BUL EXAM 2 T/F CH.8-11

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 many states, certain business contracts entered into by minors cannot be disaffirmed

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

When a person reaches the age of majority, he or she can no longer disaffirm a contract

False

Consideration is value given in return for a promise

True

Even in states that permit certain types of gambling, courts often find that gambling contracts are illegal

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

Promissory estoppel may prevent a party from using lack of consideration as a defense

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

The doctrine of promissory estoppel requires a clear and definite promise

True

To be effective, an offer must be made with serious intent

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

Consideration, in contract terms, refers to a party's competency to enter into a contract

False

A unilateral contract involves performance instead of promises

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

An unenforceable contract is a contract in which one or both of the parties have the option of avoiding their legal obligations

False

Anyone who is aware of an offer can accept it and create a binding contract

False

A contract providing that Joe is to pay Bill "a fair share of the profits" will be enforced

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

All contracts involve promises, and every promise is a legal contract

False

An adhesion contract will never be deemed unconscionable

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

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 do what one already has a legal duty to do is not legally sufficient consideration under most circumstances

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