Title: Contracts
Course: Demo 1

Q: A contract is:
- a written agreement that is signed and notarized by both parties.
- copyright violation.
- an agreement that is enforceable by law.
A: an agreement that is enforceable by law.

Q: A contract is a promise between two parties. However, in order for the contract to be legally enforceable it must meet certain criteria, such as:
- the parties must agree to exchange something of value.
- there must have been an offer by one party and then the acceptance of that offer by the other party.
- it must be written down and then witnessed by a third party.
A: the parties must agree to exchange something of value.; there must have been an offer by one party and then the acceptance of that offer by the other party.

Q: Kate and Felice have come to an agreement. Kate will sell Felice a specific number of her prescription pills for a set dollar amount. This is not a legal contract because it fails to meet which requirement(s) of a contract:
- agreement
- consideration
- lawful object
A: lawful object

Q: Antoine and David are 12 years old when they agree that if either one of them ever earns more than $200,000 in one year he will buy the other one a new car. After college, Antoine starts a company that provides transportation to senior citizens who cannot drive. When David reads in the newspaper that Antione’s business has been purchased by a healthcare provider for $5 million, David believes that he is owed a new car. The agreement for the new car between Antoine and David was not a legal contract because it fails to meet which requirement(s) of a contract:
- agreement.
- lawful object.
- contractual capacity.
A: contractual capacity.

Q: One Saturday morning, a group of neighbors got together to hold a yard sale in a nearby church parking lot. They paid nothing to use the lot, and in fact the church pastor and other leaders were unaware that the lot was being used for this purpose. A woman attending the yard sale injured herself when she tripped on a concrete stop in the parking lot, and she decided to sue the church for damages. However, the church was not liable because this situation fails to meet which requirements of a contract?
- agreement
- consideration
- lawful object
A: agreement; consideration

Q: The ________ in a contract describe what the parties commit to do or not do.
- representations
- conditions
- covenants
A: covenants

Q: The ________ in a contract explain what one party will do IF the other party completes specific actions.
- representations
- covenants
- conditions
A: conditions

Q: The ________ in a contract are statements that one of the parties knows to be true at the time of the contract.
- covenants
- conditions
- representations
A: representations

Q: “Individual shall pay agent 2% of the sales price of the item.” This is an example of a:
- warranty.
- condition.
- covenant.
A: covenant.

Q: "Buyer agrees to pay purchase price in full if item passes inspection by a designated expert." This is an example of a:
- covenant.
- warranty.
- condition.
A: condition.

Q: "Lessor acknowledges that refrigerator in garage is not operational." This is an example of a:
- covenant.
- condition.
- representation.
A: representation.