Business Law: Subject: Business Law (Contracts and Obligations Exam) Date: Exam Type: True or False (30 Items) Time

Business Law
Subject: Business Law (Contracts and Obligations Exam)

Date:
Exam Type: True or False (30 items)
Time:
1. Generally, a promise is legally enforceable even if nothing is given or received for the
promise.
o True
o False
2. Consideration is what a promisor demands and receives as the price for a promise.
o True
o False
3. The promise of a creditor to refrain from collecting a debt is consideration for a promise
by the debtor to modify the terms of the transaction.
o True
o False
4. Forbearance may constitute consideration.

o True
o False
5. A promise that in fact does not impose any obligation on the promisor is known as an
elusive promise.
o True
o False
6. Certain persons cannot make contracts that will bind them.

o True
o False
7. Contractual capacity can exist even though a party does not understand every provision
of the contract.
o True
o False
8. An illusory promise creates a bilateral contract.

o True
o False
9. Ordinarily, every party to a contract is presumed to have contractual capacity until the
contrary is shown.
o True
o False
10. Discriminatory and punitive incapacities have largely disappeared.

o True
o False
11. To make an offer, the offeror must appear to intend to create a binding obligation.
o True
o False
12. Generally, advertisements, catalog prices, and circulars are offers that can be accepted.
o True
o False
13. Social invitations can be offers.

o True
o False
14. Advertisements that call for an act may be deemed to be a unilateral contract.
o True
o False
o When it is claimed that a contract is too indefinite to be enforced, a court will do its best
to find the intent of the parties and thereby reach the conclusion that the contract is not
too indefinite.
o True
o False
15. A "best efforts" clause is always deemed too indefinite to be enforceable.

o True
o False
16. A requirements contract is too vague to be a legally-enforceable agreement.

o True
o False
17. An output contract is too vague to be a legally-enforceable agreement.

o True
o False
18. An offer is effective only if it is communicated by the offeror in person.

o True
o False
19. An offer gives the offeror the power to bind the offeree by contract.
o True
o False
20. A revocation of an offer is ordinarily effective only when it is communicated to the

offeree.
o True
o False
21. Offers, acceptances of offers, and revocations of offers are all effective when mailed in a
properly- addressed envelope bearing the proper amount of postage.
o True
o False
22. An option contract is a binding promise to keep an offer open for a stated period of time
or until a specified date.
o True
o False
23. With regard to an unliquidated debt, payment by the debtor of less than the amount
claimed by the creditor is consideration for the latter's agreement to release or settle the
claim.
o True
o False
24. If a merchant receives and cashes a check for partial payment of a debt and the check
bears the notation that the amount is in full payment of a disputed sum, the total debt is
released.
o True
o False
25. Sara Student wished to pay off her $5,000 student loan. If she sends in a check for
$3,000 and the creditor cashes the check, the debt will be fully satisfied provided the
check is marked "paid in full."
o True
o False
26. In a composition of creditors, the various creditors of a single debtor mutually agree to
accept a fractional part of their claims in full satisfaction of the claims.
o True
o False
27. Past benefits already received by a promisor cannot be consideration for a later promise.
o True
o False
28. In most states, promises made to another based on moral obligation lack consideration
and are not enforceable.
o True
o False
29. The doctrine of promissory estoppel is also known as the doctrine of beneficial reliance.
o True
o False
30. Under the doctrine of promissory estoppel, a promisor may be prevented from asserting
that his or her promise is unenforceable because the promisee gave no consideration for
the promise.
o True
o False

Business Law: Subject: Business Law (Contracts and Obligations Exam) Date: Exam Type: True or False (30 Items) Time

Uploaded by

Copyright:

Available Formats

Business Law: Subject: Business Law (Contracts and Obligations Exam) Date: Exam Type: True or False (30 Items) Time

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Business Law: Subject: Business Law (Contracts and Obligations Exam) Date: Exam Type: True or False (30 Items) Time

Uploaded by

Copyright:

Available Formats

Business Law

Subject: Business Law (Contracts and Obligations Exam)

4. Forbearance may constitute consideration.

6. Certain persons cannot make contracts that will bind them.

8. An illusory promise creates a bilateral contract.

10. Discriminatory and punitive incapacities have largely disappeared.

13. Social invitations can be offers.

15. A "best efforts" clause is always deemed too indefinite to be enforceable.

16. A requirements contract is too vague to be a legally-enforceable agreement.

17. An output contract is too vague to be a legally-enforceable agreement.

18. An offer is effective only if it is communicated by the offeror in person.

20. A revocation of an offer is ordinarily effective only when it is communicated to the

You might also like