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Some promises are not legally binding

True

Resolving whether a promise should be enforced is a function of contract law

T

A party's intent to enter into a contract is judged by their personal, subjective intent or belief.
If a contractual promise is not fulfilled, the person who made it may be required to perform the promised act.

F

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

T

The only requirement of a valid contract is that it be voluntarily entered into

F

Every contract involves at least 3 parties

F

"Consideration" Refers to the voluntary consent of all the parties to a contract.

F

One of the elements of a valid contract is a fair price

F

A bilateral contract comes into existance at the moment an offer is made

F

An offer to form a unilateral contract is accepted by a promise to perform

F

A contract can be created only when a promise is given in exchange for another promise

F

No offer may be revoked before it is accepted

F

Informal contracts are usually based on their sub¬stance rather than their form

T

An express contract must be in writing.
An express contract must be in writing

F

An implied contract is not an actual contract

F

Informal contracts include all contracts other than formal contracts.

T

In an express contract, the terms are fully stated in words

T

An implied contract is implied from the words of the parties.

An executory contract is one that has been fully performed.

F

An executed contract is one that has been fully performed.

T

If a voidable contract is avoided, the parties to it are released from it.

T

A void contract is enforceable if it is in writing.

F

An unenforceable contract is one that cannot be enforced because of cer¬tain legal defenses against it.

T

A void contract produces legal obligations on the parties but is not otherwise enforceable

F

A quasi contract is a true contract

F

A party who confers a benefit on someone else unnecessarily can invoke the principle of quasi contract to recover the cost

F

The doctrine of quasi contract can be used only when there is an actual con-tract that covers the matter in controversy.

F

Plain language laws regulate some types of contracts to require "legalese."

F

A reasonable, lawful, and effective meaning will normally be given to all of a contract's terms.

t

When the words in a contract have more than one meaning, they are cut from the contract.

F

An agreement is evidenced by a single event: an offer.

F

An offer must be practical to be effective.

F

An offeror must have a serious intention to become bound by the offer.

t

An invitation to submit bids—"how much would you charge to do this work?"—is an offer

f

An invitation to negotiate—"can you afford this?"—is an offer.

f

An expression of opinion—"your customers will like this"—is an of¬fer.

f

A statement of future intent—"I plan to sell my 700-pound sow"—is an offer.

f

A price list is an offer

f

An advertisement—"this property for sale"—is an offer.

f

An auction—"we ask you to bid on this item"—is an offer

f

A contract lacking a quantity term, when appropriate, may not be enforceable

t

An offer may invite an acceptance to be worded in such specific terms that the contract is made definite.

f

If no time for acceptance is specified in an offer, the offer terminates at the end of a reasonable time

t

A counteroffer does not terminate but continues an offer

f

An offeree's power of acceptance is terminated when the offeror dies unless the offer is irrevocable

t

An offer that a statute makes illegal automatically terminates the offer.

t

An unequivocal acceptance operates as a rejection of the original offer

f

No offer can be accepted by silence

f

An acceptance subject to new conditions implicitly rejects the offer.

t

If an offeror does not expressly authorize a certain mode of acceptance, then acceptance may be made by any reasonable means.

t

Under the mailbox rule, an acceptance takes effect at the time it is sent.

t

An e-contract must meet the same basic requirements as a paper contract.

t

Terms in a shrink-wrap agreement have been enforced in the same way as the terms of other contracts

t

Browse-wrap terms are often unenforceable.

t

Under federal law, an electronic document can be as enforceable as a paper one.

t

The UETA covers only e-records and e-signatures relating to a transaction.

t

The UETA does not apply to a transaction unless the parties agreed to conduct the transaction electronically

t

Contracting parties cannot opt out of the terms of the UETA.

f

The UETA applies to all writings and signatures.

f

An e-record is considered received under the UETA only if a person is aware of its receipt

f

To be legally sufficient, consideration must include something of economic value

f

A bargained-for exchange is one of the elements of consideration.

t

Inadequate consideration may indicate undue influence.

t

Normally, a court of law will not question the adequacy of consideration.

t

A promise to do something that one has a prior legal duty to do is not consideration

t

Unforeseen difficulties that justify a demand for additional compensa¬tion in-clude risks ordinarily assumed in business

f

Rescission is the substitution of one party to a contract for a third party, who agrees to assume the contractual duties

f

A promise to pay for an act that has already occurred is enforceable because the event is certain

f

An illusory promise is a promise that is enforceable without consideration.

f

An accord and satisfaction requires that the amount of a debt be certain.

f

A release does not require consideration to be legally binding.

f

A covenant not to sue is against public policy.

f

A covenant not to sue is the substitution of a contractual obligation for a legal action

t

The doctrine of promissory estoppel requires a clear and definite promise.

t

Contractual capacity refers to the legal ability to enter into a contract.

t

A minor may disaffirm a contract only after attaining the age of majority.

f

A minor may disaffirm a contract only if the subject matter is illegal.

f

A minor's right to disaffirm a contract terminates sixty days after the contract's date

f

Parents are ordinarily liable for the contracts made by their minor chil¬dren, even if the children acted on their own

f

A person who enters into a contract when he or she is intoxicated can void the contract if the terms are obviously favorable to the other party

f

A guardian can enter into legally binding contracts on behalf of a mentally incompetent person

t

A usurious contract involves the purchase and sale of usable goods.

f

If there is a statute that prohibits a certain action, a contract to do it is unenforceable

t

If the purpose of a licensing statute is to protect the public from unlicensed practitioners, a contract with an unlicensed professional is illegal.

t

A covenant not to compete is enforceable only if it is necessary to restrain trade

f

A covenant not to compete in the sale of an ongoing business is unenforceable.

f

Adhesion contracts are often held to be contrary to public policy.

t

An exculpatory clause in an employment contract is not enforceable if the clause is against public policy

t

An illegal contract is valid if the parties to it were unaware of the illegality.

f

A severable contract is unenforceable as a violation of public policy.

f

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