Midterm review (T/F)

False

An agreement between two parties to perform an illegal act is a quasi-contract.

True

Appellate courts include courts of appeals and supreme courts.

False

As a general rule, one's rights under a contract cannot be transferred freely.​

False

At common law, individuals other than the parties to a contract can sue upon or seek to enforce the contract.​

Flase

Contracts which are designed to limit competition are acceptable by law.

False

Performing or promising to perform what one is already obligated to do is a valid consideration.

True

Punitive damages are damages paid to the plaintiff in order to punish the defendant, not to compensate the plaintiff.​

False

Ratification to a contract can be made any time before reaching majority.

False

The "mailbox rule" does not apply in situations where the offeror does not receive the acceptance.

False

The Statute of Frauds' requirement of writing applies if the main purpose of the promise is to gain some advantage for the promisor.​

True

If the supposed consideration consists merely of a promise to do what one is already legally obligated to do, consideration is invalid.

False

Land is generally considered as intangible personal property.

False

The term delegation describes a transfer of rights.​

False

When one party wrongly threatens to injure another person physically in order to get agreement to a contract, economic duress occurs.

True

A donnee beneficiary is one to whom the promisee owes no duty but for whom performance is a gift.​

False

A lease of real property for less than one year must be in writing in order to be binding.​

True

A minor, upon reaching the age of majority, must ratify none or all parts of a contract.

False

All agreements are contracts.

False

An antitrust violation occurs when a business firm seeks to have cooperation within its firm to diminish competition.

False

An express warranty applies even if defects are actually known to the buyer, or defects are so apparent that no special skill or ability is required to detect them.

False

Felonies refer to crimes that are usually punishable by just a fine.

True

If the intended acceptance varies or qualifies an offer, the counteroffer rejects the original offer under the common law.

True

If, after an offer has been made, the performance of the contract becomes illegal, the offer is terminated.

False

Implied warranty arises as to fitness of used property for ordinary use from a sale made by a casual seller.

True

In an FOB contract, the seller bears the risk of loss until the goods are delivered to the FOB point designated.

False

All contracts must be in writing to be enforceable.​

True

An offer expresses the willingness of the offeror to enter into a contractual agreement.​

False

An offer made in jest that does not appear to be seriously intended to an offeree is considered a valid offer.

True

An offer that does not specify a particular manner of acceptance may be accepted in any manner reasonable under the circumstances.

True

Consideration distinguishes mere agreements from legally enforceable obligations.​

False

Contracts made by people who were intoxicated to such an extent that they would not have entered into it if they were sober, makes the contract voidable.

True

Each state is part of the federal court system and has a state court system.

True

Failure to disclose information when there is duty to do so is known as passive fraud.

False

In order for a sale to have taken place, the purchased goods need to be delivered to the buyer immediately.

True

In order to be the subject of a sale, goods must be existing.

True

In the event of goods damaged through no fault of either the buyer or the seller, the party with control over the goods bears the risk of loss.

True

​A gambling contract is a transaction wherein the parties stand to win or lose based on pure chance.

False

​As a general rule, a unilateral mistake made at the time of contracting has an effect on the validity of a contract.

True

A false statement made in the belief that it is true is known as innocent misrepresentation.

False

A bill of sale cannot serve to prove ownership of a good.

False

A breach of contract by one of the parties bound on a contract immediately terminates the contract.​

True

A contract for the sale of goods is governed by the Uniform Commercial Code.

False

A contract is void if parties to a contract are mutually mistaken about their expectations.

False

A debt that has been prohibited from collection by a statute of limitations can never be revived.

False

A person who sells alcoholic beverages to a minor when such a sale is prohibited can recover on the contract.

False

A promise to steal a valuable piece of art is valid consideration to support a contract.

False

A small piece of molded plastic shown to a car buyer to illustrate the materials and methods used in the construction of cars creates a sale by sample.

False

A state administrative agency affects businesses throughout the country.​

True

A warranty is an assurance that the article sold will conform to a certain standard or will operate in a certain manner.​

True

According to the Statute of Frauds, an agreement to sell goods for $500 or more must be in writing.​

True

Administrative agencies primarily set policy through the issuance of rules and regulations.

True

Advertisements and catalogs are examples of general invitations.

True

Generally, a part payment of a past-due debt is not consideration to support the creditor's promise to cancel the balance of the debt.

True

Generally, people can sell only such interest or title in goods as they possess.

True

If a contract calls for personal services, the death or physical incapacity of the person to perform such services discharges the contract.​

True

If a contract is voidable due to a mistake such as fraud in the inducement, duress or undue influence, a person might elect to rescind the contract.

False

If a decision of an administrative agency conflicts with a statute enacted by a higher legislative body, the agency decision will prevail.

True

If an act is legal at the time of entering a contract but is subsequently made illegal, the contract is discharged.​

False

If an adult purchases personal property from a minor, the minor has only a voidable title to the property.

True

Mistakes such as duress and undue influence render contracts void.

True

One may have rights and obligations imposed by law even when no real contract exists.

True

Ordinarily, for a mistake to invalidate a contract, the mistake must be a mutual one about a material fact.

True

Silence constitutes acceptance to an offer if it is reasonable in consideration of previous dealings that the offeree to notify the offeror of non-acceptance.

True

Statutes are easier to amend than constitutions.

True

The U.S. Supreme Court is the highest tribunal in the land, and its decisions are binding on all other courts.

True

The consideration in a sales contract is known as the price.

False

The courts will generally still allow a wrongdoer to enforce a contract against an innocent party.

True

The doctrine of strict liability can make the manufacturer of a dangerously defective product liable, even if there's no proof of negligence.

False

The law states that a unilateral contract can be formed when performance is started.

False

The legal system of the United States is based primarily on the French legal system.​

True

The legal term for one party benefiting unfairly at the expense of another is unjust enrichment.

True

The right of ownership of property or evidence of ownership is called title.​

False

The statement of the seller in which the article sold is warranted or guaranteed is known as an implied warranty.

True

The term "movable personal property" as used in the Uniform Commercial Code (UCC), does not apply to real property or intangible property.

False

There is no difference between a void contract and an unenforceable contract.

True

Unless otherwise agreed, a merchant warrants that goods shall be delivered free of the rightful claim of any third person by way of patent or trademark infringement.

True

When a contract is required to be sealed, a substitute for an actual seal may be used.

False

When an offeree is not aware of the insanity of the offeror and communicates assent to an offer, it is considered accepted.

True

When one party wrongly threatens to injure another person financially in order to get agreement to a contract, economic duress occurs.

False

​The law considers everyone under the age of twenty-one to be a minor.

True

​The promise or obligation of each party to a contract must be supported by consideration in order for the contract to be valid.

True

​The rescission of a contract releases an aggrieved party from all obligations that are yet to be performed

False

​To recover damages for an intentional tort, the plaintiff is required to prove that there was a breach of duty by the tortfeasor to the plaintiff.