Chapter 10 Business law T/F
In contract law, intent is determined by the secret, subjective intent, or belief, of a party.
False
In contract law, intent is determined by the subjective theory of contracts.
False
One of the requirements of a valid contract is an adequate price.
False
The element of intent is of prime importance in determining whether a contract has been formed.
False
The only requirement of a valid contract is that it be voluntarily entered into.
False
The person who makes a promise is the promisee
False
The term CONSIDERATION refers to the legality of the subject matter of a contract.
False
When a contract's writing is not clear, a court will not consider evidence outside the contract to interpret its terms.
False
An offer may not be revoked before it is accepted.
False
An offeree is a person who makes an offer.
False
Every contract involves at least three parties.
False
A promise is a declaration that something will or will not happen in the future
True
A unilateral contract is formed at the moment when the contract is performed.
True
All contracts include an implied covenant of good faith and fair dealing.
True
An express contract must be in writing.
True
An unenforceable contract is one that cannot be enforced because of certain legal defenses against it.
True
Contract law assures the parties to private agreements that the promises they make will be enforceable.
True
If a contract term is ambiguous, a court can consider outside evidence.
True
If a contractual promise is not fulfilled, the person who made it may be required to perform the promised act
True
If a voidable contract is ratified, the parties must fully perform their respective legal obligations.
True
In an express contract, the terms are fully and explicitly stated in words.
True
Informal contracts are usually based on their sub-stance rather than their form.
True
Informal contracts include all contracts other than formal contracts.
True
Some promises are not legally binding.
True
a bilateral contract comes into existence at the moment promises are exchanged.
True
A court will normally interpret the language of a contract according to what the parties claim their intent was when they made it.
False
All contracts must be in writing to be enforceable.
False
An implied contract is not an actual contract.
False
A QUASI contract is a fictional contract
True
A QUASI contract is not enforceable by a court
True
A check is a formal contract.
True
A contract is an agreement that can be enforced in court
True
A contract is valid only if both of the parties entering into it have the capacity to do so.
True
An executed contract is one that has been fully performed.
true
