GBL 323 Exam 2 (Quiz Answers)

​Jack sells Jim a used car that Jack falsely described as having been driven only 12,000 miles. Fraud has occurred if:

Jim relied upon Jack's statement.

Under the common law, the __________ must be the mirror image of the __________.

acceptance, offer.

Elvis makes an offer to Fred, but before Fred can accept, the state supreme court decides a case that makes Elvis's offer illegal. The court's decision:

automatically terminates the offer.

A contract in which both parties exchange promises is a:

bilateral contract.

An illegal provision in a contract:

can be ignored by the parties in their performance of the remaining legal provisions of the contract.

Elmer wrote a letter to his friend Fred offering to sell Fred an 80-acre farm for $200,000. After mailing the letter, Elmer learns that the farm is actually worth $300,000 and changes his mind about selling. In this case, Elmer:

can revoke his offer at any time before Fred accepts it, because there is no consideration to keep it open.

​An agreement to slander a third person would not be enforceable because slander is a(n):

civil wrong.

​A minor cannot avoid a contract that has been:

ratified.

A __________ is the refusal to accept an offer.

rejection.

Caroline signs a contract to work as a sales rep for Incellmed Corporation for a period of two years. This contract is governed by:

state common law

Which party to an illegal agreement may get relief from the court?

the less-guilty party, when public interest is advanced by granting relief

Illegal agreements are:

void.

James offers to sell his fishing boat to Brenda for $3,000. Brenda says she will apply for a loan and will buy the boat within a week. A contract is formed:

when Brenda tells James she will buy the boat.

​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.

Which of the following is NOT always necessary in order for a valid contract to be formed?

A writing.

If there is no time specified for the acceptance of an offer, when does the offer terminate?

After a reasonable period of time, which depends on the circumstances.

Which of the following is not generally required in order to have a valid contract?

Fairness of the bargain.