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25 terms

Business Law Quiz 3 True False

STUDY
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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