Business Law Departmental Exam Test Bank - DEPARTMENT EXAM...

DEPARTMENT EXAM TEST BANK
True/False
Indicate whether the sentence or statement is true or false.
1. _F ___ The offeror is the party with the power to decide whether to create a contract.
2. __T __ An offer made as a joke, where a reasonable person would conclude that it was made as a
joke, cannot result in a contract.
3.
__T__
The communication of an offer can be made by the offeror or the offeror's agent.
4. __T__ Generally, advertisements, catalogs, price lists, etc. are not treated as offers.
5. _F___ A counteroffer is treated as both a revocation and a new offer.
6.
__T__
Consideration can consist of giving up a legal right.
7. _T___ A promise to act or to refrain from doing an act can serve as consideration.
8. __F__ The mirror image rule permits the offeree's acceptance of a contract to vary from the offer.
9. __F__ A person who delegates his contractual duties is fully relieved of any further duty to perform
under that contract.
10. _T___ When both parties to a contract are minors, either or both of them may avoid the contract.
11. _F___ A parent or parents who sign a contract on behalf of their minor child may disaffirm the
contract just as their child may.
12. __F__ A party who makes a mistake about the value of the object of a contract is normally
permitted to avoid the contract.
13. _T___ A plaintiff must prove that he suffered actual injury to recover damages for fraud.
14. _F___ A party to a contract may delegate his rights arising from the contract to another person.
15. __T__ The nonbreaching party normally may not recover punitive damages in a breach of contract
claim.
16. _F___ Expenses, such as those incurred to obtain performance from a source other than the
original contracting party, are called consequential damages.
17. __T__ An express contract may be either written or oral.
18. __F__ An incidental beneficiary can directly sue the maker of a contract in the case of breach.
19. __T__ The mirror image rule requires that the acceptance exactly match the offer.
20. __T__ Giving up a legal right to do something is enough to legally qualify as consideration.
21. ___F_ A quasi contract is another name for an oral contract.
22. __F__ "I promise to pay you $100 if you will promise to fix my car next month." This is an offer
for a unilateral contract.
23. _T___ If a person who has been declared incompetent by a court enters into an agreement, that
agreement is void, because it does not meet all the requirements of a binding contract.
24. __T__