CHAPTER 12 - BUSINESS LAW - (TRUE/FALSE)

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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


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