Contract terms specifying that two businesses will only negotiate with each other on a business deal will always be void because these terms are illegal.

 True

 False

This law determines when a contract is formed:

		Substantive law
		Procedural law
		Quasi contract law
		Solid perpetual offer law

 

Quasi contractual liability can exist when there is an existing contract on the same issue.

 True

 False

Definite and certain terms can not exist in an oral contract.

 True

 False

As a general rule, a person will not be entitled to a reward if they undertake performance without knowledge of the reward.

 True

 False

 

A unilateral contract is a promise in exchange for a promise

 True

 False

Under what circumstances would a court disregard precedent?

		Only if the issue presented to the court involves a federal regulation
		Precedent is followed unless there is a change in facts or need for chang
		The principle of stare decisis prevents a precedent from being overturned

 

Global standard

Objective standard

Subjective standard

No standard is used

 

Tam signs a contract.  Tam’s physical appearance, previous comments, and overall outward manifestations of intent regarding the contract suggests that she is willingly signing the contract.  Tam, in her mind, actually signed the contract as a joke.  Using an objective standard to determine if Tam entered into the contract, which of the following is true?

		Tam has not entered into a binding contract
		The contract is voidable at the election of Tam
		Tam has entered into a binding contract

 

“A” mails an offer to B, who mails a rejection back to A. Later in the day, B changes their mind and mails an acceptance back to A then later mails a second rejection. Ultimately, B concludes by mailing a second acceptance to A after the three previous mailings. All of the responses of B are put into the mail system on the same day with no time stamps.  Given this scenario and according to theory-- which letter should “A” rely on?

		Which ever letter “A” receives and opens first
		“A” can choose after receiving and opening all of the letters
		None, sending multiple responses will always invalidate the offer

 

An agreement to sell “a small amount of corn” is too vague to be enforced

 True

 False

 

Larry (car owner) made an oral contract with Hubert (Autobody specialist) to restore a 1972 car.  The car was in very bad condition.  Rust covered the entire car.  Many mice were living in the car.  Hubert advised that he could not make the car “like new.”  In fact, Hubert told Larry that “if I was you, I would take the car to a garbage dump.”  Larry said, “Nonsense Hubert, you can do fantastic work.  I trust that you can do a good job.  I need a quality car to take to car shows.  I’m trusting you to produce the results on this.”  Hubert said “this is ridiculous, but I’ll do it.”

A month later, Hubert delivered the car to Larry.  Larry was horrified.  There were “waves” in the paint as a result of uneven surfaces on the body.  Larry brought suit against Hubert for breach of the oral contract.

Who should win?

		Larry
		Hubert
		Neither