Exam 9: Contract Formation

A contract is void if its purpose is illegal.

George promises to repair Francesca's boat dock in exchange for Efrem's promise to plant trees on George's property.This is

To be legally sufficient,consideration must include something of economic value.

An advertisement is generally considered an invitation to negotiate.

Contractual capacity refers to the size or volume of a contract.

Genie.com initiates an online dating service.To attract subscribers and encourage participation,Genie.com creates and posts profiles of fictitious persons and exaggerated profiles of actual users.Fooled by the false profiles,Ham buys a subscription.He is most likely a victim of

A party's intent to enter into a contract is judged by their personal,subjective intent or belief.

An unequivocal acceptance operates as a rejection of the original offer.

Only a mistake in value will make a contract voidable.

A minor may not contract with an adult.

Inadequate consideration may reflect a lack of bargained-for exchange.

Digital Architecture,Inc. ,agrees to design robotic software for equipment owned by Chassis Assembly Corporation.Whether or not this agreement meets all of the requirements of a contract,the parties are most likely to follow the rules of contract law because they

If a contract stipulates that a right cannot be assigned,then ordinarily it cannot be assigned.

An innocent party can rescind a fraudulent contract.

A contract between Drill-Bit Sharpeners,Inc. ,and East Oil Mining Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits

Rollo promises to perform,for a price,shoe repair services in affiliation with Togs 'n Things,a clothing store.To support a contract,the consideration exchanged by the parties must be

An incidental beneficiary is not entitled to enforce the promise of a promisor.

Koko signs a covenant not to compete as part of a sale of her ongoing medical equipment business to Laurel Valley Medico,Inc. ,in exchange for a bonus payment.The covenant is most likely enforceable by

Brick Products,Inc. ,files a suit against City Trucking Service for breach of contract,based on what Brick claims was City's offer.For a court to determine if a contract has been breached,under the common law,the offer must include terms that are

Build-Rite Contractors,Inc. ,asks Cool Electric,a subcontractor,to provide certain services.Nothing is said about payment.Cool provides the services and submits an invoice,which Build-Rite refuses to pay.In Cool's suit to recover,the chief issue is most likely to be whether these parties had