BLAW exam 2 Questions and Answers
T/F A breach of contract law suit is a civil action and not a criminal action.
True (civil law includes torts and contracts)
T/F A contract must involve two or more parties.
True
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T/F A breach of contract law suit is a civil action and not a criminal action. - answer
True (civil law includes torts and contracts)
T/F A contract must involve two or more parties. - answer True
T/F The components of a contract include consideration AND fairness. - answer
False - Fairness is NOT part of the contractual components / requirements.
T/F If O'Brien promises to give a car to his son on his son's birthday, then that promise
is an enforceable contractual commitment. - answer False - A promise to make a gift
is not accompanied by consideration and is thus not enforceable
T/F Contracts must be in writing to be enforceable. - answer False - An oral contract
may be enforceable unless the Statute of Frauds requires a writing.
T/F O'Brien promises Donald that he will pay Donald $500 if Donald paints O'Brien's
garage. This is an example of a unilateral contract. - answer True - a promise for an
action is a unilateral contract, while a promise for a promise is a bi-lateral contract.
T/F O'Brien promises to pay Claire $350 for her bicycle. Claire delivers her bicycle and
O'Brien pays Claire $350. This is an executory contract. - answer False - Executory
means that the contract has not been fully performed. Here the contract is fully
performed and is thus called an 'executed' contract.
T/F Agreement can be accomplished by an action rather than a statement that the
offeree accepts. - answer True - an offeree can accept by stating that she accepts,
but . . . . she can also accept by an action.
T/F Consideration may include forbearance. - answer True - As we saw in Hammer
v. Sidway, consideration can include forbearance.
T/F Consideration does NOT have to be fair. - answer TRUE
T/F An offeree can terminate an offer by revocation. - answer False - To terminate
an offer, an offeree rejects, an offeror revokes.
Tom offers to sell his business to Brady for $5.5 million. Brady responds 'no that is too
much, but I will pay $5.2 million. Brady's response . . . - answer is a counteroffer
, If a student offered to pay O'Brien $50 to arrive at class on time and O'Brien accepted
and then showed up on time. . . . - answer the student would not have to pay O'Brien
because of O'Brien's pre-existing duty to do his job.
T/F A contract made by a minor is void. - answer False - A minor that enters into a
contract creates a voidable contract, not a void agreement. This means that the minor
my typically disaffirm the contract and recover her consideration (payment).
T/F A party who is intoxicated may, nevertheless, agree to perform a contract formed
during the state of intoxication. - answer True - a party who is intoxicated can
disaffirm OR ratify and if she ratifies then she performs the underlying agreement.
T/F Contracts to perform services where the worker is to be paid more than $500 are
governed by the statute of frauds. - answer False - Service contracts are not
required to be in writing because they exceed $500; that is the rule for the sale of
goods.
T/F Undue influence requires that one party is a minor and then that party may disaffirm
the underlying contract. - answer False - undue influence requires that one party has
the ability to influence and control the other party due to a close or confidential
relationship.
T/F A unilateral mistake will permit the mistaken party to disaffirm if the other party knew
or should have known of the mistake. - answer True - the general rule is that with a
unilateral mistake the parties have to perform. However, the exception is if the non-
mistaken party knew or should have known of the other party's error.
T/F Carol enters into a 3 year employment contract with her employer. Carol works for
the entire 3 years and is paid her full salary. This contract must have been in writing. -
answer False - the contract could have been oral and if it was the court would not
enforce it because of the statute of frauds. However, if it was oral, the parties could still
have performed the contract if they chose to do so.
T/F The main purpose doctrine (rule) is an exception to the ability of a minor to
disaffirm. - answer False - it is an exception to the Statute of Frauds.
elements of a contract - answer agreement, consideration, capacity, legality
bilateral contract - answer promise for a promise
unilateral contract - answer promise for an act
unilateral contract is - answer irrevocable (offer cannot be revoked once action has
started)
quasi contracts - answer fictional contracts imposed for fairness and justic
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