CHAPTER 12 - BUSINESS LAW - (TRUE/FALSE)
35. Both intended and incidental beneficiaries acquire legal rights in a contract. a. True b. False
False
4. One of the requirements of a valid contract is an adequate price. a. True b. False
False
5. An express contract must be in writing. a. True b. False
False
6. A contract that has been fully performed by the parties is an executory contract. a. True b. False
False
8. An essential element for contract formation is a reasonable price related to market value. a. True b. False
False
10. An expression of opinion—"this is excellent"—is an offer. a. True b. False
False
11. An invitation to negotiate—"can you afford this?"—is an offer. a. True b. False
False
12. Most ads—"this property for sale"—are offers. a. True b. False
False
13. A preliminary agreement cannot constitute a binding contract. a. True b. False
False
14. There are no revocable offers. a. True b. False
False
19. Under federal law, an e-document is not as enforceable as a paper one. a. True b. False
False
23. Risks ordinarily assumed in business can constitute consideration for the modification of a contract. a. True b. False
False
24. An obligation is enforceable only if it is made in return for actions or events that have already taken place. a. True b. False
False
25. A release does not require consideration to be legally binding. a. True b. False
False
26. Under the doctrine of promissory estoppel, a promise will not be enforced unless it is supported by consideration. a. True b. False
False
27. A person who is intoxicated can avoid liability on any contract due to the intoxication. a. True b. False
False
29. A covenant not to compete included in the sale of an ongoing business is never enforceable. a. True b. False
False
31. A contract that is otherwise valid is enforceable even if it is not in the proper form. a. True b. False
False
34. A delegation relieves the party making it of the obligation to perform. a. True b. False
False
1. A contract is an agreement that can be enforced in court. a. True b. False
True
15. If no time for acceptance is specified in an offer, the offer terminates after a reasonable length of time. a. True b. False
True
16. An acceptance must be unequivocal. a. True b. False
True
17. Terms in a shrink-wrap agreement have been enforced in the same way as the terms of other contracts. a. True b. False
True
18. Browse-wrap terms are often unenforceable. a. True b. False
True
2. The element of intent is of prime importance in determining whether a contract has been formed. a. True b. False
True
20. A forum-selection clause specifies that any contract dispute will be settled in a particular jurisdiction. a. True b. False
True
21. Performance can constitute the consideration that creates a contractual obligation. a. True b. False
True
22. Legally sufficient consideration is something of value in the eyes of the law. a. True b. False
True
28. A contract entered into by a mentally incompetent person can be valid if the person had capacity at the time the contract was formed. a. True b. False
True
3. A contract is valid only if both of the parties entering into it have the capacity to do so. a. True b. False
True
30. If a bargain is grossly unfair, it is unconscionable. a. True b. False
True
32. A contract that is oral when it is required to be in writing is voidable by a party who does not wish to follow through with the agreement. a. True b. False
True
33. An assignee of contract rights has a right to demand performance of the contract from the obligor. a. True b. False
True
7. An unenforceable contract is one that cannot be enforced because of certain legal defenses against it. a. True b. False
True
9. An effective offer requires reasonably definite terms. a. True b. False
True
