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Exam 11: Nature and Terminology

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Question 1

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A letter-of-credit agreement between Rural Feed Corporation and Soybean Farms, Inc., requires Rural Feed's bank to pay Soybean Farms on receipt of invoices. This letter of credit is

A) a formal contract.
B) no contract.
C) an implied contract.
D) a quasi contract.

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A

Question 2

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If a contract term is ambiguous, a court can consider extrinsic evidence.

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Question 3

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Mallory promises to buy illegal digital copies of movies from Napoleon, who promises to deliver on October 31. These promises are most likely

The term consideration refers to the legality of the subject matter of a contract.

Sal assures Tom that she will deliver a truckload of hay to his cattle ranch. A person's declaration to do a certain act is part of the defini?tion of

Cellphones & Calltime, Inc., makes an offer to Delores to enter into a contract to work as a salesperson for a certain base salary plus commission for ninety days subject to a one-year renewal based on her performance. Delores accepts the offer. A valid contract requires

A negotiable instrument is a formal contract.

One of the four requirements of a valid contract is an adequate price.

Brady accepts what he believes is an offer to work for Canyon River Adventures, Inc., as a tour and fishing guide. In determining whether a contract has been formed, an element of prime importance is

Sales Marketing Corporation and Tech Support, Inc., negotiate a contract. If the contract has all of the elements necessary for one of the parties to enforce it in court, it is

Following negotiations, Office Park, Inc., enters into an informal contract with Quality Janitorial Company for custodial services for Office Park's buildings. This means that the parties' contract

Robin claims that her contract with Stroud for tennis lessons is voidable. If their contract is avoided,

Lark promises to buy Mac's used textbook for $60. Lark is

A contract that has been fully performed by the parties is called an executory contract.

A court will normally interpret the language of a contract according to what the parties claim their intent was when they made it.

A unilateral contract is formed at the moment when the contract is performed.

On May 1, Bobbi-Ann, a real estate agent, and Corporate Properties, Inc., a commercial property owner, sign an agreement about the sale of Corporate Properties' office building. Under the terms, if a buyer makes a serious offer within sixty days, Corporate Properties must pay Bobbi-Ann's commission. Bobbi-Ann puts signs on the building, ads in real estate pamphlets and a locally focused Web site, and features the property in a "walking" tour online. On June 1, Corporate Properties tells Bobbi-Ann that it is canceling their arrangement. Ten days later, Corporate Properties closes a sale on the building without Bobbi-Ann's participation. Bobbi-Ann files a suit against Corporate Properties for the amount of her commission. In whose favor is the court likely to rule, and why?

Contract law does not distinguish between promises that create only moral obligations and promises that are legally binding.

Informal contracts include all contracts other than formal contracts.

Sunny enters into a contract with Trey to act as his personal sports trainer. If a dispute later arises and the contract contains un?clear terms, the rules of contract interpretation will give effect to