Business Law: Chapter 10
The party who makes an offer can require the acceptance to be communicated in a very specific way or the acceptance is not good.
True
Two promises or an exchange of promises are involved in bilateral contracts.
True
Usually, the acceptance of an offer is legally effective when the acceptance is sent.
True
You return a lost dog to its owner. You did not know a reward was being offered for the dog. You do not have a legal right to the reward.
True
Consideration is something of value in exchange for a promise.
True
Contract law is primarily state common law.
True
The acceptance of an offer to form a contract may be communicated in any "reasonable" way and be effective, in most instances.
True
The basic elements of a contract are: offer, acceptance, consideration, lawful subject matter, and genuine consent.
True
The general rule in contract law is that an acceptance of an offer must be its "mirror image."
True
If an acceptance is mailed before a revocation of an offer is received, the acceptance is effective.
True
If the offeree accepts an offer through performance requested, unilateral contract is formed.
True
In unilateral contracts, performance is acceptance of an offer.
True
Most contracts are bilateral.
True
Not all promises are enforceable contracts.
True
Offers may be terminated by the destruction of the subject matter of the contract.
True
Option contracts are binding promises to keep a specific offer open to a specific party for, say, one month.
True
Freedom of contract means businesses may enter into any contracts they wish to.
False
If a party fails to perform a nonbinding promise the law will provide a remedy.
False
If a printed advertisement states the price of a good offered for sale, the seller must sell to any customer who wants the good at that price.
False
If an offeree accepts an offer through an exchange of mutual promises, a unilateral contract is formed.
False
If no time is specified in an offer, the law presumes the offer exists for one year before it is terminated by lapse of time.
False
In an express contract, promises are inferred from the behavior of the parties in relation to one another.
False
Most contracts are unilateral.
False
Option contracts are binding promises to keep an offer to sell a good open to the public for a certain length of time.
False
Preliminary negotiations are generally considered to create as binding offers.
False
Termination of an offer can only occur through the operation of law.
False
The basic elements of a contract are: offer, acceptance, consideration, genuine consent and court approval.
False
The basic elements of a contract are: offer, acceptance, fair value, lawful subject matter, and genuine consent.
False
Usually, acceptance of an offer is legally effective when the acceptance is received
False
"I want $10,000 for my car," says Sam. "I would love to have it," says Jan. We have an offer that has been accepted to form a contract.
False
"Unless you say no, then you must buy my car for $5,000," says A. B says nothing. B must buy the car.
False
Acceptance of an offer must be conditional, unequivocal, and legally communicated to be effective.
False
An offer is made by an offeree.
False
An offer that is missing only one key element will be accepted as the basis of a contract; the court will clarify the offer.
False
Contract law enforces duties imposed on citizens by the government.
False
Express contracts must be in writing to be valid.
False
An implied contract is based on promises inferred from the behavior or circumstances of the parties involved.
True
An offer is made by an offeror.
True
An offer is made to the offeree.
True
An offer may be revoked before the offeree has a chance to respond to it.
True
"I will pay you $100 to not sell your $500,000 house to anyone else for the next month so I can see if I can get the money together to buy it," you say. "Ok," says the home owner. The $100 payment is a valid contract.
True
"I will pay you $100 to not sell your $500,000 house to anyone else for the next month so I can see if I can get the money together to buy it," you say. "Ok," says the home owner. The $100 payment is an option contract.
True
"I will sell you my car for $5,000," says A. "How about $4,000 instead?" says B. The offer to sell for $5,000 has been terminated.
True
A contract may be based on a promise not to do something.
True
A counteroffer terminates the original offer.
True
Acceptance of an offer must be unconditional, unequivocal, and legally communicated to be effective.
True
Advertisements that state prices are usually not considered binding offers.
True
An effective offer requires a clear manifestation of intent, definite terms and conditions, and communication of the offer.
True
