Multiple Choice
Identify the
letter of the choice that best completes the statement or answers the question.
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1.
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Which
of the following statements about contracts is true? a. | For a contract
to be valid there must be an exchange of consideration. | b. | Anyone can enter
into a contract. | c. | Oral contracts are not legally
binding. | d. | Minors can be forced to honor their
contracts. | | |
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2.
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Something of value that is exchanged in a contract for something else of value
is a. | offer. | c. | consideration. | b. | acceptance. | d. | mutual agreement. | | | | |
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3.
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A
minor, or person under the age of legal majority, may a. | not legally
enter into contracts. | b. | not legally enter into contracts unless there is a
cosigner. | c. | legally enter into contracts. | d. | none of the
above | | |
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4.
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The
statute of frauds requires that certain contracts be in writing to be enforceable, including
contracts for the sale of a. | personal property. | b. | real
estate. | c. | goods worth more than $100. | d. | services that
can be performed in six months. | | |
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5.
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Hao
promises to pay Sydney $20 to give her a copy of the history test that is to be given on the next
day. Sydney gives Hao the test but Hao refuses to pay the money. The contract between Hao and Sydney
is a. | unconscionable. | c. | illegal. | b. | valid. | d. | fraudulent. | | | | |
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Completion
Complete each sentence or
statement.
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Complete each of the following statements with the appropriate choice below.
Some choices are not used.
acceptance | contract | breached | fraud | canceled | offer | consideration | ratified | | |
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6.
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A
legally binding agreement is called a(n) ____________________.
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7.
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A
minor who has continued to make payments on a contract after reaching the age of majority has
____________________ the contract.
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8.
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Jared
promised to paint his neighbor’s porch for $40 and accepted the payment in advance. He did not
paint the porch and therefore ____________________ v the contract.
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9.
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When
a consumer orders food off the menu in a restaurant,the consumer is making a(n)
____________________.
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10.
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Pamela buys a Siberian Husky from a breeder. The Husky has a major heart defect that
the breeder knew about but did not tell Pamela. The breeder has committed
____________________.
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Matching
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Match each item with the correct statement below. Some items may not be
used. a. | acceptance | g. | minor | b. | breach | h. | mutual agreement | c. | consideration | i. | offer | d. | contract | j. | ratify | e. | cosigner | k. | unconscionable | f. | fraud | | | | |
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11.
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a
person under the age of legal majority
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12.
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an
excessively unfair contract
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13.
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a
person who promises to be responsible along with another person for that person’s
contract
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14.
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the
things of value which are exchanged in a contract
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15.
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to
violate the agreements of a contract
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Short Answer
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16.
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Aunt
Beula promises her 25-year-old niece, Sasha, $5,000 if she will refrain from smoking. Sasha refrains
from smoking. Does Aunt Beula have to pay Sasha the $5,000? Why or why not?
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17.
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Mrs.
Wong offers a $10,000 reward for the recovery of her kidnapped son. Webster, an FBI agent assigned to
the case, recovers the son. Must Mrs. Wong pay Webster? What are your reasons?
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