Answer the following True/False and multiple- choice questions.

True or False

1. A unilateral contract is created when performance of the required act is promised.

2. Express contracts must always be in writing to be enforceable.

3. Marty visits the Little Eva barbershop, sits in the chair, and, without a word being exchanged, receives a trim from the barber. There is an implied-in-fact contract between Marvin and the barber.

4. A voidable contract is no contract at all since neither party may enforce the agreement.

5. An unenforceable contract is the same thing as a void contract.

6. A bilateral contract is formed when the one receiving the offer completes the requested act or performance.

7. Both unilateral and bilateral contracts have at least one promisor and one promisee.

8. A contract must be written to be valid.

9. Estelle promises Benny the Human Fly that if he climbs to the top of the Washington Monument, she will pay him $1,000. Assuming Benny climbs the monument, this would be an example of a unilateral contract.

Choose the best answer between (a), (b), (c), or (d)

10. Certain contracts have absolutely no effect and are not recognized under law. If two or more parties enter into such an agreement, it is

a. Valid.

b. Void.

c. Voidable.

d. Unenforceable.

11. Which of the following is the best operational definition of a contract?

a. A written agreement.

b. A set of promises.

c. An agreement entered in front of a judge.

d. An agreement that the courts will enforce.

12. Which of the following would be classified as a unilateral contract?

a. X promises to pay $10.00 for a box of fruit. Y promises to deliver the box of fruit to X.

b. A tells B that she will create a computer game for B if B agrees to pay A $1,000. B orally agrees.

c. F writes a letter offering to sell G a painting. G telephones F to say that he will pay $50 for the painting. F writes another letter to G that includes the phrase, I accept.

d. M indicates to P that M will pay P $10.00 if P washes Ms car. P washes Ms car.

13. Herman decides he wants to sell his Model T Ford antique car. Herman enters into a written agreement with Lori to purchase the car for $250,000. The terms of the agreement provide that title to the car is to be transferred in two weeks, at which time Herman is to receive the money. This contract would be characterized as

a. Unilteral and executed.

b. Unilateral and executory.

c. Bilateral and executed.

d. Bilateral and executory.

14. At the time of formation, bilateral contracts include executory promises. When both parties have fully performed their respective promises under the contract, the promises are said to be

a. Void.

b. Voidable.

c. Past due.

d. Executed.

15. Linda signs an order form for Girl Scout cookies. The form states the number of boxes ordered and the price per box. The contract between Linda and the Girl Scouts is

a. Informal and express.

b. Informal and implied.

c. Formal and express.

d. Formal and implied.

16. Linda orders cookies from the Girl Scouts. She has received the cookies and paid for them. Her contract with the Girl Scouts is

a. Unilateral.

b. Formal

c. Executed.

d. Executory.

17. Sid gets in line with his car at the carwash. He drives his car through the wash, but then refuses to pay, stating that he never made a contract because no words were exchanged. The owner of the car wash will be able to collect from Side base on

a. Implied-in fact contract.

b. Quasi contract.

c. Express contract.

d. Executed contract.

18. Alex promises to pay David $100 in return for 50 cartons of illegally smuggle cigarettes. This agreement is

a. Enforceable.

b. Void.

c. Valid.

d. Voidable.

19. Which of the following statements is true?

a. A contract must be in writing to be enforceable.

b. All promises create contracts.

c. All contracts consist of promises.

d. All contracts must be notarized to be enforceable.

20. If Fred and Ethyl sign a contract in which Fred agrees to deliver heating oil in exchange for Ethyls promise to pay for the heating oil and Fred does, in fact, deliver the heating oil, then

a. The contract is fully executed.

b. The contract is executory with respect to Fred.

c. The contract is executory with respect to Ethyl.

d. The contract is unexecuted.