Homework Chapters 11-15 – Flashcards
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Some promises are not legally binding.
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true
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a contractual promise is not fulfilled, the person who made it may be required to perform the promised act.
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true
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The intention to enter into a contract is judged by outward, objective facts as interpreted by a reasonable person
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true
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The only requirement for a valid contract is that the parties voluntarily entered into it.
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false
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Randy promises to give Stewart her iPod in exchange for Stewart's promise to pay Randy $50. This bilateral contract was created when
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stewart promised to pay Randy $50
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The term consideration refers to the voluntary consent of all of the parties to a contract.
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false
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A unilateral contract is formed when the party receiving the offer completes the requested act or performance.
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true
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An offer may not be revoked before it is accepted.
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false
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Bo signs a lease with Capri Apartments to lease a studio apartment for the next year for $650 per month. Daisy signs on Capri's behalf. Bo and Capri have
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an express contract
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An executed contract is one that has been fully performed.
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true
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Rachel tells Stan that she will sign a contract to retain his services as tech support for one year if the contract includes a clause to extend the term at the same price. Rachel's intent to sign the contract is determined by reference to her
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words and action
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Iggy tells Jade, "I might sell the snowboard that I bought this winter since I haven't used it and the season is almost over." This is
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statement of future intent
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An invitation to negotiate—"will you sell this?"—is an offer.
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false
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An ad on the NewsNow Web site asks viewers to "send us your story and we might share it with the world." Onyx submits a manuscript, adding, "I accept your offer." Between NewsNow and Onyx, there is
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no contract
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Dewey asks Ember, "Do you want to buy my bike?" This is
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not a valid offer because the terms are not definite
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Isla's Morsels offers to cater Jimmy's Jars & Packaging, Inc.'s business meetings. Jimmy's rejects the offer. The offer is
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terminated
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Fabien offers to sell his Graphic Signs, LLC, business to Hana for $100,000. Hana replies, "The price is too high. I will buy it for $75,000." Hana has
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rejected the offer and made a counteroffer
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Deluxe Awnings, Inc., offers Elbert a job as an installer. No time for acceptance is specified in the offer. The offer will terminate
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after a reasonable period of time
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Bret buys a subscription to the catalog of music provided by Concerto, an online music vendor. Before accessing the catalog, Bret must agree to a provision stating that she will not make and sell copies of the music. This provision is
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a click on agreement
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Under federal law, an electronic signature is as valid as a signature on paper.
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true
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Most states have laws governing e-signatures and other aspects of electronic transactions, and these laws are uniform.
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false
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In contract law, "consideration" is defined as the courtesy that one party shows another in negotiating a deal.
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false
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For consideration to have "legally sufficient value," it must consist of goods or money.
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false
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A promise by one party to pay another for refraining from an action that one has a legal right to undertake is enforceable.
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true
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A transaction that lacks a bargained-for exchange lacks an element of consideration.
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true
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In general, a court will question the adequacy of consideration based solely on the comparative value of the things exchanged.
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false
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Under a contract with Valley Vineyard, Walsh begins grading a terraced hillside for the planting of grapes. Halfway through the project, Walsh asks for $5,000 over the contract price, claiming an increase in the "cost of doing business." Valley agrees but later refuses to pay. Their agreement is
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unenforceable because Walsh performance was a preexisting duty
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Digital Enterprise, Inc., promises to pay its employees a year-end bonus "if profits continue to be high and management agrees at the time." This is
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an illusionary promise
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Maya's motorcycle is damaged in an accident caused by Luc's negligence. Luc agrees to pay Maya $25,000 if she agrees to release him from further liability. Maya agrees. If her damages ultimately exceed $25,000, she can
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not recover the balance
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Marketing Solutions Inc. promises to employ Niki as a software engineer. In reliance on the promise, Niki quits her job with Online Ad Company, but Marketing Solutions does not hire her. Most likely, Marketing Solutions is
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liable to Niki under the doctrine of promissory estoppel
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Claudia pledges to donate $10,000 to Disaster Relief & Recovery Inc. (DR&R). On the basis of the pledge, DR&R orders additional supplies. If Claudia does not fulfill the pledge, a court may enforce it
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under the doctrine of promissory estoppel
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Contractual capacity includes the financial ability to pay for the benefits of a contract.
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false
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All contracts between adults and minors are void.
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false
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Parents are always liable for the contracts made by their minor children.
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false
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Any contract to commit a crime is in violation of a statute and thus is unenforceable.
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true
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In an employment contract, a covenant not to compete can be enforceable.
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true
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If a contract is divisible into legal and illegal portions, a court may enforce the legal portion but not the illegal one.
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true
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Chet, a minor, signs a contract with Porsha, an adult. The contract is
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voidable at the option of Chet
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Alexis, a minor acting on her own, signs a contract to buy motorcycle and accessories from Bad Bikes dealership. Later, after taking possession, Alexis disaffirms the deal. She
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must return both motorcycle and accessories
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Nelson, a minor, misrepresents his age when agreeing to a contract to buy a restored, antique soda vending machine from Old Is New Again, Inc. Ordinarily, Nelson can disaffirm the contract
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under any circumstance
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Fletcher signs a contract to buy a new electric guitar and amplifier just before reaching the age of majority. After reaching the age of majority, Fletcher does not take possession or make payments. With respect to the contract, most courts would hold that this is
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disaffirmance
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Bailey is an accountant who is not licensed to practice her profession in Connecticut. Despite this lack of a license, Bailey enters into a contract with Douglas in Connecticut. This contract is most likely
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b. enforceable only by a third party who is not aware that Bailey is not licensed in Connecticut
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A contract may not be enforceable if one party is aware that the other party made a mistake of fact.
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true
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When both parties to a contract are mistaken about the same material fact, the contract cannot be rescinded.
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false
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If a mistake concerns the future value of the object of the contract, a court will normally provide relief.
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false
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An innocent party can enforce a fraudulent contract and seek damages for any harm resulting from the fraud.
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true
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Intent to deceive is an element of fraud.
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true
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Phoebe enters into a contract with Everest for a guided tour of Whitewater Canyon. Everest acts as though he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Phoebe is most likely a victim of
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fraud
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Dwight believes that a new phone to be sold by Ear Candy Corporation will become the most widely bought and used phone in the global market. Dwight enters into a contract to buy 500 shares of Ear Candy stock, anticipating an increase in its value. If the price of the stock does not rise, Dwight can recover
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nothing
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In selling a 300-acre farm to Rural Land Investments, Inc., Simone tells Rural's that the land "will be worth twice as much by next year." This is
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opinion
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Winona enters into a contract with Peyton to buy Peyton's land based on Peyton's assertion that the land is legally open to development. After the sale, Winona learns what Peyton knew previously—only a small section of the land can be built on. A local law prohibits construction on the rest of the property. Winona can
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not avoid the contract because persons are assumed to know the law
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Dumont threatens physical harm to force Eddie to sell his business, Citywide Vending, Inc., to Dumont for a below-market price. This is
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duress
