A valid contract can legally be voided by either party.

When Olga asks Sven if he wishes to sell his Harley motorcycle, he replies that he would not sell it "for less than $2,000." Olga replies, "I accept," and stretches her hand towards him attempting to hand Sven $2,000 cash. Sven does nothing. A contract exists.

If a court finds as a matter of law that a clause of a contract was unconscionable at the time the contract was made, the court must refuse to enforce the contract.

An offeror can require that the offer be accepted in a specific manner.

Roger, a minor, buys a stereo from Tuneland, Inc. Roger uses the stereo for a few months, returns it to Tuneland, and demands his money back. Roger may return the stereo and he does not have to pay for the use of the stereo or the damages

A partnership is a taxable entity, separate from the partners.

An agreement may violate public policy even if the agreement does not require a party to commit a crime, tort, or violate a statute.

Invitations to bargain are not offers.

In seeking to determine whether there is a meeting of the minds, the courts look to how a reasonable person would objectively view the language or actions of the parties.

Three types of consideration that one can give are promise, exchange, and actions.

A party injured by fraud generally has the choice of suing for damages or rescinding the contract.

Upon the recommendation of a friend, Hope hires Joey to rewire her kitchen and he completes the work within the time agreed. Then Hope finds out that Joey is not a licensed electrician, and she refuses to pay him for the work. A court will enforce the agreement because otherwise Hope would be unjustly enriched.

Generally, a contract may include language that limits or alters the damages recoverable, as long as the restrictions do not include intentional acts or gross negligence.

Lucy and Rick sign a contract in which Lucy agrees to deliver 10 boxes of chocolates in exchange for Rick's promise to pay $5 per box. Lucy delivers the candy. Rick pays for the goods. This contract is executory.

Ron and Don make a written agreement for Ron to wash Don’s car every week. They agree on price, schedule and payment terms. After Ron washed Don’s car the first week, Don refused to pay because he claimed that Ron had agreed to wax the car as well. There is no mention of waxing in the written agreement. What is true?

The offeror is the master of her offer means that the offeror can:

Eintz Corp. hired Jose to bribe a foreign government official into awarding a $3 million contract to Eintz. Eintz gave Jose $10,000 in cash to make the bribe payment and $2000 for Jose's efforts. Bribes are illegal. Instead of paying the bribe, Jose kept all of the money. If Eintz sues Jose, Eintz will:

Larry goes to his barber who has cut his hair for the past several years. Larry walks in, sits down, and the barber proceeds to cut his hair as they talk about the most recent snow storm to hit the area. When the barber was done, Larry paid him and left. Larry did not tell the barber the style of cut he wanted nor did they discuss price. This is an example of a:

Bernie owes a disputed amount to Wilde’s Heating & Air Conditioning. Which of the following is true?

"I'll sell you my car if I decide to sell it" is an example of:

Walter worked nights as a clerk in a fast-food store. On his last work shift, Walter's boss told him, "I'm really grateful for the year that you have worked here. I am going to give you a bonus of $1,000 in your last paycheck, but I need you to cover Johnny’s shift for me and stay a little later." In response, Walter stayed later and covered Johnny’s shift. When Walter got his last paycheck, there was no bonus. If Walter sues, the likely result will be:

Debra and Lawrence have an equal partnership. This year, after expenses, the partnership had a profit of $200,000. Debra and Lawrence will each pay taxes on:

The common law governs contracts for:

Which of the following relationships will ordinarily not create an insurable interest?

Which of the following is an example of an exculpatory clause?

Myrtle comes home from work one evening. While cooking dinner, she sees a man outside cutting her lawn and waves hello to him and gives him a thumbs up. Later, the man comes to collect for the yard work done. Myrtle refuses to pay for the work since she has never seen the man before that night and did not hire him to do her yard work. Which of the following answers is most accurate?

All the business forms listed below have limited liability except the:

Which of the following is NOT an element to a valid contract?

A minor can disaffirm a contract:

A full integration means:

If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000, the agreement is:

Rachel and Cyndi started a retail business called Zebra Toy Company. The business is operated as a partnership. Under partnership law:

The Mailbox Rule states:

Which of the following is most likely to constitute fraud?

The business form that is taxed as a partnership and gives all owners limited liability, is:

Shelly offers to sell Jane goods both parties know are stolen. Jane accepts the offer, and agrees to pay for the goods. Later, Jane refuses to accept or pay for the goods. If Shelly sues Jane for breach of contract, what is the probable result?

The basic distinction between a bilateral contract and a unilateral contract is that:

The courts will find an implied contract when:

Mona co-signs a promissory note with her daughter Beth so Beth can purchase her first car. Mona will be discharged from her obligation on the note:

Mike owns a house in a poor area of a large city. Mike is on disability and his total monthly income is $700. A sales representative visits his home, selling a water purification system. Mike signs a contract that calls for monthly payments of $500 for the next 10 years. The water system is worth no more than $1000. Mike thought he was signing a permission slip allowing the salesman to conduct a free water test to determine the toxins in the water. How would a court most likely describe this contract?

All of the following are characteristics of a closely held corporation EXCEPT:

On January 16, Deb offers to sell her waterbed to Colleen for $600. Colleen accepts and agrees to pay Deb $600 on January 27. Which of the following is correct?

Walter enters a dentist office and points to a damaged tooth. The dentist, Matt, treats the tooth. If Walter refused to pay and Matt sued:

Which of the following would not typically be personally liable for the debts of the business?

Jill was a limited partner in a retail business that was sued by a customer who fell in the store. The customer claimed the business was negligent in caring for its floors. Which statement best describes Jill's potential personal liability?

Jennifer has offered to sell her laptop computer for $750 to Jack. She tells Jack that the computer is only six months old but, in fact, it is three years old, and Jennifer wants to unload the bad computer. Jack agrees to buy the computer based on Jennifer's representations. This contract is:

Pierre left a message on Shayna’s voicemail stating, “Hey Shayna. Regarding that painting we talked about. I changed my mind and I do want to sell it. So I’ll let you have it for a steal at $350. There are lots of people that want it so let me know if you don’t ASAP. I’ll assume you do want it if I don’t hear from you within an hour. Thanks!” This is not a valid contract and Shayna would not be required to purchase painting due to the lack of a(n):

A principle that creates a contract out of fairness and justice, even though the contract elements are not present is called:

The principle that allows for discharge of Xi’s contract with Wen because they both agreed that Xi could deliver the fruit on Thursday instead of the original requirement of Tuesday delivery is called:

Chuey is paying Serafina to detail and wash his car. In the contract, he wanted both of them to agree beforehand that if Serafina scratched the paint, Chuey would have to get a completely new paint job and Serafina would owe him $3,500, the reasonable estimated cost of a new paint job. This predetermined $3,500 payment in the contract is an example of: