Business Law - 8 to 11

Question 1

All promises create legal obligations.

Answer 1

False

Question 2

A unilateral contract is formed when the offeree completes the contract performance.

Answer 2

True

Question 3

An express contract may be written or oral.

Answer 3

True

Question 4

In an implied-in-fact contract, the conduct of the parties creates and defines the terms.

Answer 4

True

Question 5

Quasi contracts do not arise from a mutual agreement by the parties but are imposed by courts.

Answer 5

True

Question 6

An executed contract is one that has not yet been fully performed.

Answer 6

False

Question 7

An otherwise valid contract may be unenforceable if it is not in writing.

Answer 7

True

Question 8

An offer does not need to be communicated to the offeree to be effective.

Answer 8

False

Question 9

A person who does not know about a reward cannot claim it.

Answer 9

True

Question 10

Rejection of an offer by the offeree will not terminate an offer.

Answer 10

False

Question 11

The mirror image rule requires the offeree’s acceptance to adhere exactly to the offeror’s offer to create a contract.

Answer 11

True

Question 12

If no time for acceptance is specified in an offer, the offer terminates at the end of a reasonable time.

Answer 12

True

Question 13

A counteroffer terminates an offer.

Answer 13

True

Question 14

Under the mailbox rule, an acceptance can be valid as soon as it is sent.

Answer 14

True

Question 15

Consideration is the value given in return for a promise.

Answer 15

True

Question 16

nadequate consideration may indicate fraud, duress, or undue influence.

Answer 16

True

Question 17

The preexisting duty rule permits a party who is bound by contract to perform a certain duty to use that duty as consideration for a second contract.

Answer 17

False

Question 18

If a minor disaffirms a contract, he or she must disaffirm the entire contract.

Answer 18

True

Question 19

A minor has a reasonable time, after the minor reaches the age of majority, within which to disaffirm a contract.

Answer 19

True

Question 20

A minor who affirmatively misrepresents himself or herself to be an adult will not be able to disaffirm a contract in most states.

Answer 20

False

Question 21

Quality Employers, Inc., enters into a contract with Ronnie, a minor. This contract is

Answer 21

voidable

Question 22

Nora promises to give Owen $500 because he does not have as much money as other people. Nora’s promise is

Answer 22

not enforceable because Owen has not given consideration in return

Question 23

Restoring a person to his or her original positions prior to a contract is

Answer 23

restitution

Question 24

MicroCorp hires Nick to work for one month at a weekly salary of $400. A MicroCorp representative orally agrees two weeks later to double Nick’s salary. This agreement is

Answer 24

unenforceable under the preexisting duty rule.

Question 25

To make an enforceable contract,

Answer 25

there must be legally sufficient and bargained-for consideration.

Question 26

Elements of a Valid Offer

Answer 26

There must be a clear intention to contract (contractual intent).
The terms of the offer must be reasonably certain or definite.
The offer must be communicated to the offeree
The offer should be for a lawful purpose

Question 27

Quasi Contract

Answer 27

Obligations imposed by law to avoid injustice.

ie: painting wrong house

Question 28

Past Consideration

Answer 28

Promises made with respect to events that have already taken place are unenforceable