chapter 10-11

Requirements of a Valid Contract.

!. Agreement 2. consideration 3.capacity 4. legality

The offeror must have a serious intention to become bound by the offer in order for the offer to be effective

True

The offer does not have to be communicated to the offeree

False

What is the legal effect of a counteroffer in the context of contract negotiations

It terminates the original offer and creates a new offer

Under the common law one of the elements that's necessary for an offer to be effective is

The offer must be communicated to the offeree

Any promises made by the parties to the contract must be supported by legally sufficient and bargained-for consideration

True

If the offeree can accept simply by promising to preform the contact is bilateral

True

No performance, such as payment of fund or delivery of goods, need to take place for a bilateral contract to be formed

True

Fay offers to pay Grey $50 for a tennis lesson for Hetty. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have

a bilateral contract

Steel Mill, Inc., makes an offer to Tom to enter into a contract to work as a mechanical engineer for a certain salary for one year, subject to a five-year renewal based on his performance. Tom accepts the offer. This is a valid contract because it includes

an offer and an acceptance

A contract that results when offer can be accepted only by the offeree's consideration is a unilateral contract

false

A unilateral contract is formed at the moment when the contract is signed

false

Alyssa hires Bret to mow Alyssa's lawn every Friday. Although they do not discuss the terms of payment, after each of the first three Friday mows, Alyssa pays Bret on Saturday. The payment term is

implied

Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump

is the consideration that creates Kim's obligation to pay Leo.

Field Construction, Inc., contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay. If this is a valid contract, it will be partly because it includes the element of

legality

Field Construction, Inc., contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay. If this is a valid contract, it will be partly because it includes the element of

nona promised to pay for the watch

An offer can be terminated by action of the parties in any of three ways: by revocation, by rejection, or by counteroffer.

true

An offer is a promise or commitment to do or refrain from doing some specified action in the future

true

With respect to consideration, a bargained- for exchange distinguished a contract form a gift

true

consideration is the value given in return for a promise or performance in a contractual agreement

true

painting a garage can constitute "something of legally sufficent value"

true

Rue offers to pay Sari to deliver certain documents within thirty minutes. Sari can accept the offer only by completing the task within the deadline. If she does, Rue and Sari will have

unilateral contract