$***$ Do Not Write On The Exam $***$

Legal Environment $360$ Final Exam

True$/$False

Indicate whether the sentence or statement is true or false.

A bilateral contract is created when a promise is given in exchange for a promise, whereas a unilateral contract is created when a promise is given in exchange for an act.

Because transfer of value is essential to a valid contract, contracts cannot apply to the performance of personal services.

Contract law requires parties to be fair, or kind, or reasonable, and to share in gains or losses equitably.

There must be both an offer and an acceptance in order to create a contract. The offeree makes an offer which is accepted by the offeror.

Some contracts are three sided instead being two sided such as an insurance contract.

A voidable contract is an agreement that is otherwise binding and enforceable, but because of circumstanc may be rejected at the option of one of the parties.

Contracts under seal and recognizances are examples of Formal contracts.

The parties to a contract are said to stand in privity with each other and the relationship between them is termed privity of contract.

An express contract is one in which the terms of the agreement are manifested by their words, whether spoken or written.

All contracts consist of agreements, but not all agreements are contracts.

If the offeror dies or becomes mentally incompetent before the offer is accepted, the offer is automatically terminated.

A void contract is one that is otherwise valid but may be rejected or set aside by one of the parties.

The person who makes a promise is the promisor and the person to whom the promise is made is the promisee.

A executory contract is one that has been completely performed. In an executed contracted something remains to be done by one or both parties.

A right of first refusal imposes the duty to make the first offer to the party having the right of first refusal.

An option contract gives one of the parties an absolute right to enter into a second contract at a later date.

A quasi contract is not a true contract but instead is based on a legal concept to prevent unjust enrichment.

Quasi$-$contractual liability generally will be imposed when the cost of performing a contract is higher than had been expected.

Generally, advertisements, catalog prices, sale signs, and circulars are offers that can be accepted.

In most states, you have a right to collect a reward for an arrested criminal that you gave a tip on$,$ even without knowing a reward had been offered.