Business Law 3 Sample Questions

What does a promisee have the right to expect?

A future event will or will not happen.

What binds contracting parties?

Terms inferred from promises made.

How many parties need to be competent for a valid contract?

Only one party must be competent.

Can a verbal contract be enforced by a court?

It can be enforced under certain conditions.

Why are contests and lotteries considered unilateral contracts?

They require acceptance through performance.

What did Yancy do that constitutes a breach of contract?

Reverse-engineered the app against terms.

What element must a contract include to be enforceable?

Consideration.

What type of agreement did Juno and Lou form?

A bilateral agreement.

What type of contract is formed when Demi buys a lottery ticket?

A unilateral contract.

What may Three Guys Moving be required to do if they do not perform?

Pay damages to Holly.

What type of contract exists between Maggie and William?

An implied contract.

What is the nature of Ocean Inc.'s agreement with Lydia?

It is likely enforceable.

What must the offeror's intention be for an offer to be valid?

Subjectively clear.

Is a request to negotiate considered an offer?

No, it is not an offer.

What does a counteroffer do to the original offer?

Converts the original offeror into an offeree.

What does the mirror image rule require?

Acceptance without changes to terms.

How is Fresh's intent to extend an offer determined?

By reference to words and actions.

What is lacking in Peter's yell to sell his car?

Serious intent.

What type of statement is Bo's question about selling coins?

Not an offer, it's a request to negotiate.

What happens when an auctioneer puts property up for bids?

It is an invitation to submit offers.

Why is Rene's question not an offer?

The terms are not reasonably definite.

What happens to Coffee Beans' offer when Brewing rejects it?

The offer is terminated.

What has Hannah done by stating a lower price for Frank's business?

Made a counteroffer.

What indicates acceptance in a click-on agreement?

Acceptance of an online offer.

When is Frank's acceptance of Ginny's offer complete?

Only after he hauls away the debris.

When is Reliable's acceptance of Shep's offer effective under the mailbox rule?

When sent.

When is Energy's acceptance effective if sent via authorized mode?

When sent.

What important term should be included in online offers?

A provision for dispute resolution.

What must exist to enforce a contractual promise?

An exchange of consideration.

What is consideration in a bilateral contract?

Value given in return for a promise.

What creates Kim's obligation to pay Leo?

The act of installing the pump.

Why is Jen's promise to Kay not enforceable?

Kay has not given consideration.

What constitutes legally sufficient value?

Promising to pay on receipt of goods.

What is the nature of the discount offered by Sports Bar to Tasty Tacos?

Legally sufficient consideration.

What must there be for consideration to exist?

A bargain for exchange.

What does adequacy of consideration refer to?

How much consideration is given.

What is likely to happen in court regarding EcoEnergy's claim?

The court will evaluate the fairness of the bargain.

What defines consideration in a contract?

It must involve a legal exchange of value.

How does a preexisting duty affect consideration?

It cannot serve as consideration for a new contract.

What happens if a promise is illusory?

Its performance is at the discretion of the promisor.

What is the implication of past consideration?

It is generally not legally sufficient for a new contract.

What occurs if a minor ratifies a contract?

The contract becomes enforceable.

What is the status of contracts made by mentally incompetent persons?

They can be valid under certain circumstances.

What distinguishes an illegal contract?

It is void from the outset due to statutory prohibition.

What is the effect of usury on a loan contract?

It makes the contract illegal and void.

What makes a covenant not to compete enforceable?

Its restrictions must be reasonable.

What can constitute consideration in a contract?

Forfeiting a right to sue can be valid consideration.

What happens if a contract is based on unforeseen difficulties?

It may be enforceable if the difficulties were not anticipated.

What is the consequence of a promise made under intoxication?

It may be enforceable if the intoxicated party understood the contract.

What is the legal status of a minor's contract?

It is voidable at the option of the minor.

What happens if a party has a preexisting duty?

They cannot claim additional consideration for that duty.

What is the outcome of a promise made with discretion?

It is considered illusory and unenforceable.

What is the effect of a release in a legal claim?

It prevents further legal action regarding the claim.

What is the implication of a contract that is unconscionable?

It may be deemed invalid by a court.