Legal Environment of Business Exam 2 – LAW 2221 – 2026 – Study and Practice
Guide
Without any exception, courts will enforce a contract in which the offer states that failure to
respond will be considered an acceptance of the offer. T/F? - ANS✔✔ FALSE
A contract is simply an agreement that a court of law will recognize and enforce. T/F? - ANS✔✔
TRUE
Only written contracts are considered to be enforceable. T/F? - ANS✔✔ FALSE
Robert called a cleaning service and hired them to clean his apartment. The service staff
mistakenly cleaned Brandon's apartment, which was situated directly above Robert's. The
category of contracts that will require Brandon to pay the cleaning service even though he did
not ask for it is a quasi-contract. T/F? - ANS✔✔ TRUE
A nominal amount of money, such as one dollar, is sufficient consideration to form a valid
contract. This is true even if the other party's consideration is much more valuable. T/F? -
ANS✔✔ TRUE
Which of the following elements of a contract pertains to the fact that there is an offer and
agreement between the involved parties? - ANS✔✔ Mutual Assent
Which of the following is true of contracts with minors? - ANS✔✔ A minor may force the
concerned adult to complete the contract.
If a hybrid contract is predominantly for services, and the goods are incidental, then the
contract is governed by _____. - ANS✔✔ common law
,Which of the following is most likely to be considered void automatically? - ANS✔✔ A contract
that violates a public policy.
Builders Inc., an experienced contractor, requested a bid from a supplier for lumber needed to
complete a project. When responding to the bid, the supplier made a clerical error, and offered
$30,000 worth of lumber for $3,000. Builders sent an e-mail accepting the offer. If this situation
turns into a legal dispute, - ANS✔✔ the Court is likely to find that this is a unilateral mistake.
However, since Builders knew (or should have known) that there was a mistake, the supplier will
not be held to the $3,000 quote.
Susan offered to pay Roger $50 to walk her dog for the next 8 days. Roger responded that he
was available to walk the dog for the next 8 days for a fee of $60. Roger's statement is an
acceptance of Susan's offer. T/F - ANS✔✔ FALSE
If an individual was legally declared to be incompetent by a court prior to entering into a
contract, most states will consider the contract to be voidable. T/F - ANS✔✔ FALSE
The mailbox rule governing common law contracts provides that the acceptance of an offer is
generally effective as soon as the acceptance is received by the offeror. T/F - ANS✔✔ FALSE -
The mailbox rule provides that the acceptance of an offer is generally effective upon dispatch of
the acceptance when sent in a commercially reasonable manner
Implied contracts are formed to remedy situations in which one party suffers losses as a result
of another party's unjust enrichment. T/F - ANS✔✔ FALSE - An implied contract is one in which
the agreement is reached by the parties' actions rather than their words. Quasi contracts are
formed to remedy situations in which one party suffers losses as a result of another party's
unjust enrichment.
Mutual assent refers only to the written acceptance of an offer. T/F - ANS✔✔ FALSE- Mutual
assent means that for a contract to be valid, the parties must reach an agreement using a
combination of offer and acceptance.
, Linda has signed a two-year-long contract with HNS Inc., a clothing retail store, to work as a
sales trainee. Linda's parents are outraged because Linda is not yet 18 years of age. In this
scenario, which of the following elements of the contract between Linda and HNS Inc. has most
likely been missed? - ANS✔✔ capacity to contract
Which of the following factors will a court most likely examine to determine the source of law
governing a hybrid contract? - ANS✔✔ The value of goods versus the value of services.- In
determining the source of law governing a hybrid contract, courts will examine allocation of
price in the contract (value of goods versus value of services) and uniqueness of the services
Todd offers to shovel the snow off Maria's patio for $25. Maria agrees verbally and shakes
Todd's hand to sign off on the agreement. When Todd has completed the shoveling job, Maria
pays him the $25. This scenario best illustrates a(n) _____. - ANS✔✔ express, bilateral contract
A(n) _____ is created when the parties involved have knowingly and intentionally agreed on the
promises and performances. - ANS✔✔ Express Contract
A(n) _____ is best defined as a contract that one party may, at its option, either disaffirm or
enforce. - ANS✔✔ Voidable Contract
Michael has been hired as an attorney at a law firm. However, his contract remains valid only if
he passes the bar exam within a year of joining the firm. The law firm is not obligated to retain
the contract if Michael does not pass the bar exam. This is an example of a condition precedent.
T/F - ANS✔✔ FALSE- This is an example of a condition subsequent. A condition is categorized as
either a condition precedent, where the event that must occur before performance under a
contract is due, or a condition subsequent, where the event occurs after the performance under
the contract and discharges the parties' obligations.
Deviation from the required performance pertaining to a contract is said to be material when
the deviation does not result in a substantial change in value of the contract. T/F - ANS✔✔
FALSE
Guide
Without any exception, courts will enforce a contract in which the offer states that failure to
respond will be considered an acceptance of the offer. T/F? - ANS✔✔ FALSE
A contract is simply an agreement that a court of law will recognize and enforce. T/F? - ANS✔✔
TRUE
Only written contracts are considered to be enforceable. T/F? - ANS✔✔ FALSE
Robert called a cleaning service and hired them to clean his apartment. The service staff
mistakenly cleaned Brandon's apartment, which was situated directly above Robert's. The
category of contracts that will require Brandon to pay the cleaning service even though he did
not ask for it is a quasi-contract. T/F? - ANS✔✔ TRUE
A nominal amount of money, such as one dollar, is sufficient consideration to form a valid
contract. This is true even if the other party's consideration is much more valuable. T/F? -
ANS✔✔ TRUE
Which of the following elements of a contract pertains to the fact that there is an offer and
agreement between the involved parties? - ANS✔✔ Mutual Assent
Which of the following is true of contracts with minors? - ANS✔✔ A minor may force the
concerned adult to complete the contract.
If a hybrid contract is predominantly for services, and the goods are incidental, then the
contract is governed by _____. - ANS✔✔ common law
,Which of the following is most likely to be considered void automatically? - ANS✔✔ A contract
that violates a public policy.
Builders Inc., an experienced contractor, requested a bid from a supplier for lumber needed to
complete a project. When responding to the bid, the supplier made a clerical error, and offered
$30,000 worth of lumber for $3,000. Builders sent an e-mail accepting the offer. If this situation
turns into a legal dispute, - ANS✔✔ the Court is likely to find that this is a unilateral mistake.
However, since Builders knew (or should have known) that there was a mistake, the supplier will
not be held to the $3,000 quote.
Susan offered to pay Roger $50 to walk her dog for the next 8 days. Roger responded that he
was available to walk the dog for the next 8 days for a fee of $60. Roger's statement is an
acceptance of Susan's offer. T/F - ANS✔✔ FALSE
If an individual was legally declared to be incompetent by a court prior to entering into a
contract, most states will consider the contract to be voidable. T/F - ANS✔✔ FALSE
The mailbox rule governing common law contracts provides that the acceptance of an offer is
generally effective as soon as the acceptance is received by the offeror. T/F - ANS✔✔ FALSE -
The mailbox rule provides that the acceptance of an offer is generally effective upon dispatch of
the acceptance when sent in a commercially reasonable manner
Implied contracts are formed to remedy situations in which one party suffers losses as a result
of another party's unjust enrichment. T/F - ANS✔✔ FALSE - An implied contract is one in which
the agreement is reached by the parties' actions rather than their words. Quasi contracts are
formed to remedy situations in which one party suffers losses as a result of another party's
unjust enrichment.
Mutual assent refers only to the written acceptance of an offer. T/F - ANS✔✔ FALSE- Mutual
assent means that for a contract to be valid, the parties must reach an agreement using a
combination of offer and acceptance.
, Linda has signed a two-year-long contract with HNS Inc., a clothing retail store, to work as a
sales trainee. Linda's parents are outraged because Linda is not yet 18 years of age. In this
scenario, which of the following elements of the contract between Linda and HNS Inc. has most
likely been missed? - ANS✔✔ capacity to contract
Which of the following factors will a court most likely examine to determine the source of law
governing a hybrid contract? - ANS✔✔ The value of goods versus the value of services.- In
determining the source of law governing a hybrid contract, courts will examine allocation of
price in the contract (value of goods versus value of services) and uniqueness of the services
Todd offers to shovel the snow off Maria's patio for $25. Maria agrees verbally and shakes
Todd's hand to sign off on the agreement. When Todd has completed the shoveling job, Maria
pays him the $25. This scenario best illustrates a(n) _____. - ANS✔✔ express, bilateral contract
A(n) _____ is created when the parties involved have knowingly and intentionally agreed on the
promises and performances. - ANS✔✔ Express Contract
A(n) _____ is best defined as a contract that one party may, at its option, either disaffirm or
enforce. - ANS✔✔ Voidable Contract
Michael has been hired as an attorney at a law firm. However, his contract remains valid only if
he passes the bar exam within a year of joining the firm. The law firm is not obligated to retain
the contract if Michael does not pass the bar exam. This is an example of a condition precedent.
T/F - ANS✔✔ FALSE- This is an example of a condition subsequent. A condition is categorized as
either a condition precedent, where the event that must occur before performance under a
contract is due, or a condition subsequent, where the event occurs after the performance under
the contract and discharges the parties' obligations.
Deviation from the required performance pertaining to a contract is said to be material when
the deviation does not result in a substantial change in value of the contract. T/F - ANS✔✔
FALSE
