Chapter 11 Review
The term consideration refers to the deference shown by contracting parties to each other.
False
The terms of service that a person agrees to before loading an app on a phone are not truly legally binding.
False
To avoid a contract, both parties must fully perform their respective legal obligations.
False
Under the objective theory of contracts, a contract is not enforceable without a clearly defined objective.
False
What a party said when entering into a contract is a subjective fact.
False
Boca claims that he intended to enter into a contract with Carla for tutoring, and she breached it. Carla responds that she never intended to enter into a contract with Boca. Their intent to enter into a contract is determined with reference to
the objective theory of contracts.
When price changes make performance of a contract costly, compliance with the terms may most certainly be obtained through
the principles of contract law.
A check is an informal contract.
False
A contract is considered to be unequivocal even when a term is susceptible to more than one interpretation.
False
A contract that only one of the parties can enforce in a court is not valid.
False
A party who confers a benefit on someone else unnecessarily can obtain its fair value by invoking the doctrine of quasi contract.
False
A payment of funds or a delivery of goods must take place for a bilateral contract to be formed.
False
An agreement to form a contract cannot modify the terms of a previous contract.
False
An offer that can be accepted simply by a promise to perform does not create a binding contract.
False
Any contract that is not in writing is not enforceable.
False
Anyone can avoid a contractual obligation by claiming that he or she did not read the contract.
False
Contract law does not distinguish between moral and legal obligations.
False
If a voidable contract is ratified, both parties are released from it.
False
In interpreting a contract, a court will give greater weight to the course of performance between the parties than to the express terms.
False
Once an offer is made, the offeror cannot revoke it.
False
One of the requirements of a valid contract is an adequate market for the deal's goods or services.
False
Only one party entering into a contract must possess characteristics that qualify him or her as competent for a valid contract to exist.
False
Insofar as possible, a reasonable, lawful, and effective meaning will be given to all of the terms of a contract.
True
Quasi contract are not actual contracts.
True
Quasi contracts are imposed on parties in the interest of fairness and justice.
True
Macy offers to sell his fitness watch for $50 to Nona. Nona promises to pay Macy the price. Later, they exchange the watch for the funds. A contract was created when
Nona promised to pay for the watch.
A contract is an implied contract if the conduct of the parties creates and defines some of the terms.
True
A declaration that binds the person who makes it to do a certain act is a promise.
True
A letter of credit is a type of formal contract.
True
A promisee has the right to expect or demand that something will or will not happen in the future.
True
A signed agreement for a video streaming service is an express written contract.
True
An executed contract is one that has been fully performed by both parties to it.
True
By supplying procedures for enforcing private agreements, contract law provides an essential condition for the existence of a market economy.
True
Contests and lotteries are unilateral contracts.
True
Contracting parties are bound only by terms that can be objectively inferred from promises made.
True
Contracts relating to real estate are governed by the common law.
True
If one party to a contract has fully performed but the other has not, the contract is executory.
True
If what is written in a contract is clear, a court will enforce the contract according to its obvious terms.
True
Juno tells Liu she will give him her old car if he babysits her son Marc weekday evenings for six months. Liu agrees. Juno and Lee have formed
a bilateral contract.
Yuri agrees to zed.com's terms of service and downloads the site's app. Yuri then reverse-engineers the app to create a competing product. This is
a breach of contract.
Promises that are legally binding include
a promise to pay for items ordered online
On Monday, Xi tells Yard Work Inc., that he will pay $500 if a variety of tasks are completed by Friday. On Wednesday, when Yard Work is more than half done with the work, Xi says that he has changed his mind. These parties had
a unilateral contract as soon as Yard Work began to perform.
Steel Mill Inc. makes an offer to Tag 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. Tag accepts the offer. This is a valid contract because it includes
an offer and an acceptance.
Odette, a certified public accountant, agrees to perform an audit for Personnel Inc. These parties are most likely to follow the rules of contract law in order to
avoid potential disputes.
Pavers Inc. contracts with a QuikStop store to repave the store's parking lot for a certain price. To be enforceable, this contract must include an element of
consideration.
Without a legal framework of reasonably assured expectations within which to make plans, businesspersons would most reliably be able to count only on others'
good faith.
Mel agrees to work as a freight broker for National Shipping Inc. In determining whether a contract has been formed, an element of prime importance is the parties'
intent.
Field Construction Inc. contracts with Mesa Ranch to build a new 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.
Movers LLC promises to deliver a certain couch to Nora, who promises to pay for the service. If Movers does not perform, it may be required to
pay damages.
Ota asserts that a deal entered into with Pai to sponsor and host a motivational conference for independent sales representatives was formed as the result of a mistake. Ota's best defense to the enforcement of this contract is
the lack of a party's voluntary consent.