Law Quiz
Capacity
(Blank) is the ability to incur legal obligations and acquire legal rights.
False
A contract in which one party to the agreement to buy all of the produced goods of the other party is called a requirements contract. T or F
True
A contract made by a person who has been adjudicated to be insane and institutionalized or put under a guardian's care is void rather than voidable. T or F
True
A contract may be voidable even if the person making the misrepresentation believes in good faith that what he/she says is true. T or F
TRUUU
A morally unconscionable contract may be treated as if it were illegal. T or F
False
A party who has the right to rescind a contract may do so at any time. T or F
True
A promise to refrain from smoking cannot be legal consideration because it does not convey anything of economic value to the other party. T or F
False
A promissory estoppel cannot be applied in the case of the absence of a binding consideration. T or F
True
Abby promises to pay Brian $50 if he will mow Abby's lawn. Brian does not promise to mow Abby's lawn; however, later that day, Brian completely and satisfactorily does mow Abby's lawn. This is an example of a unilateral contract. T or F
No, because Otto implied his ratification.
At 17, Otto signed a contract to purchase a new Hummer by advancing a payment of $50,000. However, when Otto turned 20, he wished to disaffirm this contract. Does the law permit this?
False
Contracts must always be in writing to be enforceable. T or F
False
Contracts to commit a crime are valid, legally enforceable agreements. T or F
False
Courts look at parties outward manifestations of intent as a requirement to enforce a contract. This is called the subjective standard of intent. T or F
False, only on sale ads.
Generally speaking, advertisements are considered to be offers. T or F
False
Generally, the terms of a standardized contract (printed form) are negotiable. T or F
False
Gross inadequacy of consideration is by itself a sufficient reason to set aside a contract. T or F
Each party must give consideration
In order for the consideration requirement in contracts be met:
True
Once a contract made by a minor has been effectively ratified, it cannot be disaffirmed. T or F
False
Ordinarily, contracts entered into by mentally impaired people are void, while contracts entered into by intoxicated people are voidable. T or F
True
The essence of a contract is that it is a legally enforceable promise or set of promises. T or F
True
The intent to accept is objectively demonstrated by words or conduct or a combination of the two. T or F
False, squinter means fraud
The legal term for innocent misrepresentation is "scienter" T or F
True
The offeror is said to be the "master of the offer". This means that offers have the power to determine the terms and conditions under which they are bound to a contract. T or F
True
The threat to institute a criminal prosecution against another party in order to force that party into a contract is almost always duress. T or F
True
The three requirements for a valid offer are: present intent to contract, definiteness and communication to the offer. T or F
False
To accept an offer for a bilateral contract, the offer must perform the requested act. T or F
False
To accept an offer for a unilateral contract, the offer must make the promise requested by the offer. T or F
Yes, because Trista dispatched the telegram prior to 2:00pm.
Trista had a telegram of acceptance dispatched well before 2:00pm on Friday but it is delivered to Charlie's home only at 2:15pm. Do Trista and Charlie have a binding contract?
True
Undue influence cases often involve a relationship of trust and confidence between the contracting parties. T or F
Include a receipt stipulation in the contract.
What can an offeror do to minimize the risk posed by the mailbox rule?
False
Where an offer stipulates a certain means of acceptance, the offer's acceptance is effective upon dispatch even if it uses means other than those specified in the offer. T or F
Courts are contract enforcers.
Which of the following characterizes definiteness standards under the common law?
An owner of a house gets his ceiling painted to conceal a leaking roof and says, "I got the ceiling painted recently."
Which of the following is most likely to constitute a misstatement that can give rise to fraud or misrepresentation liability?
Gross inadequacy of consideration can give rise to an inference of fraud for setting aside a contract.
Which of the following is true of consideration?
It requires reasonable reliance on the promisor's promise.
Which of the following is true regarding promissory estoppel?