Ch 9

In which of the following cases is a contract between A and B binding? A makes a mistake of material fact, and the mistake is unknown by B. ​A and B make the same mistake of material fact. ​A recklessly but honestly misrepresents a material fact. ​A innocently misrepresents a material fact.

A makes a mistake of material fact, and the mistake is unknown by B.

If an offer does not state how long it shall remain open, it remains open for ten days.

False

If no time is stated for the duration of an offer, it continues indefinitely if the offer relates to durable goods or land.

False

Offers, acceptances of offers, and revocations of offers are all effective when mailed in a properly-addressed envelope bearing the proper amount of postage.

False

​An offer gives the offeror the power to bind the offeree by contract.

False

​Contract terms may not be implied from the parties' conduct.

False

Jack sells Jim a used car that Jack falsely described as having been driven only 12,000 miles. Fraud has occurred if: Jim bought the car solely because of its color. Jim knew that the mileage was more than 12,000 miles. Jim relied upon Jack's statement. Jack is a merchant.

Jim relied upon Jack's statement.

Jose visited a garage sale and found a baseball card collection which he believed was worth over $1,000. He bought the collection for $50.00 from Wanda. Later Jose discovered the collection was essentially worthless and demands his money back from Wanda. Must Wanda refund Jose's money? No, the contract is enforceable because Jose was operating under a unilateral mistake and Wanda did not know the value of the cards. Yes, the contract is enforceable because Jose made a unilateral mistake of fact. Yes, the contract is enforceable because of mutual mistake of fact. No, the contract is enforceable because of mutual mistake of value.

No, the contract is enforceable because Jose was operating under a unilateral mistake and Wanda did not know the value of the cards.

Judy, a widow, just sold a piece of property. She will live off that money during her retirement. Judy dotes on her son, Chris, who asks her to invest her money in his restaurant, which is faltering. He tells her that if she does not lend him the money she will never see him again. She is afraid of being alone and agrees to his request, but soon changes her mind and asks for her money back. Chris claims they have fonned a binding contract. What is your conclusion? The contract is voidable based on duress. The contract is valid because it was a unilateral mistake. The contract is voidable based on undue influence. The contract is voidable based on fraud.

The contract is voidable based on undue influence.

As a general rule, the nondisclosure of information that is not asked for does not impose fraud liability or impair the validity of a contract.

True

If an offer is indefinite or vague or if an essential provision is lacking, no contract arises from an attempt to accept it.

True

If the offeree purports to accept an offer but in so doing makes any change to the terms of the offer, such action is a counteroffer that rejects the original offer.

True

In order for fraud liability to arise, the listener must actually rely on the false statement of fact.

True

Ordinarily, a party to a contract has no duty to volunteer information to the other party.

True

​A person who has drunk too much alcohol at a party and signs a contract may be able to rescind that contract

True

​Certain persons cannot make contracts that will bind them.

True

​Ratification consists of any words or conduct of a former minor manifesting an intent to be bound by the terms of a contract made while a minor.

True

​When it is claimed that a contract is too indefinite to be enforced, a court will do its best to find the intent of the parties and thereby reach the conclusion that the contract is not too indefinite.

True

In general, an acceptance occurs when: a particular form of words is stated to the offeror. particular mode of expression is made to the offeror. the offeree reserves the right to reject the offer. a clear expression of the offeree's agreement to be bound by the terms of the offer occurs.

a clear expression of the offeree's agreement to be bound by the terms of the offer occurs.

Marquez agrees to buy Dale's pickup truck so he can pull his trailer. Both Marquez and Dale believe that the truck is big enough to do the job. After they complete the deal, Marquez finds that the truck is not strong enough to handle the trailer. The contract between Marquez and Dale can be rescinded because of: ​a unilateral mistake. ​a defective acceptance. a mutual mistake. ​negligent misrepresentation.

a mutual mistake.

Under the Uniform Commercial Code (UCC), a firm offer applies to:​ a written, signed offer by a merchant to buy or sell goods. ​an unwritten but definite offer to buy or sell goods. ​a written, signed offer by anyone to buy or sell goods. ​an unlimited, stipulated period of time.

a written, signed offer by a merchant to buy or sell goods.

The first statement made by one of two persons can be anyone of the following except: acceptance preliminary discussion. invitation to negotiate. a survey.

acceptance

An agreement that consists of two or more parts and calls for corresponding performances of each part by the parties is called a: partial contract. divisible contract. performance contract. divided contract.

divisible contract.

Contractual capacity is the ability to: read and write. sign a written contract. understand that a contract is being made and to understand its general nature. understand the legal meaning of the contract being made.

understand that a contract is being made and to understand its general nature.

An offer that is indefinite may be clarified by reference to another writing through: ​incorporation. ​reference. ​annotation. ​indexing.

​incorporation.

​If an offeree dies before the offer has been accepted, the offer: may be rejected by the surviving spouse of the offeree. ​may be accepted by the surviving spouse of the offeree. is automatically revoked by the death of the offeree. ​may be accepted by the guardian appointed for any minor children of the offeree.

​is automatically revoked by the death of the offeree.

​A(n) __________ contract is a contract to buy all requirements of the buyer from the seller. ​output ​essentials ​necessaries ​requirements

​requirements