Business Law - Chapter 9 LearnSmart

Which of the following is an inaccurate statement regarding communication of acceptance to the offeror?

An acceptance must be communicated in writing in order for it to be effective.

_____ contracts are not actually contracts.

Quasi-

Which of the following is an accurate statement regarding rejection of an offer?

Rejection of an offer terminates the offer

What is the general rule regarding whether silence constitutes acceptance?

Silence does not constitute acceptance

Which of the following is a situation where a valid contract may be unenforceable?

The applicable statute of limitations period has expired

According to the Restatement of Contracts, which of the following is NOT a circumstance under which silence can constitute acceptance?

The offeree does not believe that silence constitutes acceptance and does not manifest an intent to be bound by contract.

According to UCC Section 2-207, which of the following is NOT a requirement for an offeree to include in an acceptance terms that are additional to or different from the terms of the offer?

The subject contract does not contain any express or implied warranties

Which of the following is a type of formal contract according to the Restatement (Second) of Contracts?

a contract under seal

Suppose a rejection is dispatched, but before it is received, the acceptance is communicated to the offeror. In such a case, _____.

a valid contract has been formed because the rejection is not effective until it is received

A lack of genuine assent can result from all but which of the following?

acceptance

If the offeror does not specify a time period that the offer will be valid, the offer terminates _____.

after a reasonable period of time

A(n) ______ consists of an offer and acceptance

agreement

In which of the following auctions must the seller accept the highest bid?

an auction without reserve

A(n) _____ contract is commonly defined as a promise in exchange for a promise

bilateral

Contractual _____ is the legal ability to enter into a binding agreement

capacity

When people hear the term formal contract, what often comes to mind is a(n) _____.

contract under seal

In a(n) _____ the offeror wants a performance to form the contract.

unilateral

To say that a contract lacks the proper form typically means it lacks a(n) ____.

writing

How many states have adopted the Uniform Commercial Code?

50

Which of the following is an accurate statement regarding an expression of possible interest in an exchange?

An expression of possible interest in an exchange is not an offer.

_____ is what each party gets in exchange for his or her promise under the contract.

Consideration

_____ is a term applied to a contract in which all of the terms have been fully performed.

Executed

_____ contracts are those that have a special form or must be created in a specific manner.

Formal

Which of the following is a WRONG statement regarding communication of acceptance?

If no means of communicating an acceptance is specified, it is mandatory for an acceptance to be in writing.

_____ contracts arise not from words but from the conduct of the parties.

Implied

_____ are called simple because no formalities are required in making them.

Informal contracts

Under which of the following circumstances can an advertisement constitute an offer?

It appears from the advertisement's wording that the store intended to make an offer.

A _____ is a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty

contract

The term _____ applies to a contract in which not all of the terms have been fully performed.

executory

Which of the following types of contract is clearly set forth in either written or spoken words?

express

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 a(n) ______ contract for the payment of his services.

implied

A _____ is an agreement by a person or institution that issues it to pay a sum of money on receipt of an invoice and other documents.

letter of credit

Which of the following is a required element for a valid acceptance?

manifestation of intent by the offeree to be bound by the acceptance

The ____ rule says that the terms of the acceptance must mirror the terms of the offer.

mirror-image

A ____ is a written document signed by a person who makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument.

negotiable instrument

A contract must have a legal _____.

object

Contracts are interpreted using a(n) _____ standard, meaning that the courts are concerned with only the party's outward manifestation of his or her intent.

objective

A(n) _____ is an indication of the willingness of the offeror to enter into a contract

offer

The _____ must be communicated to the offeree or to the offeree's agent.

offer

In terms of acceptance, a(n) _____ can manifest contractual intent by either performance or a return promise.

offeree

The _____ is said to be the master of his or her offer.

offeror

A(n) ______ is an agreement whereby the offeree gives the offeror a piece of consideration in exchange for the offeror's agreement to hold the offer open for a specified period of time.

option contract

According to the mailbox rule, an acceptance is valid when it is ____.

placed in the mailbox.

A bond used as bail in a criminal case is an example of a(n) _____.

recognizance

A(n) _____ arises when a party acknowledges in court that he or she will perform some specified act and/or pay a price on failure to do so.

recognizance

Which of the following is NOT a recognized way to terminate an offer?

rejection by the offeror (it is rejection by the offeree)

According to the common law, which of the following is NOT a required element of an offer?

revocation of the offer by the offeror

If an offeror dies, the offer _____.

terminates immediately

If the subject matter of the offer is destroyed, the offer _____;

terminates immediately

A convenient way to research contract law is to reference _____.

the Restatement (Second) of the Law of Contracts

Which of the following is NOT a source of contract law?

the Universal Contracts Code

Under _____, the term of an offer must be definite and certain

the common law

Who accepts the terms of the offer?

the offeree

Who makes an offer?

the offeror

To say that a contract is _____ means that the contract cannot be enforced by the courts because of an applicable law.

unenforceable

A(n) _____ contract is one that contains all of the legal elements of a contract.

valid

When a contract is _____, either its object is illegal or it has some defect that is so serious that it is not a contract.

void

A contract is _____ if one or both of the parties can either withdraw from the contract or enforce it

voidable

Which of the following refers to a situation where one or both parties can either withdraw from a contract or enforce it?

voidable contract

According to the mailbox rule, a revocation by traditional letter is effective _____.

when received by the offeree

In an auction _____, the seller is merely expressing an intent to receive offers.

with reserve