain all required six elements of a contract.
d. Yes, because this is a two-sided contract--a promise to pay money for a paint job for the promise to paint the house.
7. Julia, thinking that Angelino's watch looked like it was worth $300, agreed to buy it from him for $150. Julia never asked about its worth and Angelino never mentioned its value. Julia later learned that the watch was worth $65. Can Julia get out of the contract?
a. Yes, because the consideration is so one sided and unfair that it "shocks the conscience of the court."
b. No, because a person cannot get out of a contract because of a unilateral mistake.
c. Yes, because a mutual mistake occurred: Julia did not ask the worth of the watch and Angelino made the mistake of not mentioning the real value.
8. Lori, a seventeen-year-old high school graduate, applied for a job with Robert's company and was hired on a one-year contract. Nothing was said about Lori's age, but when Robert discovered she was a minor, he discharged her. Did Robert have a legal right to do this?
a. No, an adult who contracts with a minor is usually bound by that contract.
b. Yes, because contracts entered into with a minor are void.
c. Yes, because entering a contract with a teenager makes the contract voidable.
a. consideration
b. genuine agreement
c. capacity
d. legality
2. Lisa lives in a very old apartment building on the fourth floor. The building catches on fire one day, and Lisa is caught on the fourth floor with her three-month-old baby. Desperate, she yells out to John, an onlooker who is on the street, "Please, help me save my baby! I'll give you one million dollars if you will save my baby!" John agrees and catches the baby. John wants to collect his money. What element is missing?
a. offer
b. acceptance
c. consideration
d. legality
3. Phillip, a minor, bought a computer from Technology Plus, Inc. Because of the expense, he wanted his parents to cosign with him, but they refused. With false identification, Philip was allowed to finance the computer. After two weeks, Philip decided he wanted out of the contract. Classify the contract with the correct rule of law.
a. void because fraud was committed
b. voidable because contracts with minors may be voided by the minor
c. voidable because contracts with minors may be voided by their parents
d. void because this is an illegal contract
4. Conner, age twenty-five, loses his dog, Barkley. He puts an ad in the newspaper that reads, "Fifty dollar reward for finding my lost dog." Sharlene, a minor, sees the ad and begins searching for Barkley. When she finds the dog, she brings it to Conner to collect the money. Choose the most accurate classification of the contract.
a. The contract is voidable, enforceable, and bilateral.
b. The contract is valid, enforceable, and bilateral.
c. The contract is valid, enforceable, and unilateral.
d. The contract is void, enforceable, and unilateral.
5. Robinson mailed an offer to Gomez to sell his dining room set for $800. Gomez mailed a properly addressed and stamped letter of acceptance 20 minutes before he received a revocation from
Robinson. Was the revocation effective?
a. No, the element of genuine agreement was missing.
b. Yes, when the offeree uses the same method of communication that the offeror used, the contract comes into existence when the acceptance is received.
c. No, when the offeree uses the same method of communication that the offeror used, the contract comes into existence when the acceptance is sent.
6. Julia offered Tyler $250, plus the cost of paint and supplies if Tyler would paint her house yellow. Tyler said nothing but bought the paint and began to paint Julia's house. Is there a contract?
a. No, although the offer was communicated, Tyler did not verbally communicate his acceptance.
b. Yes, in a unilateral contract, an offer that is accepted by an act constitutes a contract; when the act is done, the contract is complete.
c. No, because it does not contain all required six elements of a contract.
d. Yes, because this is a two-sided contract--a promise to pay money for a paint job for the promise to paint the house.
7. Julia, thinking that Angelino's watch looked like it was worth $300, agreed to buy it from him for $150. Julia never asked about its worth and Angelino never mentioned its value. Julia later learned that the watch was worth $65. Can Julia get out of the contract?
a. Yes, because the consideration is so one sided and unfair that it "shocks the conscience of the court."
b. No, because a person cannot get out of a contract because of a unilateral mistake.
c. Yes, because a mutual mistake occurred: Julia did not ask the worth of the watch and Angelino made the mistake of not mentioning the real value.
8. Lori, a seventeen-year-old high school graduate, applied for a job with Robert's company and was hired on a one-year contract. Nothing was said about Lori's age, but when Robert discovered she was a minor, he discharged her. Did Robert have a legal right to do this?
a. No, an adult who contracts with a minor is usually bound by that contract.
b. Yes, because contracts entered into with a minor are void.
c. Yes, because entering a contract with a teenager makes the contract voidable.