BUL EXAM 2 T/F

Contracts for transfers, other than sales, of interests in land need not be in writing to be enforceable under the Statute of Frauds

False

Covenants not to compete are never enforceable

False

Emancipation has no effect on a minor's contractual capacity

False

Formal contracts are contracts between parties who are in formal relationships, employer-employee relationships, for example.

False

Generally, parents are liable for contracts made by their minor children

False

In an action to rescind a contract for fraudulent misrepresentation, proof of injury is required for damages to be awarded

False

In many states, certain business contracts entered into by minors cannot be disaffirmed

False

Liquidated damages are uncertain in amount

False

Offers that must be kept open for a period of time include advertisements

False

Ordinarily, courts evaluate the adequacy or fairness of consideration even if the consideration is legally sufficient

False

Promises made with consideration based on events that has already taken place are fully enforceable

False

The mirror image rule is an old rule that no longer applies

False

The only writing sufficient to satisfy the Statute of Frauds is a typewritten form, signed on the bottom by all parties, with the heading "contract" at the top

False

Under the Statute of Frauds, any contract that is not in writing is void

False

Under the parol evidence rule, virtually any evidence is admissible to prove or disprove the terms of a contract

False

When a person reaches the age of majority, he or she can no longer disaffirm a contract

False

When both parties make a mistake as to the future market value of their contract, the contract can be rescinded by either party

False

When both parties to a contract are mistaken as to the same material fact, the contract cannot be rescinded by either party

False

An oral contract that should be in writing to be enforceable under the Statute of Frauds may be enforceable if it has been partially performed

True

Complete performance occurs when a contract's conditions are fully satisfied

True

Consequential damages are awarded for foreseeable losses caused by special circumstances beyond the contract

True

Consideration is value given in return for a promise

True

Damages compensate a non-breaching party for the loss of the contract or give a non breaching party the benefit of the contract

True

Even in states that permit certain types of gambling, courts often find that gambling contracts are illegal

True

If a person makes a statement that he or she believes to be true, he or she cannot be held liable for misrepresentation

True

If an individual who has not been judged mentally incompetent understands the nature and effect of entering into a certain contract, the contract is normally valid

True

If an offer is silent, he or she can never be considered to have accepted an offer

True

If the purpose of a licensing statute is to protect the public from unlicensed practitioners, a contract entered into with an unlicensed practitioner is unenforceable

True

In most cases, a person, to disaffirm a contract entered into when he or she was intoxicated, must return any consideration received

True

Objective impossibility discharges a contract

True

Promissory estoppel may prevent a party from using lack of consideration as a defense

True

Punitive damages are usually not awarded for a breach of contract

True

Rescission is the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made

True

Some states' statutes restrict minors from avoiding certain contracts, including necessaries

True

Specific performance is available only when damages are also an adequate remedy

True

The doctrine of promissory estoppel requires a clear and definite promise

True

The essential feature of undue influence is that the party taken advantage of does not exercise free will

True

To be effective, an offer must be made with serious intent

True

To commit fraudulent misrepresentation, one party must intend to mislead another

True

Usury is charging an illegal rate of interest

True

When a minor disaffirms a contract, whatever the minor transferred as consideration (or its value) normally must be returned

True

Acceptance is timely if it is made before an offer terminates

True

All states have statues that regulate gambling

True

An agreement includes an offer and an acceptance

True

An exculpatory clause may or may not be enforced

True

An express contract is one in which the terms are fully stated in words

True

Anyone who is aware of an offer can accept it and create a binding contract

False

Consideration, in contract terms, refers to a party's competency to enter into a contract

False

A contract for sale of goods of over $300 must be in writing to be enforceable under the Statute of Frauds

False

A contract providing that Joe is to pay Bill "a fair share of the profits" will be enforced

False

A material breach of contract does not discharge the other party's duty to perform

False

A person who is so intoxicated as to lack mental capacity when he or she enters into a contract must perform the contract

False

A seller has no duty to disclose a defect that is known to the seller but could not reasonably be suspected by the buyer

False

All contracts involve promises, and every promise is a legal contract

False

An adhesion contract will never be deemed unconscionable

False

An executory contract cannot be rescinded

False

An illegal contract is valid unless it is executory

False

An offer terminates when the time specified in the offer has passed and the offeror has given one last chance to the offeree to accept

False

An oral contract is an implied contract

False

An unenforceable contract is a contract in which one or both of the parties have the option of avoiding their legal obligations

False

A contract entered unto under duress is voidable

True

A contract involving a mistake of fact can sometimes be avoided

True

A contract that makes performance within one year possible need not be in writing to be enforceable

True

A court imposes a quasi contract to avoid one party's unjust enrichment at another's expense

True

A promise has no legal value as consideration

True

A promise to answer for the debt of another must be in writing to be enforceable, unless the guarantor's main purpose is to obtain a personal benefit

True

A promise to do what one already has a legal duty to do is not legally sufficient consideration under most circumstances

True

A promise to pay a sum of money in consideration of a promise to marry must be in writing

True

A release is an agreement in which one party gives up the right to pursue a legal claim against another party

True

A simple rejection of an offer will terminate it

True

A unilateral contract involves performance instead of promises

True