Business law

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42 Questions - Developed by: - Developed on: - 6,528 taken

  • 1
    Consideration must have monetary value to have legal value
  • 2
    A promisees consideration must be another promise and cannot be in the form of an act
  • 3
    When a promisee agrees not to do something, he/she has a legal right to do in exchange for the promisors promise, it constitutes legal value

  • 4
    Freedom of contract includes the freedom to make bad bargains
  • 5
    Contracts made by a minor are void
  • 6
    If either party entering a contract lacks the capacity to contract, the contract is void/voidable

  • 7
    A mentally impaired person regains his mental capacity, he may ratify a contract he made while he was impaired
  • 8
    Duress does not require proof of physical harm
  • 9
    Undue influence renders a contract voidable and is a ground for rescission
  • 10
    One of the primary reasons for not enforcing illegal contracts is to deter people from entering into such agreements in the first place

  • 11
    Minors who successfully disaffirm a contract are not entitled to the return of any consideration they have given the adult party to the contract
  • 12
    If a person is adjudicated insane, his/her personal rep may ratify the contract
  • 13
    Minors are generally held liable on a quasi-contact basis for the reasonable value of necessaries furnished to them
  • 14
    Exculpatory clauses are generally enforceable if they do not involve a duty to the public
  • 15
    Many states treat intoxicated persons like people who lack mental capacity.
  • 16
    Unequal bargaining power alone is enough to justify the unenforceability of a contract

  • 17
    To satisfy the statute of frauds writing requirements, both parties signatures must appear in the writing
  • 18
    Minors cannot disaffirm there contracts after attaining majority
  • 19
    Statements of opinions serve as a basis for rescission
  • 20
    Agreements designed solely to restrict trade are legal

  • 21
    Certain formalities are required to create an assignment
  • 22
    For a contract to be illegal on the grounds of public policy a statute must define precisely what that policy is
  • 23
    If one of the parties drafted the contract ambiguities are resolved against that party in interpreting it
  • 24
    As a general rule assignments that do not involve personal relationships or increase the promissors burden are enforceable
  • 25
    Persons who are not originally parties to a contract may claim some interest in it as assignees or donee beneficiaries or creditor beneficiary
  • 26
    The victim of a fraud maybe able to recover punitive damages

  • 27
    In a guarantee contract the guarantors promise must be evidenced by a writing to be enforceable
  • 28
    Oral evidence may be introduced to fill the gaps in an incomplete contract
  • 29
    Under the E sign act digital signatures are given the same effect as written ink on paper
  • 30
    If time is not of the essence of a contract, the promisee must accept late performance rendered within a reasonable time of when performance was due

  • 31
    A promisor who is guilty of material breach has no right of action under the contract
  • 32
    When entering into a contract, parties are expected to exercise reasonable judgement.
  • 33
    Normally both parties to a contract are discharged when they have completely performed their contractual duties.
  • 34
    A court will not enforce illegal agreements.
  • 35
    If time is not of the essence of the contract the promisee must accept late performance.
  • 36
    A promisor who is guilty of material breach has no right of action
  • 37
    A contract entered into involuntarily is still enforceable if reduced to writing
  • 38
    The violation of usury law may require the forfeiture of interest and principle
  • 39
    The destruction of items that the promisor intended to use in performing would not excuse non- performance if it just made performance more difficult.
  • 40
    If an event must occur before a parties duty to perform arises, it is called condition precedent
  • 41
    Punitive damages are recoverable for breach of contract
  • 42
    A building that deviates slightly from the contracts specifications would not qualify as substantial performance

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