The Uniform Commercial Code governs all contracts involving business. T/F
False
To determine whether a contract has been formed, a court is more interested in hearing about the objective facts surrounding the formation of the contract, rather than hearing what the parties claim they intended when they had entered a contract. T/F
True
Common law is law made through court decisions rather than by a legislature. T/F
True
Which of the following is/are requirements of a valid contract?
E) All of the above
Every contract involves at least two parties
True
Bob offers to buy Linda's used Finance textbook for $30.00 and says that he will pay her on Friday when he gets his paycheck. Linda says that she accepts his offer of $30 and says that she will bring the textbook over to Bob's apt. Friday evening & pick up the payment. Bob & Linda have entered what kind of contract?
A) A bilateral contract
Bob & Linda's book buying ex. illustrate an "executory" contract rather than an "executed" contract. T/F
True
In an implied contract, the terms are fully and explicitly stated in words. T/F
False
Which of the following sentences in correct:
a) The corporation failed to pay it's annual registration fee.
b) The corporation failed to pay its annual registration fee.
b) The corporation failed to pay its annual registration fee
In his TED talk, Mark Cutts encourages everyone to try something new for:
B) 30 days
If a contract is ambiguous, a court can consider extrinsic evidence. T/F
True
A contract is ambiguous if the parties to the contract disagree about what the contract means. T/F
False
The doctrine of quasi contract generally can only be used when there is not an actual contract that covers the matter in controversy. T/F
True
The term "consideration" refers to the legality of the subject matter of the contract. T/F
False
Dan & Debra negotiate a deal where Dan will steal property from his employer & Debra will sell the property on Ebay and split the proceeds with him. The contract is:
A) void
"Quantum meruit" is often used as a remedy by a court to avoid unjust enrichment to a party of an implied contract T/F
True
Mike is 16 years old, a minor in IL, and enters a contract to purchase his neighbor Stan's car for $1,000. Which of the following applies to this contract?
A) Mike can enforce the contract against Stan if Stan refuses to sell the car
One rule of contract interpretation says that ambiguous terms in a contract should be construed against the party who drafted the contract. T/F
True
Which of the following is given the most weight by a court that is interpreting a contract?
B) course of performance of the contract at issue
If the parties to a contract cross out a word on a preprinted form & write in a new word of their own choosing, the court will ignore that handwritten word bc handwritten terms are given less weight than preprinted terms T/F
False
An advertisement is generally considered an offer T/F
False
In an auction, a bidder is an offeree T?F
False - offeror
Which of the following is/are generally required of an offer?
E) all of the above
Stan offers to sell Tim his textbook but conditions the sale on Tim accepting the offer by March 1. Stan may revoke the offer -
A) Any time before Tim accepts the offer
Stan offers to sell Tim his book, but conditions the sale on Tim accepting the offer by 3/1. If a law is passed forbidding the sale of textbooks before Tim accepts Stan's offer, the offer is terminated and Tim cannot accept it. T/F
True
Stan offers to sell Tim his book, but conditions the sale on Tim accepting the offer by 3/1. If the textbook is destroyed in an apartment fire before Tim accepts Stan's offer, the offer is terminated and Tim cannot accept it. T/F
True
Ordinarily, an offer may be rejected by words or conduct evidencing the offeree's intent not to accept the offer. T/F
True
If no time period is stated in the terms of the offer, then the offer will terminate after a "reasonable" period of time. T/F
True
A counteroffer is considered a rejection of the original offer. T/F
True
Which of the following sentences is correct?
A) They're having a great time in school this year
Bob offers to sell Amanda his 1999 Chevy truck for $1,000 with payment due by Friday. Amanda responds that she will buy the truck but will only be able to pay $500 on Friday and can pay the remaining $500 a week later. According to the "mirror image" rule, which of the following is true:
a) B & A have a contract bc Amanda agreed to Bob's price
b) Bob and Amanda have a contract bc a one week delay in payment is not a material change to the terms
