MANGMT 3540 - Chapter 9 LearnSmart
Which of the following are sources of contract law?
- Case Law and - The Uniform Commercial Code
In terms of contracts for the sale of goods transactions, Uniform Commercial Code Section ___ significantly modified the mirror-image rule.
2-207
Which of the following is an accurate statement regarding an expression of possible interest in an exchanged?
An expression of possible interest in an exchange is not an offer
Which of the following is an accurate statement regarding an invitation to negotiate?
An invitation to negotiate is not an offer
The law of contracts is primarily _______________ law.
Common
___ is defined as bargained-for exchange
Consideration
Which of the following refers to the legal ability to enter into a binding agreement?
Contractual Capacity
___ is a term applied to a contract in which all of the terms have been fully performed.
Executed
The term ___ applies to a contract in which not all of the terms have been fully performed.
Executory
___ contracts arise not from words but from the conduct of the parties.
Implied
Which of the following is an *incorrect* statement regarding a contract under seal?
In order for a contract to be enforced, it must be under seal.
____ are called simple because no formalities are required in making them.
Informal contracts
A ____ is an agreement by a person or institution that issues it to pay a sum of money on receipt of an invoice and other documents.
Letter of credit
Who makes an offer?
Offeror
A(n) ___ is an agreement whereby an offeree gives the offeror a piece of consideration in exchange for the offeror's agreement to hold the offer open for a specified period of time.
Option contract
___ are not actually contracts.
Quasi-contracts
Which of the following is *true* regarding whether silence constitutes the acceptance of an offer?
Silence does not constitute acceptance
If an offeror becomes incapacitated, the offer is ____.
Terminated immediately
If an offeror dies, the offer ___.
Terminates immediately
According to the Restatements of Contracts, which of the following is *not* a circumstance under which silence can constitute acceptance of an offer?
The offeree does not believe that silence constitutes acceptance and does not manifest an intent to be bound by contract
The ___ governs letters of credit.
Uniform Commercial Code
When a contract is ___, either its object is illegal or it has some defect that is so serious that it is not a contract.
Void
If nothing is said to the contrary in the terms of an auction, the auction is presumed to be ____.
With reserve
In an auction ___, the seller is treated as making an offer to accept the highest bid.
Without reserve
Which of the following is a type of formal contract according to the Restatement (Second) of Contracts?
a contract under seal
Most common unilateral contract offer
a reward
Suppose a rejection is dispatched, but before it is received, the acceptance is communicated to the offeror. In such a case, ____.
a valid contract has been formed because the rejection is not effective until it is received
If the offeror does not specify a time period that an offer will be valid, the offer terminates ___.
after a reasonable period of time
Which of the following is not a type of formal contract according to the Restatement (Second) of Contracts?
an implied-in-law contract
When people hear the term formal contract, what often comes to mind is a(n) ___.
contract under seal
A written contract is an example of a ____ contract.
formal
As a general rule, an advertisement ___.
is an invitation to make an offer
Which of the following is a required element for the valid acceptance of an offer?
manifestation of intent by the offeree to be bound by the acceptance
A ___ is a written document signed by a person who makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument.
negotiable instrument
Under the common law, the agreement in a contract begins when ___.
one party, the offeror, makes an offer to another party, the offeree
According to the mailbox rule, the acceptance of an offer is valid when it is ___.
placed in the mailbox
A(n) ___ arises when a party acknowledges in court that he or she will perform some specified act and/or pay a price on failure to do so.
recognizance
Which of the following is *not* a recognized way to terminate an offer?
revocation by the offeree
If the subject matter of an offer is destroyed, the offer is ___.
terminated immediately
If the acceptance of an offer is receive after a rejection is received, ___.
the acceptance is not valid because the rejection terminated the offer
In a ___, the offeror wants a performance to form the contract
unilateral contract
Certain contracts require a ___, and if there is none, the agreement will not be enforced.
writing
To say that a contract lacks the proper form typically means it lacks a(n) ___.
writing