Ch07-TB-BLTE-8e

Ch07-TB-BLTE-8e - Chapter7 Contracts:Nature,Classification,

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Chapter 7 Contracts: Nature, Classification, Agreement, and Consideration TRUE/FALSE QUESTIONS 1. A promise is an assertion that one will or will not do something in the  future. ANSWER: T PAGE: 202 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Critical  Thinking 2. A contract is formed when two parties promise to perform a future act. ANSWER: T PAGE: 203 TYPE: = MISC: AACSB Analytic Skill Level: AICPA Legal 3. Parties with contractual capacity may form an enforceable contract. ANSWER: T PAGE: 203 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 4. Three elements—agreement, consideration, and contractual capacity—are  sufficient to form a binding contract. 97
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98 TEST BANK TO ACCOMPANY BUSINESS LAW TODAY: THE ESSENTIALS ANSWER: F PAGE: 203 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 5. An offeror is a person who makes an offer. ANSWER: T PAGE: 205 TYPE: + MISC: AACSB Analytic Skill Level: AICPA Legal 6. An offer to form a  unilateral  contract is accepted by a promise to perform. ANSWER: F PAGE: 205 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal
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CHAPTER 7: NATURE, CLASSIFICATION, AGREEMENT, AND CONSIDERATION 99 7. A unilateral contract is formed when the one receiving the offer completes  the requested act or performance. ANSWER: T PAGE: 205 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 8. An offer may  not  be revoked before it is accepted. ANSWER: F PAGE: 206 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 9. Informal contracts are usually based on substance rather than form. ANSWER: T PAGE: 207 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Critical  Thinking 10. A contract under seal is a formal contract. ANSWER: T PAGE: 207 TYPE: N MISC: AACSB Reflective Skill Level: AICPA Legal 11. Parties can form a contract without putting the terms in writing. ANSWER: T PAGE: 207 TYPE: + MISC: AACSB Reflective Skill Level: AICPA Legal 12. An executory contract is one that has been fully performed. ANSWER: F PAGE: 208 TYPE: + MISC: AACSB Analytic Skill Level: AICPA Legal 13. To be valid, a contract must be enforceable by all of the parties to it. ANSWER: F PAGE: 209 TYPE: N
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TEST BANK TO ACCOMPANY BUSINESS LAW TODAY: THE ESSENTIALS MISC: AACSB Analytic Skill Level: AICPA Legal 14. A party who confers a benefit on someone else unnecessarily can recover  the cost under the principle of quasi contract. ANSWER: F PAGE: 210 TYPE: N MISC: AACSB Reflective Skill Level: AICPA Legal 15. A contract cannot be void if its purpose it legal. ANSWER:
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This note was uploaded on 11/03/2009 for the course ARE 18 taught by Professor Maxey during the Spring '08 term at UC Davis.

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Ch07-TB-BLTE-8e - Chapter7 Contracts:Nature,Classification,

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