keywords:
Bookmark and Share



Front Back
The rules of contract law are often followed to avoid potential disputes.
true
If a contractual promise is not fulfilled, the person who made it is not subject to the sanctions of a court.
false

They are subject to sanctions. That party may be required to pay damages for failing to perform the contractual promise.
The only requirement of a valid contract is that it be voluntarily entered into.
false
The following items are needed:
1. Agreement
2. Consideration
3. Contractual Capacity
4. Legality

A unilateral is a promise for an act.
true
No offer may be revoked before it is accepted.
false

the promisee can accept the offer only on full performance, and under traditional contract principles and offer may be revoked at any time before the offer is accepted.
also
it cannot be revoked once performance has begun.
An agreement is evidenced by a single event: an offer.
false

an agreement needs an offer and an acceptance of that offer
A statement of future intent—“I plan to sell my 700-pound sow”—is an offer.
false

this is a statement of opinion, no contract is created here. You are only thinking about selling it, not promising anything.
To be effective, an offer must be communicated to the offeree.
true
An acceptance subject to new conditions implicitly rejects the offer.
true
Under the mailbox rule, an acceptance takes effect at the time it is sent.
true
In contract law, “consideration” refers to the courtesy that one party shows another in negotiating a deal.
false

consideration usually is defined as the value given in return for a promise or in return for a performance
Parties are not usually free to bargain as they wish.
false

they are
A contract is void if one of the parties was intoxicated at the time of its formation.
flase

it depends, if the person was sufficiently intoxicated to lack mental capacity, then the agreement may be voidable even if the intoxication was purely voluntary
A contract to do something that is prohibited by statutory law is void.
true
A contract is always enforceable even if one party is aware that the other party made a mistake of fact.
false

Bilateral Mistakes of Fact (mutual misunderstandings)
Unilateral Mistaes of Fact - there are exceptions, you sell an itme for 10.-, when you fax the contract you put .10. If the buyer knew how much it was this contract can be voided
Misrepresentation of a material fact can occur through conduct alone.
True
Forcing someone to enter into a contract through fear created by threats is duress.
true
A contract involving property of any kind must be in writing to be enforceable.
false

1. contracts involving interest in land
2.contracts that cannot be performed withing 1 year
3. Marriage
4. Prices that exceed 500.-
As a general rule, contract duties can be delegated.
true
An incidental third party beneficiary can sue to enforce the contract.
false
Phil agrees to work for Vacation Resorts, Inc., as a chef. In determining whether a contract has been formed, an element of prime importance is a.         the parties’ intent.
b.         Phil’s rate of pay.
c.         the duration of the work.
d.         Vacation Resorts’s facilities.
a.         the parties’ intent.
On behalf of the jazz group Synco-Passion, their manager Raul agrees to a performance in the Quay Club on May 1. Portia, acting for Quay Club, sends a written copy of the agreement to Raul to be signed. Typically, businesspersons put their contracts in writing to a.         ensure proof of the contracts’ existence.
b.         create substance from form.
c.         obtain a check or other negotiable instrument.
d.         practice their “letters of credit.”
            a.         ensure proof of the contracts’ existence.
When Jeff’s car breaks down, he asks Kwik Tow, Inc., to tow it from its location to Lou’s Repair Shop. There is no discussion of a price, and Jeff and Kwik do not sign any documents. After the tow, Kwik sends Jeff a bill. With respect to Jeff’s obligation to pay the bill, this is a.         an express contract.
b.         an implied contract.
c.         a voidable contract.
d.         no  contract.
b.         an implied contract.
Scot enters into a contract with Tiffany that later proves voidable at Tiffany’s option. If she elects to avoid the contract a.         both parties are released from it.
b.         neither party is released from it.
c.         only Scot is released from it
d.         only Tiffany is released from it.
a.         both parties are released from it.
Yvon asks Zach, “Do you want to buy one of my fishing rods?” This is a.         a valid offer.
b.         not a valid offer because the terms are not definite.
c.         not a valid offer because Yvon did not state an intent.
d.         not a valid offer because Zach did not respond.
b.         not a valid offer because the terms are not definite.
Grant offers to sell his Honda Civic for $10,000 to Ivy. Referring to the prices for similar Hondas, Ivy says, “I’ll pay no more than $5,000.” Grant says, “Forget it.” Grant’s offer was terminated by a.         Grant.
b.         Honda.
c.         Ivy.
d.         no one—Grant’s offer is still open.
c.         Ivy.
Deepwater Mining Corporation offers to sell East China Refining, Inc., a certain quantity of unrefined oil. If East China sends an acceptance via Deepwater’s authorized mode of communication, it will be effective when it is a.         in transit.
b.         received.
c.         sent.
d.         written.
c.         sent.
Tomato Farms (TF) offers to sell Unified Grocers, Inc., a boxcar load of tomatoes. The offer is sent via overnight delivery because an acceptance is re­quired urgently. It would be most reasonable for Unified to accept via a.         a fax, a letter, or a phone call to TF within two weeks.
b.         a fax sent to TF as soon as the offer is received.
c.         a letter mailed to TF within two days.
d.         a phone call to TF within five business days.
            b.         a fax sent to TF as soon as the offer is received.
Kelsey promises to pay Jon, her son, $5,000 if he obtains his degree at Ivy University, where he is currently in his second year. Jon graduates. Kelsey is a.         not required to pay, because Jon was already at Ivy.
b.         not required to pay, because obtaining a degree benefits Jon.
c.         required to pay, because a job can be hard to find after college.
d.         required to pay, because Jon obtained a degree at Ivy.
d.         required to pay, because Jon obtained a degree at Ivy.
Under a contract with Bucolic Farms, Agro Excavation, Inc., begins digging an agricultural pond. In mid-project, Agro asks for $15,000 over the contract price, claiming an increase in the “cost of doing business.” Bucolic agrees but later refuses to pay. Their agreement is
a.         unenforceable because Agro’s performance was a preexisting duty.
b.         unenforceable because Bucolic’s promise was illusory.
c.         enforceable.
d.         unenforceable because its performance is unforeseeably difficult.
a.         unenforceable because Agro’s performance was a preexisting duty.
Panini Vittles, Inc., contracts with Qino to deliver its sandwiches. Later, the parties decide to cancel their contract. They can
a.         rescind their entire contract.
b.         rescind their contract to the extent that it is executory.
c.         rescind their contract if they make a new contract at the same time.
d.         not rescind their contract.
b.         rescind their contract to the extent that it is executory.
Jenna, a minor acting on her own, signs a contract to buy a horse and its tack from Field Equine Ranch. Later, after taking possession of the horse and tack, Jenna disaffirms the deal. She
a.         can keep the horse and the tack.
b.         can keep the horse but not the tack.
c.         can keep the tack but not the horse.
d.         must return both the horse and the tack.
d.         must return both the horse and the tack.
Jolie signs a contract with Keaton, an unlicensed physician, to perform plastic surgery—a medical procedure. This contract is enforceable by
a.         Jolie.
b.         Jolie’s medical insurance company.
c.         Keaton.
d.         no one.
d.         no one.
Danton, a popular performer, dies. His spouse Caitlin sells their house to Buck. Un­known to Caitlin or Buck, in one of the closets is the mas­ter recording of an unreleased album. With respect to this recording, Buck can
a.         keep it because Caitlin should have known about it.
b.         keep it because the sale of a house includes everything in it.
c.         not keep it because there was no voluntary consent to its sale.
d.         not keep it because the sale of a house includes nothing in it.
c.         not keep it because there was no voluntary consent to its sale.
Sylvia creates a profile for Today’s Date, Inc., an online dating service. She exaggerates her appealing features and posts a photo of her friend Uva, whom Sylvia thinks is prettier. Enticed by the profile, Van subscribes to the service so that he can contact Sylvia. Van is most likely a victim of
a.         undue influence.
b.         fraud.
c.         mistake.
d.         nothing.
b.         fraud.
Maya is a stockbroker. Nora believes that the price of OK Goods, Inc. (OKGI), a widely traded stock, is going to in­crease sub­stantially. Through Maya, Nora buys 500 shares of OKGI at $10 per share, but the price soon drops to $2. Nora can successfully recover from Maya
a.         nothing.
b.         the amount of the purchase price.
c.         the amount of the purchase price plus the expected increase.
d.         the amount of the purchase price plus the unexpected decrease.
a.         nothing.
Lyra induces Moe to enter into a contract for the sale of an apartment about which Lyra fraudulently misrepresents a number of material facts. Lyra tells Moe that her commission is 6 percent, but their signed, written contract states “12 percent.” The Statute of Frauds governs
a.         contracts that are induced by fraud.
b.         contracts that must be in writing to be enforceable.
c.         the admissibility in court of oral evidence.
d.         the reformation of oral and written statements into one contract.
b.         contracts that must be in writing to be enforceable.
Loren and Kendra enter into a contract for the distribution of Loren’s produce to local restaurants for which he agrees to pay Kendra. Kendra transfers her right to payment under the contract to County Bank. This transfer is
a.         a delegation.
b.         an assignment.
c.         a third party beneficiary contract.
d.         prohibited.
b.         an assignment.
Grande Properties, Inc., and Investment Capital Corporation enter into a con­tract for a sale of land. To be enforceable, the contract must be in writing if the land is valued at
a.         more than $500
b.         more than $5,000.
c.         more than $50,000.
d.         any price.
            d.         any price.
Vicky contracts with Rashad for the delivery of hospice services to benefit Sigmund. This is
a.         a delegation
b.         an assignment.
c.         a third party beneficiary contract.
d.         not an enforceable contract.
c.         a third party beneficiary contract.
x of y cards