Exam Three (CONTRACTS) – Flashcards

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Contract law ensures that certain people are legally binding. (T&F)
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TRUE
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Under the objective theory of contracts, the intention to enter into a contract is judged by outward objective facts as interpreted by a reasonable person. (T&F)
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TRUE
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One of the requirements for a valid contract is acceptance. (T&F)
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TRUE
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"Consideration" refers to the genuine assent of all the parties to a contract. (T&F)
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FALSE
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A unilateral contract is formed when the one receiving the offer completes the requested act or performance. (T&F)
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TRUE
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No offer may be revoked before it is accepted. (T&F)
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FALSE
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An express contract must be in writing. (T&F)
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FALSE
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An implied-in-fact contract is an actual contract. (T&F)
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TRUE
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An executed contract is one that has been fully performed. (T&F)
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TRUE
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When the words in a contract have more than one meaning, they are generally interpreted in favor of the party who drafted the contract. (T&F)
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FALSE
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A valid offer requires reasonably certain terms. (T&F)
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TRUE
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The communication of an offer can be done by any effective means. (T&F)
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FALSE
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A person who does not know about a reward can still claim it. (T&F)
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FALSE
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There are no revocable offers. (T&F)
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FALSE
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Rejection of an offer. (T&F)
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TRUE
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An acceptance must adhere exactly to an offer to create a contract. (T&F)
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TRUE
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A counteroffer does not terminate but continues an offer. (T&F)
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FALSE
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Under the mailbox rule, an acceptance is not valid until it is received. (T&F)
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FALSE
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In most states, revocation is not effective until the offeree receives it. (T&F)
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TRUE
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If an acceptance of an offer is received after the offer has been rejected, there is no contract. (T&F)
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TRUE
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A minor's right to disaffirm a contract terminates 60 days after the contract's date. (T&F)
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FALSE
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Contractual capacity refers to the legal ability to disaffirm a contract. (T&F)
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FALSE
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All contracts between adults and minors are void. (T&F)
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FALSE
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A minor may disaffirm a contract only if the subject matter is illegal. (T&F)
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FALSE
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Parents are ordinarily liable for the contracts made by their minor children, whether or not he children acted on their own. (T&F)
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FALSE
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A lender who makes a loan at a rate above the lawful maximum commits usury. (T&F)
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TRUE
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A covenant not to compete between businesses is always enforceable. (T&F)
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FALSE
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Adhesion contracts are often held to be contrary to public policy. (T&F)
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TRUE
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An exculpatory clause in an employment contract is always enforceable. (T&F)
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FALSE
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Misrepresentation of a material fact is an element of fraud. (T&F)
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TRUE
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A statement of opinion is generally subject to a claim of fraud. (T&F)
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FALSE
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An expert's false statement to a naïve buyer about a technical detail will not usually entitle the buyer to rescind a contract. (T&F)
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FALSE
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Misrepresentation of a material fact cannot occur through words along. (T&F)
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FALSE
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Intent to deceive is an element of fraud. (T&F)
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TRUE
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Reliance on a misrepresentation is justified if the misrepresentation is an obviously extravagant statement. (T&F)
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FALSE
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An adhesion contract can occur in a one-sided transaction in which one party has substantially superior bargaining power. (T&F)
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TRUE
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The statute of frauds requires that statutes must be in writing to be enforceable. (T&F)
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FALSE
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A contract involving a lease is the only contract relating to an interest in land that must be in writing to be enforceable. (T&F)
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FALSE
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A contract involving a lease is the only contract relating to an interest in land that must be in writing to be enforceable. (T&F)
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FALSE
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A contract that by its own terms cannot be performed within a year must be in writing to be enforceable. (T&F)
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TRUE
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A contract must be in writing to be enforceable if the performance is impossible within one year. (T&F)
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TRUE
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A party's oral agreement to pay another's debt is never enforceable. (T&F)
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FALSE
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Parol evidence includes oral evidence that is outside a written contract and not incorporated into the contract expressly or by reference. (T&F)
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TRUE
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Oral evidence of the meaning of a contract with incomplete terms can be introduced at a trial. (T&F)
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TRUE
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An integrated contract is a contract with more than one subject or part. (T&F)
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FALSE
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Privity of contract is the principle under which contracting parties alone traditionally had rights and liabilities under the contract. (T&F)
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TRUE
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A right to receive damages on a breach of a contract for a sale of goods may be assigned. (T&F)
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TRUE
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Generally, a party may not delegate his or her duties under a contract. (T&F)
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FALSE
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An intended beneficiary can sue directly to enforce a promisor's promise. (T&F)
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TRUE
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A third party beneficiary contract is formed when a contract confers a benefit on any third party. (T&F)
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TRUE
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An incidental beneficiary can sue directly to enforce a paromisee's promise. (T&F)
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FALSE
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The four broad types of damages in contract law are conciliatory, consecutive, punctual, and nominative. (T&F)
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FALSE
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