Unit 1 Business Law

An offer to form a bilateral contract is accepted by a promise to perform.

• True

• False

To commit fraud, one party must intend to mislead another.

• True

• False

If both parties are mistaken as to the same material fact, neither party can rescind the contract.

• True

• False

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

• True

• False

A promisee is a person who makes a promise.

• True

• False

An unenforceable contract is an otherwise valid contract that cannot be enforced because of some statute or law.

• True

• False

A party who confers a benefit on someone else unnecessarily can recover the cost under the principle of quasi contract.

• True

• False

If no time for acceptance is specified in an offer, the offer terminates at the end of a reasonable time.

• True

• False

The existence of an express contract does not bar an action in quasi contract concerning the same transaction.

• True

• False

If the subject matter of an offer is destroyed, the offer will continue to exist for a reasonable time to permit the seller to acquire replacement goods.

• True

• False