An offeree's response to an offer in which the offeree rejects the original offer and at the same time makes a new offer is a:
a. withdrawal.
b. counteroffer.
c. revocation.
d. cancellation. correct answers b. counteroffer.
A common law rule that requires that the terms of the offeree's acce...
MBA 650- Ch 7 || A+ Verified Solutions.
An offeree's response to an offer in which the offeree rejects the original offer and at the same
time makes a new offer is a:
a. withdrawal.
b. counteroffer.
c. revocation.
d. cancellation. correct answers b. counteroffer.
A common law rule that requires that the terms of the offeree's acceptance adhere exactly to the
terms of the offeror's offer for a valid contract to be formed is known as detrimental reliance.
a. True
b. False correct answers b. False
In contract law, consideration is defined as:
a. the value given in return for a promise.
b. the end result of any transaction.
c. None of these answers are correct.
d. the promises broken in a contract. correct answers a. the value given in return for a promise.
Under most circumstances, a promise to do what one already has a legal duty to do does not
constitute:
a. a contract.
b. legally sufficient consideration.
c. a preexisting duty.
d. a legally binding promise. correct answers b. legally sufficient consideration.
If a court has previously determined that a person is mentally incompetent and has appointed a
guardian to represent the individual, any contract made by the mentally incompetent person is
void.
a. True
b. False correct answers a. True
A contractual promise of one party to refrain from conducting business similar to that of another
party for a certain period of time and within a specified geographic area is:
a. a contract not to compete.
b. a promise not to compete.
c. an illegal contract.
d. a covenant not to compete correct answers d. a covenant not to compete
Which of the following describes promissory estoppel?
a. None of these answers are correct.
b. It is a legal doctrine that requires judges to consider the promises made by the parties to the
court that a reformed contract will not be broken again.
c. It is a legal doctrine that allows a person who has reasonably and substantially relied on the
promise of another to obtain some measure of recovery.
, d. It is a legal doctrine that allows courts to recreate contracts that have been broken and force
the performance of either the buyer or seller. correct answers c. It is a legal doctrine that allows a
person who has reasonably and substantially relied on the promise of another to obtain some
measure of recovery.
Which of the following is NOT required to state a claim for promissory estoppel?
a. The promisor should expect that the promisee would rely on the promise.
b. Enforcement of the promise is necessary to avoid injustice.
c. The act of making the promise must have caused a loss.
d. There must be a clear and definite promise. correct answers c. The act of making the promise
must have caused a loss.
Unconscionable contracts:
a. can leave one party without a remedy for nonperformance by the other.
b. All of these answers are correct.
c. can include a disparity of bargaining power between the parties.
d. sometimes contain inconspicuous type or unintelligible language. correct answers b. All of
these answers are correct.
The most common way to discharge, or terminate, contractual duties is:
a. by breach.
b. by rescission.
c. by performance.
d. by novation. correct answers c. by performance.
If Valerie contracts with Bill to build a stone wall on his property and Valerie breaches the
contract, Bill is under a legal obligation to:
a. mitigate his damages.
b. do nothing, because he is the innocent party and thus has no legal duties.
c. absorb all of the costs associated with Valerie's breach.
d. wait until Valerie is ready to build the stone wall. correct answers a. mitigate his damages.
Liquidated damages may be defined as:
a. damages to compensate a small technical harm.
b. an unspecified dollar amount payable in case of breach of contract.
c. a punishment for a default on a contractual term.
d. a specific dollar amount to be paid in the event of a future default or breach of contract.
correct answers d. a specific dollar amount to be paid in the event of a future default or breach of
contract.
In contract law, the withdrawal of an offer by an offeror is a:
a. withdrawal.
b. cancellation.
c. revocation.
d. counteroffer. correct answers c. revocation.
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