MHR 461 - Exam 2 With Complete Solutions
true - ANSWER The Restatement of Contracts is an authoritative source that presents
and summarizes the common law of contracts.
False - ANSWER Freedom of contract means businesses may enter into any contracts
they wish to.
True - ANSWER The Uniform Commercial Code has significantly influenced the
operation of commercial contract law.
False - ANSWER Contract law enforces duties imposed on citizens by the government.
False - ANSWER Express contracts must be in writing to be valid.
True - ANSWER An implied contract is based on promises inferred from the behavior or
circumstances of the parties involved.
True - ANSWER The basic elements of a contract are: offer, acceptance, consideration,
lawful subject matter, and genuine consent.
True - ANSWER An effective offer requires a clear manifestation of intent, definite terms
and conditions, and communication of the offer.
True - ANSWER An offer is made by an offeror.
False - ANSWER Preliminary negotiations are generally considered to create as binding
offers.
,False - ANSWER "I want $10,000 for my car," says Sam. "I would love to have it," says
Jan. We have an offer that has been accepted to form a contract.
False - ANSWER If a printed advertisement states the price of a good offered for sale,
the seller must sell to any customer who wants the good at that price.
False - ANSWER Termination of an offer can only occur through the operation of law.
False - ANSWER If no time is specified in an offer, the law presumes the offer exists for
one year before it is terminated by lapse of time.
True - ANSWER "I will pay you $100 to not sell your $500,000 house to anyone else for
the next month so I can see if I can get the money together to buy it," you say. "Ok," says
the home owner. The $100 payment is a valid contract.
False - ANSWER Option contracts are binding promises to keep an offer to sell a good
open to the public for a certain length of time.
true - ANSWER Offers may be terminated by the destruction of the subject matter of the
contract.
true - ANSWER If the offeree accepts an offer through performance requested,
unilateral contract is formed.
true - ANSWER Two promises or an exchange of promises are involved in bilateral
contracts.
true - ANSWER Most contracts are bilateral.
True - ANSWER Acceptance of an offer must be unconditional, unequivocal, and legally
, communicated to be effective.
True - ANSWER The general rule in contract law is that an acceptance of an offer must
be its "mirror image."
True - ANSWER The acceptance of an offer to form a contract may be communicated in
any "reasonable" way and be effective, in most instances.
false - ANSWER Usually, acceptance of an offer is legally effective when the acceptance
is received.
true - ANSWER If an acceptance is mailed before a revocation of an offer is received,
the acceptance is effective.
true - ANSWER A legal detriment may be good consideration for a contract.
false - ANSWER Consideration involves the right of individuals to be considered to be
able to enter into contracts legally.
false - ANSWER In Caley v. Gulfstream Aerospace the court held that when employees
were told a new dispute resolution policy would be imposed on them if they kept
working that there was no consideration, so no contract.
false - ANSWER Promissory estoppel applies when, to avoid injustice, a court refuses to
enforce a grossly unfair promise.
true - ANSWER When the courts use the doctrine of promissory estoppel (detrimental
reliance), it means that despite the lack of the elements of a contract, the court may
require payment to be made as if a contract had existed.
False - ANSWER In Hinson v. N&W Construction Co., where N&W relied on a plumbing
true - ANSWER The Restatement of Contracts is an authoritative source that presents
and summarizes the common law of contracts.
False - ANSWER Freedom of contract means businesses may enter into any contracts
they wish to.
True - ANSWER The Uniform Commercial Code has significantly influenced the
operation of commercial contract law.
False - ANSWER Contract law enforces duties imposed on citizens by the government.
False - ANSWER Express contracts must be in writing to be valid.
True - ANSWER An implied contract is based on promises inferred from the behavior or
circumstances of the parties involved.
True - ANSWER The basic elements of a contract are: offer, acceptance, consideration,
lawful subject matter, and genuine consent.
True - ANSWER An effective offer requires a clear manifestation of intent, definite terms
and conditions, and communication of the offer.
True - ANSWER An offer is made by an offeror.
False - ANSWER Preliminary negotiations are generally considered to create as binding
offers.
,False - ANSWER "I want $10,000 for my car," says Sam. "I would love to have it," says
Jan. We have an offer that has been accepted to form a contract.
False - ANSWER If a printed advertisement states the price of a good offered for sale,
the seller must sell to any customer who wants the good at that price.
False - ANSWER Termination of an offer can only occur through the operation of law.
False - ANSWER If no time is specified in an offer, the law presumes the offer exists for
one year before it is terminated by lapse of time.
True - ANSWER "I will pay you $100 to not sell your $500,000 house to anyone else for
the next month so I can see if I can get the money together to buy it," you say. "Ok," says
the home owner. The $100 payment is a valid contract.
False - ANSWER Option contracts are binding promises to keep an offer to sell a good
open to the public for a certain length of time.
true - ANSWER Offers may be terminated by the destruction of the subject matter of the
contract.
true - ANSWER If the offeree accepts an offer through performance requested,
unilateral contract is formed.
true - ANSWER Two promises or an exchange of promises are involved in bilateral
contracts.
true - ANSWER Most contracts are bilateral.
True - ANSWER Acceptance of an offer must be unconditional, unequivocal, and legally
, communicated to be effective.
True - ANSWER The general rule in contract law is that an acceptance of an offer must
be its "mirror image."
True - ANSWER The acceptance of an offer to form a contract may be communicated in
any "reasonable" way and be effective, in most instances.
false - ANSWER Usually, acceptance of an offer is legally effective when the acceptance
is received.
true - ANSWER If an acceptance is mailed before a revocation of an offer is received,
the acceptance is effective.
true - ANSWER A legal detriment may be good consideration for a contract.
false - ANSWER Consideration involves the right of individuals to be considered to be
able to enter into contracts legally.
false - ANSWER In Caley v. Gulfstream Aerospace the court held that when employees
were told a new dispute resolution policy would be imposed on them if they kept
working that there was no consideration, so no contract.
false - ANSWER Promissory estoppel applies when, to avoid injustice, a court refuses to
enforce a grossly unfair promise.
true - ANSWER When the courts use the doctrine of promissory estoppel (detrimental
reliance), it means that despite the lack of the elements of a contract, the court may
require payment to be made as if a contract had existed.
False - ANSWER In Hinson v. N&W Construction Co., where N&W relied on a plumbing
