TRUE/FALSE
1. Under the modern rule or approach to unilateral contracts, a unilateral contract is not formed until the person receiving the offer completes the act that is the subject of the contract.
2. Vu enters into a contract with Irene (who owns the only house in the neighborhood that is always overgrown and messy) to landscape the property and update its appearance, but then Irene tries to back out of the contract. Jorge, Irene's next-door neighbor, who had been hoping to list his house for sale after the "makeover" of Irene's house, can sue to enforce the contract between Irene and Vu.
3. All contracts must be in writing to be enforceable.
4. Under the “plain meaning rule,” a court will make its determination about what the terms of a contract are, and whether it should be enforced, without referring to extrinsic evidence, to help interpret the contract terms that are included within the written contract.
5. In Washington, whether an employee's covenant not to compete (an agreement signed with a current employer to prohibit the employee from leaving and working with a competing future employer) is enforceable will generally depend upon whether restrictions as to duration, geographic area, and scope of activity are reasonable, and whether the covenant, as drafted, reasonably protects the business interests of the current employer.
6. The general rule (which means there can be exceptions) about assignability of contract rights is that contract rights are not assignable.
7. All contracts with credit card companies are "unconscionable” contracts.
8. Under legal principles commonly referred to as "the mailbox rule," an acceptance of a contract offer will be valid as soon as it is sent (even if not sent by United States mail, or dropped in a mailbox), because it is no longer under an offeree's control.
9. Marta settles her auto accident lawsuit against Don, but discovers six months after the settlement that her back problems have returned. Marta can rescind the settlement agreement, due to the discovery of the return of the back problems.
10. The doctrine of quasi-contract can apply only if there is no actual contract that covers the subject matter in controversy.
11. A company's price lists or advertisements are not "serious intent offers," but are instead generally viewed by courts as "invitations to negotiate."
12. The mirror image rule generally permits the offeree’s acceptance of a non-commercial contract (a commercial contract is one for the sale of goods) to contain different terms from the offeror’s offer; the rule also allows some terms to still be negotiated after the parties have entered into the non-commercial contract.
13. In Washington, contracts for the sale of real estate are not usually required to contain the legal description of the real property that is the subject of the contract.
14. Generally, if there is legally sufficient consideration for a contract, the court will not also make a determination about the adequacy of the consideration.
15. In December, Dimitri promises to give Anita $100, because she took care of his garden when he was on vacation for a month during the previous summer. Anita will not be able to enforce Dimitri’s promise.
16. If Faruk’s offer in an email to Marshall, to sell his car to Marshall, is rejected by Marshall in an email to Faruk, but then Marshall changes his mind, and accepts Faruk’s offer in a second email to Faruk, Marshall and Faruk have a contract.
17. In Washington, a minor never loses the right to disaffirm a contract, even if the minor misrepresents his/her age (says that he/she is over the age of 18 at the time of contracting).
18. A donee beneficiary (such as your spouse, who is a beneficiary of your life insurance policy) can sue the promisor directly, to enforce the promise of a promisor (in this example, the promisor would be the insurance company, and the promise would be to pay the policy proceeds upon your death to your spouse).
19. The offeree's rejection of an offer terminates it.
20. An exculpatory clause in a contract between a homeowner and a utility company, excusing the utility company from any liability for negligence in the provision of services to a residence, is always enforceable by the utility company.
21. The Foreign Corrupt Practices Act prohibits bribery payments to foreign government officials by U.S. companies seeking favors from the foreign governments.
22. Barry and Joan have a contract. A delegation of Barry's contract duties by Barry to Carlos relieves Barry of the obligation to perform those duties, if Carlos fails to perform.
23. When a contractor submits a bid to a public entity that solicited bids for a construction project, the submission of the bid binds that public entity, because a contract has been formed.
24. If a person clicks on the “I agree” button to finalize an internet sale, that person is generally considered to have entered into an enforceable contract.
25. In Washington, all prenuptial agreements are enforceable, regardless of the circumstances under which they were created, and whether they were oral or written.