The following statements are NOT ture regarding contracts...
Minors can be forced to honor their contracts. Oral contracts are not legally binding. Anyone can enter into a contract.
The following statement is TRUE regarding contracts...
For a contract to be valid there must be an exchange of consideration.
Something of value that is exchanged in a contract for something else of value is ________________.
consideration
A minor, or person under the age of legal majority, may ____________________________________.
legally enter into contracts
The statute of frauds requires that certain contracts be in writing to be enforceable, including contracts for the sale of ____________________.
real estate
Hao promises to pay Sydney $20 to give her a copy of the history test that is to be given on the next day. Sydney gives Hao the test but Hao refuses to pay the money. The contract between Hao and Sydney is ____________.
illegal
A legally binding agreement is called a(n) ____________________.
contract
A minor who has continued to make payments on a contract after reaching the age of majority has ____________________ the contract.
ratified
Jared promised to paint his neighbor's porch for $40 and accepted the payment in advance. He did not paint the porch and therefore ____________________ v the contract.
breached
When a consumer orders food off the menu in a restaurant,the consumer is making a(n) ____________________.
offer
Pamela buys a Siberian Husky from a breeder. The Husky has a major heart defect that the breeder knew about but did not tell Pamela. The breeder has committed ____________________.
fraud
A person under the age of legal majority...
minor
An excessively unfair contract...
unconscionable
A person who promises to be responsible along with another person for that person's contract...
cosigner
The things of value which are exchanged in a contract...
consideration
To violate the agreements of a contract...
breach
Aunt Beula promises her 25-year-old niece, Sasha, $5,000 if she will refrain from smoking. Sasha refrains from smoking. Does Aunt Beula have to pay Sasha the $5,000? Why or why not?
Aunt Beula is obligated to pay her niece the money because she made an offer to her niece which her niece accepted. They both agreed on the same meaning and each promised consideration (the aunt to give money and the niece to refrain from smoking).
Mrs. Wong offers a $10,000 reward for the recovery of her kidnapped son. Webster, an FBI agent assigned to the case, recovers the son. Must Mrs. Wong pay Webster? What are your reasons?
Mrs. Wong is not obligated to pay Webster. He gave no consideration, since he was under a legal duty to find the son because of his job.
Explain why the following agreement is or is not enforceable.
Mrs. Chin, a recent immigrant from Hong Kong, speaks no English and lives in the Chinese neighborhood of the city. A Chinese-speaking salesman in a local store convinces Mrs. Chin to sign a con
Mrs. Chin's language skills prevented her from being able to understand the terms of the contract she was signing; therefore, there appears to be no acceptance or mutual agreement. Additionally, this contract is invalid and unenforceable because it is unc
Jamie received $1,000 for her graduation present from high school. As she is going to a local community college, she decides to invest her money in a VIP (perpetual) membership in the area health club, Athletic Club, Inc.
Review the contract that she sign
(a) Jamie offers to pay $995 plus tax to Athletic Club Inc for a VIP membership in the health club.
(b) Athletic Club, Inc. accepts her offer by signing the contract
(c) She gives them $1,055 and they give her a VIP membership in the health club.
(d) Jami
What are two advantages to Jamie of having purchased this plan? What are two disadvantages to Jamie of having purchased this plan?
Advantages:
1. She has access to the health club forever.
2. If she decides to leave or drop out of the club, she can transfer or sell her membership to another person by paying a $125 transfer fee to the club.
3. She can will the membership to her childr
How has ACI limited its liability in this contract?
1. ACI has required that the Member (Jamie) must pay for all collection fees, collection costs, and any attorney fees and/or court costs for seeking late fees.
2. If the facilities are unavailable due to damage by fire, act of God, catastrophe or accident