Unit 1 Business Law

An offer to form a bilateral contract is accepted by a promise to perform.

To commit fraud, one party must intend to mislead another.

If both parties are mistaken as to the same material fact, neither party can rescind the contract.

In an express contract, the terms are fully stated in words.

A promisee is a person who makes a promise.

An unenforceable contract is an otherwise valid contract that cannot be enforced because of some statute or law.

A party who confers a benefit on someone else unnecessarily can recover the cost under the principle of quasi contract.

If no time for acceptance is specified in an offer, the offer terminates at the end of a reasonable time.

The existence of an express contract does not bar an action in quasi contract concerning the same transaction.

If the subject matter of an offer is destroyed, the offer will continue to exist for a reasonable time to permit the seller to acquire replacement goods.