Business Law Department Exam
DEPARTMENT EXAM TEST BANK SPRING 2011
True/False
Indicate whether the sentence or statement is true or false.
__F___ The Offeror Is The Party With The Power To Decide Whether To Create A Contract.
__T___ An offer made as a joke, where a reasonable person would conclude that it was made as a joke, cannot result in a contract.
__T___ The communication of an offer can be made by the offeror or the offeror 's agent.
__T___ Generally, advertisements, catalogs, price lists, etc. are not treated as offers.
__F___ A counteroffer is treated as both a revocation and a new offer.
_T____ Consideration can consist of giving up a legal right.
__T___ A promise to act or to refrain from doing an act can serve as consideration.
__F___ The mirror image rule permits the offeree 's acceptance of a contract to vary from the offer.
_F____ A person who delegates his contractual duties is fully relieved of any further duty to perform under that contract.
_T___ When both parties to a contract are minors, either or both of them may avoid the contract.
_F____ A parent or parents who sign a contract on behalf of their minor child may disaffirm the contract just as their child may.
___F__ A party who makes a mistake about the value of the object of a contract is normally permitted to avoid the contract.
___T__ A plaintiff must prove that he suffered actual injury to recover damages for fraud.
___F__ A party to a contract may delegate his rights arising from the contract to another person.
___T__ The nonbreaching party normally may not recover punitive damages in a breach of contract claim.
___F__ Expenses, such as those incurred to obtain performance from a source other than the original contracting party, are called consequential damages.
___T__ An express contract may be either written or oral.
___F__ An incidental beneficiary can directly sue the maker of a contract in the case of breach.
___T__ The mirror image rule requires that the acceptance
True/False
Indicate whether the sentence or statement is true or false.
__F___ The Offeror Is The Party With The Power To Decide Whether To Create A Contract.
__T___ An offer made as a joke, where a reasonable person would conclude that it was made as a joke, cannot result in a contract.
__T___ The communication of an offer can be made by the offeror or the offeror 's agent.
__T___ Generally, advertisements, catalogs, price lists, etc. are not treated as offers.
__F___ A counteroffer is treated as both a revocation and a new offer.
_T____ Consideration can consist of giving up a legal right.
__T___ A promise to act or to refrain from doing an act can serve as consideration.
__F___ The mirror image rule permits the offeree 's acceptance of a contract to vary from the offer.
_F____ A person who delegates his contractual duties is fully relieved of any further duty to perform under that contract.
_T___ When both parties to a contract are minors, either or both of them may avoid the contract.
_F____ A parent or parents who sign a contract on behalf of their minor child may disaffirm the contract just as their child may.
___F__ A party who makes a mistake about the value of the object of a contract is normally permitted to avoid the contract.
___T__ A plaintiff must prove that he suffered actual injury to recover damages for fraud.
___F__ A party to a contract may delegate his rights arising from the contract to another person.
___T__ The nonbreaching party normally may not recover punitive damages in a breach of contract claim.
___F__ Expenses, such as those incurred to obtain performance from a source other than the original contracting party, are called consequential damages.
___T__ An express contract may be either written or oral.
___F__ An incidental beneficiary can directly sue the maker of a contract in the case of breach.
___T__ The mirror image rule requires that the acceptance