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79 terms

Business Law 2700 Final

Cochran
STUDY
PLAY
An expression of opinion--"your customers will like this"--is an offer.
False
An advertisement--"this property for sale"--is an offer.
False
An acceptance subject to new conditions implicitly rejects the offer.
True
Under federal law, an electronic signature can be as valid as a signature on paper.
True
A forum-section clause indicates the place for the resolution of a dispute arising under a contract.
True
Nate tells Opal, "I might sell the skis that I bought last fall since I haven't used them and the skiing season is almost over." This is
A statement of future intent
Royal Properties, Inc., mails a flyer to hundreds of firms, advertising a building for sale. Standard Manufacturing Company responds by saying, "We accept your offer." Between Royal and Standard, there is
No contract
Interstate Coffee Brokers, Inc. (ICBI), offers to sell Java Roasters, Inc., fifty bags of coffee beans. Java rejects the offer. The offer is
terminated
Deb buys a song through eSongs, and online music vendor. Before completing the purchase and downloading the song, Deb must agree to a provision not to make and sell copies of the song. This provision is
a click-on agreement
Flem, a user of GameCenter.com's Web site, can download gaming software for free if he first clicks on "I accept" after viewing certain terms. This is
a contract that includes the terms
In contrast law, "consideration" refers to the courtesy that one party shows another in negotiating a deal.
False
For consideration to have "legally sufficient value," it must consist of goods or money.
False
Courts typically consider the adequacy of consideration.
False
A contract that one party retains the exclusive right to cancel at any time is unenforceable.
True
A covenant not to sue is against public policy.
False
Kelsey promises to pay Jon, her son, $15,000 if he obtains hes degree at Ivy University, where he is currently in his second year. Jon graduates. Kelsey is
required to pay, because Jon obtained a degree at Ivy
Jen questions whether there is consideration for her contracts with Isaac to exchange her catering services for his payment of a certain amount. To constitute consideration, the value of whatever is exchanged must be
legally sufficient
Under a contract with Bucolic Farms, Argo Excavation, Inc., begins digging an agricultural pond. In mid-project, Argo asks for $15,000 over the contract price, claiming an increase in the "cost of doing business." Bucolic agrees but later refuses to pay. Their agreement
unenforceable because Argo's performance was a preexisting duty
Cherry is injured in an accident cause by Bronco. Bronco agrees to pay Cherry $2,500 if she agrees to release him from further liability. Cherry agrees. If Cherry's damages ultimately exceed $2,500, she can
not collect the balance from Bronco
Contractual capacity includes the financial ability to pay for the benefits of a contract.
False
All contracts between adults and minors are void.
False
Parents are always liable for the contracts made by their minor children.
False
In an employment contract, a covenant not to compete can be enforceable.
True
When a statute protects a certain class of people, a member of that class cannot enforce an otherwise illegal contract.
False
Dante enters into a contract with Rosalinda, who does not have contractual capacity. Dante can enforce the contract if Rosalinda
does not choose to avoid the contract
Chris, a minor, signs a contract to buy alcoholic beverages for Dine & Drink. His parents' restaurant. The contract is
void as a matter of law
Olga, a minor, signs a contract to buy a computer from Phil, the owner of Quality Computer Store. Olga's right to disaffirm the contract
does not change the fact that Phil is bound by the contract
Fay is mentally incompetent but has not been so adjudged by a court. Any contract Fay enters into is
voidable if Fay lacks the capacity to comprehend the consequences
Delia enters into, and fails to disaffirm soon after reaching the age of majority, a contract with Electronics Stores, Inc. (ESI). Later Delia attempts to disaffirm the contract. ESI files a suit against her. The court most likely consider the contract ratified if it is
executed
A contract is always enforceable even if one party is aware that the other party made a mistake of fact.
False
Overestimating the value of an object is a mistake for which a court will normally provide relief.
False
Misrepresentation of a material fact is an element of fraud.
True
Forcing someone to enter into a contract through fear created by threats is duress.
True
A contract written exclusively by one party and presented to the other party on a take-it-or-leave-it basis is an adhesion contract.
True
Jill and Karl contract for the sale of Jill's horse for $1,000. Unknown to either party, the horse has died. Karl is
not required to pay due to the mutual mistake
Danton, a popular performer, dies. His spouse Caitlin sells their house to Buck. Unknown to Caitlin or Buck, in one of the closets is the master recording of an unreleased album. With respect to this recording, Buck can
not keep it because there was no voluntary consent to its sale
Sylvia creates a profile for Today's Date, Inc., an online dating service. She exaggerates her appealing features and posts a photo of her friend Uva, whom Sylvia thinks is prettier. Enticed by the profile, Van subscribes to the service so that he can contact Sylvia. Van is most likely a victim of
fraud
Gina induces Hu to enter into a contract for the purchase of a condominium about which Gina knowingly misrepresents a number of material features. When Hu discovers the truth, Hu can
rescind the contract on the basis of fraud
Bret is convicted of arson for burning down his warehouse to collect the insurance. On an application for insurance from Cover-All Insurance Company on a new building, in answer to a question about prior convictions, Bret does not disclose his conviction. This makes the contract
voidable by Cover-All because the omission is material to its decision to issue coverage
The Statute of Frauds requires that statues must be in writing.
False
A contract involving property of any kind must be in writing to be enforceable.
False
An oral contract for a transfer of an interest in land is never enforceable.
False
An oral contract for a sale of land may be enforceable if the contract has been partially performed.
True
Evidence of prior agreements that differ from the written terms of a contract can be introduced in court to alter the contract.
False
Grandiloquent Properties, Inc., and Investment Capital Corporation enter into a contract for a sale of land. To be enforceable, the contract must be in writing if the land is valued at
any price
Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store, and downloads $300 worth of digital music from E-Music.com. To be enforceable, the contract that must be in writing is the purchase of
the speakers only
Elle buys a new textbook for $100 and a used car for $5,000, and signs a one-year lease for an apartment for $1,000 monthly rent to start at the beginning of the next month. The Statute of Frauds covers
the apartment lease and the car purchase only
Pablo and Melia enter into an oral contract for Pablo's sale to Melia of a laptop computer for $400. Assuming the terms can be proved, the contract is enforceable by
the seller or the buyer
Uri and Vicky orally agree on the sale of Uri's Nite Club to Vicky and note terms on a pair of the Club's napkins, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain
the essential terms
A transfer of contract rights to a third party is an assignment.
True
A contract can prevent an assignment of a right to receive funds.
False
An "assignment of all rights" creates an assignment of rights but not a delegation of duties.
False
If a contract requires that performance be rendered directly to a third party, the third party is an incidental beneficiary.
False
An incidental third party beneficiary can sue directly to enforce the contract.
False
Dwayne and Ewell enter into a contract for the design of an addition to Dwayne's house for which he agrees to pay Ewell. Ewell transfers his right to payment under the contract to Flex Construction Company. Flex is
an assignee
Equity Company and Faye enter into a contract for Faye to cater a meeting of Equity's shareholders. When Faye's schedule conflicts, she asks Gudren to serve Faye's coffee and pastries at the meeting. This transfer of duties is
a delegation
Floyd and Gert enter into a contract by which Floyd promises to deliver fertilizer to Gert. Floyd subsequently transfers this duty to Hazel. Floyd is
an obligor
Peri, a world famous musician and composer, agrees to give ten piano lessons to Quinn in exchange for $1,000. Peri's attempt to transfer her contract duties to Roth, an inexperienced pianist, will probably be
prohibited because Peri and Roth have very different skill levels
Lois takes out a life insurance policy with Mega Insurance Corporation that names her son, Nero, as the beneficiary. This is
a third party intended beneficiary contract
Tender is an unconditional offer to perform.
True
A contract comes to an end when both parties fulfill their respective duties by performing the acts they have promised.
True
A contract is substantially performed when performance creates substantially the same benefits as those promised in the contract.
True
A breach of contract occurs only when a party fails to perform all of his or her duties under a contract.
False
A contract will be discharged if foreseeable circumstances make it impossible to attain the contract's purpose.
False
Lark enters into a contract to mine limestone in Milena's quarry, sell it, and share the profits on its sale with Milena. If the duties under this contract are discharged like those under most contracts, the duties will be
performed
Belle enters into a contract to subdivide and sell housing lots in Colin's hillside field if Dell City annexes the property within the next year. Belle's duty to perform is
conditional
Jen agrees to buy Kev's Dirt Bike business on the express condition that Valley Credit Union approves the financing. This approval is
a condition precedent
Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company. Even-Bilt completely performs. Discount E-Sales is entitled to
nothing more
Clyde contracts with Deephole Excavation, Inc., to dig an agricultural pond on his farm. Deephole is to keep the excavated gravel in payment. Clyde's neighbor Eden challenges the dig as an illegal gravel pit. A court orders a halt to the dig. Clyde's contract with Deephole is
discharged
A breach of contract entitled the nonbreaching party to sue for monetary damages.
True
Damages are designed to punish a breaching party and deter others from similar conduct.
False
Compensatory damages are foreseeable damages that arise from a party's breach of a contract
False
Ordinarily, the remedy for a seller's breach of a contract for a sale of real estate is damages.
False
Punitive damages are recoverable in contract law for an intentional breach of contract.
False
Even-Flo Hydraulics enters into a contract to repair valves and fittings in Fiesta Company's plant. If Even-Flo breaches the contract, Fiesta can
sue Even-Flo for damages
Consumer Credit Union pays Derby $10,000 to design an ad campaign. The next day, Derby tells the credit union that he has accepted a job in Boston and cannot design the campaign. As compensatory damages, the credit union can recover
$10,000
Fashion Retail Center enters into a contract with Great Promotions, Inc., to provide Fashion with a plan to retool its merchandising strategy. If Great Promotions breaches the contract, Fashion has a duty to
reduce the damages that Fashion might otherwise suffer
Karif orally agrees to buy a unique collection of sports memorabilia for $1,000 from Jane and sends her $250 as a down payment. When Karif sends her the rest of the price, Jane refuses to ship the collection. Karif should seek
specific performance
Refined Commodities, Inc., agrees to deliver ten tons of sheet metal to Select Builders Corporation. The agreement states that delivery is to be within "3" days, although the parties intend "30" days. Refined cannot convince Select to amend the contract. Refined should seek
reformation