Ch10-TB2-WBL-10e

Ch10-TB2-WBL-10e - Chapter10 NatureandTerminology

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Chapter 10 Nature and Terminology N.B.:   TYPE  indicates that a question is new, modified, or unchanged, as  follows. N A question  new  to this edition of the Test Bank. + A question  modified  from the previous edition of the Test Bank, = A question  included  in the previous edition of the Test Bank. TRUE/FALSE QUESTIONS 1. A promise is an assurance that one will or will not do something in the  future. ANSWER: T PAGE: 210 TYPE: = 2. A contract is formed when two parties promise to perform an act in the  future. ANSWER: T PAGE: 211 TYPE: + 3. Parties who have contractual capacity may form an enforceable contract. ANSWER: T PAGE: 211 TYPE: = 4. Three elements—agreement, consideration, and contractual capacity—are  sufficient to form a binding contract. ANSWER: F PAGE: 211 TYPE: = 95
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96 TEST BANK 2—UNIT THREE: CONTRACTS AND E-CONTRACTS 5. An offer to form a  unilateral  contract is accepted by a promise to perform. ANSWER: F PAGE: 212 TYPE: = 6. An offer to form a  bilateral  contract is accepted by a promise to perform. ANSWER: T PAGE: 212 TYPE: N 7. A  contract can be created only when a promise is given in exchange for  another promise. ANSWER: F PAGE: 212 TYPE: = 8. In an express contract, the terms are fully stated in words. ANSWER: T PAGE: 214 TYPE: = 9. A promisee is a person who makes a promise. ANSWER: F PAGE: 214 TYPE: = 10. A contract under seal is a formal contract. ANSWER: T PAGE: 214 TYPE N 11. An oral contract is an implied-in-fact contract. ANSWER: F PAGE: 215 TYPE: N 12. An executory contract is one that has been fully performed. ANSWER: F PAGE: 216 TYPE: N 13. To be valid, a contract must be enforceable by all of the parties to it. ANSWER: F PAGE: 216 TYPE: = 14. An unenforceable contract is one that cannot be enforced because of certain  legal defenses against it. ANSWER: T PAGE: 217 TYPE: =
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CHAPTER 10: NATURE AND TERMINOLOGY 97 15. A contract cannot be void if its purpose it legal. ANSWER: F PAGE: 217 TYPE: N 16. A contract is void if its purpose is illegal. ANSWER: T PAGE: 217 TYPE: = 17. A quasi contract arises from a mutual agreement between two or more  parties. ANSWER: F PAGE: 218 TYPE: N 18. A party who confers a benefit on someone else unnecessarily can recover  the cost under the principle of quasi contract. ANSWER: F PAGE: 218 TYPE: N 19. The existence of an express contract does  not  bar an action in quasi contract  concerning the same transaction. ANSWER: F PAGE: 218 TYPE: + 20. A contract’s general intent will usually be subordinated to specific clauses  contained within the contract. ANSWER:
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Ch10-TB2-WBL-10e - Chapter10 NatureandTerminology

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