is it True (T) or False (F)?

1. All agreements are contracts, but not all contracts are agreements. T F

2. All contracts are agreements and all agreements are contracts. T F

3. Written contracts must be handwritten in pen or computer generated in order

to be enforceable. T F

4. To be legally enforceable all contracts must be in writing. T F

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5. For an offer to be valid, it must only be definite and certain, communicated directly to the offeree. T F

6. Silence on the part of an offeree to an offer received from an offeror is usually never considered acceptance unless both parties have agreed beforehand that this is to be the means of acceptance. T F

7. A conditional or qualified response to an offer is not considered an acceptance but is interpreted by law as an immediate rejection of the original offer and it becomes a counter-offer. T F

8. The "mirror-image" rule of contract law states that the terms of an acceptance of an offer must be in the same terms as the offer, and that if there are any differences between the offer and the "acceptance"/response, then the "acceptance"/response is a considered an immediate rejection of the initial offer, thereby becoming a counter-offer. T F

9. Revocation of an offer is the calling back/withdrawing of the offer by the offeror and can be done at any time even if the offer is accepted by the offeree. T F

10. A bilateral contract is one which has a promise for a promise between the parties. T F

11. The problem with unilateral contracts is that they are not considered accepted until the performance or substantial performance requested in return to the promise is rendered which essentially leaves the offeree in a potential tenuous position of having the offeror be able to back out of the transaction without any legal liability to the offeree. T F

12. The law favors bilateral contracts and, therefore, a contract is considered created when the offeree done the required performance or made substantial performance. T F

13. For a contract to be canceled because of a mistake, the mistake may be either mutual or it can be unilateral if the unilateral mistake is made in good faith. T F

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14. When threats are used by someone who does not have a special legal relationship of trust or a confidential relationship to another person to force someone to enter into a contract, the agreement or contract is considered entered into because of undue influence. T F

15. A contract of adhesion is characterized by its shocking unfairness or is shockingly unjust. T F

16. When it comes to the consideration of a contract, the courts (as has been the traditional approach) do not look into the adequacy or sufficiency of the consideration supporting the transaction if there are not circumstances of fraud, duress, undue influence, mistake, etc. T F

17. An example of a contract that lacks consideration but is still enforced by the courts because they are considered socially beneficial are pledges or subscriptions (which are promises to donate money). T F

18. A gratuitous promise is a gift and is enforceable in a court of law because they are considered to have moral consideration even though someone makes a promise without requiring some benefit in return. T F

19. A contract with a minor can be ratified/approved by the minor from the time up to the minor becomes an adult ( age, 18 in most states) or a reasonable time after the minor has reached the age of majority (age, 18). T F

20. Upon reaching the age of majority (age 18 for contract law), contract law provides that a minor must ratify an earlier contract entered into while a minor - in writing and no later than 6 months after reaching the age of majority. T F

21. Normal mentality for purposes of determining competency or the capacity to contract under contract law means that both and all parties to a contract must have a sufficient understanding that they are getting themselves into the seriousness of a contract. T F

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22. The law allows minors to cancel contracts they get into with the exception of contracts for necessaries, i.e. food, clothing, medical care, lodging provided to the minor by an adult. T F

23. An agreement that can be completed within six (6) months must be in writing in order to be enforced pursuant to the Statute of Frauds. T F

24. An agreement for the sale of personal property for $ 501.00 must be in writing in order to be enforced in court according to the Statute of Frauds. T F

25. The Statute of Frauds only applies to those contracts listed in the statute and only if those contracts are yet to be performed, meaning they are not fully completed, but are executory.

T F

26. The transfer of a right to a contract is known as a delegation. T F

27. The legal significance of being a third-party intended beneficiary to a contract made by two other people, is that this type of beneficiary gets legal rights to the contract which he or she can enforce. T F

28. A third party who benefits incidentally from a contract has a right to the benefits if the benefits exceed $1,000.00. T F

29. The personal services or duties owed in a contract by artists, musicians, singers and athletes can be delegated and almost always are transferred. T F

30. The legal distinction between a contract of adhesion and an unconscionable contract is that the law enforces contracts of adhesion despite unequal bargaining power between the parties. T F

31. John offers to buy Ann's Smartphone for $200.00 and promises her that he will give her the cash for the phone on the following Friday when he gets paid. Ann accepts John's offer and promises to give him the phone when he pays her on Friday. A unilateral contract has been created between them.

T F

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32. Dina tells Ed that she will pay him $1,000.00 to set fire to her store so she can collect under the fire insurance policy she has covering the store. Ed sets fire to the store. When he goes to collect the $1,000.00 from Dina, she refuses to pay him. Ed cannot sue Dina for the promised $1,000.00 there is no contract between them as it does not meet one of the essential elements needed to be a contract which is: legal/lawful purpose.

T F

33. Jamieson lost an expensive pedigreed dog while at the park. He placed an advertisement in the Daily Journal, offering a $200.00 reward for the dog's safe return. This offer is Not valid, because the offer is not specifying to whom the offeree is and, therefore, is reaching persons of unknown identity which makes the offer not definite or specific enough. T F

34. Jane rides to work with Bob in his just purchased new car. Bob purchased the car thirty days ago for $26,000.00. One very cold morning, the car would not start. Bob yells out in anger and frustration "I'll sell this car to anyone for $500.00. Jane immediately takes out her check book and writes Bob a check for $500.00 and hands it to him. Bob has made Jane a valid effective offer for Jane to accept because, under the circumstances, even though Bob was angry and frustrated, he was obviously serious about making such an offer. Otherwise, he should have stated that his language should not be taken seriously. T F

35. Fidelity Corporation offers to hire Ron to replace Monica, who has given Fidelity a month's notice of intent to quit. Fidelity gives Ron a week to decide whether to accept. Two days later, Monica decided not to quit and signs a two (2) year employment contract with Fidelity. The next day, Monica tells Ron of the new contract she signed with Fidelity. Ron immediately faxes to Fidelity a formal letter of acceptance of the offer of employment it made to him. Fidelity and Ron have a contract since Fidelity gave Ron a week to decide whether to accept the offer of employment made to him, it was implied that the offer would remain open for him until after the week expired and Fidelity did not send notice to Ron revoking (calling back the offer to Ron/withdrawing) the offer to Ron. T F

36. Stein promised to give his 19-year old nephew $3,000.00 on his 22^nd birthday. The nephew was most pleased to hear this from Stein and as a courtesy invited him to his graduation Hudson County Community College. This is an example of an invalid/unenforceable contract for it lacks consideration. A gratuitous promise does not require any legal benefit be received by the promisor and therefore is said not to support or be valid consideration for a contract. T F

37. What is the best definition of a contract is a voluntary agreement by two or more parties that to perform or refrain from performing some act in the now or in the future which is enforceable in a court of law in the event one of the parties does not comply with a provision of the contract. T F

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38. The four (4) main elements to a contract are: (1) agreement; (2) capacity to contract; (3) consideration; and (4) lawful purpose. These elements are called "essential" elements because they belong together and as long as there are a majority of the elements, then common law contract law provides that there is still a valid enforceable contract. T F

39. A revocation of an offer sent FedEx on April 1, 2022 and delivered to the offeree's residence or place of business on April 3, 2022. The offeree has not yet accepted the offer. The revocation of the offer becomes effective on April 1, 2017 in that in the majority of states, a revocation becomes effective when the offeror sends it to the offeree or the offeree's agent. T F

40. Robert says to his son, "In consideration of the fact that you are not as wealthy as your brothers, I will pay you $5,000.00 by Friday of next week." There consideration in this transaction especially since Robert used the word "consideration" is his statement and Robert's promise is enforceable as a "bargained-for-exchange" and since it is between a father and son, contract law does not look for the son to have to do anything to receive the $5,000.00 promised and does not need to give Robert something of legal value in return for the promise of $5,000.00. T F

41. Carol contracts orally to sell her vacant Seaside real property to Axel for $25,000.00. Later, Carol decides not to sell the property. There is not a valid contract that Axel can enforce in court and obtain the property upon paying for it because this is one of the transactions that the Statute of Frauds required to be in writing in order to be enforced in a court of law. T F

42.a. Bonna Petite, a clever and advanced 17 year old with an appetite for fancy food. She desired to eat at a fancy French Restaurant called "Tres Cher" the most elegant and fancy restaurant in town. She was not under or experiencing any life circumstances which would consider the lunch a "necessary of life" for Ms. Petite. One day, she dressed up and groomed herself to look like a 25 year old businesswoman. She was seated at the restaurant and ordered a very expensive lunch. At the end of the meal, she summoned the waiter over and said: "This has been an excellent lunch and it is therefore with great sadness that I must inform you that I am a minor. I must disaffirm my contract to purchase this lunch." She showed him a form of identification clearly showing she was only 17. The age of majority in her State is 18. The State contract law does not make any exceptions if a minor misrepresents herself as being older than a minor. Bonna's disaffirmance of the implied contract to pay for the lunch she ate is valid because minor may disaffirm/disapprove a contract at any time before turning the age of majority (18) or within a reasonable time after attaining the age of majority. T F

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42b. The UCC applies more flexible rules regarding contract for sales of goods than would apply under common law contract principles. T F

43. For a commercial transaction to be governed by the rules of the UCC, it must be for the sale of a service or real estate or an interest in real estate. T F

44. The UCC, like common law contract law, requires an acceptance to "mirror image" the language of the offer which makes the "mirror image rule" applicable in sale contracts. T F

45. Under the UCC, a "good" in a sales contract must be tangible and easily moveable such as a product manufactured or merchandise sold and tangible means that is has physical existence which means it can be seen and touched. T F

46. The UCC is so flexible and liberal in its rules as applies to contracts for sale of goods or leases contracts that it does not have a Stature of Frauds in it covering sales contracts or lease contracts. T F

47. If a contract has both goods and services in it, then it will not be considered under or governed by the UCC even if the predominant part of the contract is goods. T F