9-CONTRACTS-LENB T/F

An agreement consists of an assignment by one party and a delegation by the other party.

FALSE-An agreement consists of an offer by one party and an acceptance of the terms by the other party

Under the common law, the elements of an offer are intent, definite and certain terms, and communication of the offer to a neutral third party.

FALSE-An offer has three elements. Under the common law, these elements are intent, definite and certain terms, and communication of the offer to the offeree.

If you have a dental emergency and your dentist pulls your severely infected tooth without prior negotiation about payment, or even any mention of payment, you have an express contract for payment for his services.

FALSE-Contracts are classified as express or implied, depending on how they are created. The terms in express contracts are clearly set forth in either written or spoken words, while implied contracts arise not from words but from the conduct of the parties. If you have a dental emergency and your dentist pulls your severely infected tooth without prior negotiation about payment, or even any mention of payment, you have an implied contract for payment for his services.

Courts interpret contracts using a subjective standard.

FALSE-Contracts are interpreted using an objective standard, meaning that the courts are concerned with only the party's outward manifestations of his or her intent, not what is going on in that party's mind. The courts interpret the words and actions of the parties the way a reasonable person would interpret them

A contract is a set of legally unenforceable statements of intent.

FALSE-A contract is a set of legally enforceable promises

Since it takes at least two parties to enter into an enforceable agreement, a contract cannot be classified as unilateral.

FALSE-All contracts can be classified as either bilateral or unilateral. Whether a contract is bilateral or unilateral depends on what response the offeror (the party proposing the contract) expects from the offeree (the person agreeing to or accepting the contract).

The Restatement of the Law Second, Contracts is not actually the law itself, so judges rarely cite it in cases since it is not an authoritative statement of what the law is.

FALSE-Although judges frequently cite it in cases because it is an authoritative statement of what the law is, the Restatement of the Law Second, Contracts is not actually the law itself.

While negotiable instruments and recognizances are examples of informal contracts, letters of credit and contracts under seal are examples of formal contracts.

FALSE-Formal contracts are those that have a special form or must be created in a specific manner. The Restatement (Second) of Contracts identifies the following four types of formal contracts: a) contracts under seal; b) recognizances; c) letters of credit; and d) negotiable instruments

In the absence of a time condition in the offer, the offer will expire after thirty (30) days.

FALSE-If the offer states that it will be held open for only a certain time, the offer will terminate when that time expires. In the absence of a time condition in the offer, the offer will expire after the lapse of a reasonable amount of time

If the subject matter of the offer is destroyed or becomes illegal, the offer is rescindable at the election of the offeror or the offeree

FALSE-If the subject matter of the offer is destroyed or becomes illegal, the offer immediately terminates. For example, if Jamie offers Bill a job managing the riverboat casino Jamie plans to open on January 1, but before Bill accepts the offer the state decides no longer to allow riverboat casinos to operate in the state, the offer of employment terminates.

Quasi-contracts are also known as implied-in-fact contracts.

FALSE-Implied contracts, which arise not from words but from the conduct of the parties, are sometimes called implied-in-fact contracts. Quasi-contracts are sometimes referred to as implied-in-law contracts.

Quasi-contracts are legally recognized as contracts.

FALSE-Quasi-contracts are not actually contracts.

A quasi-contract is an agreement by the parties to prevent unjust enrichment.

FALSE-Quasi-contracts are not actually contracts. Rather, to prevent one party from being unjustly enriched at the expense of another, the courts impose contractual obligations on one of the parties as if that party had entered into a contract.

According to the Restatement of Contracts, silence can never constitute acceptance.

FALSE-The Restatement of Contracts offers three circumstances under which silence can constitute acceptance: a) the offeree receives the benefits of the offered services with reasonable opportunity to reject them and knowledge that some form of compensation is expected, yet the offeree remains silent; b) the offeror tells the offeree that silence or inaction will constitute an acceptance, and the offeree, by remaining silent, intends to accept; and c) the parties, by their previous course of dealing with each other, have established a pattern of behavior whereby it would be reasonable to assume that silence was intended to communicate acceptance.

The mailbox rule provides that an acceptance is valid when it is received by the offeror.

FALSE-The mailbox rule provides that an acceptance is valid when it is placed in the mailbox.

If Bill overhears Sam offer to sell his car to Helen for $5,000, Bill can walk over to Sam and form a contract by accepting the offer.

FALSE-The offer must be communicated to the offeree or to the offeree's agent. Only the offeree to whom the offer was directed can accept the offer. If Bill overhears Sam offer to sell his car to Helen for $5,000, he cannot walk over to Sam and form a contract by accepting the offer. If Bill says to Sam, "I'll give you $5,000 for your car," he is not accepting the offer; instead, he is making a new offer.

An offeror can revoke the offer at any time unless the offeror says he or she will hold the offer open for a stated period of time.

FALSE-The offeror is said to be the master of his offer and, as such, can revoke it at any time, even if he says he will hold the offer open for a stated period of time

The two primary sources of contract law are the Uniform Contracts Code and the Uniform Commercial Code.

FALSE-There are two primary sources of contract law: case law and the Uniform

In 1952, the United States Congress enacted as federal law the Uniform Commercial Code

FALSE-To remedy some of the difficulties created by a patchwork of different laws governing commercial transactions, the National Conference of Commissioners on Uniform State Laws and the American Law Institute drafted a set of commercial laws that could be applicable to all states. This effort was called the Uniform Commercial Code (UCC)

The mirror-image rule says that the terms of the acceptance must mirror the industry-specific terms applicable to the contract.

FALSE-When a bilateral contract is being formed under the common law, the mirror-image rule applies to the acceptance. The mirror-image rule says that the terms of the acceptance must mirror the terms of the offer. If the terms of the acceptance do not mirror the terms of the offer, no contract is formed. Instead, the attempted acceptance is a counteroffer.

A bilateral contract is commonly defined as a promise in exchange for an act.

False-If the offeror wants a promise from the offeree to form a binding contract, the contract is a bilateral contract. A bilateral contract is commonly defined as a promise in exchange for a promise.

The terms in express contracts are clearly set forth in written, not spoken, words.

False-The terms of express contracts are clearly set forth in either written or spoken words.

Sometimes a contract may be valid yet unenforceable.

TRUE-As a general rule, a valid contract is one that will be enforced. However, sometimes a contract may be valid yet unenforceable. A valid contract may be unenforceable when some law prohibits the courts from enforcing it.

If an acceptance is received after a rejection is received, the acceptance is not valid.

TRUE-If an acceptance is received after a rejection is received, the acceptance is not valid because the rejection terminated the offer.

Lack of genuine assent is a defense to the enforcement of a contract.

TRUE-Lack of genuine assent is a defense to the enforcement of a contract. A contract is supposed to be entered into freely by both parties, but sometimes the offeror secures the acceptance of the agreement through improper means such as fraud, duress, undue influence, or misrepresentation. In these situations, there really is no genuine assent to the contract, and the offeree may be able to raise the lack of genuine assent as a defense to enforcement of the agreement.

Some states still allow a contract without consideration to be enforced if it is under seal.

TRUE-States today do not require contracts to be under seal. However, several states still allow a contract without consideration to be enforced if it is under seal.

Under the common law, the agreement begins when one party, the offeror, makes an offer to another party, the offeree.

TRUE-The first element of a contract is the agreement. Under the common law, the agreement begins when one party, the offeror, makes an offer to another party, the offeree.

An offeror is the party making an offer and the offeree is the party receiving the offer.

TRUE-The offeror makes the offer while the offeree receives the offer.