Business Law Final

In general, if the offeree uses a means of acceptance that is slower than that used by the offeror to communicate that offer

it is an unauthorized means of communication

An agreement may be found to be void due to illegality because of all the following reasons except

it protects the interest created by the contract to a reasonable measure

An agreement to restrain trade

may be legal if it covers a reasonable time period

The destruction of items that the promisor intended to use in performing would not excuse non-performance if it just made performance more difficult for the promisor

True

The violation of usury laws may require the forfeiture of interest and principal

True

To make a third party a donee beneficiary the creation of a gift of the contracted performance to a third party must be the promisee's primary purpose in contracting

True

Undue influence renders a contract voidable and is a ground for recision

True

When a promisee agrees not to do something he or she has a legal right to do in exchange for the promisors promise it constitutes legal value

True

A consideration must have monetary value to have legal value

False

A contract of adhesion is not in violation of public policy

False

A fully executory bilateral contract that cannot be performed within a year after it is made need not be evidence by writing to be enforceable

False

A negligent unilateral mistake is always ground for recision

False

A party to an illegal contract who is fully aware of the contracts illegality can still fully recover damages

False

A person who discovers that he is a victim of fraud has an indefinite amount of time to file his grievance

False

A promise supported by past consideration is enforceable

False

A promisee's consideration must be another promise and cannot be in the form of an act

False

All states require a formal statement by the minor before they find ratification

False

An acceptance must be in writing

False

Certain formalities are required to create an assignment

False

Even if it was not bargained for, a promise is enforceable

False

For a contract to be illegal on the grounds of public policy a statute or administrative regulation must define precisely what that policy is

False

Minors who successfully disaffirm a contract are not entitled to the return of any consideration, they may have given the adult party to the contract

False

Punitive damages are recoverable for breach of contract

False

The courts of different states stand united in their views of what constitutes public policy

False

The doctrine of substantial performance applies when a promisor willfully fails to completely perform

False

The intent to deceive is also known as capacity

False

The plaintiff in a contract action has no duty to mitigate his damages because he is the injuries party

False

To satisfy the statute of fraud's writing requirement, both parties' signatures must appear in the writing

False

Person's who were not originally parties to a contract may claim some interest in it as assignees or donee beneficiaries or creditory beneficiaries

True

Public policy can prevent the delegation of duties

True

The type of contract required to be in writing in the acceptation of part performance is

Transfers of interest in land

A bilateral contract is a promise for a promise

True

A contract may be enforceable if promissory estoppable applies

True

A court will not enforce illegal agreements, but will leave the parties where it finds them

True

A mutual mistake is always a ground for recision

True

A person who claims to have been victimized by a missive presentation may cancel the contract only if he or she can show some detriment as a result

True

A promisor who is guilty of material breach has no right of action under the contract

True

As a general rule, performing a preexisting duty is not consideration

True

If time is not of the essence of a contract, the promisee must accept late performance rendered within a reasonable time of when performance was due

True

In most states the agreements of a person who had been adjudicated insane are void

True

Normally both parties to a contract are discharged when they have completely performed their contractual duties

True

Once a mentally impaired person regains their mental capacity, they may ratify a contract they made while impaired

True

One of the primary reasons for not enforcing illegal contracts is to deter people from entering into such agreements in the first place

True

All of the following under the UCC are ways to communicate acceptance except

a means slower and safer than the way the offer was communicated

An assignor who assigns the contract will be relieved of the duty to perform to the other party on the original contract when there has been

a novation of the original contract

To create acceptance to an offer for a bilateral contract

acceptance must always be properly communicated to the offerors

Identify the legal term for setting a disputed claim

accord and satisfaction

If a girl hands a guy detailed offer for the purchase of his house and he signs the offer without changing the terms, both parties are bound on the terms of the offer. This is an example of a

bilateral contract

Under the UCC, minors who disaffirm their contracts involving goods

can no longer reclaim these goods from innocent third parties

Assignees

can sue the promisor for nonperformance

For the purpose of minor's contracting for necessaries would include all of the following except

concert tickets

Ratification of a contract which is void for a lack of capacity

cuts off the right to disaffirm

Whether a given item is considered a necessary

depends on the minor's station in life

Dad wants to reward son for graduating; dad contacts local dealer to buy son a BMW. Under the contract dad promises to pay the dealer for the car in exchange for the dealer to give the car to the son. The son is a

donee beneficiary

All of the elements to prove misrepresentation with the intent to deceive have to be established to prove

fraud

When a person turns back to odometer on a car he is trying to sell, he is guilty of

fraud with intent it deceive

an acceptance is effective as soon as it is dispatched

if the offeree uses an authorized as well as vestipulated means of communication

Who among the following cannot enforce a contract

incidental beneficiaries

In general, performing a preexisting duty

is not consideration

Under the UCC, agreements to modify contracts for the sale of goods

needs no new consideration to be binding

A guy's duty to perform as a basketball player for an NBA team is

not delegable

What is the term used for the willingness to abide by contractual obligations

ratification

If a girl buys a motorhome from a person who lies about the condition of the home, she can

rescind the contract or affirm the contract and sue in tort for damages

One person convinces another to buy a preowned car from him, but withholds the fact that the car has a mechanic problem, this indicates

scienter

Today many courts recognize the following about the doctrine of caveat emptor

that it often produces unfair results

Guy makes oral agreement to buy a boat for $700, under the UCC

the agreement is barred by the statute of frauds

An acceptance is valid if

the communication by nonauthorized means is effective when received

Saying consideration must not be bargained for means that

the consideration given by the promisee must be the consideration the promisor request in exchange for making his or her promise

In a contract made by a minor

the contract is voidable

When a person had been adjudicated insane

the court has appointed a guardian or conservator for the person's estate

When a minor reaches the age of majority

the person may disaffirm a contract for a reasonable time after reaching majority

The difference between duress and and undue influence is

the relationships between the parties at the time of the contract

In cases involving contractual incapacity caused by insanity

the rules regarding necessaries are basically the same as in the cases by minors

There is no voluntary consent in a mutual mistake if

there is untrue belief by both parties about a material fact

The term delegation refers to the

transfer of duties

Oral contracts that come under the provisions of the statute of frauds are

unenforceable

When interpreting contracts courts give ordinary words their

usual meanings

In most states the agreements of persons who have been adjudicated insane are

void

Which of the following is true about exculpatory clauses

when an exculpatory clause is enforced it can affectively relieve a party of their own negligence