Contracts Law 1

The terms of __________ contracts are all clearly set forth in either written or spoken words

Express

Which of the following is not a possible defense to a lawsuit in contract?

The offeree lost his job and can no longer afford to proceed with the contract

The mail-box rule is not applicable when there is ________________

instantaneous communication

When both parties are mistaken about a current or past material fact, ________________

either party can choose to rescind the contract

Under the common law, which of the following qualifies an acceptance as a valid acceptance?

A valid acceptance requires all three of these elements

A court may prevent the offeror from revoking his offer when which of the following occurs?

Detrimental reliance

A bond used as bail in a criminal case is which type of contract?

Formal contract

Which of the following elements is not necessarily required for a legally binding contract?

Money is exchanged

A store places an advertisement in the newspaper for "Sale on Dell laptops - All Dell laptops for sale for $500 the last week in July!" Is the store making an offer?

No, the store is merely inviting potential customers to come to the store and offer $500 for a laptop

Which of the following is not considered a material term?

Quantity

When a party to a contract has so much more bargaining power than the other that he or she dictates the terms of the contract, then such a contract would likely be rescinded on which of the following grounds?

Unconscionability

Each of the following is true of a mutual mistake of fact EXCEPT?

One form of mutual mistake occurs when one party makes a mistake about a material fact and the other party knows about the mistake

What is it that can restrict what an employee may do after leaving a company and often dictates where, when, and for whom the employee may work?

Covenants not to compete

On the streets of downtown Lubbock, a man sells you a pocket watch for $20. He says all the watch needs is a new battery and it will be just like new and work perfectly. You buy a new battery for the watch, but the watch still does not work. The man selling the watch knew that the watch would not work, even with a new battery, but he told you it would anyway. This scenario is an example of what?

Fraudulent misrepresentation

Two people enter into a contract under which one of them promises to pay the other $100,000 for killing his business partner. Under which element of a contract is this contract not enforceable?

Legal object

If the terms of acceptance of a contract do not reflect the terms of the offer, which of the following prevents a contract from being formed?

Mirror-image rule

Suppose an operator of a weight scale certifies the weight of a good that is for sale. However, the accuracy of the scale used to weigh the good has not been checked in more than four years, even though the weight scale operator could have easily checked the accuracy of the scale. The scale gave an improper weight measurement that resulted in many problems with the shipping and sale of the product. This scenario is an example of what?

Negligent misrepresentation

On rare occasions, rescission is permitted for unilateral mistakes. Which of the following scenarios is an example of when rescission might be available for a unilateral mistake?

One party made a mistake about a material fact and the other party had reason to know about the mistake

Another name for ______________ is intentional misrepresentation

fraudulent misrepresentation

If the offer is for a unilateral contract, the offeree can accept only by ________________

providing the requested performance

In what circumstances could lack of genuine assent apply to a contract?

The offeror engages in fraud and misrepresentation with regard to the contract

If no means of communicating the acceptance is specified, what type of means of accepting is generally not valid?

All of these are generally valid ways of acceptance

Which one of the following is considered to be a legally binding offer?

Auction without reserve

Which of the following is an element of an offer under common law?

Intent to be bound by an acceptance

Contractual obligations are sometimes imposed by the courts to prevent one party from being unjustly enriched at the expense of another. What are these called?

Quasi-contracts

Which of the following is not true about the law of contract?

The law of contract serves as statutory law

Suppose you entered into a contract to clean someone's pool. Then, both you and the pool owner discovered that the pool water has produced toxic levels of chlorine over time. As a result, you cannot clean the pool without first decontaminating it. This change in knowledge about the toxicity levels of the pool is considered a material fact in the agreement. Can you rescind the contract?

Yes, this seems like a mutual mistake