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Bobbie claims that Carly breached their contract. Carly responds that she never intended to enter into a contract with Bobbie. The intent to enter into a contract is determined with reference to

the objective theory of contracts.

Jacqi tells Kenneth, who does not know how to perform comedy, that she will tutor him in the subject for $500. As an offer, this is


Green Grocers, Inc., enters into a contract with Hiway Transport Company for the delivery of a shipment of fresh produce. In a later dispute between these parties over the delivery, the doctrine of quasi contract cannot be used because

there is an actual contract covering the subject in dispute.

Jim tells Dana that he will take her out to lunch on Thursday. Jim has made Dana a


Beth goes to Dr. Carlton for surgery. Carlton says that Beth should be fully healed within a week. Beth is not healed within a week. With respect to breach of contract, Carlton is

not liable, because the statement was an opinion.

Digital Products Company includes a shrink-wrap agreement in a transaction with Eagle Engineering Corporation. A shrink-wrap agreement is an agreement whose terms are expressed

inside a box in which goods are packaged.

Holiday Sales Company and Global Distributors, Inc., enter into a contract for the delivery of imported specialty goods. Until the goods are delivered and paid for, these parties have

an executory contract.

Quality Sales Corporation enters into contracts over the Internet. Quality can protect itself against disputes involving these contracts by making important terms

reasonably clear.

T/F? An offer does not need to be communicated to the offeree to become effective.


T/F? Consideration is the value given in return for a promise.


T/F? A forum-selection clause indicates the forum, or location, for the delivery of goods purchased online.


T/F? The element of intent is not very important in determining whether a contract has been formed.


A contract is an agreement that can be enforced in court.


A shrink-wrap agreement is an agreement whose terms are expressed inside a box in which the goods are packaged.


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


An offer made in obvious anger is still an effective offer.


The agreement resulting from a buyer clicking on a box containing the words "I agree" is known as a click-on agreement.


The mirror image rule requires an acceptance to adhere exactly to an offer to create a contract.


T/F? An executed contract is one that has been fully performed by both parties.


T/F? In contract law, intent is determined by the objective theory of contracts.


T/F? Under the Uniform Electronic Transactions Act, a typed name at the end of an email message is not considered an e-signature.


T/F? A quasi contract is not a true contract.


T/F? An agreement is not one of the requirements of a valid contract


T/F? The only requirement for a valid contract is that the parties voluntarily entered into it.


Livewire Company and McCoy's Candy, Inc., sign a document that states Livewire agrees to design a Web page for McCoy's, which agrees to pay for the service. This is

an express contract

Cynthia tells Darryl that she will deliver his boxes of Paradise Cookies as he directs. A declaration that one will do something in the future is part of the definition of

a promise

Jared downloads some video games from the Internet. There is a page indicating the terms of use, but nothing that requires Jared to affirmatively indicate his consent before downloading the games. These terms are

browse-wrap terms

Mark is creating a Web site through which he will enter into contracts over the Internet. Important terms to include in his offers include

provisions specifying the remedies if the contract is breached.

Kingston promises to pay Melina $500 to install a sump pump in his warehouse. Melina completes the installation. The act of installing the pump

is the consideration that creates Kingston's obligations to pay Melina

Mariah promises to pay her assistant Nadine $10,000 in consideration of the services she provided over the years. Mariah never pays Nadine. Mariah is

not liable, because the consideration is in the past

Expert Pavers, Inc., contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay. The requirements of this, and any other, contract do not include


Pastry Dough, Inc., sends its catalogue to Octavio and includes a "personalized" letter inviting him to buy any item in it at the advertised price. This is

not an offer

T/F? Past consideration can be legally sufficient consideration.


T/F? A release does not require consideration to be legally binding.


T/F? If an offeror does not expressly specify a certain mode of acceptance, then acceptance can be made by any reasonable means.


T/F? For an offer to be effective, the offeror must have a serious intention to become bound by the offer.


T/F? An expression of opinion "this is perfect!" is an effective offer as long as it is not made in jest.


Fresh Fast Service, Inc., offers to deliver produce to Growers' Market's customers for a certain price. Fresh's intent to extend a serious offer to Growers' Market is determined by reference to

what a reasonable person in Growers' position would conclude Fresh's words and actions meant

Jonathon promises to pay child support and alimony to his ex-wife every month after their divorce. Jonathon has

both a legal and a moral obligation to keep his promise

Rollo promises to perform, for a price, shoe repair services in affiliation with Togs 'n Things, a clothing store. To support a contract, the consideration exchanged by the parties must be

legally sufficient

Jon says to Kristy, "I would like to sell you my sports memorabilia collection." This is not an offer because it

only invites Kristy to negotiate

Over the Internet, Red & White Contractors, Inc., arranges to lease storage space from Blue Services Company. To complete the deal, Red & White clicks on a button that says, in reference to certain terms, "I agree." Most likely, the parties have

a binding contract that includes the terms

Deb buys a song through eSongs, an online music vendor. Before completing the purchase and downloading the song, Deb must agree to a provision stating that she will not make and sell copies of the song. This provision is

a click-on agreement

Ellen offers to sell her math textbook to Julia for $50. Julia does not respond. Ellen and Julia do not have a contract because they lack the requirement of


Sparky offers Teodora $1,000 for her collection of rare coins. She accepts. If a dispute arises, a court would likely

not question the adequacy of the consideration

Dave's uncle tells Dave that if "he feels that Dave deserves it," he will give Dave $1,000 when Dave graduates from college. Dave's uncle's promise is


T/F? Not all of the terms presented in shrink-wrap agreements have been enforced.


Under federal law, an electronic signature can be as valid as a signature on paper.


T/F? A lottery is an example of an offer for a unilateral contract.


T/F? Adequacy of consideration refers to how much consideration is given.


T/F? Browse-wrap terms are arguably not enforceable.


Peter and Ray are riding their horses together. Peter jokingly tells Ray that Ray's horse is too slow. Ray laughs and jokingly responds, "Yes, he is too slow! I would sell him for $5!" Peter hands Ray $5. This is

not a valid acceptance because Ray's offer was made in jest

T/F? Some promises create moral, but not legal, obligations.


T/F? An illusory promise is unenforceable.


T/F? The doctrine of promissory estoppel does not apply if there exists a clear and definite promise


Franzea is injured in an accident caused by Gentry. Gentry agrees to pay Franzea $2,500 if she agrees to release him from further liability. She agrees. If Franzea's damages ultimately exceed $2,500, she can collect

nothing more from Gentry

May tries to start her new car with no success. She yells that she will sell the car to anyone for $10. Nick, a passerby who owns Nick's Pre-owned Autos, hands May $10. This is

not a valid acceptance because may does not seriously intend to sell

Kathryn signs a lease agreement for an apartment. Kathryn has entered into a(n)

express contract

Phil agrees to work for Vacation Resorts, Inc., as a chef. In determining whether a contract has been formed, an element of prime importance is

the parties' intent.

A quasi contract is not enforceable by a court.


An illusory promise is unenforceable.


Genovese Contracting, Inc., agrees to build a warehouse for Hawthorne Distributors. Genovese runs into the types of difficulties that contractors ordinarily confront, and Hawthorne agrees to pay extra compensation to overcome them. Regarding the agreement to pay more, a court would likely

not enforce it

T/F? A contract is valid only if both of the parties entering into it have the capacity to do so.


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