True/False

1. Ida promises to pay Jon, her son, $15,000 if he obtains his degree at Kappa University, where he is currently in his second year. Jon graduates. True or False: A valid contract has been formed.

2. True or False: Articles of Partnership are required to officially form a partnership.

3. Max offers to sell his car to Scott for $3,000, and Max tells Scott that he will keep the offer open for 30 days, no matter what. Scott says that he will think about it, but he says, Max, if you want to get rid of that car today, Ill give you $2,000 for it. Max does not reply, but within the 30-day period Scott accepts the original offer, agreeing to pay $3,000 for the car. Max, however, has changed his mind and now tells Scott that he wants $4,000 for the car. True or False: A contract was formed when Scott accepted the $3,000 offer.

4. True or False: A corporation is a separate legal entity.

5. True or False: All mentally incapacitated persons are prohibited from entering into contracts.