Chapter 9Formation of Traditional and E-Contracts TRUE/FALSE QUESTIONS 1. Contract law does not distinguish between promises that create only moral obligations and promises that are legally binding. False. 2. In contract law, intent is determined by the personal or subjective intent, or belief, of a party. False, intent is determined by the objective theory of contracts 3. A bilateral contract comes into existence at the moment promises are exchanged. True, “promise for a promise” 4. If a voidable contract is avoided, the promisee, but not the promisor, is released from it. False, both parties are released from it 5. A request or invitation to negotiate is an offer. False, an offer is a promise to do or refrain from doing something 6. An acceptance can impose new conditions or change the terms of the original offer without rejecting it. False, the acceptance creates a legally binding contract 7. An e-contract must meet basic requirements that are different from those required of a paper contract. False, same requirements 8. An important rule to keep in mind is that the offeree (the buyer) controls the acceptance and thus the resulting contract. False, the offeror (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 11. The element of bargained-for exchange distinguishes contracts from gifts. a duration and termination provision. an offer and an acceptance. A contract that prohibits its assignment cannot be assigned. In certain circumstances. Levi promises to do the chores. voidable at the option of that minor 14. Every state has a statute that stipulates what types of contracts must be in writing. A promise to do what one already has a legal duty to does not constitute legally sufficient consideration. A person who has been determined by a court to be mentally competent cannot form a legally binding contract with another party. The writing requirement under the Statute of Frauds means that an agreement must be a formal written contract. they can but they need a guardian appointed by court to them 15. False. True 13. True 17. c. A contract entered into by an intoxicated person is never valid. makes an offer to Delores to enter into a contract 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. b. True 18. it can be either voidable or valid 16. True MULTIPLE-CHOICE QUESTIONS 1. Delores accepts the offer. d. Intended beneficiaries can sue to enforce a contract. bargains are so oppressive that the courts relieve innocent parties of part or all of their duties. it denies enforceability to certain contracts that do not comply with its writing requirements 19.. Inc. a price and a subject. 2. False. A contract entered into by a minor is voidable at the option of either of the contracting parties. A valid contract requires a. True 20. Cellphones & Calltime. False. Jonah and Levi have formed a . False. Jonah tells Levi he will give him an Xbox if Levi does Jonah’s chores for a month. True 12. specific quality standards. These parties have a. d. a detailed history of his business. no contract. d. c. a unilateral contract. before Thomas accepts the offer. within reason. d. c. whether or not Thomas has accepted the offer. a Web site through which he will enter into contracts over the Internet. b.a. an online music vendor. d. Signe offers to sell Thomas her textbook but conditions the sale on Thomas accepting the offer by March 1. c. Signe may revoke the offer a. who owns and manages the Deer Creek Apartments complex. no contract. requires no special form.. only after March 1. enters into an informal contract with Quality Janitorial Company for custodial services for Office Park’s buildings. 6. Office Park. a bilateral contract. is not yet completely formed. his educational background. Following negotiations. This means that the parties’ contract a.com. 5. b. 4. c. is subject to change by either party. Bilbo signs a lease agreement for an apartment with Cato. d. only after Thomas accepts the offer. (Formed by words) an implied contract. c. provisions specifying the remedies if the contract is breached. Inc.” This provision is . Deb must review a provision stating that she will not make and sell copies of the song and is required to click “I agree. 3. Important terms to include in his offers include a. Before completing the purchase and downloading the song. is freely open to either party’s interpretation. (Promise for promise) a formal contract. Mark is creating Nu2U. glowing reviews from former customers. before March 1. b. b. a unilateral contract. an express contract. Deb buys a song through eSongs. b. 7. Dex completes the installation. b. a preliminary negotiation. d. Chicken & Egg Farms promises to pay Dex $500 to install a sump pump in its warehouse. Henry’s consideration is a. 8. is not sufficient consideration because it is not goods or money. b. agrees to build a warehouse for Hawthorne Wholesale Distributors. d. Esmeralda promises to pay Fiorello $400 because “he does not have as much money as other people. if Isis. 12. c. a browse-wrap term. When Genovese runs into the types of difficulties that . d. Carmela’s typed name qualifies as a. a forbearance. a click-on agreement. the destruction of a legal relationship. is the consideration that creates Chicken & Egg’s obligation to pay Dex. Fiorello has not given consideration in return. b. c.M. Under the UETA. a “signature..” a statement of future intent.a.M. c.” Esmeralda’s promise is not enforceable because a. c. the creation of a legal relationship. c. imposes a moral obligation on Chicken & Egg to pay Dex. a shrink-wrap agreement. an exchange of money. none of the choices. 10. Carmela types her name at the bottom of an e-mail purchase order and submits the order to Designer Parts Company. promises to close by 4:00 P. an assignment. imposes no obligation on Chicken & Egg unless it is satisfied with the job. who owns Isis’s Danish & Donuts next door. d. Inc. d. Esmeralda could have paid more. 9. society does not want gifts cheapened by making them legally enforceable. 11. On behalf of Bobble Head Manufacturing Company. Genovese Contracting. b. the redistribution of wealth on a one-to-one basis is not a valid social goal. b. The act of installing the pump a. Henry promises not to open his Hank’s Lunchbox Café before 10:00 A. Such a contract is normally . a court would likely a. eighteen. enforce it. seventeen. b. In most states. the court will likely a. Inc. twenty-one. c. d. reform its terms to prevent any undue burden. b. Jolie. c. order the parties to renegotiate it. not enforce it. Keaton. Sonya and Taylor enter into an oral contract that is required to be in writing to be enforceable. b. 16. Odina signs a covenant not to compete with her employer. Regarding the agreement to pay more. 15. d. 13. Depending on the jurisdiction. Stella would be considered a minor until she is a. unenforceable because Cricket was intoxicated. enforceable. no one. enforce it but evaluate its effects over time. d. unenforceable if Cricket disaffirms it.contractors ordinarily confront. This contract is a. b. an unlicensed physician. sixteen. Intoxicated but still capable of comprehending the consequences of her actions. d. unenforceable if Downloads disaffirms it. Stella is fifteen. Cricket signs a contract to sell her phone app design to Downloads. d. enforce it as written so as not to undercut the freedom of contract. Penultimate Sales Corporation. b. 14. Jolie’s medical insurance company. Jolie signs a contract with Keaton. rescind it. A court decides that the covenant is overly restrictive. This contract is enforceable by a. for contractual purposes. c. Hawthorne agrees to pay extra compensation to overcome them. c. 17. refuse to enforce it unless Penultimate pays a fine to the court. to perform a medical procedure. c. Max is a. App Developers. b. unchanged. . Uri later transfers his duty under the contract to Wren. advertising banners. 20. c. incidental. b. 18. valid. (ADI). an incidental beneficiary. c. In a separate deal. To fulfill the contract. c. and other marketing materials to Victor. voidable by a party who does not wish to follow through with it. Uri is a. d. void. extinguished. b. a delegate. enters into a contract with Carmen. an assignee. Kasey owes Illya $1. d. With respect to the contract between ADI and Carmen. b. the chief executive officer of SalesCorp. Illya’s right to the $1.000.000 is then a. c.a. none of the choices. Illya unconditionally assigns his rights in the deal with Kasey to Jenny. to create an app for the firm. voidable but only by consent of both parties. d. Illya owes Jenny $1. an intended beneficiary.000. a delegate. Inc. 19. d. an assignor. assigned to a court. a delegator. Uri and Victor enter into a contract by which Uri promises to deliver business cards. ADI hires Max and ten other student interns.