CHAPTER 5—NATURE AND CLASSES OF CONTRACTS Key
1. The failure of a party to perform the obligations assumed under a contract is known as a(n):
2. Which of the following is true of unenforceable contracts?
3. An enforceable contract is made by an adult with a minor. Which of the following is most likely to hold true
in this case?
4. Which of the following best describes the term “recognizance”?
5. Informal contracts are also known as _____ contracts.
6. An executory contract is defined as:
7. Ashley offers to pay $50 to Judy in return for babysitting Ashley’s children over the weekend. Judy tells
Ashley that she will think about it and convey her decision the next day.Which of the following is true in this
case?
8. Which of the following is not a true contract and has been imposed by law in order to prevent one party
benefiting unfairly at another’s expense?
9. Which of the following is true of quasi-contracts?
10. Only one party needs to give an agreement in order for a contract to be enforceable.
11. All agreements are contracts.
12. An agreement that does not meet all five of the requirements for a valid contract is known as an
unenforceable contract.
13. When a contract is required to be sealed, a substitute for an actual seal may be used.
14. The Uniform Commercial Code makes no distinction between contracts under seal and other written
contracts for the sale of goods.
15. A certificate of deposit is a negotiable instrument.
16. The law states that a unilateral contract can be formed when performance is started.
17. One may have rights and obligations imposed by law even when no real contract exists.
18. An agreement between two parties to perform an illegal act is a quasi-contract.
19. The legal term for one party benefiting unfairly at the expense of another is unjust enrichment.
20. What is a contract? What are the five definite requirements that every contract must fulfill?
5. In some cases, the contract must meet certain formal requirements, such as being in writing or under seal.