False, the offer (the seller) controls the offer 9. In contract law, the term consideration refers to the serious thought that underlies a party s intent to enter into a contract. False, consideration is the value (cash) given in return for a promise (bilateral) or performance (unilateral) 10. To be legally sufficient, consideration must be evidenced by something tangible. False, something of legally sufficient value 1 1 . The element of bargained-for exchange distinguishes contracts from gifts. True 12.
A promise to do what one already has a legal duty to does not constitute equally sufficient consideration. True 13. A contract entered into by a minor is avoidable at the option of either of the contracting parties. False, avoidable at the option of that minor 14. A person who has been determined by a court to be mentally competent cannot form a legally binding contract with another party. False, they can but they need a guardian appointed by court to them 1 5. A contract entered into by an intoxicated person is never valid. F-else, it can be either avoidable or valid 16. N certain circumstances, bargains are so oppressive that the courts relieve innocent parties of part or all of their duties. True 17. Every state has a statute that stipulates what types of contracts must be in writing. True 18. The writing requirement under the Statute of Frauds means that an agreement must be a formal written contract. False, it denies enforceability to certain contracts that do not comply with its writing requirements 19. A contract that prohibits its assignment cannot be assigned. True 20. Intended beneficiaries can sue to enforce a contract.
True multiple-choice questions 1. Cellophanes & Cellmate, Inc. , makes an offer to Dolores to enter into a interact to work as a salesperson for a certain base salary plus commission for ninety days subject to a one-year renewal based on her performance. Dolores accepts the offer. A valid contract requires a. B. A price and a subject. A duration and termination provision. An offer and an acceptance. D. Specific quality standards. 2. Joana tells Levi he will give him an Oxbow if Levi does Jonahs chores for a month. Levi promises to do the chores. Joana and Levi have formed a A. Bilateral contract. (Promise for promise) b. A formal contract. C. A unilateral contract d. No contract. 3. Following negotiations, Office Park, Inc. , enters into an informal contract with Quality Janitorial Company for custodial set-vices for Office Park's buildings. This means that the parties' contract requires no special form. Is freely open to either party's interpretation. C. Is subject to change by either party, within reason. D. Is not yet completely formed. 4. Bilbo signs a lease agreement for an apartment with ACTA, who owns and manages the Deer Creek Apartments complex.