Chap006 - Chapter 006 : Introduction to Contracts Student:...

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Chapter 006 : Introduction to Contracts Student: ___________________________________________________________________________ 1. An enforceable contract can result from an agreement that imposes a legal obligation. BT: Knowledge PO: 2 True False 2. To be legally enforceable, a contract must contain any three of the five elements - offer and acceptance, mutual agreement, consideration, competent parties, and legality of purpose. BT: Knowledge PO: 4 True False 3. A contract may be extended and revised as needed to reflect the wishes of the parties. BT: Knowledge PO: 3 True False 4. A contract must show mutual agreement, which is also referred to as "a meeting of the minds." BT: Knowledge PO: 4 True False 5. A promise to give up something of value that a person has a legal right to keep or to agree to do something that he is not legally required to do is known as consideration. BT: Knowledge PO: 4 True False 6. Competent parties can be of any age as long as they understand the terms of a contract. BT: Knowledge PO: 4 True False
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7. The element of proper form requires that a contract for the sale of goods over $100 or less should be in writing. BT: Knowledge PO: 4 True False 8. A person who discusses the terms of a purchase with a salesperson, pays cash for it, and takes the item with him, is making an unenforceable written contract. BT: Comprehension PO: 5 True False 9. It is usually advisable to make a contract in oral when the transaction is important and involves a large amount of money. BT: Knowledge PO: 5 True False 10. A written contract can be a handwritten note. BT: Knowledge PO: 5 True False 11. The law requires a particular form and language to be used in all contracts. BT: Knowledge PO: 5 True False 12. A simple contract is defined as an informal contract made under seal. BT: Knowledge PO: 5 True False 13. A contract that is not formal, whether it is written, oral or implied, is also known as a sealed contract. BT: Knowledge PO: 5 True False
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14. It is not required for a formal contract to be written under a contract seal. BT: Knowledge PO: 5 True False 15. An entire or indivisible contract can contain only two parts, and each is required to be independent of the other. BT: Knowledge PO: 5 True False 16. A divisible contract is made up of two or more parts, each part being independent of the others. BT: Knowledge PO: 5 True False 17. An executory contract is one in which the terms of the agreement have not yet been fully performed. BT: Knowledge PO: 6 True False 18. An executed contract is one in which all terms of the agreement have been fully performed by both parties. BT: Knowledge PO: 6 True False 19. The Uniform Commercial Code (UCC) defines a contract under the provision: A. UCC 1-201(10). B. UCC 1-201(11).
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This note was uploaded on 09/25/2011 for the course GENB 4350 taught by Professor Louis during the Spring '11 term at Houston Baptist.

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Chap006 - Chapter 006 : Introduction to Contracts Student:...

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