DO NOT WRITE ON TEST TRUE/FALSE 1· The words\" 1 promise to sell my house for $5

Question

DO NOT WRITE ON TEST TRUE/FALSE 1· The words" 1 promise to sell my house for $50,000" constitute an offer. The promisor's intention that his or her promise be legally binding is not required for the formation of a contract. 2· The statement, “ I promise to buy from you all the coal that I need in my business- next year" constitutes an offer which is reasonably definite. 3· 4. Not all terms of an offer need be expressed. Some may be implied. 5. Ifa contractual performance becomes illegal after the offer has been accepted but before the performance has been rendered, the offer is terminated. MULTIPLE CHOICE . Informal contracts include A. Letters of credit C. Both A and B B. Negotiable instruments D. Neither A nor B Fred and Ethyl sign a contract in which Fred agrees to deliver heating oil in exchange for Ethyl promise to pay for the oil. Fred delivers the oil. The contract is A. Fully executed B. Executory with respect to Fred C. Executory with respect to Ethyl. D. Unexecuted

Explanation / Answer

SOLUTION:

1. The words "I promise to sell my house for $50,000" constitute an offer.

Solution: False

Explanation: An offer is usually in a manner of acceptance that is written with reasonably definite terms.

2. The promisor's intention that his or her promise be legally binding is not required for the formation of a contract.

Solution: False

Explanation: The intention of the promisor's is required to be legally binding for the formation of a contract

3.The statement "I promise to buy from you all the coal that i need in my business next year" constitutes an offer which is reasonably definite.

Solution: False

Explanation: There is no exchange of consideration, thus does not constitutes an offer.

4. Not all terms of an offer need to be expressed. Some may be implied.

Solution: True

Explanation: Implied terms are statutory rights such as a duty of care and the right to equal pay.

5. If a contractual performance becomes illegal after the offer has been accepted but before the performance has been rendered, the offer is terminated.

Solution: True

Explanation: Illegal contracts are not carried further

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1) Informal contracts include 1

Solution: Neither A nor B

Explanation: Formal contracts include letter of credit and negotiable instruments

2) Fred and Ethyl sign a contract in which Fred agrees to deliver heating oil in exchange for Ethyl's promise to pay for the oil. Fred delivers the oil. The contract is

Solution: executory on the part of Ethyl

Explanation: As Fred has already delivered the oil thus the contract is executory on the part of Ethyl

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