Formal Contracts and Negotiable Instruments Quiz
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Questions and Answers

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?

    <p>A unilateral contract involves one promise while a bilateral contract involves two promises.</p> Signup and view all the answers

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

    <p>Informal contracts</p> Signup and view all the answers

    Under what circumstances do express contracts usually operate?

    <p>When the terms are fully and explicitly stated in oral or written form</p> Signup and view all the answers

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

    <p>Implied contract</p> Signup and view all the answers

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

    <p>Executed contract</p> Signup and view all the answers

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

    <p>Either (a) or (b)</p> Signup and view all the answers

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

    <p>Unenforceable contract</p> Signup and view all the answers

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

    <p>Quasi contract</p> Signup and view all the answers

    What is required for a contract to be considered valid?

    <p>Agreement, consideration, legal capacity, and legal purpose</p> Signup and view all the answers

    What is acceptance in the context of contracts?

    <p>A voluntary act by the offeree that shows agreement to the terms of an offer.</p> Signup and view all the answers

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

    <p>E-mails and instant messages</p> Signup and view all the answers

    What is required for an acceptance to be valid?

    <p>It must be communicated to the offeror.</p> Signup and view all the answers

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

    <p>When parties exchange offers and counteroffers via e-mail.</p> Signup and view all the answers

    Who can accept an offer and create a binding contract?

    <p>Only the person to whom the offer is made or that person’s agent.</p> Signup and view all the answers

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

    <p>After automobile accidents.</p> Signup and view all the answers

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