Law midterm final combo
Which of the following is true of limited liability companies?
An LLC can be sued by third-parties as a separate entity.
The officers of a corporation:
Are the agents of the corporation.
Which of the following is most likely to be a tort based on negligence
Automobile accidents
The statement of the seller in which the article sold is warranted or guaranteed is known as an _____.
express warranty
Stockholders, by virtue of their investment in a corporation, have the right to act as its agent
false
The maker executes a note by signing on the back of the instrument.
false
Kenneth was sentenced to six years in prison for forgery. In this case Kenneth has committed a(n) _____.
felony
Scott Funeral Home is located in Michigan, but is incorporated in Florida. How would Michigan classify Scott Funeral Home?
foreign
A _______ contract must be in a special form or be created in a certain way
formal
James wants to indorse a check to Janice, but wishes to rid himself from all further liabilities. Which of the following types of indorsements is James likely to use in this case?
Qualified indorsement
Which type of partners have unlimited liability and are actively and openly engaged in the management and operation of the business?
general
A(n) _____ is one authorized to carry out all of the principal's business of a particular kind.
general agent
An offer to pay money in satisfaction of a debt or claim when one has the ability to pay is a ____.
Tender of payment
What is the chief function of the courts?
They interpret and apply the law from whatever source to a given situation
Appellate courts include courts of appeals and supreme courts. True or false
True
Consideration distinguishes mere agreements from legally enforceable obligations. true or false
True
Each state is part of the federal court system and has a state court system. True or false
True
Failure to disclose information when there is duty to do so is known as passive fraud. true or false
True
Generally, a part payment of a past-due debt is not consideration to support the creditor's promise to cancel the balance of the debt. True or false
True
Generally, people can sell only such interest or title in goods as they possess. true or false
True
If a contract calls for personal services, the death or physical incapacity of the person to perform such services discharges the contract. true or false
True
If a contract is voidable due to a mistake such as fraud in the inducement, duress or undue influence, a person might elect to rescind the contract. true or false
True
If an act is legal at the time of entering a contract but is subsequently made illegal, the contract is discharged. true or false
True
If, after an offer has been made, the performance of the contract becomes illegal, the offer is terminated. True or false
True
In the event of goods damaged through no fault of either the buyer or the seller, the party with control over the goods bears the risk of loss. True or false
True
One may have rights and obligations imposed by law even when no real contract exists. True or false
True
The legal term for one party benefiting unfairly at the expense of another is unjust enrichment. True or false
True
The rescission of a contract releases an aggrieved party from all obligations that are yet to be performed true or false
True
The term "movable personal property" as used in the Uniform Commercial Code (UCC), does not apply to real property or intangible property. true or false
True
Regulatory agencies can use their licensing power to:
allow a business to enter the field being regulated
_____ is a means of destroying another's free will by one party obtaining consent to a contract as a result of a wrongful threat to do the other person or family members some harm.
Duress
A bill of sale cannot serve to prove ownership of a good true or false
False
A lease of real property for less than one year must be in writing in order to be binding. true or false
False
A person who sells alcoholic beverages to a minor when such a sale is prohibited can recover on the contract. true or false
False
A state administrative agency affects businesses throughout the country true or false
False
All agreements are contracts True or false
False
All contracts must be in writing to be enforceable. True or false
False
An agreement between two parties to perform an illegal act is a quasi-contract true or false
False
An offer made in jest that does not appear to be seriously intended to an offeree is considered a valid offer. True or false
False
As a general rule, a unilateral mistake made at the time of contracting has an effect on the validity of a contract. true or false
False
Contracts made by people who were intoxicated to such an extent that they would not have entered into it if they were sober, makes the contract voidable. true or false
False
Contracts which are designed to limit competition are acceptable by law. true or false
False
Felonies refer to crimes that are usually punishable by just a fine True or false
False
If a decision of an administrative agency conflicts with a statute enacted by a higher legislative body, the agency decision will prevail. True or false
False
If an adult purchases personal property from a minor, the minor has only a voidable title to the property. true or false
False
Performing or promising to perform what one is already obligated to do is a valid consideration. true or false
False
Ratification to a contract can be made any time before reaching majority. True or false
False
The courts will generally still allow a wrongdoer to enforce a contract against an innocent party. True or false
False
The law considers everyone under the age of twenty-one to be a minor. True or false
False
The legal system of the United States is based primarily on the French legal system. True or False
False
The term delegation describes a transfer of rights. true or false
False
There is no difference between a void contract and an unenforceable contract. True or false
False
To recover damages for an intentional tort, the plaintiff is required to prove that there was a breach of duty by the tortfeasor to the plaintiff true or false
False
When an offeree is not aware of the insanity of the offeror and communicates assent to an offer, it is considered accepted. True or false
False
A(n) _____ is one that the seller did not make but that is imposed by the law
Implied warranty
Which of the following is true of the Uniform Commercial Code (UCC)?
Individual states may make changes to the portions of the UCC that they have adopted.
Which of the following is true of a corporation?
It is an artificial being, existing only in contemplation of law.
Which of the following best describes a restrictive indorsement?
It is an indorsement that attempts to prevent the use of the instrument for anything except the stated use.
Which of the following is true of a binding contract?
It is created when an offeree accepts an offer that has been properly communicated.
Which of the following is true of a valid offer?
It is seriously intended
Which of the following best describes the dissolution of a partnership?
It is the change in the relation of the partners by ending the present legal entity
Which of the following statements best describes the term "assignment"?
It is the conveyance of rights in a contract to a person who is not a party.
Which of the following best describes the term "title"?
It is the right of ownership of property or evidence of ownership
Which of the following is true of undue influence?
It refers to a person in a special relationship causing another's action contrary to free will.
Which of the following is true regarding parties who make mutual mistakes of law?
It will generally not invalidate a contract
Which group is responsible for the major policy decisions of a corporation?
board of directors
The failure of a party to perform the obligations assumed under a contract is known as a(n):
breach of contract.
Which business entity is subject to double taxation?
c-corp
Which type of stock represents all of the equity or ownership of a company?
capital
Which type of corporation does not have to elect a board of directors or officers?
closely held
Which is not a type of business organization?
co-op
A written request to a court to settle a dispute is called a(n)
complaint or petition
An offeree's response that rejects an offer by varying its terms is known as a(n) _____.
counteroffer
What are payments made to shareholders of a corporation called?
dividends
Maya, an elderly lady, wanted to sell her house. She offered the house to Lily, a friend. However, before the house deeds were transferred, Maya passed away. Which of the following scenarios is legally acceptable in such a case?
Lily must consider the offer automatically revoked and void.
A joint contract is one in which:
each obligor is bound for the performance of the entire obligation
If an offeror receives something of value in return for a promise to hold the offer open, it is said to be a(n) ________, and this type of offer cannot be revoked.
option
A _______ is a court decision that determines the decision in a subsequent, similar case
precedent
The purpose of antitrust laws is to:
promote competition among businesses
A person who takes the initial steps to form a corporation is known as a(n) _____.
promoter
What form of business organization is formed without any filings with a state agency?
sole proprietorship
A _____ indorsement designates the particular person to whom payment should be made.
special
The legal rate of interest is a rate:
that is applied when no rate is specified
The term disaffirmation refers to:
the election to avoid a contract or set it aside
If a minor contracts for necessaries, the minor's liability is quasi-contractual in nature. This means that:
the minor is not required to pay the contract price but will be required to pay a reasonable amount to avoid unjust enrichment.
How are sole proprietorships taxed?
the proprietor is taxed
Which statement is true of LLC's?
they are taxed as a partnership
A person not party to contract but whom parties intended to benefit is known as a(n) _____.
third-party beneficiary
A corporation can be organized in any state the promoter chooses.
true
A foreign corporation who has authority to do business in the state is allowed to form contracts.
true
A holder who takes a negotiable instrument in good faith and for value is a holder in due course.
true
A negotiable instrument must be in writing and signed by the party executing it.
true
A partner who commits a tort has liability for indemnifying the partnership for any loss it sustains.
true
Any contract entered into by a corporation that goes beyond its powers is called an ultra virescontract.
true
Any expense incurred as a result of an agent's unlawful act must be borne by the agent.
true
Certificates called shares of stock represent ownership in a stock corporation.
true
Every partner has the duty to abide by majority vote.
true
In the state in which it received its initial charter a corporation is called a domestic corporation.
true
Preferred stockholders may receive a preference as to dividends, assets or both.
true
The articles of incorporation constitutes a contract between the corporation and the state.
true
The board of directors is the primary policy-making body of the corporation.
true
The principal may terminate the agency by taking actions that are inconsistent with the continuation of the agency.
true
The sum payable in a negotiable instrument cannot be dependent on future profits.
true
When a corporation terminates its existence it must surrender its articles of incorporation.
true
Agents have a duty to keep principals informed of all facts pertinent to the agency.
true
What are the five definite requirements that every contract must fulfill?
offer, acceptance, consideration, competency and legal intent.
A seller's warranty that the goods shall be delivered free from any security interest or any other lien of which the buyer at the time of making the sales contract had no knowledge is known as a _______.
warranty against encumbrances
An donee beneficiary is best described as a person:
who is a third-party beneficiary and for whom performance is a gift.
Which is an example of a public corporation?
Federal Deposit Insurance Corporation (FDIC)
How are sales contracts handled when terms are missing?
If the price term is not expressly stated, it will be held to be the reasonable price for the same goods in the market
Documents that show ownership are called documents of _____.
Title
Administrative agencies primarily set policy through the issuance of rules and regulations. True or false
True
Advertisements and catalogs are examples of general invitations True or false
True
An offer expresses the willingness of the offeror to enter into a contractual agreement true or false
True
In an FOB contract, the seller bears the risk of loss until the goods are delivered to the FOB point designated. true or false
True
In order to be the subject of a sale, goods must be existing. true or false
True
Punitive damages are damages paid to the plaintiff in order to punish the defendant, not to compensate the plaintiff. true or false
True
Silence constitutes acceptance to an offer if it is reasonable in consideration of previous dealings that the offeree to notify the offeror of non-acceptance. True or false
True
The U.S. Supreme Court is the highest tribunal in the land, and its decisions are binding on all other courts True or false
True
The consideration in a sales contract is known as the price true or false
True
The promise or obligation of each party to a contract must be supported by consideration in order for the contract to be valid. True or false
True
The right of ownership of property or evidence of ownership is called title. true or false
True
A gambling contract is a transaction wherein the parties stand to win or lose based on pure chance. true or false
True
The difference between a sale and a contract to sell is that:
a sale involves an immediate transfer of title from one party to another while a contract to sell does not.
Which document must be filed with the state when applying for corporate status?
articles of incorporation
Why might a funeral home elect to be a corporation or LLC rather than a sole proprietorship or partnership?
limited personal liability
Which is a duty of partners?
loyalty and good faith
Which type of partners hold themselves out as partners but are not legally partners and do not participate in management or share in profits and losses?
nominal
What is the Statute of Frauds?
It is a law requiring certain contracts to be put in writing
Which of the following statements best describes specific performance?
It refers to the carrying out of the specific terms of a contract
As a general rule, one's rights under a contract cannot be transferred freely. True or false
False
Implied warranty arises as to fitness of used property for ordinary use from a sale made by a casual seller. true or false
False
In order for a sale to have taken place, the purchased goods need to be delivered to the buyer immediately. true or false
False
Land is generally considered as intangible personal property. true or false
False
Mistakes such as duress and undue influence render contracts void. true or false
False
Statutes are easier to amend than constitutions. True or false
True
When one party wrongly threatens to injure another person financially in order to get agreement to a contract, economic duress occurs. true or false
True
The "mailbox rule" does not apply in situations where the offeror does not receive the acceptance. True or false
False
The Statute of Frauds' requirement of writing applies if the main purpose of the promise is to gain some advantage for the promisor. true or false
False
The statement of the seller in which the article sold is warranted or guaranteed is known as an implied warranty. true or false
False
When one party wrongly threatens to injure another person physically in order to get agreement to a contract, economic duress occurs. true or false
False
In which type of partnership are the partners' liability limited to the amount of their investment?
limited
After dissolution, a third person making a contract with the partnership stands in a similar position as a person dealing with an agent whose authority has been revoked.
true
Unlimited personal liability of each general partner for partnership debts is a disadvantage of the partnership form of business.
true
Which of the following describes paper payable to order?
pay to the order of Hill
To recover for a tort based on negligence, the plaintiff must show:
the breach of the tortfeasor's duty to the injured party
When a contract is required to be sealed, a substitute for an actual seal may be used. True or false
True
Ryan, a college student, intends to sell his car. He contacts his friend Luiz and inquires whether he is interested in buying the car. Luiz finds the quoted price reasonable and buys the car from Ryan. In this scenario, Ryan is the _____.
Offeror
Unless otherwise agreed, a merchant warrants that goods shall be delivered free of the rightful claim of any third person by way of patent or trademark infringement. true or false
True
Which of the following is an unconditional promise to pay? I will pay you :
on Tuesday
Where should a check be indorsed?
on the back along the trailing edge
Activities that are illegal regardless of their effect are known as _____
per se violations
Buzz is a partner in a partnership. Buzz is known to be a partner, but does not want to be involved in the daily operations or management of the business. Which type of partner would Buzz be classified as?
silent
A corporation must give notice specifying the subjects to be discussed for a special meeting of shareholders.
true
A depository bank receiving a check with a restrictive indorsement, such as "for deposit " must always honor the restriction.
true
A principal may ratify an unauthorized contract and thus be bound on it.
true
A sole proprietor has ultimate responsibility for all business decisions.
true
A written partnership agreement might help avoid some disputes over rights and duties.
true
The owners or investors of a limited liability company are called members.
true
A sole proprietor has very limited flexibility in managing the business.
false
A special endorsement is one having no words other than the name of the indorser.
false
What is the maximum amount of shareholders for an S-Corp?
100
Which of the following is an example of a contract contrary to public policy?
A agrees to appoint B as sheriff, provided he helps him win the local elections.
What precaution can a business person take when contracting with a minor?
A business person can require an adult to join the contract as a cosigner.
Which of the following is a duty a principal has toward the agent?
A principal must reimburse the agent for expenses incurred during the agency.
Which of the following is not a true contract and has been imposed by law in order to prevent one party benefiting unfairly at another's expense?
A quasicontract
Which of the following is true of a sole proprietorship?
A sole proprietor has unlimited liability and high financial risk.
Mary contracts to sell Rachel her violin for $10,000, based on an appraisal of the instrument. Their contract provides that even if the appraisal is later found to be mistaken, the sale price will not be altered. One month after the sale, Rachel learns that the violin is only worth $5000. Which of the following is true:
Because the contract specified what would happen in the case of a mistake, the sale price will not be altered.
The _____ consists of ten amendments to the U.S. constitution specifically designed to protect the civil rights and liberties of citizens and the states.
Bill of Rights
When a partner makes an honest mistake (and does not commit negligence) while working on behalf of the partnership:
Both the partner and the partnership are excused from liability.
What is true of common law?
Cases in common law are decided on the basis of precedents
Which of the following best describes the difference between civil law and criminal law?
Civil law deals with the enforcement or protection of private rights, whereas criminal law deals with offenses against society.
The dissolution of a corporation:
May be sought by the state for failure to pay specified taxes for a given number of years
An individual who is not a partner but is held out as a partner is a _____ partner.
Nominal
Blake agreed to renovate Jane's house, and they drafted a written contract. However, Blake was unable to complete the renovation due to an accident. Blake's friend, Tom, agreed to complete the job, and Jane agreed to release Blake from the contract. The terms of the old contract remained the same. This process of substitution of a contract is known as a(n) _____.
Novation
Kenneth, aged sixteen, sells his car to Robin, aged 49. Later, Robin sells the car to Sarah, an innocent third party, before Kenneth can disaffirm the contract. In this case, which of the following will hold true?
Sarah can obtain good title to the property
Which of the following is the way an agent should sign a contract in order to bind the principal and not the agent?
The agent should sign his or her name "as agent for principal".
An enforceable contract is made by an adult with a minor. Which of the following is most likely to hold true in this case?
The contract is enforceable against the adult but not against the minor
Which of the following is true when a person hires an independent contractor to perform some tasks?
The contractor is responsible for the proper performance of the contract.
Which of the following is an advantage of a written contract over an oral one?
The existence of a contract cannot be denied if it is in writing.
In a situation where an injured party in an accident is partly to blame for the accident, which of the following is most likely to be true under a contributory negligence system?
The injured party cannot recover any damages because it is partially negligent in the case.
Which of the following is true when a person wants to ratify the unauthorized acts of an assumed agent?
The one attempting to ratify must have been capable of authorizing the act at the time the act was done.
Which of the following is true about par-value stock?
The par value of the stock must equal the value of money, property, or services received by the corporation.
Which of the following conditions is a prerequisite for any agreement to be legally enforceable?
The parties entering into the agreement must have the mental capacity to contract.
What is the essential element in determining who bears the risk of loss of goods?
The party with control over the goods bears the risk of loss
Which of the following is true of a shipment contract?
The title and risk of loss pass to the buyer when the goods are delivered to the carrier.
A contract for the sale of goods is governed by the Uniform Commercial Code. True or false
True
A contract negotiated by an agent usually involves at least three parties.
True
A donnee beneficiary is one to whom the promisee owes no duty but for whom performance is a gift. true or false
True
A false statement made in the belief that it is true is known as innocent misrepresentation. true or false
True
A general agent may transact any business of a particular kind.
True
A minor, upon reaching the age of majority, must ratify none or all parts of a contract. true or false
True
A special agent is one who is authorized to carry out all of the principal's business of a particular kind.
True
A warranty is an assurance that the article sold will conform to a certain standard or will operate in a certain manner. true or false
True
According to the Statute of Frauds, an agreement to sell goods for $500 or more must be in writing. True or false
True
A contract must be for a lawful purpose, which must be achieved in a lawful manner, otherwise the contract is:
Void
Contracts made by people who have become so intoxicated that they cannot understand the meaning of their acts are:
Voidable
What is true of a warranty of merchantability?
Warranty of merchantability relates only to the fitness of the product made or sold.
Which of the following warranties applies to all sellers?
Warranty of title
Jim, Dave and Rusty operate a funeral home that is a partnership. Rusty is not performing his job properly and is not fulfilling the duties of a partner. Jim and Dave want him out of the partnership, but he will not leave voluntarily. How may Jim and Dave proceed to terminate Rusty from the partnership?
expulsion
A dormant partner is usually known to the public as a partner.
false
A general partner has limited liability with respect to the partnership debts.
false
A merger occurs when two corporations combine to form a new corporation.
false
A not-for-profit corporation usually issues stock.
false
Which of the following is an example of a contract discharged by impossibility of performance?
A new law makes the contract illegal
A corporation that is incorporated in another country is known as a(n) _____.
Alien corporation
As a general rule, a promise must be supported by consideration. Which of the following is an exception to the rule?
An obligation of record such as a judgment
When a partnership is dissolved, its assets are first paid to:
Creditors to pay partnership debts.
When one partner dies, the other partners must:
Dissolve the partnership unless the partnership agreement states otherwise.
Which of the following is true of dividends paid to shareholders?
Dividends can be paid with stock a corporation owns in another company
A breach of contract by one of the parties bound on a contract immediately terminates the contract. true or false
False
A contract is void if parties to a contract are mutually mistaken about their expectations. true or false
False
A debt that has been prohibited from collection by a statute of limitations can never be revived. True or false
False
A debt that has been prohibited from collection by a statute of limitations can never be revived. true or false
False
A promise to steal a valuable piece of art is valid consideration to support a contract. true or false
False
A small piece of molded plastic shown to a car buyer to illustrate the materials and methods used in the construction of cars creates a sale by sample. true or false
False
An antitrust violation occurs when a business firm seeks to have cooperation within its firm to diminish competition. True or false
False
An express warranty applies even if defects are actually known to the buyer, or defects are so apparent that no special skill or ability is required to detect them. true or false
False
Which of the following statements is true of statutes of limitations?
In the case of running accounts, such as purchases from department stores, the statute starts from the date of the last purchase.
Which of the following is not true of a close corporation?
It has a large number of stockholders
Which of the following best describes a share?
It is the unit value of a company's total stock.
Which of the following is true of quasi-contracts?
It prevents the unjust enrichment of a party.
Allen enters into a contract with Joe to sell his car. However by mistake, he undervalues his car. Though the actual value of the car is $6000, he sells it to Joe for $3000. During the purchase, Joe is aware of the actual value but does not communicate this fact to Allen. Which of the following is likely to be true in such a scenario?
Joe is entitled to keep the car because the contract is valid
Joe, Kevin and Tom are general partners in a partnership. In the course of business, Joe negligently cremates the wrong decedent. The family obtains a judgment in the amount of $300,000. From whom can the family collect the judgment?
Joe, Kevin, Tom and the partnership
Judy promises to pay Ashley $50 to babysit her children. After Ashley babysits the children, Judy pays Ashley the $50; thus each party has completed performance of each part of the contract. This is an example of a(n):
executed contract
Which item gets paid first during dissolution of a corporation?
expenses of dissolution
All partners of a limited partnership have limited liability.
false
An agent does not incur liability for any losses caused by disobeying a principal's instructions.
false
An agent does not incur personal liability for fraud or any other wrongdoing caused by disobedience.
false
An instrument made payable to more than one person is not negotiable.
false
An order or promise in a negotiable instrument must be conditional.
false
Which term refers to settling the affairs of a partnership prior to termination?
winding down
Which of the following constitutes valid consideration?
A promise to refrain from doing an act that can be lawfully done
Which of the following statements is true of contracts of agency?
All people legally competent to act for themselves may act through an agent.
Jones acted as Blake's agent for 12 years before this contract of agency was dissolved by Blake. However, Blake failed to convey this fact to those vendors with whom Jones contracted in the past. Which of the following is likely to occur if Jones negotiates future contracts with these vendors on Blake's behalf?
Blake would be bound by those contracts and would have to pay the contracted price
When there is a contract of agency, on whom does the law impose duties not specified in the contract?
On both the agent and principal.
What is true of appeals made to higher courts?
The decision of the appellate court is binding on lower courts
Which of the following is a requirement of negotiability?
The instrument must be in writing and signed by the party executing it.
Which of the following is true of the doctrine of promissory estoppel?
It requires the promisor to reasonably expect the promise to induce action by the promisee.
Which of the following is true of identified goods? They are goods in the designing stage. They are a type of existing goods.
They are a type of existing goods.
Which of the following is true of administrative agencies?
They can become specialists in a particular area of regulation
What is true of state trial courts?
They handle cases that are first instituted in them.
Which of the following is true of silent partners?
They take no part in the management of the business.
An offer that does not specify a particular manner of acceptance may be accepted in any manner reasonable under the circumstances. True or false
True
Dissolution of a partnership relieves the partners of their duties to each other.
false
Each partner has the duty to inform the other partners about matters relating to personal profits from sources other than the partnership that do not relate to the goals of the partnership.
false
If commercial paper is made payable to whoever has possession of it, it is called order paper.
false
If the choice of whether an instrument is payable in either cash or goods is left up to the holder, the instrument is not negotiable.
false
One who contracts with an independent contractor has more control over the performance of the work than does an employer.
false
What is true of the United States Supreme Court?
It has appellate jurisdiction in cases based on the U.S. Constitution
A temporary order that is issued by a court with equity powers forbidding activities that would be detrimental to others is known as:
a restraining order
A written order by one person directing another to pay a sum of money to a third person is known as a(n)_____.
bill of exchange
The person who is ordered to pay a draft is called the _____.
drawee
A(n) _____ is a signature on the back of an instrument along with any directions or limitations regarding use of or liability for the instrument.
indorsement
The person who executes a promissory note is called the _____.
maker
The act of transferring ownership of commercial paper to another party, is called _____.
negotiation
An LLC can be dissolved with the written consent of all members.
true
As per the UCC's definition of sale, in which of the following transactions has a sale taken place? A sublets an apartment for the summer from B. A pays B to repair his car. A buys a spare USB charger for his phone.
A buys a spare USB charger for his phone.
What is the difference between an agreement and a contract?
An agreement results whenever two people's minds meet on a subject, but a contract only exists when the parties intend to be legally obligated by the terms of the agreement.
When parties to a contract mutually agree to cancel an old contract and replace it with a new one, which of the following is true?
To be enforceable, there must be added features in the new contract benefiting both parties.
An executory contract is defined as:
a contract in which the terms have not been fully carried out by all parties
Which group runs the day to day business of a corporation?
officers
Difference between rules and laws?
Laws are rules that are enacted by the government
Common stockholders do not possess the right to a share of the assets of a corporation on dissolution.
false
_____ are writings drawn in a special form that can be transferred from person to person as a substitute for money or as an instrument of credit.
Commercial paper
Which of the following best describes the term "consideration"?
It indicates what the promisor demands and receives as the price for a promise.
Which of the following best describes sole proprietorship?
It is a business owned and carried on by one person.
Which of the following statements best describes a several contract?
It is a contract where two or more people individually agree to perform an obligation.
At common law, individuals other than the parties to a contract can sue upon or seek to enforce the contract. true or false
False
The law states that a unilateral contract can be formed when performance is started. True or false
False
If the intended acceptance varies or qualifies an offer, the counteroffer rejects the original offer under the common law. True or false
True
If the supposed consideration consists merely of a promise to do what one is already legally obligated to do, consideration is invalid. true or false
True
Ordinarily, for a mistake to invalidate a contract, the mistake must be a mutual one about a material fact true or false
True
The doctrine of strict liability can make the manufacturer of a dangerously defective product liable, even if there's no proof of negligence True or false
True
Which circumstance may lead to a shareholder incurring personal liability? failing to deposit taxes that were withheld from employees, torts that are personally committed, personally guaranteeing a loan, all of the choices
all of the choices
A principal ordinarily does not have liability to third parties for contracts made within the actual or the apparent scope of an agent's authority.
false
A qualified indorsermakes no warranties regarding the instrument.
false
