LES 305 Exam 3 (Contracts)|49 Comprehensive Review Questions With Answers
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Course
LES 305
Institution
LES 305
"$500 reward for the return of my dog, Ebony," is an offer to enter a bilateral contract. - ️️False. This is an offer to enter into a unilateral contract.
Agreements signed by an employee before the employee begins to work that prevent him working for a competitor are also known as noncompete ...
"$500 reward for the return of my dog, Ebony," is an offer to enter a
bilateral contract. - ✔ ✔ False. This is an offer to enter into a
unilateral contract.
Agreements signed by an employee before the employee begins to work
that prevent him working for a competitor are also known as
noncompete agreements or covenants not to compete. Are they
enforceable?
a. No, because there is no consideration for them to be signed.
b. No, because they are a restraint of trade.
c. Yes, they are always enforceable no matter how restrictive they are.
d. Yes, but only if they are reasonable as to length of time and
geographic area. - ✔ ✔ d. Yes, but only if they are reasonable as to
length of time and geographic area.
An employment contract for 2 years must be in writing to satisfy the
Statute of Frauds. - ✔ ✔ True. Contracts that cannot be performed
within a year must be in writing.
An employment contract for 6 months scheduled to begin immediately
must be in writing to satisfy the Statute of Frauds. - ✔ ✔ False. It is
not required to be in writing.
,Applying the trade usage of the term "dozen", how many dinner rolls
would a restaurant receive if it orders 10 dozen dinner rolls from a
bakery
a. 120
b. 130
c. 125
d. None of the above - ✔ ✔ b. 130
[Courts enforce terms used as an industry custom. Note that a "baker's
dozen" is 13 and 10 x 13 = 130. This is the standard in the baking
industry.]
As the business manager of Fast Deliveries, your management team has
decided to expand the plant. You find 1,000 acres of farmland owned by
Ed's Equine Farm (EEF). You need time to check on whether the city will
change the zoning from agriculture to light industrial, and whether the
environmental tests of soil will be negative for hazardous wastes. Fast
Deliveries should sign which of the following with EEF?
a. An option contract.
b. A merchant's firm offer.
c. Promissory estoppel agreement.
d. All of the above. - ✔ ✔ a. An option contract.
, [Options under common law allow a person to pay for the privilege of
keeping an offer open. That offer cannot be revoked.]
Assuming that Fast Deliveries and EEF signed the agreement in the
question above, if EEF decided that it no longer wanted to sell the
property, then
a. As long as EEF returned any deposits, it does not have to sell the
property.
b. EEF is under no obligation whatsoever.
c. EEF has to wait until the offer period expires. - ✔ ✔ c. EEF has to
wait until the offer period expires.
[Options may not be revoked by the offeror.]
Contracts in which a party is mentally incompetent are always void. - ✔
✔ False. Usually, contracts with mentally incompetent people are
voidable. However, if the person is judged to be mentally incompetent,
then the contract is void.
Courts hold minors liable for the value of necessities such as food and
clothing. - ✔ ✔ True.
Courts may excuse the performance of unconscionable contracts. - ✔
✔ True.
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