Formal Contracts and Negotiable Instruments Quiz

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Which type of contract usually requires a special form or method of creation to be enforceable?

Informal contracts

Express contracts

Implied contracts

Formal contracts (correct)

What distinguishes an express contract from an implied contract?

An express contract is informal while an implied contract is formal.

An express contract is verbal while an implied contract is written.

An express contract is always bilateral while an implied contract is unilateral.

An express contract has terms explicitly stated while an implied contract relies on actions. (correct)

Which of the following is considered an informal contract?

Letter of credit

Bill of exchange

Lease agreement for an apartment (correct)

Promissory note

What distinguishes a unilateral contract from a bilateral contract?

A unilateral contract involves one promise while a bilateral contract involves two promises. (C) Signup and view all the answers

Which type of contract typically relies more on substance rather than form?

Informal contracts (A) Signup and view all the answers

Under what circumstances do express contracts usually operate?

When the terms are fully and explicitly stated in oral or written form (D) Signup and view all the answers

What type of contract is formed by the words or conduct of the parties?

Implied contract (D) Signup and view all the answers

Which type of contract has been fully performed by both parties?

Executed contract (B) Signup and view all the answers

In the case of a voidable contract, what option does one party have?

Either (a) or (b) (A) Signup and view all the answers

What type of contract exists, but cannot be enforced due to a legal defense?

Unenforceable contract (A) Signup and view all the answers

In the case involving Seawest Services Association and the Copenhavers, what type of contract was found to exist?

Quasi contract (D) Signup and view all the answers

What is required for a contract to be considered valid?

Agreement, consideration, legal capacity, and legal purpose (C) Signup and view all the answers

What is acceptance in the context of contracts?

A voluntary act by the offeree that shows agreement to the terms of an offer. (A) Signup and view all the answers

Which form of communication can sometimes inadvertently create a valid contract?

E-mails and instant messages (C) Signup and view all the answers

What is required for an acceptance to be valid?

It must be communicated to the offeror. (A) Signup and view all the answers

In which scenario can informal electronic exchanges lead to the formation of valid contracts?

When parties exchange offers and counteroffers via e-mail. (C) Signup and view all the answers

Who can accept an offer and create a binding contract?

Only the person to whom the offer is made or that person’s agent. (C) Signup and view all the answers

In what context do attorneys sometimes use e-mails as part of the negotiation process?

After automobile accidents. (B) Signup and view all the answers