Exam 8: Nature and Classification

Expert Pavers,Inc.,contracts with Fabricated Building Corporation to repave Fabricated's parking lot for which Fabricated agrees to pay.The requirements of this,and any other,contract do not include

An agreement is NOT one of the requirements of a valid contract.

An express contract doesnotneed to be in writing.

A check,like other negotiable instruments,is a formal contract.

The intention to enter into a con-tract is judged by objective facts as interpreted by a reasonable person.

Bay City Construction,Inc.,a contractor,asks Cool Electric,a subcontractor,to provide certain services.Nothing is said about payment.Cool provides the services,but Bay City refuses to pay.In Cool's suit to recover,the chief issue is most likely to be whether these parties had

A promise is a declaration that something will or will not happen in the future.

Livewire Company and McCoy's Candy,Inc.,sign a document that states Livewire agrees to design a Web page for McCoy's,which agrees to pay for the service.This is

Contract law assures the parties to private agreements that the promises they make will be enforceable.

Letters of credit are formal contracts that are often used in international sales contracts.

Debit & Credit Accounting Services and Brickwork Construction Company negotiate a con-tract.Terms in the contract that are the subject of separate negotiation will be con-sidered subordinate to

Bobbie claims that Carly breached their contract.Carly responds that she never intended to enter into a contract with Bobbie.The intent to enter into a contract is determined with reference to