BUL EXAM 2 T/F
Contracts for transfers, other than sales, of interests in land need not be in writing to be enforceable under the Statute of Frauds
False
Covenants not to compete are never enforceable
False
Emancipation has no effect on a minor's contractual capacity
False
Formal contracts are contracts between parties who are in formal relationships, employer-employee relationships, for example.
False
Generally, parents are liable for contracts made by their minor children
False
In an action to rescind a contract for fraudulent misrepresentation, proof of injury is required for damages to be awarded
False
In many states, certain business contracts entered into by minors cannot be disaffirmed
False
Liquidated damages are uncertain in amount
False
Offers that must be kept open for a period of time include advertisements
False
Ordinarily, courts evaluate the adequacy or fairness of consideration even if the consideration is legally sufficient
False
Promises made with consideration based on events that has already taken place are fully enforceable
False
The mirror image rule is an old rule that no longer applies
False
The only writing sufficient to satisfy the Statute of Frauds is a typewritten form, signed on the bottom by all parties, with the heading "contract" at the top
False
Under the Statute of Frauds, any contract that is not in writing is void
False
Under the parol evidence rule, virtually any evidence is admissible to prove or disprove the terms of a contract
False
When a person reaches the age of majority, he or she can no longer disaffirm a contract
False
When both parties make a mistake as to the future market value of their contract, the contract can be rescinded by either party
False
When both parties to a contract are mistaken as to the same material fact, the contract cannot be rescinded by either party
False
An oral contract that should be in writing to be enforceable under the Statute of Frauds may be enforceable if it has been partially performed
True
Complete performance occurs when a contract's conditions are fully satisfied
True
Consequential damages are awarded for foreseeable losses caused by special circumstances beyond the contract
True
Consideration is value given in return for a promise
True
Damages compensate a non-breaching party for the loss of the contract or give a non breaching party the benefit of the contract
True
Even in states that permit certain types of gambling, courts often find that gambling contracts are illegal
True
If a person makes a statement that he or she believes to be true, he or she cannot be held liable for misrepresentation
True
If an individual who has not been judged mentally incompetent understands the nature and effect of entering into a certain contract, the contract is normally valid
True
If an offer is silent, he or she can never be considered to have accepted an offer
True
If the purpose of a licensing statute is to protect the public from unlicensed practitioners, a contract entered into with an unlicensed practitioner is unenforceable
True
In most cases, a person, to disaffirm a contract entered into when he or she was intoxicated, must return any consideration received
True
Objective impossibility discharges a contract
True
Promissory estoppel may prevent a party from using lack of consideration as a defense
True
Punitive damages are usually not awarded for a breach of contract
True
Rescission is the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made
True
Some states' statutes restrict minors from avoiding certain contracts, including necessaries
True
Specific performance is available only when damages are also an adequate remedy
True
The doctrine of promissory estoppel requires a clear and definite promise
True
The essential feature of undue influence is that the party taken advantage of does not exercise free will
True
To be effective, an offer must be made with serious intent
True
To commit fraudulent misrepresentation, one party must intend to mislead another
True
Usury is charging an illegal rate of interest
True
When a minor disaffirms a contract, whatever the minor transferred as consideration (or its value) normally must be returned
True
Acceptance is timely if it is made before an offer terminates
True
All states have statues that regulate gambling
True
An agreement includes an offer and an acceptance
True
An exculpatory clause may or may not be enforced
True
An express contract is one in which the terms are fully stated in words
True
Anyone who is aware of an offer can accept it and create a binding contract
False
Consideration, in contract terms, refers to a party's competency to enter into a contract
False
A contract for sale of goods of over $300 must be in writing to be enforceable under the Statute of Frauds
False
A contract providing that Joe is to pay Bill "a fair share of the profits" will be enforced
False
A material breach of contract does not discharge the other party's duty to perform
False
A person who is so intoxicated as to lack mental capacity when he or she enters into a contract must perform the contract
False
A seller has no duty to disclose a defect that is known to the seller but could not reasonably be suspected by the buyer
False
All contracts involve promises, and every promise is a legal contract
False
An adhesion contract will never be deemed unconscionable
False
An executory contract cannot be rescinded
False
An illegal contract is valid unless it is executory
False
An offer terminates when the time specified in the offer has passed and the offeror has given one last chance to the offeree to accept
False
An oral contract is an implied contract
False
An unenforceable contract is a contract in which one or both of the parties have the option of avoiding their legal obligations
False
A contract entered unto under duress is voidable
True
A contract involving a mistake of fact can sometimes be avoided
True
A contract that makes performance within one year possible need not be in writing to be enforceable
True
A court imposes a quasi contract to avoid one party's unjust enrichment at another's expense
True
A promise has no legal value as consideration
True
A promise to answer for the debt of another must be in writing to be enforceable, unless the guarantor's main purpose is to obtain a personal benefit
True
A promise to do what one already has a legal duty to do is not legally sufficient consideration under most circumstances
True
A promise to pay a sum of money in consideration of a promise to marry must be in writing
True
A release is an agreement in which one party gives up the right to pursue a legal claim against another party
True
A simple rejection of an offer will terminate it
True
A unilateral contract involves performance instead of promises
True