PLST 226 Quiz 2 Formation of a Contract

PLST 226 Quiz 2 Formation of a Contract Consideration and Drafting a Contract

1. Courts often use a predetermined set of rules to decide if consideration is adequate to form a contract.
2. Is an offer that contains the language “Your acceptance must be sent by first-class mail and will not be effective until I actually receive it” subject to the mailbox rule?
3. Micah, a wholesaler of handbags, agrees to sell to Owen, a retailer, 50 phony Coach bags for $300, payable on delivery. Owen never gets the bags because the FBI raids Micah’s business and seizes all Micah’s inventory. If Owen sues Micah for breach of contract, Micah will prevail.
4. When an offeree pays the offeror money to keep an offer open for a specified period of time, a(n) ________ is created.
5. EasyBus Co. charges $1 per ride for bus transportation. When you board one of its buses to ride to work, you are the ________ and you form a/an ________ contract.
6. “Legalese” includes overly complex or archaic language as well as stilted or overly formal sentence structure.
7. When a party is owed a known sum, his or her claim is ________ .
8. An employer lays off an employee, saying, “We’ll call you back to work when we need you.” This is an illusory promise.
9. Courts favor a clear assent to an offer, resulting in the formation of a unilateral contract.
10. “Institute” is legalese for “begin.”
11. A court may enforce a contract even though the offer was made in jest.
12. For consideration to exist in a contract, there must be an exchange of something of value.
13. Some types of unconscionability could be prevented if all consumer contracts were readable and understandable.
14. You should set off important text by putting it in quotation marks.
15. If a written offer does not specify a mode of acceptance, how should you accept it?
16. Only the person to whom an offer is directed has the power to accept.
17. When two parties exchange promises of benefits or detriments, ________ exists.
18. “Output contract” is another name for a requirements contract.
19. When a claim is in dispute, it is liquidated.
20. Purpose, parties, subject matter, terms, legal requirements, legal ramifications, and effective date should be included in a(n) ________ of a client’s needs.
21. The most typical exchange of value is an exchange of property.
22. A promise to compensate someone for a past moral obligation is ________ .
23. An offer must be directed to only one party.
24. A gift is made without consideration or compensation.
25. A typical advertisement contains specific quantity terms.