Homework Chapters 11-15

question

Some promises are not legally binding.
answer

true
question

a contractual promise is not fulfilled, the person who made it may be required to perform the promised act.
answer

true
question

The intention to enter into a contract is judged by outward, objective facts as interpreted by a reasonable person
answer

true
question

The only requirement for a valid contract is that the parties voluntarily entered into it.
answer

false
question

Randy promises to give Stewart her iPod in exchange for Stewart’s promise to pay Randy $50. This bilateral contract was created when
answer

stewart promised to pay Randy $50
question

The term consideration refers to the voluntary consent of all of the parties to a contract.
answer

false
question

A unilateral contract is formed when the party receiving the offer completes the requested act or performance.
answer

true
question

An offer may not be revoked before it is accepted.
answer

false
question

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
answer

an express contract
question

An executed contract is one that has been fully performed.
answer

true
question

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
answer

words and action
question

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
answer

statement of future intent
question

An invitation to negotiate—”will you sell this?”—is an offer.
answer

false
question

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
answer

no contract
question

Dewey asks Ember, “Do you want to buy my bike?” This is
answer

not a valid offer because the terms are not definite
question

Isla’s Morsels offers to cater Jimmy’s Jars & Packaging, Inc.’s business meetings. Jimmy’s rejects the offer. The offer is
answer

terminated
question

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
answer

rejected the offer and made a counteroffer
question

Deluxe Awnings, Inc., offers Elbert a job as an installer. No time for acceptance is specified in the offer. The offer will terminate
answer

after a reasonable period of time
question

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
answer

a click on agreement
question

Under federal law, an electronic signature is as valid as a signature on paper.
answer

true
question

Most states have laws governing e-signatures and other aspects of electronic transactions, and these laws are uniform.
answer

false
question

In contract law, “consideration” is defined as the courtesy that one party shows another in negotiating a deal.
answer

false
question

For consideration to have “legally sufficient value,” it must consist of goods or money.
answer

false
question

A promise by one party to pay another for refraining from an action that one has a legal right to undertake is enforceable.
answer

true
question

A transaction that lacks a bargained-for exchange lacks an element of consideration.
answer

true
question

In general, a court will question the adequacy of consideration based solely on the comparative value of the things exchanged.
answer

false
question

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
answer

unenforceable because Walsh performance was a preexisting duty
question

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
answer

an illusionary promise
question

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
answer

not recover the balance
question

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
answer

liable to Niki under the doctrine of promissory estoppel
question

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
answer

under the doctrine of promissory estoppel
question

Contractual capacity includes the financial ability to pay for the benefits of a contract.
answer

false
question

All contracts between adults and minors are void.
answer

false
question

Parents are always liable for the contracts made by their minor children.
answer

false
question

Any contract to commit a crime is in violation of a statute and thus is unenforceable.
answer

true
question

In an employment contract, a covenant not to compete can be enforceable.
answer

true
question

If a contract is divisible into legal and illegal portions, a court may enforce the legal portion but not the illegal one.
answer

true
question

Chet, a minor, signs a contract with Porsha, an adult. The contract is
answer

voidable at the option of Chet
question

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
answer

must return both motorcycle and accessories
question

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
answer

under any circumstance
question

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
answer

disaffirmance
question

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
answer

b. enforceable only by a third party who is not aware that Bailey is not licensed in Connecticut
question

A contract may not be enforceable if one party is aware that the other party made a mistake of fact.
answer

true
question

When both parties to a contract are mistaken about the same material fact, the contract cannot be rescinded.
answer

false
question

If a mistake concerns the future value of the object of the contract, a court will normally provide relief.
answer

false
question

An innocent party can enforce a fraudulent contract and seek damages for any harm resulting from the fraud.
answer

true
question

Intent to deceive is an element of fraud.
answer

true
question

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
answer

fraud
question

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
answer

nothing
question

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
answer

opinion
question

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
answer

not avoid the contract because persons are assumed to know the law
question

Dumont threatens physical harm to force Eddie to sell his business, Citywide Vending, Inc., to Dumont for a below-market price. This is
answer

duress

Get instant access to
all materials

Become a Member