BL ch 15
Jessica verbally agrees to sell her house to Kandis, and Kandis makes a $10,000 down payment, moves in, and begins the installation of a pool in the backyard. If Jessica changes her mind seven months later and wants her house back, a court would likely find that: a. there is no sale because the contract was not in writing. b. Kandis may keep the house because there has been partial performance. c. Kandis may keep the house because more than six months have passed. d. Jessica may get her house back because one year has not yet passed.
b. Kandis may keep the house because there has been partial performance.
Sandy guarantees to pay Lester any debts Albert incurs with Lester. Sandy makes this guarantee because she knows that if she does not, Albert will run up a large debt with Lester and be forced to declare bankruptcy. Albert would then most likely be unable to pay Sandy what he owes her. Does this contract have to be in writing? a. No, under the main purpose rule. b. Yes, under the evidentiary rule. c. Yes, under the first-definer rule. d. No, under the nuptial rule.
a. No, under the main purpose rule.
If Juan is buying a tract of land from Ken, in which of the following ways would the legal description NOT be considered part of the contract? a. The legal description is written on a separate piece of paper and mailed separately from the contract. b. The legal description is written in the contract itself. c. The legal description is written on a separate piece of paper and attached to the contract with a paper clip. d. The legal description is written on a separate piece of paper not attached to the contract, but in the same envelope.
a. The legal description is written on a separate piece of paper and mailed separately from the contract.
Judge Macy has reviewed a contract between Martin and Rowan and has determined that the written terms of the contract represent the final agreement between the two parties. According to Judge Macy, their contract is: a. an integrated contract. b. an incomplete contract. c. a prenuptial contract. d. a parol contract.
a. an integrated contract.
Westin wants to borrow $1,000 from Missy to help pay his deposit at his new apartment. Missy says she will agree to lend him the money, only if Westin promises to repay her within six months and if Westin's friend, Betty, promises to pay if Westin fails to do so. If Betty agrees to the arrangement, Betty's promise is called a: a. collateral promise. b. mutual promise. c. unified promise. d. limited promise.
a. collateral promise
Beaux is discussing with Brad the purpose of the statute of frauds enacted in all states, and tells him the purpose of the law is to: a. prevent enforcement of certain contracts that are not in writing. b. prevent fraud relating to certain contracts. c. prevent the enforcement of contracts that are not signed by all parties. d. prevent a party to a contract from testifying at trial.
a. prevent enforcement of certain contracts that are not in writing.
James tells Jennie that if she can find him an original painting by G. Harvey, signed with a No. 1, he will reimburse her up to $2,500. If Jennie finds such a painting, presents it to James, and he refuses to pay, she can recover under the doctrine of: a. promissory estoppel. b. partial performance. c. admission. d. parol evidence.
a. promissory estoppel.
Daredevil Rides Inc. owes debts to Equipment Repair Company and Food Supplies, Inc. Equipment orally agrees to assume Daredevil's debt to Food to prevent the concessionaire from filing a suit against Daredevil. This agreement is enforceable by a. Daredevil, Equipment, or Food. b. none of the choices. c. Equipment only. d. Daredevil only.
a. Daredevil, Equipment, or Food.
Rough Canyon Adventures, Inc., and Sturdy Stuff Inc. enter into an oral contract for Sturdy's sale to Rough of five rafts for $2,000 each. Before Rough takes possession of the rafts, this contract is enforceable by a. none of the choices. b. Sturdy only. c. Rough only. d. any interested third party, such as a Rough tour guide or client.
a. none of the choices.
Max and Juli communicate by text message and Juli agrees to marry Max if he promises to take care of her daughter as well. His final text message reply says, "Of course I will take care of her if you marry me. Love you. Max." Juli saves the text messages as proof of his love for her. After they marry, Max refuses to take care of Juli's daughter. Juli attempts to enforce the agreement, but Max argues that it has to be in writing because it is a contract in consideration of marriage. If this ends up in court, the court likely would: a. not enforce the agreement because the terms are unconscionable. b. enforce the agreement, as copies of the text messages are sufficient writings. c. enforce the agreement, because it is obvious that she would expect him to take care of her daughter before she would marry him. d. not enforce the agreement because text messages would not be sufficient writings.
b. enforce the agreement, as copies of the text messages are sufficient writings.
Lewis tells a representative of Musical Instruments, Inc., that he will pay for Nora's trumpet if she does not. Lewis does not secure any personal benefit for this promise. This promise is enforceable as a contract a. only if Nora agrees to it. b. only if it is in writing. c. only if the value of the trumpet is more than $500. d. any of the choices.
b. only if it is in writing.
Dick's Burgers n' Shakes enters into an oral contract with Restaurant Equipment Warehouse (REW) for REW's sale to Dick's of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the contract is enforceable by a. none of the choices. b. Dick's or REW. c. the manufacturer of the mixer. d. any third party with a material interest, such as one of Dick's suppliers.
b. Dick's or REW.
Flo agrees to assume a debt owed by Guitars Inc. to Home Bank. The agreement is not in writing. To be enforceable under the "main purpose" rule, the promise must be for the benefit of a. any third party, such as a Guitars Inc. customer. b. Flo. c. Guitars Inc. d. Home Bank
b. Flo.
Lucas orally agrees to sell Mountain Spring Water to Natural Beverages, Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against a. Natural. b. Lucas. c. no one. d. Lucas and Natural
b. Lucas.
Nate promises to pay for dental services provided by Otto to Polly. Nate receives no personal benefit for the promise. To be enforceable, the promise must be in writing if a. Nate assumes primary financial responsibility for the cost. b. Nate promises to pay only if Polly does not pay. c. Otto's services will be provided in installments with separate payments. d. Polly also promises to pay.
b. Nate promises to pay only if Polly does not pay.
Pumps, Inc., agrees to assume a debt of Quality Parts Company to Reliable Finance LP. The agreement is not in writing. To be enforceable, the promise must be for the benefit of a. Quality. b. Pumps. c. all of the choices. d. Reliable.
b. Pumps.
Alice and Bart enter into a contract for the sale of Canyon Ranch. To be enforceable, this contract must be a. all of the choices. b. in writing or evidenced by a written memorandum. c. substantiated by reliable, external evidence. d. signed in a sufficient manner by both parties.
b. in writing or evidenced by a written memorandum.
ActioNOW and Becca enter into an oral contract in which Becca agrees to work on a project for ActioNOW for eighteen months. This contract is enforceable by a. any third party, such as ActioNOW's clients. b. none of the choices. c. ActioNOW. d. Becca.
b. none of the choices.
Check My Work Physicians Clinic orders by phone seven boxes of single-use latex gloves from Quality Medical Supplies, Inc. After three boxes are delivered and accepted, Physicians Clinic repudiates the contract. Quality Medical can enforce the contract to a. any extent because the order was placed orally. b. the extent of the three accepted boxes. c. the extent of the four undelivered boxes. d. no extent because the order was placed orally.
b. the extent of the three accepted boxes.
Heather agrees to work for Noah for one year in his law office. Noah writes an employment contract that states that Heather is to earn $20 per hour and to work forty hours per week. Noah terminates Heather's employment after six months. Heather sues to recover what she claims are her losses. At trial, both parties discover that the contract says that Heather's hourly wage is $0.20 per hour. What can Heather and Noah do about the error? a. They can ask the court to rewrite the contract. b. They are bound by the writing under the Statute of Frauds. c. They can offer parol evidence to clarify the clerical error. d. They can offer evidence of the consideration that supported their contract.
c. They can offer parol evidence to clarify the clerical error.
James telephones Wanda, expressing interest in purchasing her famous chocolate ice cream. Wanda receives a purchase order for 100 gallons of ice cream from James for $300. On the appointed delivery date, Wanda delivers James 100 gallons of vanilla ice cream, stating that the contract didn't specify what flavor James wanted. James sues Wanda for the chocolate ice cream. A court will likely find that James: a. must accept the vanilla ice cream, because the contract did not specify the flavor. b. can submit evidence of the written contract because contracts can be subsequently modified. c. can submit evidence of the telephone call expressing interest in chocolate ice cream, even though the contract was ambiguous on which flavor would be purchased. d. must accept the vanilla ice cream, because the contract had an orally agreed-upon condition precedent.
c. can submit evidence of the telephone call expressing interest in chocolate ice cream, even though the contract was ambiguous on which flavor would be purchased.
Linda and Zeke sign a contract for the sale of Zeke's home to Linda. Although the price has yet to be determined, the contract states the property clearly to be sold and the date the house will be delivered to Linda. The contract: a. does not constitute a sufficient writing because it does not meet the writing requirements of the Uniform Commercial Code. b. constitutes a sufficient writing because it states the date that the house will be delivered to Linda. c. does not constitute a sufficient writing because the contract does not state the price at which the property will be sold. d. constitutes a sufficient writing because it describes the property with sufficient clarity.
c. does not constitute a sufficient writing because the contract does not state the price at which the property will be sold.
Dillon struggles with his Algebra class and, in August, decides that he needs to get a tutor for the upcoming school year. He persuades Vonda to tutor him beginning in September. They discuss Vonda's fee and hours, and agree that the arrangement will last for the entire school year, ending in May. Under the Statute of Frauds, this contract: a. must be in writing based on the one-year rule. b. must be in writing under the Uniform Commercial Code (UCC). c. does not need to be in writing. d. must be in writing because it is collateral.
c. does not need to be in writing.
One afternoon, after a couple of beers, Steven says that because Marvin has been a helpful neighbor, he can have a right-of-way to drive across Steven's land to get to a fishing pond. Two weeks later, while Marvin is driving across Steven's land, he hears Steven yelling, "Get off my property, you trespasser!" Marvin has: a. avoidable oral contract. b. a contract that is void because trespassing is illegal. c. no enforceable contract. d. a valid oral contract.
c. no enforceable contract.
Sheryl and Davis agree that before they marry, they should have a prenuptial agreement to determine what will happen to Sheryl's fortune if they divorce or if Sheryl dies. To make their agreement valid, they must: a. do nothing. Because they will be married, their agreements are automatically valid. b. have it approved by an outside mediator. c. put it in writing. d. file it with a circuit court.
c. put it in writing.
Grain Co-op, LLC and Hearty Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Grain faxes Hearty a memo on Grain's letterhead that summarizes the points on which they agreed, including a two-year term. Grain begins to perform, and Hearty accepts the deliveries but refuses to pay. Refer to Fact Pattern 16-1. Between Grain and Hearty, this contract is most likely enforceable against a. neither party. b. Grain only. c. Grain and Hearty, at least to the extent of the performance. d. Hearty only.
c. Grain and Hearty, at least to the extent of the performance.
Alain and Brie sign a contract for the sale of Alain's Patisserie to Brie. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement—Alain must first buy the building from Commercial Properties, Inc., after which Alain and Brie will agree on a price. Refer to Fact Pattern 16-3. Brie later disputes some of the provisions of the deal with Alain. If the dispute results in litigation, a court will most likely admit evidence of additional terms that are a. contradictory. b. clear. c. consistent. d. ambiguous.
c. consistent.
Air Flo, Inc., and Banyan Grove Apartments enter into an oral contract in which Air Flo agrees to provide air-conditioning and heating maintenance for Banyan Grove's facilities for two years. This contract is enforceable by a. Air Flo. b. Banyan Grove. c. none of the choices. d. any third party, such as a HVAC supplies provider.
c. none of the choices.
Eleanor offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanor's son Glen. This promise is enforceable a. under no circumstances. b. only if the amount of the investment is more than $500. c. only if it is in writing. d. only if Glen agrees to marry Flossy.
c. only if it is in writing.
Austin has a contract to sell 500 homemade teddy bears to Ally. The teddy bears typically sell for between $25 and $40. Austin delivers the bears to Ally but she refuses to pay, saying she changed her mind and that the contract is not valid because it is missing the price term. Did the price need to be specified in order for this contract to be valid? a. Yes, price is an essential term, so its absence in the writing invalidates the contract. b. No, price is not an essential term in any contract. c. Yes, price is the most important term in a contract for the sale of goods under the UCC, so it must be specified in this contract. d. No, price need not be included in a contract for the sale of goods under the UCC, so long as the quantity is specified.
d. No, price need not be included in a contract for the sale of goods under the UCC, so long as the quantity is specified.
Gmiendl, Inc., a German company, and Bordeaux Enterprises Co., a French company, verbally agree to a contract for the purchase and sale of plastic bottles. Assume both France and Germany are signatories to the CISG. Is the contract valid? a. No, because the contract requires a signature from each party whenever a multinational contract is formed. b. Yes, because the parties are from two different nations and no contract law applies. c. No, because the contract violates the Statute of Frauds and requires a writing. d. Yes, because the CISG does not require contracts for sale to be concluded or evidenced by writing.
d. Yes, because the CISG does not require contracts for sale to be concluded or evidenced by writing.
Garth purchases a boat from a boat manufacturer in another state. The sales contract contains all terms of the sale in great detail and at the end has the statement: "This agreement contains the entire agreement of the parties." If Garth later discovers a problem with the boat and sues for breach of contract, evidence extraneous to the contract: a. will be allowed in court because the contract was a fully integrated contract. b. will be allowed in court because the contract was not a fully integrated contract. c. will be allowed in court because Garth purchased the boat out of state. d. will not be allowed in court because the contract was a fully integrated contract.
d. will not be allowed in court because the contract was a fully integrated contract.
Ray agrees to buy one hundred pounds of almonds from Sol. To be enforceable, the agreement must be in writing if the almonds cost at least a. $250. b. $499. c. $50. d. $500.
d. $500.
Charlie and Dill sign a written contract for the sale of Dill's BBQ Food Truck to Charlie. The parties intend their written contract to be a final statement of the terms of their agreement. Refer to Fact Pattern 16-2. The writing that Charlie and Dill signed is a. a completely severable contract. b. a partially integrated contract. c. a partially divisible contract. d. a completely integrated contract.
d. a completely integrated contract.
Ranchland Properties and Prairie State Investments sign a written contract for a sale of land. In some states, to be enforceable, this contract must include a. a correct title, such as "Land Transfer" or "Real Estate Agreement." b. a declaration of the contract's purpose. c. a statement of the source of financing. d. a description of the land.
d. a description of the land.
Builders Corporation files a suit against Concrete Company to enforce a written contract. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted to prove a. terms discussed before the contract but not contained in it. b. terms discussed at the time of the contract that contradict the written terms. c. nothing. d. an orally agreed-on condition precedent.
d. an orally agreed-on condition precedent.
Guardian Security, Inc., and Hedge Fund Corporation enter into an oral contract under which Guardian agrees to provide security services for Hedge's offices for as long as Hedge needs them. This contract may be enforceable by a. any interested third party, such as a Hedge shareholder. b. none of the choices. c. Hedge only. d. either Guardian or Hedge.
d. either Guardian or Hedge.
