Business law chapter 11

Whenever a person receives a benefit for which payment has not been made, there is an unjust enrichment and the value of such benefit must be paid to the person conferring the benefit.

false

​​A right of __________ refusal is the right of a party to meet the terms of a proposed contract before it is executed, such as a real estate purchase agreement.

first

​Negotiable instruments are:

formal contracts

The greatest risk to purchasing online is providing your credit card information to the seller.

false

The law requires parties to be fair and reasonable in the making of a contract.

false

The subject matter of a contract can never relate to the performance of personal services.

false

When a contract is fully performed by one party, it is called a unilateral contract.

false

A contract can only involve two parties: the promisor and the obligor.

false

A contract for an amount greater than $1 million must be made under seal or it is not binding.

false

A contract never can be both executory and unilateral.

false

A recognizance is an agreement by which one party admits or recognizes that a specified sum of money is owed to another party.

false

A void contract is one that is otherwise valid but may be rejected or set aside by one of the parties.

false

An express contract is one in which the agreement is shown by the acts and conduct of the parties.

false

​The elements for a valid contract do NOT include:

a fair price

​​In a bilateral contract, each party will be a promisor and, therefore, each party will:

be an obligor

​​A contract requires:

both an offer and an acceptance

In a quasi contract the court seeks to enforce the intentions of the parties contained in the agreement.

false

Only the parties who signed the original contract can have rights with respect to that contract.

false

Quasi-contractual liability will generally be imposed when the cost of performing a contract is greater than had been expected.

false

The effect of an implied contract is not the same as the effect of an express contract.

false

​A contract under which one or both parties have not yet fully performed is termed a(n):

executory contract

​A contract is a(n) ________ agreement for which the _______.:

legally binding, law gives a remedy

​The promisor in a contract may also be called the:

obligor

​An agreement arises when one person, the __________, makes an offer and the other person to whom the offer is made, the __________, accepts.

offeror; offeree

​The main thrust of the quasi contract is to:

prevent unjust enrichment

​A bilateral contract consists of a:

promise for a promise

​An obligation to pay for the reasonable value of services rendered when there is no contract would be called:

quasi-contractual

​A contract of record is also referred to as a(n):

recognizance

​​In a quasi-contract situation, the reasonable value of services or goods to avoid unjust enrichment are called:

restitution damages

A bilateral contract is essentially an exchange of enforceable promises.

true

A contract is essentially an agreement that creates an obligation

true

A person who makes a promise is the promisor, while a person to whom the promise is made is the promisee.

true

An agreement that contemplates the performance of an act prohibited by law is usually void.

true

An executed contract is an agreement that has been completely performed.

true

An executory contract is an agreement by which something remains to be done by one or both parties.

true

An implied contract is one in which the agreement is shown not by words, written or spoken, but by the acts and conduct of the parties.

true

An option contract gives one of the parties an absolute right to enter into a second contract at a later date.

true

In some cases, third persons, such as third party beneficiaries or assignees, have rights on a contract.

true

Negotiable instruments are examples of formal contracts.

true

Quasi contracts are fictional contracts.

true

The principle behind the quasi contract is to prevent unjust enrichment.

true

When a contract sets a price for services rendered, a plaintiff cannot sue for reasonable value.

true

When purchasing from a website, the website terms generally become the contract of the parties and are legally enforceable.

true

With regard to a unilateral contract, the offeree does not accept the offer by express agreement, but rather by performance.

true

​An offer of a reward for the arrest and conviction of a criminal is an example of a:

unilateral contract

​A legally binding agreement that can be rejected at the option of one of the parties is called a(n):

voidable contract

​An executory contract is:

​​entered into but not fully performed.

​An implied contract is shown by:

​​the acts and conduct of the parties.

​The subject matter of a contract may relate to:

​​the performance of personal services. ​​the construction of a house. ​​the transfer of ownership of property.

​The plaintiff in a quasi-contractual action can recover:

​​the reasonable value of the benefit conferred upon the defendant.