business law
A barren promise is a promise to pay an existing debt or to obey the law, or a similar promise and the obligation to perform acts already required is known as a preexisting duty.
True
A bilateral contract is one where a promise is offered seeking a promise in return.
True
A bilateral contract is one which has a promise for a promise between the parties.
True
A call for a bid or estimate for materials to be furnished or work to be performed is not considered an offer, but rather a request for an offer or an invitation to negotiate that can be accepted or rejected by the person calling for the bid.
True
A competent party id one who is of legal age ( usually 18 in most states and of normal mentality).
True
A conditional or qualified response to an offer is not considered an acceptance but is interpreted as a rejection of the original offer and a counter-offer.
True
A counter-offer is considered a conditional or qualified acceptance of an offer and is generally interpreted as a rejection of the initial offer and, therefore, that initial offer is not binding on the parties.
True
A gratuitous promise is a gift and is not enforceable in a court of law because they are considered to lack consideration in that someone makes a promise without requiring some benefit in return.
True
A legally enforceable contract can not be based on a promise that is impossible to fulfill.
True
A party who promises to do something that is merely difficult to perform, or poses unforeseen expenses, is still bound by the terms of the contract.
True
A person who was so intoxicated by alcohol or affected by drug use that he or she is unable to understand the nature and effect of the contract, when no longer impaired, can chose to carry out the contract provided he or she does so within a reasonable period of time after no longer being impaired.
True
A person, who makes a promise without requiring some benefit in return has made a "gratuitous promise".
True
A promise to make or give someone a gift is a gratuitous promise.
True
A promise to not exercise a legal right is known as forbearance.
True
A valid contract can be entirely handwritten.
True
A valid contract does not exist if the consideration is a promise to perform an illegal act, or to avoid performing an act that is legally required to be performed.
True
Abandonment is the term used by the law when a minor's actions are considered to be acts of emancipation.
True
Agreements based on gratuitous promises are generally not enforceable.
True
All agreements are not contracts, but all contracts are agreements.
True
An acceptance communicated by telephone or fax is considered effective when received.
True
An advertisement, such as one that appears every day in the newspaper or on television or radio, is generally regarded as an invitation to trade.
True
An example of a contract that lacks consideration but is still enforced by the courts because this is considered socially beneficial are pledges or subscriptions.
True
An illusory promise is considered to consist of an indefinite, open-ended statement purporting to be an agreement but it had neither consideration or an enforceable agreement because a person who makes an illusory promise never commits to a specific or absolute act.
True
An offer, once rejected by the offeree, can not be revived or made into counter offer once the communication of the rejection has been received by the offeror.
True
An offeror can take back, withdraw or revoke an offer provided that the offer has not been rejected or accepted by the offeree.
True
Any of the usual means of communication, such as telephone, letter, fax, e-mail, text message, etc., may be used in accepting an offer, unless the offer specifies a certain form of communication.
True
If an offer is silent as to the time the acceptance will be effective, than the "mailbox rule" states that an acceptance sent via the postal system or by the courier (special messenger) is effective when received by the offeror.
False
Implied contract are neither oral or written.
False
Offers are terminated only by revocation by offeror or rejection by offeree.
False
Revocation of an offer is the calling back of the offer by the offeror and can be done at anytime even if the offer is accepted by the offeree.
False
The "mailbox rule" states that an acceptance sent via the postal system or a delivery courier is effective when received back by the offeror.
False
The personal services or duties owed in a contract by artists, musicians, singers and athletes can be delegated and almost always are transferred.
False
To be legally enforceable all contracts must be written.
False
Upon reaching the age of majority, a minor must ratify an earlier contract entered into in writing and within 30 days after reaching the age of majority.
False
When threats are used to force someone to enter into a contract, the agreement or contract is considered entered into because of undue influence.
False
Written contracts must be handwritten in pen in order to be enforceable.
False
Undue influence is the act of applying unlawful or improper pressure or influence to a person in order to gain his or her agreement to a contract.
False ( Duress)
When someone uses a power to control the actions of another because of a special or confidential relationship over that other person and the power is used improperly or to his or her personal advantage, "duress" is said to exist.
False ("Undue Influence")
For an offer to be valid, it need only be: (1) definite and certain, (2) communicated to the offeree.
False (3. Serious)
Contracts involving a mentally incompetent person are usually considered voidable at the option of the mentally incompetent person and therefore such a contract can not be enforced against that person if he or she does not carry out the contract, excepting of course a contract that provided "necessaries of life" to the mentally incompetent person.
True
For a minor to disaffirm a contract he or she entered into, that disaffirmance must be done before the minor reached the legal age of majority or within a reasonable period of time after reaching adulthood.
True
Fraud, is the intentional misstatement or nondisclosure of a material fact made by one party with the hope of influencing the other party.
True
If a minor is considered "emancipated" then he or she assumes many of the rights and obligations of a person of legal age.
True
If a person makes a contract while so intoxicated by alcohol or affected by drug use that he or she is unable to understand the nature and effect of the contract, it is voidable at his or her option.
True
If an offeror acknowledges a rejection from the offeree, but the offeror restates the offer, then the offeree still has the opportunity to accept, reject or make a counteroffer.
True
In contracts between a minor and competent person, only the minor has the privilege of disaffirming or cancelling the contract provided it is not a contract for what is termed "necessities of life".
True
In order for the law to declare a contract dissolved because of a mistake, the mistake must be mutual.
True
In order for there to be a mistake in contract law, the mistaken belief must concern an existing fact and not a belief about what might happen in the future.
True
In order for there to be a valid consideration in a contract there must be: legality of the consideration, the consideration must be adequate and there must be the possibility of performance of the consideration.
True
In the eyes of the law, "mistake" is a belief that not in accord with the facts.
True
Intentional concealment of a material fact related to a transaction is just as fraudulent as intentionally making false statements.
True
It is a general rule of contract law that provides that the acceptance of an offer must be the same as the offer and if there is any differences between the offer and the acceptance, the "acceptance" is considered a counteroffer which immediately rejects the initial offer.
True
It is the general rule that an acceptance of an offer becomes effective when the parties so intend it to be effective.
True
Moral consideration is when a person is not legally bound to do what he or she may feel obligated to do because of love, friendship, honor, sympathy, loyalty, conscience.
True
Offers made in anger or jest, or those made under severe emotional strain are not made with the intent of entering into a valid, enforceable agreement.
True
One of the elements or requirements for there to be a fraud is that the misstatement be made with knowledge of its falsity or with reckless disregard of its truth.
True
Silence may indicate acceptance or assent to an offer when both parties agree beforehand that this (silence) is to be the means of acceptance.
True
Silence on the part of an offeree to an offer received from an offeror is usually never considered acceptance unless both parties have agreed beforehand that this is to be the means of acceptance.
True
The "mirror-image" rule of contract law states that the acceptance of an offer must be the same as the offer, and that if there are any differences between the offer and the acceptance, the acceptance is regarded as a rejection of the offer.
True
The Statute of Frauds is a statue/law that requires certain types of contracts to be in writing in order to be enforced in a court of law.
True
The Statute of Frauds only applies to those contracts listed in the statute and only if those contracts are yet to be performed (executory- not yet completely performed).
True
The communication of an offer is usually done in usual ways. including oral communication ( in person or by telephone, television or radio) and written communication such as ( letters, faxes, e-mails, or other written forms).
True
The law allows minors to cancel contracts they get into either before they reach the age of majority or within a reasonable time after reaching the age of majority with the exception of contracts for necessities, i.e. food, clothing, medical care, lodging provided to the minor by an adult.
True
The law does not protect minors who have committed a tort or a crime and this means that a minor is held responsible for injury to other persons, damaged property and damaging statements.
True
The law favors assignments, but not delegations.
True
The legal significance of being a third-party intended beneficiary to a contract made by two other people, is that this type of beneficiary gets legal rights to the contract which he or she can enforce.
True
The major legal significance of an innocent misrepresentation and a fraud is that in the innocent misrepresentation situation, the law allows the other party not committing the innocent misrepresentation to cancel the contract only but not collect any money damages in addition.
True
The problem with unilateral contracts is that they are not considered accepted until the performance or substantial performance requested in return to the promise is rendered which essentially leaves the offeree in a potential tenuous position of having the offeror be able to back out of the transaction without any legal liability to the offeree.
True
The promise to repay someone for a benefit after it has already been received is known as "past consideration".
True
The responsibility of determining whether or not a person is competent rests with anyone who enters into a contract with the person.
True
The terms of an express contract are specifically stated.
True
There are four(4) essential elements of a contract: agreement, capacity to contract, consideration and legal purpose or object. They are considered essential because all four must be present in order to have a valid enforceable contract.
True
To be definite and certain, an offer should specify all the terms and conditions of the contract.
True
Traditionally, the courts generally do not make any attempt to judge whether or not the exchange of promises in a contract was fair- in other words, whether there was adequacy of consideration.
True
When an advertisement offers a reward for information that might lead to the arrest of a criminal or for the return of a lost thing, it is regarded as a general offer to the public at large.
True
When it comes to the consideration of a contract, the courts ( as has been the traditional approach) do not look into the adequacy or sufficiency of the consideration supporting the transaction.
True
A third party who benefits incidentally from a contract has right to benefit if benefits exceed $1,000.
False
All agreements are contracts, but not all contracts are agreements.
False
All contracts are not agreements, but all agreements are contracts.
False
An acceptance of a public offer by anyone, as indicated by the performance of the act, results in an unenforceable contract.
False
An agreement that can be completed within a year must be in writing in order to be enforced pursuant to the Statute of Frauds.
False
Fraud may be only committed by spoken words.
False
"Forbearance" is the promise to refrain from doing something that a party has a legal right to do or the promise of in-action.
True
"Puffing" is a general expression of opinion (usually by a salesperson) that is used to persuade a prospective purchaser to buy a product.
True
An agreement to guarantee the debt payment of one person to another person is known as a personal guaranty and must be in writing in order to be enforced according to the Statute of Frauds, but only if the agreement to guarantee is for over $500.00
False
Any lack of seriousness of intent on the part of an offeror communicating an offer need not be apparent to a reasonable person.
False
Chin, a collector of rare paintings, offered to sell a particular painting by Picasso (catalog number 1401) to Kovacs for $14,000. When it came time to exchange the painting for the money, it was obvious that Kovacs was expecting a different Picasso painting(bearing catalog number 1410). Chin was also surprised because he thought Kovacs wanted to buy the painting bearing catalog number 1401. Under these facts, the contract between Chin and Kovacs:
Can be canceled by either party as the mistake was mutual.
A contract with a minor can be ratified by either the adult or the minor after the minor has reached the age of majority.
False
Fraud may be committed by:
Either written words or acts or conduct, or both.
"Puffing" is the legal equivalent of a misrepresentation of a material fact.
False
A contract of adhesion is characterized by its shocking unfairness or is shockingly unjust.
False
A contract of adhesion is one that is regarded as "shockingly unjust or unfair"
False
A contract that involves parties who have unequal bargaining power and is usually considered a "take it or leave it deal" is known as an unconscionable contract.
False
An agreement for the sale of personal property for $499.99 must be in writing in order to be enforced in court according to the Statute of Frauds.
False. (500+)
The transfer of a right to a contract is known as a delegation.
False. (of a duty)
The unintentional misstatement of a material fact that results in inducing another to enter into an agreement to his or her loss, is:
Just misrepresentation also known as innocent misrepresentation.
A "barren promise" is an obligation that a party is already bound to or by law or by some other agreement, which means the party may not use this as consideration for a new agreement.
True
A "pre-existing duty" is a promise to pay an existing debt or to obey the law, or a similar promise of something already owed.
True
Jamieson lost an expensive pedigreed dog while at the park. He placed an advertisement in the Daily Journal, offering a $200 reward for the dog's safe return. This offer is:
Valid, even though directed to thousands of readers, only one of whom could accept it and is known as a public offer.
A contract resulting from the use of undue influence is:
Voidable at the option of the party wrongfully influenced.
