chapter 10-11
Requirements of a Valid Contract.
!. Agreement 2. consideration 3.capacity 4. legality
The offeror must have a serious intention to become bound by the offer in order for the offer to be effective
True
The offer does not have to be communicated to the offeree
False
What is the legal effect of a counteroffer in the context of contract negotiations
It terminates the original offer and creates a new offer
Under the common law one of the elements that's necessary for an offer to be effective is
The offer must be communicated to the offeree
Any promises made by the parties to the contract must be supported by legally sufficient and bargained-for consideration
True
If the offeree can accept simply by promising to preform the contact is bilateral
True
No performance, such as payment of fund or delivery of goods, need to take place for a bilateral contract to be formed
True
Fay offers to pay Grey $50 for a tennis lesson for Hetty. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have
a bilateral contract
Steel Mill, Inc., makes an offer to Tom to enter into a contract to work as a mechanical engineer for a certain salary for one year, subject to a five-year renewal based on his performance. Tom accepts the offer. This is a valid contract because it includes
an offer and an acceptance
A contract that results when offer can be accepted only by the offeree's consideration is a unilateral contract
false
A unilateral contract is formed at the moment when the contract is signed
false
Alyssa hires Bret to mow Alyssa's lawn every Friday. Although they do not discuss the terms of payment, after each of the first three Friday mows, Alyssa pays Bret on Saturday. The payment term is
implied
Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump
is the consideration that creates Kim's obligation to pay Leo.
Field Construction, Inc., contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay. If this is a valid contract, it will be partly because it includes the element of
legality
Field Construction, Inc., contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay. If this is a valid contract, it will be partly because it includes the element of
nona promised to pay for the watch
An offer can be terminated by action of the parties in any of three ways: by revocation, by rejection, or by counteroffer.
true
An offer is a promise or commitment to do or refrain from doing some specified action in the future
true
With respect to consideration, a bargained- for exchange distinguished a contract form a gift
true
consideration is the value given in return for a promise or performance in a contractual agreement
true
painting a garage can constitute "something of legally sufficent value"
true
Rue offers to pay Sari to deliver certain documents within thirty minutes. Sari can accept the offer only by completing the task within the deadline. If she does, Rue and Sari will have
unilateral contract
