TJ_Comp 20_TB_Ch12

TJ_Comp 20_TB_Ch12 - Chapter 12NATURE AND CLASSES OF...

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Chapter 12—NATURE AND CLASSES OF CONTRACTS: CONTRACTING ON THE INTERNET TRUE/FALSE 1. Quasi contracts are contracts. ANS: F MSC: AACSB Analytic 2. A contract is essentially an agreement that creates an obligation. ANS: T MSC: AACSB Analytic 3. Because transfer of value is essential to a valid contract, contracts cannot apply to the performance of personal services. ANS: F MSC: AACSB Analytic 4. Every contract has only two parties. ANS: F MSC: AACSB Analytic 5. A promisor makes a promise to a promisee. ANS: T MSC: AACSB Analytic 6. Only the parties who signed the original contract can have rights with respect to that contract. ANS: F MSC: AACSB Analytic 7. A reward offered to the public for the return of lost property is not considered an offer. ANS: F MSC: AACSB Analytic 8. An offer may be made only to a specific person. ANS: F MSC: AACSB Analytic 9. An offerer makes an offer to an offeree. ANS: T MSC: AACSB Analytic 10. Negotiable instruments are examples of formal contracts. ANS: T MSC: AACSB Analytic 11. Contracts for amounts more than $1 million must be made under seal or they are not binding. ANS: F MSC: AACSB Analytic 12. A contract is described as a contract of record when the accountant of one of the parties has made an entry of the contract in the business record of that party.
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MSC: AACSB Analytic 13. A recognizance is an agreement by which one party admits or recognizes that a specified sum of money is owed to another party. ANS: F MSC: AACSB Analytic 14. An express contract is one in which the agreement is shown by acts and conduct of the parties. ANS: F MSC: AACSB Analytic 15. Implied-in-fact contracts and implied-in-law contracts are essentially the same. ANS: F MSC: AACSB Analytic 16. The effect of an implied contract is not the same as the effect of an express contract. ANS: F MSC: AACSB Analytic 17. A voidable contract is one that is otherwise valid but may be rejected or set aside by one of the parties. ANS: F MSC: AACSB Analytic 18. An agreement that contemplates the performance of an act prohibited by law usually is void. ANS: T MSC: AACSB Analytic 19. An executory contract has been entered into but not yet fully performed. ANS: T MSC: AACSB Analytic 20. An executed contract results from the complete performance by all parties of the contract. ANS: T MSC: AACSB Analytic 21. When a contract is fully performed by one party, it is called a unilateral contract. ANS: F MSC: AACSB Analytic 22. A bilateral contract is essentially an exchange of promises. ANS: T MSC: AACSB Analytic 23. A unilateral contract may be described as a promise for an act. ANS: T
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This note was uploaded on 02/22/2012 for the course BUS BUS212 taught by Professor Manney during the Spring '12 term at FSU.

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TJ_Comp 20_TB_Ch12 - Chapter 12NATURE AND CLASSES OF...

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