Ch 9 Business Law
Chapter 9
Formation 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. True
12. A promise to do what one already has a legal duty to does not constitute legally sufficient consideration. True
13. A contract entered into by a minor is voidable at the option of either of the contracting parties. False, voidable at the option of that minor
14. A person who has been determined by a court to
Formation 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. True
12. A promise to do what one already has a legal duty to does not constitute legally sufficient consideration. True
13. A contract entered into by a minor is voidable at the option of either of the contracting parties. False, voidable at the option of that minor
14. A person who has been determined by a court to