BLAW exam 2
T/F A breach of contract law suit is a civil action and not a criminal action. - correct answer ✔✔True (civil
law includes torts and contracts)
T/F A contract must involve two or more parties. - correct answer ✔✔True
T/F The components of a contract include consideration AND fairness. - correct 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. - correct 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. - correct 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. - correct 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. - correct 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. -
correct 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. - correct answer ✔✔True - As we saw in Hammer v. Sidway,
consideration can include forbearance.
, T/F Consideration does NOT have to be fair. - correct answer ✔✔TRUE
T/F An offeree can terminate an offer by revocation. - correct 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 . . . - correct 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. . . . - correct 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. - correct 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. - correct 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. - correct 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. - correct 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. - correct 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 A breach of contract law suit is a civil action and not a criminal action. - correct answer ✔✔True (civil
law includes torts and contracts)
T/F A contract must involve two or more parties. - correct answer ✔✔True
T/F The components of a contract include consideration AND fairness. - correct 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. - correct 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. - correct 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. - correct 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. - correct 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. -
correct 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. - correct answer ✔✔True - As we saw in Hammer v. Sidway,
consideration can include forbearance.
, T/F Consideration does NOT have to be fair. - correct answer ✔✔TRUE
T/F An offeree can terminate an offer by revocation. - correct 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 . . . - correct 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. . . . - correct 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. - correct 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. - correct 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. - correct 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. - correct 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. - correct 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.
