Chapter 12 Correct Assignment Answers

Chapter 12 Correct Assignment Answers - 6. A contract to...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
6. A contract to build a house is binding without a seal. Generally speaking, a seal is never necessary to make a binding contract. If there is a seal, its presence may have some effect in certain situations. For example, in many states the sealed contract is not subject to the ordinary contract statute of limitations. Thus, an unsealed contract could be barred by the statute of limitations, while a sealed contract would not. Nevertheless, if the statute of limitations had not run, the unsealed contract would have been just as binding as the sealed contract. Now and then, statutes will specify that a particular instrument be signed and sealed. Such a statute makes an exception to the above general rule. It may also be noted that even at common law, the seal was not an essential element of a contract. That is, the common law permitted an oral offer and acceptance to give rise to a contract. If there was a writing, some action was necessary to authenticate the writing. In the common law era of illiteracy, in which few persons could sign their names, the best way of
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/29/2012 for the course BUSINESS 101 taught by Professor Monastersky during the Spring '10 term at Bergen Community College.

Ask a homework question - tutors are online