Business Law Quiz 3 True False

25 terms by KidFromCle 

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In deciding whether a contract was formed or not, the courts look to the subjective intent of the parties

False

A bilateral mistake of fact is grounds for rescinding the contract

True

An accord and satisfaction can be used to settle both liquidated and non liquidated debts

False

Oral contracts for the sale of goods costing less than $500.00 are enforceable

True

An Illusory promise is consideration for a unilateral contract, but not for a bilateral contract

False

Ann mailed Jake an offer to sell him her racehorse for 500,000. before Jake could accept the offer, the horse died. Ann's offer terminates by operation of law

True

Oral statements can be used in court to show a prior written contract has been cancelled

True

Any person who occupies a position of trust and confidence in relation to another person or his property is a trustee.

False

Under Common Law, acceptances are effective when received by the offeror

False

An oral agreement to lease an apartment for two years is not enforceable

True

Contracts entered into by alcoholics are void

False

Giving up the right to do something one is legally entitled to do can serve as consideration in a contract

True

In limited cases, such as the relationship between a supplier who makes regular deliveries and his customer, silence can be a form of acceptance

True

Fraudulent misrepresentation can be the basis for the injured party to rescind the contract

True

The parol evidence rule restricts the use of oral statements in interpreting written contracts

True

In determining whether a contract can be performed within a year, the measuring period starts and ends when the performance is completed

False

An intentional misrepresentation of law by a seller who is not a lawyer will be grounds for rescinding the contract

False

If the offeree has substantially performed the requested act in a unilateral contract, the offeror is prevented from withdrawing the offer

True

Parties to a contract may not offer as consideration promises to do what the parties are already legally required to do

True

Courts may look into the adequacy of consideration if there is evidence of fraud or undue by one of the parties

True

Counteroffers automatically terminate the original offer

True

A minor must pay the contract price for necessaries

True

Under the Common Law, modifications to existing contracts required new consideration form each party

True

Under the Common Law, to satisfy the Statute of Frauds all the required information must be contained in one document

False

Contracts for the sale of securities must be writing if the sale price is $500.00 or more

True

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