Cengage Advantage Books Business Law First Course Summarized Case Edition 13th Edition By Miller – Test Bank

Chapter 11

Nature and Terminology

TRUE/FALSE QUESTIONS

B1. Contract law demonstrates which excuses our society accepts for breaking certain types of promises.

ANSWER: T PAGES: Introduction
BUSPROG: Analytic AICPA: BB-Critical Thinking

B2. Contract law does not distinguish between promises that create only moral obligations and promises that are legally binding.

ANSWER: F PAGES: Introduction
BUSPROG: Analytic AICPA: BB-Legal

B3. In contract law, intent is determined by the personal or subjective intent, or belief, of a party.

ANSWER: F PAGES: Section 1
BUSPROG: Analytic AICPA: BB-Legal

B4. One of the four requirements of a valid contract is an adequate price.

ANSWER: F PAGES: Section 2
BUSPROG: Analytic AICPA: BB-Legal

B5. The term consideration refers to the legality of the subject matter of a contract.

ANSWER: F PAGES: Section 2
BUSPROG: Analytic AICPA: BB-Legal

B6. A bilateral contract comes into existence at the moment promises are exchanged.

ANSWER: T PAGES: Section 3
BUSPROG: Analytic AICPA: BB-Legal

B7. A unilateral contract is formed at the moment when the contract is performed.

ANSWER: T PAGES: Section 3
BUSPROG: Analytic AICPA: BB-Legal

B8. Informal contracts include all contracts other than formal contracts.

ANSWER: T PAGES: Section 3
BUSPROG: Analytic AICPA: BB-Legal

B9. A negotiable instrument is a formal contract.

ANSWER: T PAGES: Section 3
BUSPROG: Reflective AICPA: BB-Legal

B10. In an express contract, the terms are fully and explicitly stated in words.

ANSWER: T PAGES: Section 3
BUSPROG: Analytic AICPA: BB-Legal

B11. A contract that has been fully performed by the parties is called an executory contract.

ANSWER: F PAGES: Section 3
BUSPROG: Analytic AICPA: BB-Legal

B12. If a voidable contract is avoided, only the promisee, but not the promisor, is released from it.

ANSWER: F PAGES: Section 3
BUSPROG: Reflective AICPA: BB-Legal