Legal Environment of business Ch. 11

Fay offers to pay Grey $50 for a tennis lesson for Hetty. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have

A bilateral contract

uno 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

A letter-of-credit agreement between Rural Grain Corporation and Soy Farm Inc. requires Rural's bank to pay Soy on receipt of invoices. This is

A formal contract

Promises that are legally binding include

A promise to pay for items ordered online

Demi buys a lottery ticket. The ticket has the winning numbers for a prize. She submits the ticket to claim the prize. Demi accepted an offer for

A unilateral contract

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

Rough Water LLC and Schafer enter into a contract for the delivery of a certain number of river rafts. Until the rafts are delivered and paid for, the parties have

An executory contract

Bo signs a lease with Capri Properties to lease a studio apartment for the next year for $850 per month. Daisy signs on Capri's behalf. Bo and Capri have

An express contract

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have

An express contract

Marketing Inc. offers to create a campaign to increase N'Ice Cream Inc.'s online business. N'Ice agrees to pay for the service. These parties have

An express contract

On behalf of the jazz group Fusion, their manager Gabe agrees to a performance in Hilltop Amphitheatre on July 4. Gabe and Hilltop sign a written copy of the agreement. These parties have

An express contract

Vicky asks Walt, a cobbler, to repair a pair of boots. There is no discussion of a price, and Vicky and Walt do not sign any documents. After the repair, Walt hands Vicky a bill. With respect to Vicky's obligation to pay the bill, this is

An implied contract

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

Saul claims that his agreement with Teri for saxophone lessons is voidable. If this contract is avoided, both parties

Are released from it

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

Cheri drives into Domestic Auto Service and asks to have a tire replaced on her car. Domestic replaces the tire. Before Cheri pays for it, any contract between them is

Executory

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

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

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

Alyssa hires Bret to mow Alyssa's lawn every Friday. Although they do not discuss the terms of payment, after each of the first three Friday mows, Alyssa pays Bret on Saturday. The payment term is

Implied

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

Darcy enters into a contract with Event Center Inc. to use its venue for a business meeting. If an ambiguity appears in the contract that outside evidence does not make clear, it will most likely be

Interpreted against the party responsible for creating it

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

Legailty

Sales Corporation and Real Estate Inc. negotiate an agreement under which only one of the parties can elect to avoid any duty to perform or to ratify the deal. With respect to this arrangement as a contract, if ratified, both parties

Must perform their respective legal obligations

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

Jana, a nurse practitioner, renders aid to Kurtz, who is injured and unconscious. Jana can recover the cost of the aid from Kurtz

On a quasi contract theory

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

When a storm erupts outside Reba's Diner, Reba and Shaw quickly enter into an implied contract to split the revenue from Shaw's sale of umbrellas to Reba's customers. The terms of this contract are defined by

The conduct of the parties

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

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

Sui enters into a contract with Trey to act as a personal sports trainer. If a dispute later arises over the parties' promises, the court will interpret the contract according to

The parties intent at the time they entered into the contract

When price changes make performance of a contract costly, compliance with the terms may most certainly be obtained through

The principles of contract law

Sy enters into a contract with Truck Company to work as a driver. If a dispute arises over the deal, under the plain meaning rule, the court cannot consider any evidence not contained in the document if

The words in the contract appear clear

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

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

Ocean Inc., a seafood distributor, agrees to buy from Paul, a commercial fisher, any "overstock" of fish that he catches in excess of the legal limit. This agreement is most likely

Void

Red offers to pay Sari to deliver certain documents within thirty minutes. Sari can accept the offer only by completing the task within the deadline. If she does, Red and Sari will have

a unilateral contract