A voidable contract is a valid contract that can be avoided at the option of at least one
of the parties to it.
Colby contracts in writing to sell his 2005 Dodge-brand pick-up truck to Efrem for
$10,500. Colby agrees to deliver the truck on Friday, and Efrem promises to pay the
$10,500 on the following Monday. On Thursday, Efrem tells Colby that he changed his
mind and will not buy the truck. Over the weekend, Efrem changes his mind again and
tenders $10,500 to Colby on Monday. Colby has not sold the truck to another party but
refuses the tender and refuses to deliver. Efrem claims that Colby has breached their
contract. Colby contends that Efrem’s repudiation released him from his duty to perform
under the contract. Who is correct, and why?
A state law that conflicts with the U.S. Constitution will be deemed unconstitutional.
The most common reason that ethical problems occur in business is an overemphasis on
long-run profit maximization.
A prenuptial agreement does not have to be in writing to be enforceable.
In most bailments, the bailor must notify the bailee of hidden defects that the bailor
knows or could have discovered with reasonable diligence.
An assignee can compel the obligor to perform.
Expenses that are caused directly by a breach of contractsuch as those incurred to
obtain performance from another sourceare incidental damages.
A contract must be in writing to be enforceable unless its performance is impossible
within one year.
Labels on vegetables and fruits are not required to indicate where the food originated.
A conditional promise to pay is not a negotiable instrument.
Manufacturers are required to report on any products intended for sale if the products
have proved to be hazardous.
The parties to a franchise agreement may determine what constitutes the grounds for the
termination of their relationship.
A trustee must call a meeting of the creditors listed in the schedules filed by the debtor.
Portions of a divisible contract may be enforced.
When a lessee sells leased equipment to a third party, the lessor cannot, under any
circumstances, recover the equipment from the buyer.
Use of the word consideration in an agreement means that consideration has been
given.
A product liability action may be based on warranty theory.
By delegating some of its authority to make and implement laws, Congress violates the
U.S. Constitution.
Like a corporation, the ownership of a joint stock company is represented by shares of
stock.