Unit 2 Contract Review Q 45-65 Question Preview (ID: 20745)


Questions 45-65. TEACHERS: click here for quick copy question ID numbers.

Which of the following is not given in mutual consideration?
a) an act
b) a gift
c) forbearance
d) a promise

Legal value is found in
a) the exchange of two benefits
b) the exchange of two detriments
c) the exchange of a benefit for a detriment
d) all of these

When buyers agree to purchase all of a particular producer's production, it is called
a) an output contract
b) an option contract
c) a production contract
d) a requirements contract

A liquidated debt is one where the parties agree
a) that the debt exists
b) on the amount of the debt
c) both of these
d) none of these

Which of the following is not a part of consideration?
a) future performance
b) immediate performance
c) past performance
d) present performance

The statute of limitations specifies
a) the maximum amount of money one can receive on a claim
b) the time limit for bringing a lawsuit
c) the maximum amount of people who can file on the same claim
d) the time limit for consideration

When consideration is provided to keep an offer open, it creates
a) promissory estoppel
b) an option contract
c) a firm offer
d) none of these

When Marty agrees to take possession of her uncle' gift to her, Marty becomes a(n)
a) promisor
b) promisee
c) donee
d) nominee

Marissa agree's to purchase Danny's land. Both parties sign the contract, which states she will purchase the property for one dollar and other good and valuable consideration. This is known as what?
a) adequate consideration
b) forbearance
c) impled consideration
d) nominal consideration

Will agrees not to file bankruptcy. In exchange a group of his creditors agree to accept less than what they are entitled to receive in their debt claims against Will. This consideration is known as
a) accord and satisfaction
b) composition of creditors
c) liquidated debt
d) none of these

Dahlia's Bakery produces a wide variety of cookies, cakes, and pastries. If Dahlia agrees to supply all the pastries a particular restaurant needs, what has she created?
a) illusory promise
b) accord and satisfaction
c) forbearance
d) requirements contract

A promise not to do something is known as a(n)
a) consideration
b) irrevocable transaction
c) forbearance
d) illusory promise

Parties who have special contractual rights are
a) minors
b) the intoxicated
c) the mentally incapacitated
d) all of these

Acting toward a contract as though one intends to be bound by it is called
a) contractual capacity
b) ratification
c) disaffirmance
d) none of these

When a court decrees a minor emancipated, it is referred to as
a) formal emancipation
b) informal emancipation
c) legal emancipation
d) all of these

Which of the following would most likely be classified as non-necessaries?
a) car
b) clothes
c) cosmetics
d) food

In most states a minor can get back everything they gave even if
a) they are unable to return exactly what was received under the contract.
b) the goods have been used or damaged
c) the goods have been lost, consumed, or destroyed.
d) all of these

Some contracts of a minor that cannot be disaffirmed are
a) court-approved contracts
b) enlistment in the armed services
c) educational loans
d) all of these

The severance of the child parent relationship is referred to as
a) disaffirmance
b) emancipation
c) ratification
d) none of these

Generally, a person lacking contractual capacity can disaffirm a contract for non necessaries
a) any time while stilll under the incapacity
b) within a reasonable time after attaining capacity
c) both of these
d)

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