Contract Law Principles Quiz

______ Contract: The conduct of the parties indicates that they consented to be bound. Example: Toni fills her car with gas at Tina’s gas station. There is a contract for the purchase and sale of gas.

______ Contract: The promises are communicated by language, either oral or written. Example: John promises to paint Dan’s car in return for Dan’s promise to pay him $100.

______ Contract: A person accepts an offer by performing a requested act. The terms of the offer must clearly indicate that an act is required for acceptance. Example: John tells Dan that he will pay Dan $100 if Dan paints his car, and that Dan should show acceptance of the offer by the act of painting the car. Dan accepts by painting the car.

______. Contracts are agreements that the law will enforce. Contracts are individual, or private, rights and duties created by oral or written agreement and consent of the parties. Contracts may include obligations imposed by law even if the parties are not aware of those obligations.

______ Contract law follows the dictates of common sense and fairness. After looking at all the facts and circumstances, you should answer the following questions: 1. Was there an agreement. 2. What did each party commit to do. 3. Did either party – or both – fail to do what he or she promised. 4. If yes, how do you measure the cost to the nonbreaching party.