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bus law ch 11 t/f

Terms in this set (40)

contract law demonstrates which excuses our society accepts for breaking certain types of promises
true
contract law does not distinguish between promises that create only moral obligations and promises that are legally binding
false
In contract law, intent is determined by the personal or subjective intent, or belief, of a party.
false
one of the four requirements of a valid contract is an adequate price
false
the term consideration refers to the legality of the subject matter of a contract
false
a bilateral contract comes into existence at the moment promises are exchanged
true
a unilateral contact is formed at the moment when the contract is performed
true
informal contracts include all contracts other than formal contracts
true
a negotiable instrument is a formal contract
true
in an express contract, the terms are fully and explicitly stated in words
true
a contract that has been fully performed by the parties is called an executory contract
false
if a voidable contract is avoided, the promisee, but not the promisor, is released from it
false
an unenforceable contract is one that cannot be enforced because of certain legal defenses against it
true
a void contract imposes certain legal obligations on the parties but is not otherwise enforceable
false
a quasi contract is an actual contract
false
a party who has conferred a benefit on someone else unnecessarily can invoke the principle of quasi contract to recover the cost
false
the doctrine of quasi contract generally can only be used when there is an actual contract that covers the matter in controversy
false
when a contracts writing is not clear, a court will enforce it according to its obvious terms
false
if a contract term is ambiguous, a court can consider extrinsic evidence
true
a court will normally interpret the language of a contract according to what the parties claim their intent was when they made it
false
Sal assures Tom that she will deliver a truckload of hay to his cattle ranch. A person's declaration to do a certain act is part of the definition of
a promise
Smith & Jones, Accountants, agrees to perform an audit for Brick & Mortar Stores, Inc. Whether or not this agreement meets all of the requirements of a contract, the parties are likely to follow the rules of contract law because they
want to avoid potential disputes
Lark promises to buy Mac's used textbook for $60. Lark is
a promisor
Gilbert promises to buy Hadley's iPod for $75. Hadley is
a promisee
Brady accepts what he believes is an offer to work for Canyon River Adventures, Inc., as a tour and fishing guide. In determining whether a contract has been formed, an element of prime importance is
the intent of the parties
Cellphones & Calltime, Inc., makes an offer to Delores to enter into a contract to work as a salesperson for a certain base salary plus commission for ninety days subject to a one-year renewal based on her performance. Delores accepts the offer. A valid contract requires
an offer and an acceptance
Jonah tells Levi he will give him an Xbox if Levi does Jonah's chores for a month. Levi promises to do the chores. Jonah and Levi have formed a
bilateral contract
Wilson buys a lottery ticket at his local gas station. Wilson has accepted an offer for a
unilateral contract
A letter-of-credit agreement between Rural Feed Corporation and Soybean Farms, Inc., requires Rural Feed's bank to pay Soybean Farms on receipt of invoices. This letter of credit is
formal contract
following negotiations, office park inc enters into an informal contract with quality janitorial company for custodial services for office park's building. this means that the parties' contract
requires no special form
When Hester's car breaks down, she asks Insta-Tow, Inc., to tow it to Jerry's Repair Shop. There is no discussion of a price, and Hester and Insta-Tow do not sign any documents. Later, Insta-Tow sends Hester a bill. With respect to Hester's obligation to pay the bill, this is
an implied contract
Bilbo signs a lease agreement for an apartment with Cato, who owns and manages the Deer Creek Apartments complex. These parties have
an express contract
Avatar, Inc., agrees to deliver t-shirts emblazoned with video game characters for a certain price to Bling Bling Corporation. To constitute a contract, the terms of this deal
may be express, implied, or a mixture of both
Francis drives into gage's auto service and asks hong, a gage's employee to replace a tire on fancies car. after hong replaces the tire, but before Francis pays for it, any contract between Francis and gage's is
executory
Robin claims that her contract with Stroud for tennis lessons is voidable. If their contract is avoided,
both parties are released from it
sales marketing corporation and tech support, inc negotiate a contract. if the contract has all of the elements necessary for one of the parties to enforce it in court, it is
a valid contract
mallory promises to buy illegal digital copies of movies from Napoleon, who promises to deliver on October 31. these promises are most likely
void
in a one-car auto accident, Carmel is rendered unconscious and otherwise injured. at the scene, a physician, acts to save Carmel's life. later, dana seeks to recover for the cost of the aid. she is most likely to recover
on a theory of a quasi contract
Otto mistakenly pays property taxes that should have been assessed against pip. Otto can recover the amount of pip in quantum meruit
even if Pip was not aware of the error
sunny enters into a contract with trey to act as his personal sports trainer. If a dispute later arises and the contract contains unclear terms, the rules of contract interpretation will give effect to
the parties' intent as expressed in their contract
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