CHAPTER 10 Introduction to contracts

CHAPTER 10 Introduction to contracts - CHAPTER...

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CHAPTER 9-INTRODUCTION TO CONTRACTS TRUE/FALSE 1. One purpose of contract law is to make business matters more predictable. T 2. Some of the elements of a contract are agreement, consideration, legality, and capacity.T 3. A counteroffer is a rejection of the original offer.T -Unilateral contracts are usually considered illegal=False 4. Robert offers to buy a car from Jane for $400. Jane must accept this offer in order to form an enforceable contract.T 5. Strawly Corp. runs an “adult bookstore” in Metro City, leasing the building from MegaCorp. Then, Metro City passes an ordinance prohibiting the sales of the types of merchandise found in “adult bookstores.” Strawly is still bound to the contract. FALSE 6. Contracts for the sale of fabric, automobiles, computers, furniture, and paper clips would all be governed by Article 2 of the Uniform Commercial Code. FALSE 7. A valid contract can legally be voided by either party. FALSE 8. Lucy and Rick sign a contract in which Lucy agrees to deliver 10 boxes of chocolates in exchange for Rick's promise to pay $5 per box. Lucy delivers the candy. Rick pays for the goods. This contract is fully executory. 9. All oral contracts are quasi-contracts until they are completely executed. 10. Mary goes into Honest Harry's Electronics and purchases a TV. Mary agrees to pay for the TV in 30 days on the store's "30 days same as cash" plan. This is an executory contract. 11. Valerie promises Teresa that she will pay Teresa $75 if Teresa will clean Valerie's house by noon on Saturday. If Teresa cleans the house by noon on Saturday and Valerie pays the $75, then this is an implied, bilateral, executory contract. FALSE 12. If the offer does not specify a type of acceptance, the offeree must accept within three day and must do so in writing. 13. When promissory estoppel is used by the courts, it is because there is NOT an enforceable contract present.
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14. Under a contract, Danielle is required to paint a room with paint chosen by the homeowners, the Flynns. After Danielle paints the room according to the contract requirements, her duties under the contract are discharged. TRUE 15. Alex promises to pay $100 to anyone who finds his lost watch. Kate finds and returns the watch to Alex after hearing of the reward money. Alex and Kate have an enforceable unilateral contract. TRUE 16. In seeking to determine whether there is a meeting of the minds, the courts look to how a reasonable person would objectively view the language or actions of the parties.
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