B-Law final exam
Informal
A contract that requires no special form
Covenant not to compete
A contractual promise to refrain from competing with another party for a certain period of time and within a certain geographic area.,
Reformation
A court-ordered correction of a written contract so that it reflects the true intentions of the parties.
Unliquidated Debt
A debt that is uncertain in amount
Bilateral
A promise for a promise
an offer may be terminated by: a. Operation of the Law b. The Objective Theory of Contracts c. Actions of the Parties d. All of the above e. a and c only
E. a and c only
When deciding questions about the enforceability of terms in shrink-wrap agreements, one important factor that courts take into account is whether the buyer learned of the shrink-wrap terms before or after the parties entered into the contract. a. True b. False
a. true
termination by action of parties
acceptance revocation rejection counteroffer
The element of _____ is of key importance in determining if a contract has been formed. Intent is determined by the _______ theory of contracts.
intent objective
Contractual capacity
Both parties entering into the contract must be recognized by the law as possessing characteristics that qualify them as competent parties.
The requirements for a valid contract include which four of the following? a. Contractual capacity b. Consideration c. Kindness d. Fair price e. Agreement f. Legality g. Professionalism
a, b, e, f
A ______ contract is a contract that has the necessary contractual elements: agreement, ________, legal capacity of the parties, and a legal purpose. A(n) ________ contract occurs when a contract exists, but it cannot be enforced because of a legal defense.
valid consideration unenforceable
Rescission
A remedy whereby a contract is canceled and the parties are returned to the positions they occupied before the contract was made.
legally sufficient value
"legal value" value promise performance or forbearance
Express
A contract formed by words
Death or Incompetence of the offeror or offeree: If the offeror or offeree dies or becomes _______, this offer terminates (unless the offer is ______).
incompetent irrevocable
consideration must have:
"legally sufficient value" and a "bargained-for-exchange"
why do we have to have consideration in a contract?
*expansion of the money supply*
an agreement must have both an offer and acceptance. T/F
true
Implied
A contract formed by the conduct of the parties
Formal
A contract that requires a special form
Liquidated Debt
A debt that is due and certain in amount
Unilateral
A promise for an act
an otherwise valid contract may still be unenforceable. T/F
true
What are the requirements for an e-contract?
Agreement Consideration Contractual Capacity Legality
Consideration
Any promises made by the parties must be supported by legally sufficient value that is bargained for.
Emancipation
In regard to minors, the act of being freed from parental control; this occurs when a child's parent or legal guardian relinquishes the legal right to exercise control over the child.
Agreement
Includes an offer and an acceptance. One party must offer to enter into a legal agreement, and another party must accept the terms of the offer.
__________ enacted by the federal government and a majority of states, have helped avoid the difficulty of interpreting complex legal language.
Plain language laws
Past Consideration
Something given or some act done in the past, which cannot ordinarily be consideration for a later bargain
Age of majority
The age at which an individual is considered legally capable of conducting himself or herself responsibly.
written or typewritten given greater weight than preprinted
true
Legality
The contract's purpose must accomplish some goal that is not illegal or against public policy.
Disaffirmance
The legal avoidance, or setting aside, of a contractual obligation.
you agree to pay Eddie $1,000 if he quits smoking. this is a valid contract
true
Hineki buys an expensive tablet device to celebrate his seventeenth birthday. Two weeks later, his father insists that he return it. Hineki's attempt to return the tablet will: a. be successful, because he acted within a reasonable time. b. be unsuccessful because he waited too long. c. be unsuccessful unless he obtains court approval.
a
In most states, a legally binding release does NOT require which of the following? a. The signature of an attorney or notary b. Consideration c. A signed writing
a
In order to avoid a contract for the sale of a car based on mental incapacity, a party must prove that: a. he or she lacked adequate mental capacity at the time of the purchase. b. the salesperson talked him or her into buying the car. c. a court had previously judged him or her to be incompetent.
a
What are two typical dispute-settlement provisions that are included in online offers? Choose two. a. Forum selection clause b. Choice-of-month clause c. Choice-of-judge clause d. Choice-of-law clause
a & d
All contracts include which of the following implied terms? a. A covenant of good faith and fair dealing b. A covenant of clean action and faithful service c. A promise of quick and prompt attention d. A promise for payment in American dollars
a. A covenant of good faith and fair dealing
Something does not have to be of direct economic or financial value to be considered legally sufficient consideration. a. True b. False
a. True
The common law governs all contracts except when it has been modified or replaced by statutory law or administrative agency regulations. a. True b. False
a. True
Which of the following occurrences will not terminate an offer? a. Acceptance b. Rejection c. Revocation
a. acceptance
An agreement is composed of: a. an offer and an acceptance. b. age and specific terms. c. communication and mutual promises. d. a minimum value of goods or services.
a. an offer and an acceptance
The second element of consideration is that it must provide the basis for the bargain, so the item of value must be given or promised by the promisor in return for the promisee's: a. promise, performance, or promise of performance b. promise, incomplete performance, or promise of complete performance c. agreement, payment, or statement of intent
a. promise, performance, or promise of performance
The intent of the parties may be determined by evaluating what the parties said, how the parties acted, and: a. the circumstances surrounding the transaction. b. the age of the parties involved in the transaction. c. the amount of money at stake in the transaction.
a. the circumstances surrounding the transaction
Agreement is normally evidenced by an offer and an acceptance. a. True b. False
a. true
An acceptance sent by means not expressly or impliedly authorized normally is not effective until it is received by the offeror. a. True b. False
a. true
An implied contract differs from an express contract in that the conduct of the parties, rather than their words, creates and defines the terms of the contract. a. True b. False
a. true
Carmen agrees to cook twenty dinners for Hal. In exchange, Hal will repair all of the plumbing in Carmen's house. Carmen has offered legally sufficient consideration because Carmen has promised something of value. a. True b. False
a. true
If two parties substitute a new contract for an old one and the court finds that there was a preexisting duty, then the new contract will be invalid because there was no consideration. a. True b. False
a. true
One way that online sellers and buyers can prevent disputes over e-contract signatures is to form a partnering agreement. a. True b. False
a. true
Past consideration is the equivalent of no consideration. a. True b. False
a. true
The doctrine of quasi contract generally cannot be used when there is an actual contract that covers the matter in controversy. a. True b. False
a. true
The mailbox rule means that once an acceptance is sent or otherwise communicated to the offeror by an authorized means, the acceptance is effective. a. True b. False
a. true
The requirement that an offer be properly communicated to the offeree means that the offeror must inform the offeree about the offer in some effective way. a. True b. False
a. true
settlement of claims
accord v satisfation debtor offers to pay a lesser amount than the creditor purports to be owed the debt (amount owed) must be in dispute the *accord* is the new agreement the *satisfaction* occurs when the new agreement is completed (release)
Ratification - After reaching the _________, a person can ratify a contract that he or she formed as a minor, thereby becoming fully liable for it.
age of majority
If the terms of a contract are _________ , a court ____ use ______ evidence, which is evidence outside the express terms of the contract.
ambiguous may extrinsic
A usurious contract involves
an illegally high rate of interest
mirror image rule
at common law, any change in terms automatically terminates the offer and substitutes the counteroffer
. Seven companies agree that they will not compete against each other, will set prices, and will not hire each other's employees. Such a contract will be: a. permitted as acceptable competition. b. an illegal contract in restraint of trade. c. an illegal contract only if it is a secondary part of the contract.
b
A restaurant owner requires new employees to sign a covenant not to compete in the restaurant business in the entire United States for five years. Such a covenant will: a. be deemed not contrary to public policy. b. be deemed contrary to public policy because of excessive duration and unreasonable geographic restriction. c. be deemed against public policy because the restaurant business is not competitive.
b
Courts in a growing number of states place additional duties on the minor when the minor disaffirms. These duties include: a. The minor must immediately appear in court. b. The minor is responsible for the depreciation of that returned property. c. The minor is responsible for ordinary wear and tear for the returned property. d. The minor must pay a fine. e. The minor is responsible for damages to the property returned.
b c e
Shockingly inadequate consideration can indicate the existence of what exceptions? Choose three: a. Ignorance b. Undue influence c. Duress d. Unawareness e. Fraud f. Mistake of law
b, c, e
Contract law is unnecessary to ensure compliance with a promise, or to entitle an innocent party to some form of relief. a. True b. False
b. False
Which of the following contracts and documents are NOT exempt from the Electronic Signatures in Global and National Commerce Act? a. Court papers b. Divorce decrees c. Evictions d. Sales contracts e. Foreclosures f. Wills
d. sales contracts
Sergio contracts to hire Belinda to work for him at $3,000 per month, reserving the right to cancel the contract at any time. Two days before Belinda is scheduled to start work, Sergio exercises his option-to-cancel clause. Will Belinda be successful in a lawsuit against Sergio? a. Yes, because she should have been allowed to work at least one month. b. No, because the promise was illusory and therefore unenforceable. c. Yes, because the promise did involve adequate consideration. d. No, because the promise was bound by the preexisting duty rule.
b. No, because the promise was illusory and therefore unenforceable.
Pascal's new Mercedes won't start one morning and he screams to his passenger, "For a thousand bucks, I'd get rid of this car." The passenger normally CANNOT buy the car for $1,000: a. because Pascal did not write anything down. b. because a reasonable person would know that a serious offer was not being made. c. because Pascal's subjective intent cannot be known.
b. because a reasonable person would know that a serious offer was not being made
An acceptance must match the terms of the offer exactly in order to be valid. This is known as the mailbox rule. a. True b. False
b. false
An effective offer requires that a reasonable price be related to market value. a. True b. False
b. false
Courts seek out the most sophisticated meanings of terms in contracts in order to interpret them. a. True b. False
b. false
Freedom of contract is absolute even in the presence of undue influence. a. True b. False
b. false
If an employer asks a current employee to sign a non-compete agreement, his or her employment is sufficient consideration for the agreement. a. True b. False
b. false
If the offeree can accept the offer with a return promise to perform, then the contract is unilateral. a. True b. False
b. false
Implied contracts and quasi contracts are the same. a. True b. False
b. false
Jenkins agrees to repaint Celia's apartment in exchange for her used tablet device. When he is three-quarters of the way finished, he says he will not continue unless she also gives him her used smartphone. His legal position is such that he can receive the smartphone in exchange for finishing the job because he has given good and fair consideration in exchange. a. True b. False
b. false
Most contracts are in writing and thus are considered formal contracts. a. True b. False
b. false
Quasi contracts are actual contracts. a. True b. False
b. false
Something must be of established market value to be considered legally sufficient consideration. a. True b. False
b. false
a bilateral contract a. must be in writing b. is an exchange of a promise for a promise c. is an exchange of a promise for performance d. a and b above e. a and c above
b. is an exchange of a promise for a promise
Which of the following is not a requirement for an implied contract? a. The plaintiff furnished some service or property to the defendant. b. The defendant had no chance to reject service or property furnished by the plaintiff. c. The defendant had a chance to reject the service or property but did not do so. d. The plaintiff expected to be paid and the defendant knew, or should have known, that the plaintiff expected to be paid.
b. the defendant had no chance to reject service or property furnished by the plaintiff.
If one party has the legal option not to perform a contract and to have the contract declared unenforceable, the contract is called a ____________ contract. a. valid b. voidable c. void d. quasi
b. voidable
types of contracts
bilateral- a promise for a promise unilateral- a promise for an act *form*al- requires a special *form* for creation *informal*- requires *no* special *form* for creation express- formed by words (do not have to be in writing) implied- formed by the conduct of the parties
where is consideration in a contract?
both parties have to bring something
______ do not require Internet users to assent to the terms before downloading certain software.
browse-wrap terms
In order to void a contract for the sale of consumer goods based on intoxication, a person would need to prove that: a. his or her capacity to act would be classified as "legally unstable." b. the store clerk knew that he was intoxicated. c. he lacked the mental capacity to enter into the contract.
c
When a debtor offers to pay a lesser amount than the creditor originally claimed was owed, and a creditor accepts, the agreement is called: a. an accord. b. a satisfaction. c. an accord and satisfaction.
c
Which of the following is NOT among the types of contracts and clauses that are often held to be contrary to public policy? a. A contract in restraint of trade b. An exculpatory clause c. A divisible, or severable, contract
c
quasi contracts
implied in law - no actual contract exists - equitable remedy created by courts, and imposed on parties in the interest of fairness and justice ex) agree to pay medical bills after car accident
You owe monthly payments on a car loan at fixed interest. After making eleven payments, you go to the bank and ask it to make an accord and satisfaction for a lesser amount. Will you succeed? a. Yes, because banks are willing to negotiate. b. Yes, because banks have standard forms for accord and satisfaction. c. No, because your debt is a liquidated debt and therefore is not in dispute.
c
the most important reason courts enforce contracts is/are: a. "a person's word is their bond." (It's the moral thing to do.) b. The law says one will keep one's promises, so you must obey the law. c. Contracts are a foundation of our economy. d. Keeping one's promises shows you can be trusted.
c. Contracts are a foundation of our economy.
The act that provides that no contract, record, or signature may be denied legal effect solely because it is an electronic form is the: a. Undeniability Act. b. Transference Act. c. E-SIGN Act.
c. E-SIGN act
Constance tells Jill, her best employee, that: "Your work is so good, if I like what you do over the next six months, I'll give you a $1,000 bonus." Constance does not give Jill the bonus so Jill sues. Most likely: a. Jill will win because this is an accord and satisfaction. b. Jill will not win because Jill didn't prove that her work was satisfactory. c. Jill will not win because this is an illusory promise without consideration.
c. Jill will not win because this is an illusory promise without consideration.
Dewitt tells his daughter: "In consideration of the fact that you are not as wealthy as your sisters, I'm going to give you $100,000." Is the element of bargained-for exchange present here? a. Yes, because Dewitt included the term "consideration." b. Yes, because Dewitt made clear why he was giving her $100,000. c. No, because in fact no consideration has been given.
c. No, because in fact no consideration has been given.
Henry promises not to open his Hank's Lunchbox Cafe before 10:00 am if Danni, who owns Danni's Danish & Donuts next door, promises to close by 1:00 pm. Henry's consideration is a. the destruction of a legal relationship b. the creation of a legal relationship c. a forbearance d. an exchange of money
c. a forbearance
Olivia says to Jim, "I think I'll sell my new digital camera for $100 because I'm never going to use it." This statement constitutes: a. a valid offer. b. an agreement to agree. c. a statement of future intent.
c. a statement of future intent
Espinoza is sixteen, but looks much older. She purchases a diamond bracelet, but decides nine months later that it was unwise to spend the money, so she: a. can disaffirm this contract only if she has turned eighteen. b. can return the bracelet, but will only receive fifty percent of what she paid for it. c. can return the bracelet and get all of her money back.
c. can return the bracelet and get all of her money back
An award is posted by a private group for information leading to the arrest of a criminal. Who among the following CANNOT claim such a reward? a. Non-residents b. Residents with work visas c. Sheriffs d. Senior citizens e. Emancipated minor
c. sheriffs
A court will consider a contract to be unclear in which of the following situations? a. When the intent of the parties can be determined from the contract's language. b. When there is no uncertainty about any of the provisions of the contract. c. When a term is susceptible to more than one interpretation.
c. when a term is susceptible to more than one interpretation
A preexisting duty might exist because of a duty imposed by a previous ______ or a duty imposed by _______.
contract a law
objective theory of contracts
contract is judged by what a reasonable person in the offeree's position would conclude about the offer ex: sell land to Lucy for $50k cash written on paper napkin
In the interest of fairness and equity, the courts may allow an exception to the preexisting duty rule when ______
contract performance involves unforeseen difficulties
adequacy of consideration
courts *overwhelmingly* will not consider adequacy of consideration
An agreement to substitute a contractual obligation for another legal action is called a
covenant not to sue
Which three terms are typically presented in a shrink-wrap agreement: a. age of buyer b. by when the box should be opened c. price of product or service d. warranties e. remedies f. issues associated with the use of the product
d, e, f
Jake chooses a pair of new running shoes from an online catalog. He is informed via e-mail that those shoes are sold out. What can Jake do? a. Sue for breach of contract b. Sue because the catalog listing constituted a valid offer c. Sue because the catalog company improperly revoked its offer d. Look somewhere else because the online catalog did not make an effective offer
d. look somewhere else bc the online catalog did not make an effective offer
E-signatures typically do not include: a. encrypted digital signatures. b. names at the end of e-mail messages. c. clicks on Web pages if the clicking includes some means of identification. d. signatures on original paper documents.
d. signatures on original paper documents
Destruction of the subject matter: When the specific subject matter of the offer is _______ before the offer is accepted, the offer ________ terminates.
destroyed automatically
You receive a letter telling you that you will start receiving a box of fresh fruit each month and that if you don't want it, you have to reply within seven days. You ignore the offer. Your silence ________
does not constitute an acceptance of the offer
Which of the following statements could be a valid offer? a. An expression of opinion b. A statement of an intention to do something in the future c. An invitation to negotiate d. Advertisements e. An auction without reserve
e. an auction without reserve
Francisca collides with Wyatt's car. Francisca writes Wyatt a letter offering to pay Wyatt $10,000 if he agrees to forfeit all of his rights to pursue a lawsuit. If Wyatt agrees and signs the letter, Wyatt will have agreed to a(n): a. accord and satisfaction. b. covenant not to sue. c. specified accord. d. preliminary accord. e. release.
e. release
Because courts impose quasi-contract obligations as if the parties had entered into an actual contract, these are ______ rather than legal contracts.
equitable
The law recognizes that two parties can mutually agree to cancel their contract to the extent that it is ______
executory
Pick the one item in the list that typically is NOT included in an online offer. a. Acceptance of terms b. Payment c. Return policy d. Disclaimer e. Limitation on remedies f. Future discount policies g. Privacy policy h. Dispute resolution
f. future discount policies
Adults who enter into contracts with minors can avoid their contractual duties just as the minor can. a. True b. False
false
All covenants not to compete are contrary to public policy, and therefore illegal. a. True b. False
false
All gambling contracts in the United States are illegal. a. True b. False
false
An accord and satisfaction can be used to settle any contract dispute with respect to any type of debt. a. True b. False
false
As a Texas resident, when you are dissatisfied with video games you buy on the Internet, you typically can sue in Texas state courts. a. True b. False
false
Because individuals rarely read the underlying language in a click-on agreement, the agreements are always invalid. a. True b. False
false
Bill offered to pay Jennifer $100 for her bike if she would paint it blue. Jennifer agreed and painted the bike a beautiful Carolina Blue. Bill refused to buy the bike saying it wasn't a manly blue and Jennifer should have known that. T/F Bill wins, Jennifer loses.
false
Courts frequently engage in employment contract reformation. a. True b. False
false
Covenants not to compete are not permitted when they involve the sale of an ongoing business. a. True b. False
false
Ronald suffers from dementia, which impacts his brain function, but he also has healthy periods of time when his mind is fully functioning. During one of these healthy periods, Ronald enters into a contract, which he later seeks to avoid. In a majority of states, the contract will not be enforced because of Ronald's dementia. a. True b. False
false
When a minor who has entered into a contract opts to avoid that contract, she or he can choose the particular portions of the contract to disaffirm. a. True b. False
false
consideration is the respect you pay the other person in a contract. T/F
false
generally, what the parties intend to do matters in determining what a contract means. T/F
false
if you don't have contractual capacity you may not enter into a contract. t/f
false
in contract law if a promise is made, it will be enforced. t/f
false
in contract law, the term consideration refers to the serious thought that underlies a party's intent to enter into a contract. t/f
false
the most important consideration in determining value is the cost involved. t/f
false
past consideration is consideration. t/f
false. past consideration is not consideration - true
Even when the requirements of a valid contract are satisfied, a contract may be unenforceable because of two major defenses. First, there may be problems with the _____ of the contract. Second, there may be something to indicate a lack of __________.
form voluntary consent
Void: If a court has declared a person to be mentally incompetent, and has appointed a legal _______ , any contract made by that person is void from the outset.
guardian
executed contract
has been fully performed on both sides
executory contract
has not been fully performed on either side
plain meaning rule
if terms are unclear or ambiguous, court may admit "extrinsic" (external) evidence
Supervening illegality: When a statute or court decision makes the proposed contract ______, the offer automatically terminates.
illegal
The offeror's act of revoking, or withdrawing, an offer is known as revocation. Unless the offer is _______, it can be revoked at any time before acceptance without ______. A rejection of an offer can be accomplished by words or actions that demonstrate a clear ______ not to accept the offer and is not effective until ______ by the offeror or the offeror's agent. A counteroffer is a ______ of the original offer and the making of a new ______.
irrevocable liability intent received rejection offer
When a person selects the correct lottery ticket numbers, the lottery commission ____ legally required to pay the money. This is an example of a ______ contract.
is unilateral
Voidable: If a court has not declared a person mentally incompetent, but that person _____ the capacity to comprehend the subject matter, _____ , and consequences of the agreement, then the contract is voidable at the person's option.
lacked nature
General rules of intoxication: If a person was sufficiently intoxicated to lack the _______ capacity to comprehend the legal consequences of entering into the contract, the contract may be ______ at the option of the intoxicated person.
mental voidable
Necessaries—______ remain liable for the _______ value of necessaries (goods and services).
minors reasonable
Misrepresentation of age (or fraud)—In many jurisdictions, ______ of age prohibits the right of ________
misrepresentation disaffirmance
Under the *modern* view of revocation, an offeror *may not* revoke an offer for a *unilateral* contract if the offeree has *substantially* performed.
modern may not unilateral substantially
bargained-for-exchange
must provide basis for the bargain both parties must get and give consideration you have the right to say yes or no something of legal value must be exchanged b/t parties
Jeff takes all his savings and asks his broker to purchase seven different stocks. When they all fall in value, he attempts to avoid the contract by claiming that "betting" on prices of stocks is the equivalent to gambling. He will: a. avoid the contract based on the general gambling rule. b. not have legal recourse. c. be able to avoid the contract because stock market gambling is against public policy.
not have legal recourse
Generally, when minors act on their own, their parents are
not liable for contracts made by their minor children
advertisements
not offers (invitations to negotiate)
Valid: If a court has not declared a person mentally incompetent and that person was able to ______ the nature and effect of the contract at the time it was formed, then the contract is valid and _________.
understand enforceable
Something of legally sufficient value may consist of the performance of an action that one is otherwise not _____ to undertake. Something of legally sufficient value may consist of _______ from an action that one has a legal right to undertake (called a forbearance).
obligated refraining
revocation of the offer by the offeror
offer can be withdrawn anytime *before* offeree accepts the offer. (& the same way)
In an auction, the auctioneer acts as the _____
offeree
The _____ must have a ______ intention to become bound by the offer. The terms of the offer must be reasonably _______, or definite, so that the parties and the court can ______ the terms of the contract. The offer must be ________ to the offeree.
offeror serious certain ascertain communicated
offeror vs offeree
offeror - starts process offeree - to whom the process is offered
Generally, a contract must include the following terms, either expressed in the contract or capable of being reasonably inferred from it: The identification of the ______. The identification of the ______ or subject matter of the contract. The ______ to be paid. The ____ of _______, delivery, or performance.
parties object consideration time of payment
agreements that lack consideration
preexisting duty past consideration illusory promises gift promises
Something of legally sufficient value may consist of a promise to do something that one has no ______ legal duty to do.
prior
Lapse of time: The offer terminates at the end of the time period specified in the offer; or, if no time period is stated in the offer, the offer will terminate at the end of a ________ time period.
reasonable
When possible, a ________ meaning will be given to a contract's terms. In addition, contracts will be interpreted _____. Words will be given their ______ meanings unless it is clear that the parties meant something else. ______ words will be given greater consideration than _____ language. Finally, ______ terms will prevail over _______ terms.
reasonable as a whole ordinary Specific general written pre-printed
rejection of the offer by the offeree
rejection by the offeree (expressed or implied) terminates the offer *can be final at option of offeror
counteroffer by the offeree
same rules apply as rejection rejection of original offer and the simultaneous making of a new offer.
Ratification: After becoming ______, a person can _____ a contract that she or he formed while intoxicated, thereby becoming fully liable for it.
sober ratify
Consideration can be defined as
something of value given in exchange for a promise
Contract law is designed to provide ______ and ________ for both buyers and sellers by assuring the agreement will be enforced.
stability and predictability
Consideration must be legally ______ , and the result of a _______
sufficient bargain
Consideration is often broken down into two elements: Legal value: Something of legally ______ value must be given in exchange for a promise. This may consist of a promise, a _______ or a forbearance. Bargained-for exchange: There must be a bargained-for _______
sufficient performance exchange
6. Which professionals do NOT need to be licensed to engage in legal and enforceable contracts? a. Architects b. Attorneys c. Electricians d. Tarot card readers e. Real estate brokers f. Accountants g. Stock brokers h. Physicians
tarot card readers
A contract is an agreement ______
that can be enforced in court
Disaffirmance: An intoxicated person may disaffirm the contract at any _____ while intoxicated and for a reasonable time after becoming sober but must make full restitution. Contracts for necessaries are voidable, but the intoxicated person is liable for the _______ value of the goods or services.
time reasonable
A basic rule is that there can be no satisfaction unless there is first an accord. a. True b. False
true
Contract law emphasizes personal responsibility and accountability. T/F
true
Contracts to commit an immoral act, such as selling a child, and contracts that prohibit marriage are contrary to public policy. a. True b. False
true
Courts generally assume the existence of contractual capacity. a. True b. False
true
Gambling is the creation of risk for the purpose of assuming it. a. True b. False
true
a court can supply missing terms if the parties intend to form a contract
true
Consideration is the _____ given in exchange for a promise. A contract cannot be formed without ______ consideration.
value sufficient
Any contract to commit a crime is in violation of a statute and therefore unenforceable. A contract to sell illegal drugs in _______ of criminal laws is _______ because it is a crime. A contract to smuggle undocumented workers into the United States for an employer is _____ and therefore unenforceable.
violation unenforceable illegal
Marte hires Pilar to represent her in a lawsuit. Pilar is not a licensed attorney, although she claims to be one, so the contract between Marte and Pilar .
will not be enforced
auctions with and without reserve
with reserve: can withdraw goods without reserve: cannot withdraw goods
