Chapter 10 Business law T/F

Some promises are not legally binding.

The person who makes a promise is the promisee

A promise is a declaration that something will or will not happen in the future

A contract is an agreement that can be enforced in court

If a contractual promise is not fulfilled, the person who made it may be required to perform the promised act

Contract law assures the parties to private agreements that the promises they make will be enforceable.

The element of intent is of prime importance in determining whether a contract has been formed.

In contract law, intent is determined by the subjective theory of contracts.

In contract law, intent is determined by the secret, subjective intent, or belief, of a party.

A contract is valid only if both of the parties entering into it have the capacity to do so.

One of the requirements of a valid contract is an adequate price.

The term CONSIDERATION refers to the legality of the subject matter of a contract.

The only requirement of a valid contract is that it be voluntarily entered into.

All contracts must be in writing to be enforceable.

a bilateral contract comes into existence at the moment promises are exchanged.

An offeree is a person who makes an offer.

Every contract involves at least three parties.

A unilateral contract is formed at the moment when the contract is performed.

An offer may not be revoked before it is accepted.

Informal contracts are usually based on their sub-stance rather than their form.

Informal contracts include all contracts other than formal contracts.

A check is a formal contract.

An express contract must be in writing.

In an express contract, the terms are fully and explicitly stated in words.

An implied contract is not an actual contract.

All contracts include an implied covenant of good faith and fair dealing.

An unenforceable contract is one that cannot be enforced because of certain legal defenses against it.

If a voidable contract is ratified, the parties must fully perform their respective legal obligations.

An executed contract is one that has been fully performed.

A QUASI contract is not enforceable by a court

A QUASI contract is a fictional contract

When a contract's writing is not clear, a court will not consider evidence outside the contract to interpret its terms.

A court will normally interpret the language of a contract according to what the parties claim their intent was when they made it.

If a contract term is ambiguous, a court can consider outside evidence.