BUL 5810 - CONTRACTS
Sometimes a party makes misrepresentations, which if untrue, could constitute a material misrepresentation. Which of the following fits that description? a. "This is the one that I would buy." b. "This is the best tablet on the market." c. "These tires will wear like iron." d. "This car has a new engine.
"This car has a new engine"
Shirley leases Tom a defective piece of machinery that causes $50,000 in property damage and $100,000 in personal injuries. In addition to damages for loss of value and incidental damages, how much can Tom recover as consequential damages?
$150,000
Contracts for the sale of goods priced (starting) at _____ or more must ordinarily be in writing under UCC Section 2-201.
$500
Bernie promises to build an office complex for Donald for $1 million by February 1. Bernie breaches the agreement by finishing construction by March 1. As a result of the breach, Donald lost $100,000 for the month lost, but saved expenses of $25,000. How much is Bernie liable for?
$75,000
By operation of law one might be able to discharge their contractual obligations by:
Bankruptcy
Sid makes a material representation of fact regarding his car to Barbara while out driving one day. The next day, Barbara calls Sid and offers to buy his car. Sid accepts Barbara's offer without correcting the misrepresentation of fact that he made the previous day. What is the effect of the material representation on the agreement between Sid and Barbara?
Barbara may avoid the contract
To be effective, an offer must:
Be communicated to the offeree
For purposes of general contract law (common law), an offer must:
Be sufficiently definite and certain
BigOil promises Gasnow as many barrels of oil as they shall chose at $50 per barrel. In this case:
BigOil has made an illusory promise
How do parties usually show mutual assent?
By one part making an offer in words or by conduct and the other party accepting in words or by conduct
__________ is what each party to a contract gives up to the other in making their agreement.
Consideration
Which of the following will terminate an offer? a. Rejection by the offeror. b. Subsequent illegality of the purpose but not of the subject matter of the offer. c. Destruction of the subject matter of the offer. d. Death of the offeree but not of the offeror.
Destruction of the subject matter of the offer
George and Laura make mutual promises to marry, but unknown to Laura, George is already married to Barbara. In the state where George and Laura live, bigamy (marriage to more than one person) is illegal and makes a bigamous marriage void. If Laura sues George for damages and wins, what principle may she use?
Excusable ignorance
Bill enters into a contract with Harry. The terms are that Bill will build an addition to Harry's home, replace the roof on Harry's garage, and make repave Harry's driveway in exchange for Bill's payment to Harry of several thousand dollars once all of the projects have been completed. If the driveway repavement has not yet been completed, but the addition and the roof have been completed, which term describes the type of contract in existence?
Executory
Bill offers to sell his house to Harry for $90,000. Harry tells Bill he will buy the house for $90,000 if Bill will fix the roof. Which statement is true?
Harry made a counteroffer. Unless Bill accepts the counteroffer, there is no contract.
Bill offers to sell his house to Harry for $90,000. Harry tells Bill he will buy the house for $90,000 if Bill will fix the roof. Bill says he is not interested in fixing the roof. Harry then tells Bill he will still buy the house. Bill tells Harry the house is no longer for sale to Harry. Which statement is true?
Harry's counter offer terminated Bill's offer, and Bill's rejection of both Harry's counteroffer and offer leave Bill free to make a new offer to sell the house to anyone he chooses, including Harry, and under any terms he chooses as long as the terms are not illegal.
Chase and Tyler are best friends and fellow police officers. One day, Chase came home with a brand new, top-of-the-line Ford F-150 4x4 pickup valued at $38,000 and showed it to Tyler. Tyler told Chase that he wanted a truck just like his. Jokingly, Chase says, "Sure thing, buddy. I'll sell you my new pickup for $100 and a six-pack of beer!" If Tyler seeks to accept Chase's offer, what is Chase's best defense?
Chase intended the offer as a joke and a reasonable person would understand it to be a joke.
Which is NOT a correct about the UCC's "Battle of the Forms" rule? a. The UCC battle of the forms rule is what common law calls the mirror image rule. b. The UCC battle of the forms rule changes the common law's mirror image rule. c. The UCC battle of the forms rule may result in a contract with terms that are not identical to the terms included in the offer. d. What gets included in the final contract terms may depend upon whether the parties are merchants.
The UCC "battle of the forms" rule is what common law calls the mirror image rule
The mirror image rule relates to which required element of a contract?
The acceptance
Which of the following is true regarding noncompliance with the statute of frauds? a. The basic legal effect under the statute of frauds and the UCC is the same. b. The statute of frauds applies to executed and executory contracts. c. A party to a contract which was unenforceable because of the statute of frauds but who relied upon the contract may not recover in restitution the benefits he conferred on the other party. d. The doctrine of promissory estoppel cannot displace the requirement of a writing under a statute of frauds.
The basic legal effect under the statute of frauds and the UCC is the same
Joe takes his car into the repair shop to have his tires realigned. While he is waiting for his car, he sees the repairmen take his car to the area where they change the car's oil. Joe says nothing as he is hoping he can get a free oil change. Joe watches while the oil in his car is changed. The car is then taken to the area where the tires are realigned. Joe watches while the tires are realigned. The employees next take Joe's car to be washed. Joe did not know his car would be washed, but knows that many car repair businesses have a practice of cleaning the cars at no additional cost to the customer after completing the repair work. When Joe is presented with the bill, there is a charge for the oil change, the realignment, and the car wash.If challenged in court, the court is most likely to make Joe pay for:
The realignment because that is what he contracted for AND the oil change under the doctrine of quasi contract.
Stephanie induces Wanda to purchase 100 shares in Zazzy Corporation at a price of $100 per share. Stephanie tells Wanda that she paid $150 for them the previous month. In fact Stephanie only paid $50. How can this representation of a past event be characterized?
The representation of a past event is a misrepresentation of fact.
Which of the following contracts is covered by Article 2 of the Uniform Commercial Code? - sale of a building -sale of furniture -an agreement to have a sidewalk shoveled -a sale of stock in ABC, Inc
The sale of new furniture
Darryl contracted with Right Builders to build an addition to his house for $25,000. After digging the foundation, Darryl decides he wants to have the house done earlier than was originally agreed. Right Builders agree, but say that it will need to charge an additional $5,000 for the job. Assuming Darryl agrees, which of the following is correct?
This is a modification of a preexisting contract, but Right Builders has provided additional consideration since they are expediting the completion of the project.
On his 17th birthday, David makes a contract to purchase a moped. In a state in which the age of majority is 18, which of the following actions would be a ratification of the contract?
Three days after his 18th birthday, David telephones the seller and says, "I intend to keep my promise to you in our contract."
__________ is when money is loaned at a higher rate of interest than the law allows.
Usury
When is there an effective acceptance of an offer to enter into a unilateral contract?
When the offeree has fully performed what was asked of him in the offer
The court in Keser v. Chagnon examined which of the following issues?
Whether Chagnon ratified the contract for the purpose of the Edsel by delaying his disaffirmance of the contract
In DiLorenzo v. Valve and Primer Corporation, the court considered which of the following issues?
Whether DiLorenzo supplied consideration in exchange for the stock option.
One issue before the court in Arrowhead School District No. 75, Park County, Montana v. Klyap case was:
Whether a liquidated damages clause in an employment contract was enforceable as a reasonable forecast of the harm caused
One issue before the court in the First State Bank of Sinai v. Hyland case was:
Whether the contract between Hyland's father and the Bank was void due to alcohol-related incapacity.
One issue before the court in Payroll Advance, Inc. v. Yates case was:
Whether the covenant not to compete between a check cashing company and its former employee was reasonable in scope and duration
The court in Anderson v. McOskar Enterprises, Inc .ruled on which of the following issues?
Whether the exculpatory clause in the Curves contract released the club from liability for negligence
When it is said that a contract made by a minor is voidable, which of the following is true?
While still a minor, he can disaffirm the contract and return the property.
In the Maroun v. Wyreless Systems, Inc. case, the court considered which of the following reason to grant summary judgment in Wyreless Systems' favor?
Wyreless Systems' complained-of statements by Maroun were based on future events, and thus could not be a basis for misrepresentation
Sonny promises Maria not to foreclose for a period of six months on a mortgage that Sonny owns on Maria's real property. Relying on this promise, Maria begins to build a home on the land. If Sonny forecloses in two months, can Maria seek to enforce Sonny's promise?
Yes, Sonny made a non-contractual promise and Maria reasonably relied on such promise and began building a home on the land.
Angelo borrows $2,000 from Maria. Maria electronically transfers Angelo the $2,000. Angelo promises to pay Maria the full amount in four $500 yearly installments of $500. Is such an agreement enforceable?
Yes, because Maria has fully performed by making the loan
Maggie owns a valuable show dog, which she knows is suffering from a disease only discoverable by a competent veterinarian. Maggie offers to sell this show dog to Naomi but does not inform her about the dog's condition. Naomi, who is not a veterinarian, makes a reasonable examination of the dog and concludes that the dog is in normal condition and purchases it from Maggie. If Naomi later discovers that the show dog suffers from the disease, can he have the sale set aside?
Yes, because the dog has a hidden defect that would not be discovered in an ordinary examination and Maggie failed to disclose it.
Jayden, a U.S. citizen, contracts with a Canadian life insurance company for $100,000 dollars of coverage. The insurance company sends Jayden an e-mail, which Jayden signs, scans, and returns. Will a court entertain parol evidence on whether the parties intended for the policy to be valued in Canadian dollars or U.S. dollars?
Yes, because the intent of the parties is uncertain
On March 1, Jimmy, a student, received a telephone call from Peterson, Inc. offering him a job for one year beginning on May 15, after completion of the school year. According to the personnel manager, he will have to move to Texas and be ready to start work at 9:00 a.m. on May 15. Should Jimmy ask for a letter confirming the telephone conversation if he accepts the offer immediately?
Yes, because the job offer is longer than one year from March 1.
Wilma has an insurance policy on the contents of her apartment, which requires that she notify the insurance company within 60 days of any loss before she is eligible to receive payment for her loss. The notification requirement is:
a condition precedent
When might a contract might be unenforceable?
If the statute of limitations has passed
Retail stores typically put advertisements in newspapers describing goods and stating prices. These ads are generally considered to be:
Invitations to buyers to make an offer to buy the goods described.
Daniel is a self-made millionaire, but he has been medically committed to a mental health facility. A court also ordered Daniel's sister, Michelle, to preside over Daniel's business affairs. Once inside the mental health facility, Daniel befriends his nurse, Amanda. One day, Amanda tells Daniel about her invention to help identify stray dogs and cats. Daniel was so impressed by Amanda's invention that he offers to buy it for $500,000. Amanda accepts Daniel's offer. Did Daniel and Amanda form a contract?
No because Daniel lack the capacity to contract
Jose offers to sell George his iPad 3 for $150 and explains that George has five days to accept. After three days, Jose accidentally drops his iPad 3 from his third-floor apartment balcony, shattering it into tiny pieces. On the fourth day, George, who does not know that the iPad was shattered, notifies Jose that he accepts the offer. Do Jose and George have a valid contract?
No, the destruction of the iPad terminated Jose's offer
In the case of Denney v. Reppert,did the court allow the employees of a bank to collect a reward, because they supplied information that led to the arrest and conviction of a man who robbed their bank?
No, the employees were under a pre-existing duty to the bank and to the public.
The Acme Corporation contracts with the ToysandMoretoys Corporation to sell to ToysandMoretoys its entire production. After signing the agreement, if Acme increases its production from one shift to two shifts will ToysandMoretoys have to buy all of the doubled production?
No, there are good faith limitations on output contracts.
Aaron's boss offers to pay him $500 if he will pretend he is sick so that he does not have to show up for jury duty, but will go to work instead. Aaron knows that this is against the law, but he would rather be paid $500 from his boss than the $30 that the court will pay him for jury duty. Aaron calls in sick and is excused from jury duty. This agreement between Aaron and his boss is:
Not a contract
Joe takes his car into the repair shop to have his tires realigned. While he is waiting for his car, he sees the repairmen take his car to the area where they change the car's oil. Joe tries to get their attention but cannot because he is not allowed in the repair area and there is too much noise in there for the repairmen to hear him knocking on the window. The car is then taken to the area where the tires are realigned. Joe watches while the tires are realigned. The employees next take Joe's car to be washed. Joe asks another customer in the waiting room if the car wash is complimentary (free). The customer points to the sign above the counter listing prices for services, including the car wash. Joe does not bother trying to get the attention of the repairmen because he was not successful before, but he does approach the cashier who has just returned from break. Joe tells the cashier he did not want the car washed. The cashier tells him it is too late because the car is already being washed. When Joe is presented with the bill, there is a charge for the oil change, the realignment, and the car wash. If challenged in court, the court will most likely require Joe to pay for:
Only the alignment because that is all he contracted for.
Ryan, a 15-year-old, negligently crashed into Crystal's car and caused extensive damage and severely injured Crystal. Which statement is correct?
Ryan cannot disaffirm liability for his negligence.
Fred operates a fledgling remodeling business and is in desperate need of a certain type of drywall. He obtains the material from Megaworks, but is charged a grossly unreasonable price and is forced to buy other material he does not need. In view of the buyer's unequal bargaining power and unreasonable terms of the contract, this may be a case of:
SUBSTANTIVE UNCONSCIONABILITY
Salvador and Jose make a contract for Salvador to manufacture five custom saddles of a specified design. Prior to their manufacture, the factory is destroyed in an accidental fire that is no one's fault. The saddles are available from other sources. In this case:
Salvador's duty to deliver the saddles is discharged by the destruction of the factory.
Sam emailed Bob offering to sell him his 1970 Corvette for $7,000. Later, Sam finds out 1970 Corvettes which are in excellent condition and have all the original parts sell for closer to $57,000. He changes his mind about selling his Corvette to Sam for $7,000. What statements about the offer is correct?
Sam can revoke his offer to Bob at any time as long as there is still an offer to revoke
Sam emailed Bob offering to sell him his 1970 Corvette for $7,000 and also said that he would give Bob two weeks to accept Sam's offer before he started advertising the Corvette for sale. One week later, Bob learns that Sam has sold his 1970 Corvette to Terry.What statements about the offer is correct?
Sam's action of selling the car to Terry is a revocation of his offer to Bob.
Madeline, age 17, ordered a pair of diamond earrings on the installment plan. She paid $50 every month until she turned 18, the age of majority. The next day, she sold them to Samantha and disaffirmed the contract. What is the result?
Samantha is still liable because selling the earnings amounted to a ratification
Sean and John are business associates. At dinner, Sean has only one beer over the course of three hours. Sean is a light drinker and normally feels severely intoxicated after three beers. At the end of dinner, Sean and John enter into a multi-year agreement worth potentially millions of dollars. Later, if Sean attempts to void the contract on the basis of intoxication and loses, what would be the reason for it?
Sean's slight intoxication did not destroy his capacity to contract
Buyer and Seller have entered into a contract for the sale of several goods worth hundreds of thousands of dollars. In the contract, seller includes an "as is" warranty clause that is in extremely small print and inconspicuous. If the court finds this clause procedural unconscionable, what would be the reason?
Seller obscured this warranty clause
Wendy is a worldwide recording artist and agrees to play on New Year's Eve at Roscoe's mansion on the beach. Wendy later discovers that Roscoe is a notorious gangster, and refuses to appear at the party as agreed. If Roscoe sues Wendy, what remedy is absolutely not available to Roscoe?
Specific Performance
Because of his winning record at another school Albert signed a contract to coach wrestling for Sigma High for a period of five years. After three years he is offered and accepts an assistant coaching position at Crosstown University. If they sue Albert, Sigma High cannot ask for which remedy?
Specific performance of his contract
__________ is performance that, though incomplete, does not defeat the purpose of the contract
Substantial performance
__________ is a set of oppressive or grossly unfair contract terms or exclusions.
Substantive unconscionability
Buyer and Seller have entered into a contract for the sale of several goods worth hundreds of thousands of dollars. In the contract, which was prepared by Seller, Seller included a clause that stated conspicuously "If Seller sues Buyer for any and all claims related to this contract, Buyer hereby waives all available defenses in law and equity." If the court finds this clause substantively unconscionable, what would be the reason?
Such a clause is grossly unfair because it takes away any legal defense that Buyer has
__________ is an offer by one party—who is ready, willing, and able to perform—to the other party to perform his obligation according to the terms of the contract.
Tender
The sole hospital in a city offers a standard patient care agreement. The contract is prepared on a standard form and offers terms on a take-it-or-leave-it basis. Such a contract is called:
an adhesion contract
Another name for a quasi contract is:
an implied in law contract
On September 15th, Annie and Bertha enter into a contract where both parties are obligated to perform on December 31. On December 1, Annie tells Bertha, "Performing the contract would be impossible for me." This statement is:
anticipatory repudiation
A person is not entitled to relief from fraud, unless she can show that she:
justifiably relied on the misrepresentation
__________ means doing that which the promise was under no prior legal obligation to do.
legal detriment
A __________ is an essential element for a promise or agreement to binding. An agreement without this is unenforceable and contrary to public policy.
legal objective
A commercial building construction company and Sub Shop, Inc. have a contract, which calls for the construction company to build a building with the completion by May 1. If the building is not completed by that date, the contract calls for the construction company to pay $150 per day in damages. The $150 per day is:
liquidated damages
Carl agrees to build a hotel for Jerry by December 1. Both parties agree that if Carl fails to meet his December 1 deadline, he would be obligated to pay $10,000 per day in damages beginning December 2 for each day it takes to finish the hotel past the December 1 deadline. The $10,000 per day damages represent:
liquidated damages
The parties may stipulate in their contract that a certain amount of __________ should be paid in case of a breach.
liquidated damages
Leo tells Nora "I promise to pay you $5,000 next year." Next year, Leo fails to pay Nora and Nora sues. Is Leo's promise enforceable? a. No, this promise is unsupported by consideration. b. No, because Nora is not undertaking anything to her legal detriment. c. No, because Leo's promise is a gratuitous promise made without consideration. d. All of these are correct.
ll of these are correct
When the __________ of the promisor's promise to pay the debt of another is to benefit the promisor, the statute of frauds is not applicable.
main purpose
The amount that could reasonably have been avoided is deducted from the amount that would otherwise be recoverable as damages. This is known as the doctrine of:
mitigation of damages
An offer for the sale of goods under the UCC:
must include the quantity
Bertha was an alcoholic, and one weekend while she was extremely intoxicated, her son took her to the store and had her purchase an expensive computer. If Bertha wishes to rethink this contract, Bertha:
must sober up and ratify the contract
Ned's father orally promises to give him a car for his twenty-first birthday. Using the rule in most states, can Ned legally enforce this promise?
no, a gratuitous (or gift) promise is unenforceable
A small sum of damages fixed without regard to the amount loss is known as:
nominal damages
When a judge enters a very small order for damages, when the plaintiff has not sustained or cannot prove any injury or loss for a breach of contract action, she has entered an order for:
nominal damages
A(n) __________ is a substituted contract that involved an agreement among three parties to substitute a new promise for the existing promise or to replace the existing promisor with a new one.
novation
Contracts that are implied in law are:
obligations imposed by law on grounds of justice and equity
As an exception to the rule on courts inquiring as to the adequacy of the consideration, a court will take evidence to establish:
one party claims to have been defrauded
When the parties express their contract in a writing that is intended to be the complete and final expression of their rights and duties, the __________ excludes prior oral or written negotiations or agreements of the parties?
parol evidence rule
In the Jenkins v. Eckerd Corporation case, the court ruled that:
parol evidence was not admissible when a lease was an integrated agreement and complete in all essential terms.
A contract based on __________ is not enforceable.
past consideration
In most contracts, discharge takes place by:
performance
Any property other than an interest in real property, is/are:
personal property
Patrick held a baseball bat to Eric's head to compel him to sign a contract advantageous to Patrick. This contract was entered under:
physical duress
Once __________ a minor cannot avoid a contract.
ratified
A noncompete agreement may be held invalid, the courts insist that the employer demonstrate that the restriction is __________ to protect the employer's legitimate interest without overly restricting the employee's ability to find another job.
reasonable and necessary
At time, a written contract does not correctly state the agreement already made by the parties. When this occurs, either party may seek to have the court correct the writing to state the agreement actually made. This rewriting is known as:
reformation
When the damages sustained by the plaintiff can be measured in monetary terms, specific performance will be:
refused
On July 8, 2015, Mural, Inc. entered into a contract with Walls-R-Us Company. Under the contract, Mural, Inc. will provide technical support to Walls-R-Us from August 1, 2015 until August 31, 2018. Under the statute of frauds, this contract:
requires a writing because the contract cannot be performed within one year from July 8, 2015.
An injured party who rescinds a contract after having performed services may recover the reasonable value of the performance rendered as:
restitution
A(n) __________ is a measure designed to raise money by requiring the purchase of a license.
revenue license
Leo owes Nora $1,000 and they both agree that Leo will mow the grass of Nora's 10-acre field in satisfaction of the debt. Leo's performance of mowing the grass is:
satisfaction
To establish fraud, the misrepresentation must have been known by the one making it to be false and must be made with an intent to deceive. That knowledge is known as:
scienter
What is the effect of slight intoxication on the capacity of a person to enter into a contract?
slight intoxication will not destroy one's contractual capacity
Maxine signs a contract to sell her townhouse to Jackson for $120,000. Two days later Maxine changes her mind after discovering that she could have sold the property to another buyer for an additional $50,000. Jackson sues and asks the court to have the property conveyed to him at the price of $80,000. Jackson is seeking:
specific performance
Molly signs a contract with a publishing company to edit text manuscripts. This contract is governed by
state common law
The case,Christy v. Pilkinton, is in the textbook to establish which of the following:
subjective impossibility generally discharges the contractual duty of the party
Raul builds Evelyn a $200,000 home according to Evelyn's specifications. Raul, however, missed two specifications, causing Evelyn to incur $25,000 in damages to fix the missed specifications. If Evelyn files a breach of contract, but the court does not allow her to forgo paying for the house, and only requires her to pay Raul $175,000, what theory will the court use to justify its order?
substantial performance
Baxter, a plumber, wants to submit a bid on a city sewer project. He computes the cost, but mistakenly omits the cost of one item. Accordingly, he submits a bid of $430,000 to the city. The next highest bid is $675,000, and the rest of the bids are even higher. The city is happy to have such a low bid, so it accepts Baxter's bid and awards him the contract for the job, even though the city engineer is of the opinion the job cannot be done for less than $650,000. In this case:
the city was aware of Baxter's mistake. When it accepted the bid, with knowledge of Baxter's mistake, the city sought to take an unconscionable advantage of Baxter's error.
In the case of Michael Silvestri v. Optus Software, Inc., the court held:
the employer won as he was allowed to conclude that the efforts were unsatisfactory; a subjective standard is typically applied to satisfaction clauses in employment contracts.
One issue before the court in New England Rock Services, Inc. v. Empire Paving, Inc.case was:
whether the modified agreement between NER and Empire was valid and enforceable as supported by sufficient consideration.
One issue before the court in Neugebauer v. Neugebauer case was:
whether the real estate contract in the case should be rescinded on the the grounds of undue influence.
Cinnful Buns, Inc. entered into a contract with Darius under the terms of which Darius would receive $10,000 if he stole the trade secret recipe from the leading competitor of Cinnful Buns. Darius performed his end of the agreement by delivering the recipe. Cinnful Bunns now refuses to pay Darius for his services. Darius has this option, he:
will be unable to recover, because this is an illegal contract
Wendy is taking a prescribed medication which makes her drowsy and inattentive. If she enters into a contract when she is in that condition, the contract:
would be voidable if, when she makes them, she is unable to comprehend the subject, nature, and consequences of the contracts.
Who would likely be considered a merchant under the UCC with respect to the goods in question?
An authorized Apple computer dealer selling accessories for Apple computers and Apple-related products
All of the following will serve as adequate consideration except? a. Forbearance to do an act. b. Performance of services. c. An illusory promise. d. A promise to perform.
An illusory promise
A convenience store robbery has occurred. The merchant's association has offered a $2,000 reward for information leading to the arrest and conviction of the robber. Several people are claiming they are entitled to the money. Which of the following people would not be eligible for the reward? a. A customer of the store. b. An off-duty game warden from a county other than the one where the arrest occurred. c. An on-duty sheriff's deputy in the county where the arrest occurred. d. All of these individuals would be eligible
An on-duty sheriff's deputy in the county where the arrest occurred.
Carlos orally agrees to sell his house to Andy for $50,000. Can Andy enforce this agreement in court?
Andy cannot enforce the agreement without a written contract signed by Carlos
Annie wants to buy a vehicle that will tow a camper. She gives the specific measurements and weight of the trailer to the salesman. The salesman tells her that the SUV Annie sees on the car lot would be just perfect to tow the trailer. Annie test drives the vehicle and then buys it. In this case:
Annie was not justified in relying upon the salesman's representation that the car would tow the trailer.
If both parties exchange promises, the contract is:
bilateral
A resulting contract is void when it is brought about by:
fraud in the execution
Debra delivers a package to Jackie and requests Jackie to sign a receipt for the package, holds out a simple sheet of paper that says "Receipt," and shows a line where Jackie is supposed to sign. The line, which appears to be at the bottom of the receipt, is actually a promissory note for a $10,000 loan. Jackie signed the line, as indicated by Debra and did not know that she was signing a note. This scenario is an example of:
fraud in the execution
__________ is an unenforceable promise under the law of contract because of a lack of consideration.
gift
Vince has lost his job and is having difficulty making ends meet. Last week, the bank repossessed Vince's car. He is telling his neighbor Paul about his bad luck and Paul says he wishes he could help Vince. Paul suggests that maybe Vince could have the old car sitting in Paul's garage if Vince could get it to run. He ends the conversation by saying "Let me think about it." The next day while Paul is at work, Vince goes into Paul's garage and begins working on the old car. He gets it running and drives it out of Paul's garage and into Vince's driveway. When Paul gets home from work, Vince shows Paul the car and asks him for the title to the car. Paul tells Vince he had not made up his mind about whether or not he would give Vince the car. Vince:
has no claim to the car because Paul did not make a promise
Jose is a race car driver and contracted with Peter to race Peter's car in an upcoming car race. The night before the race, Peter's car caught fire, was severely charred, and was inoperable. What concept would allow Jose to be excused from performing under the contract?
impossibility
A court of equity, at its discretion, may grant a(n) __________ to command the other party to refrain from doing a specific act.
injunction
Alfie enters into a contract to give Ezra the right of first refusal on a tract of land owned by Alfie. Alfie subsequently offers the land to Frank without first offering it to Ezra. An appropriate remedy for Ezra to seek would be:
injunction
In determining the meaning of an ambiguous contract the court will:
interpret the contract strictly against the person who drafted it.
The doctrine of promissory estoppel:
is a doctrine that relies on justice not contractual rights
The type of substance ingestion that could lead a court to find one lacking in capacity is:
because of mental impairment, the person does not comprehend that a contract is being made or understand its consequences.
In the case of Berardi v. Meadowbrook Mall Company, the court found economic duress, such as that found renders a contract void. Is this statement correct?
No, the court affirmed the summary judgement
Parol evidence is admissible to show:
1. fraud 2. duress 3. mistake
Bill faxes Harry an offer at 9 a.m. on Monday and the fax arrives at Harry's office at 9:02 a.m. Monday. Because Harry is taking a vacation day on Monday, he does not read the fax until Tuesday at noon. Harry decides to accept Bill's offer and tells his assistant at 3 p.m. Tuesday to prepare an acceptance for his signature. The acceptance is placed on Harry's desk at 4:45 p.m. Tuesday. Harry signs the acceptance and gives it to his assistant to fax back to Bill at 9 a.m. Wednesday. The assistant does so immediately; however, due to malfunctioning of Bill's fax machine, Bill does not receive Harry's acceptance until Friday morning. The offer is effective at __________ and the acceptance is effective at __________.
9:02 Monday Approximately 9 am Wednesday
Which of the following is a contract with a condition subsequent? a. Adam bought an iPad but he may return the iPad within one month and get all of his money back. b. Sally enters into a contract to buy a new house conditional upon her getting a loan from her bank.
A
Which of the following would generally be considered to be a regulatory licensing law? a. A statute requiring that doctors be licensed after finishing medical school. b. A statute requiring that salespeople be licensed, but not establishing any educational or training requirements. c. A statute requiring plumbers to be licensed, but not establishing any standards of competence. d. A statute that requires flag makers to register with the state before selling flags.
A statute requiring that doctors be licensed after finishing medical school
In some situations the courts will enforce new promises to perform an obligation that originally was not enforceable. Which of the following would be that sort of promise?
A new promise to pay a debt barred by the statue of limitations.
Courts allow a minor a certain amount of time to disaffirm a contract when he turns 18 years of age. That time period is:
A reasonable period of time after reaching the age of majority
The fact that no time is specified in the contract means that:
A reasonable time for performance will be implied
Which of the following is NOT always necessary in order for a valid contract to be formed? -mutual assent -legality of purpose -a writing -consideration
A writing
According to general (common) contract law, the __________ must be the __________ of the offer.
Acceptance mirror image
Which of the following is required in order to recover in quasi contract?
Acceptance or retention of a benefit conferred on the defendant by the plaintiff
Furniture Store runs an ad in the local Sunday newspaper announcing a special Veteran's Day offer of a free Brandname chairside table to the first three veterans who come into the store on Veteran's Day. The ad states the price of the table, the dimensions, the SKU#, and what the table is made of. Other parts of the ad indicate the store's location and its hours. Joe is a Veteran. He goes to the store on Veteran's Day, but he arrives after the hours listed in the ad and the store has closed. Joe sticks a post-it on the store door saying that he is a veteran and wants the table. Which of the following statements is correct about his offer?
According to the court in Osprey L.L.C. v. Kelly-Moore Paint Co., Inc., Joe's sticking a the post-it on the door of the store is not the authorized means of accepting the store's offer and is not likely be considered a sufficient substitute for the ad's requirement that the offer be accepted by coming into the store because it does not ensure that the offeror will receive the acceptance at all and it does not ensure that the acceptance will be received before the offer has expired by its terms.
What is the capacity of a person adjudicated incompetent by a court order? a. A merchant might be able to recover the fair value of any necessaries. b. The person's own contracts are void. c. The guardian may be able to ratify contracts made by the ward. d. All of these are correct.
All of these are correct
Which of the following would meet the signature requirement for a writing to satisfy the statute of frauds? a. Initials of both parties. b. An electronic signature. c. A printed name. d. All of these are correct.
All of these are correct
Which of the following, if any, are requisites for fraud in the execution? a. False representation as to the very nature of the contract. b. Signing party does not know the character or essential terms of the contract. c. Renders the transaction void.
All of these are correct
Which of the following offers cannot be revoked? a. Any offer by a merchant under the UCC. b. Any offer that is in writing that promises to leave the offer open for three months or less. c. Any offer that is in writing, signed, and promises to leave the offer open whether it is made by a merchant or not. d. All of these are incorrect
All of these are incorrect
Which of the following offers cannot be revoked? a. An offer to pay the high school student next door if he takes in your mail when you go on vacation regardless of whether he promises to take in the mail, if the revocation is prior to leaving for vacation. b. An offer to pay the high school student next door if he will take in your mail when you go on vacation regardless of whether he promises to take in the mail, if the revocation is before any mail has been delivered. c. An offer to pay the high school student next door if he will take in your mail when you go on vacation regardless of whether he promises to take in the mail, if the revocation is before your return from vacation but after he has collected your mail for all the days that you have been on vacation up until the revocation. d. None of these are correct.
C
__________ is an intentional misrepresentation of material fact by one party to the other, who consents to enter into a contract in justifiable reliance on the misrepresentation. Fraud in the inducement renders the contract __________ by the defrauded party.
Fraud in the inducement voidable
Jamal negligently injures Gayle, for which Gayle may recover damages in a tort action. Jamal promises Gayle $10,000 if Gayle forbears from bring suit against him. Gayle accepts by not suing. What legal detriment, if any, has Gayle incurred in this case?
Gayle promised to refrain from bring suit against Jamal
The law very carefully scrutinizes contracts between those in a relationship of trust and confidence that is likely to permit one party to take unfair advantage of the other. Which of the following is not an example of that type of relationship? -agent and principal -hair dresser and client -parent and child -doctor and patient
Hair dresser and client
Furniture Store runs an ad in the local Sunday newspaper announcing a special sale on a Brandname chairside table. The ad states the price of the table, the dimensions, the SKU#, and what the table is made of. Other parts of the ad indicate the store's location, the hours, and a website where purchases may be made online. Joe goes online and places an order for the table. Two months later, Furniture Store sends Joe an email notifying Joe of the store's acceptance of his order and charges his account. Joe no longer wants the table. According to the court in Sherrod v. Kidd:
Joe is not likely to be contractually bound to this purchase because two months is likely to be more than a reasonable amount of time within which the store had to accept Joe's offer.
Juliet has wagered $500, which Lance, as her bookie, is holding, on a prize fight. If, before the race starts, Juliet wants to take back her money and withdraw from the transaction:
Juliet cannot sue to recover any money because the contract to wager is illegal and unenforceable
Mike, a 75-year-old mechanic, returned Carrie her car after fixing the brakes. Mike told Carrie: "I put some new brakes on her—she should brake with complete ease!" When Carrie drives away, she cannot stop her car and crashes into a dumpster. It is later discovered that Mike failed to reconnect one of the brake lines. There is no indication that Mike knew that he failed to reconnect the brake line. If Carrie sues Mike for fraud, and the court sides with Mike, what would be the court's reason?
Mike lacked scienter because he did not make the statement with the intent to deceive.
Moe is Larry's attorney. Larry is a high school dropout with a tenth-grade education and no job. Moe graduated from an elite law school and is a highly-skilled attorney. Larry recently inherited a substantial amount of money from his mother. Rather than continue to utilize his late mother's financial management company (Golden Wealth), Moe successfully persuades Larry--after hours of closed door meetings and very high-level talks about the stock market, tax law, and legal jargon--to move his money from Golden Wealth and enter into a 10-year management agreement with Stooge Wealth Management, which is owned by Moe's best friend Curly. If Larry seeks to later void his agreement with Stooge Wealth Management, what would be his winning argument?
Moe extended undue influence on Larry to switch from Golden Wealth to Stooge Wealth
The Jones' have always admired a house that sits on the top of a hill owned by the Smiths. Martin is a mutual friend of both the Jones and the Smiths. One day, Martin mentions to the Smiths how much the Jones would love to buy the Smith home. The Smiths say that if they sell the house, they would be happy to sell it to the Jones. Martin relays this conversation to the Jones and the Jones immediately call the Smiths to accept the Smith's offer to sell. Have Smiths made an offer to sell their home to the Jones? Why or why not?
No because: 1) The SMiths did not objectively intend to make an offer because they did not clearly state they were willing to sell the house 2) The Smiths did not include a selling price in their conversation with Martin so the offer would fail for lack of specificity and definiteness
Mary induces James to enter into a contract. James subsequently discovers that Mary intentionally misrepresented the terms of their contract. Upon this discovery, James tells Mary that he will not perform his promise under the contract. If Mary sues James for breach of contract, will Mary win?
No, because Mary induced James into the contract by fraudulent misrepresentations, which makes the contract voidable.
Sherry owns an apartment building. Sherry and Robert agree in writing that Robert will rent one of Sybil's apartments, beginning immediately, for a period of one year. Outside of the written contract, Sherry orally promised Robert that the apartment would have wooden floors and not carpet. Shortly after moving in, Robert discovers that only the front entrance to the apartment has wooden floors, and the remainder of the apartment contains carpet. If Robert seeks to void the rental agreement with Sherry on the grounds that Sherry committed misrepresentation by telling him that the entire apartment had wooden floors. If Sherry invokes the parol evidence rule, will she be successful?
No, because Robert is alleging misrepresentation
Sherry owns an apartment building. Sherry and Robert agree that Robert will rent one of Sherry's apartments, beginning immediately, for a period of six months. Under the statute of frauds rule, does this lease need to be in writing to be enforceable?
No, because it is a short-term lease of less than one year
Alan finds Marcia's dog on the side of the road. He then takes the dog home and treats the dog's injuries. When he calls Marcia to tell her he has found the dog, she promises to reimburse Alan for the cost of treating the dog. Is Marcia's promise binding?
No, because there was no bargained-for exchange.
Sherry owns an apartment building. Sherry and Robert orally agree that Robert will rent one of Sybil's apartments, beginning immediately, for a period of one year. After one year, Robert seeks to rescind the rental agreement with Sherry on grounds that it did not comply with the Statute of Frauds. Will Robert be successful?
No, both parties have fully performed under the oral contract.
Andrew received a bill for $500 from Jeff for a tune-up Jeff performed on Andrew's SUV. Andrew called Jeff and told him, "The car runs no better now than before the tune-up. I am sending you $200 and no more." Jeff received the $200 check which was marked "paid in full SUV repair" and cashed it. Is Andrew still liable to Jeff for the remaining $300?
No, if the check is marked "paid in full" and references the transaction.
When a minor's guardian furnishes her with an adequate wardrobe would a new hoodie be a necessary (in the majority of states)?
No, necessaries are items not provided by the guardian
Amy is Tina's sister and executor of Tina's will. In administering Tina's estate, Amy recognizes that Tina's estate will not have enough funds to pay all of Tina's debts. Amy orally promises to pay Seth, one of Tina's creditors, that she will personally pay all of Tina's debts in full. Is such a promise enforceable?
No, such promises of an executor of a decedent's will falls under the statute of frauds
Which of the following will be seen as commercial impracticability? a. Performance is rendered unjust by a supervening event not caused by her own fault. b. A shortage of materials necessary for production of goods and/or provision of services called for under the contract c. An unanticipated increase in the cost of performance d. Hardship caused by neglect or oversight.
Performance rendered is unjust by a supervening event not caused by her own fault.
__________ damages are ordered in excess of actual loss and are imposed for the purpose of punishing the defendant.
Punitive
If a court found that one party committed fraud in inducement to their contracts, to what remedy or remedies is the aggrieved (other) party entitled?
Recession and damages if out of pocket costs were incurred as a result of the fraud.
Which of the following can be consideration for a promise? a. Refraining from assaulting one's roommate. b. Promising to refrain from stealing from the boss. c. Refraining from using a controlled substance. d. Refraining from smoking cigarettes
Refraining from smoking cigarettes
Seller agrees to sell land to Buyer for $50,000. After Buyer makes a payment of $25,000 to Seller, Seller wrongfully refuses to transfer title. If Buyer sues Seller for breach of contract and the court awards buyer $25,000, what does this figure represent?
Restitution
Seller orally agrees to sell land to Buyer for $50,000. Buyer pays three monthly installments of $10,000 to Seller before Seller repudiates the oral contract, and argues that the contract is unenforceable under the statute of frauds. What remedy, if any, is buyer entitled to against Seller?
Restitution
Sometimes the law imposes a duty of disclosure. When a fiduciary is silent, silence may constitute fraud. A fiduciary is one who:
is in a confidential relationship who owes a duty of trust and loyalty to another
Billy freely agrees to sell Roger a painting for $100. Billy thinks the painting is ugly and a piece of junk. Neither Billy nor Roger are art aficionados or knowledgeable about art. After the sale is made, however, Billy discovers that the painting is worth $10,000. If Billy tries to void his agreement for lack of consideration with Roger and loses, what would be the best reason under these facts?
The consideration, although disproportionate, is nevertheless adequate because he was done freely.
Veronica has not been declared incompetent by a court, but she suffers from delusions that a Martian visits her every evening at 6 p.m. to tell her that the future of the human race depended on her buying a tract of land in Lackawanna County. Today, Veronica entered a contract to purchase a large tract of land in Lackawanna County on the Martian's advice. Which of the following statements is true about the contract?
The contract to purchase the land is voidable, because Veronica has not been adjudicated insane, and possible could still have understood the contract
What order did the court enter in the case of Madison Square Garden Corp., Ill. v. Carnera?
The court entered an injunction to enforce an agreement to perform exclusive services that are unusual and extraordinary and damages were not adequate to compensate for the loss.
The court, in ruling on Dunnam v. Burns,applied what reasoning to the matter?
The court reasoned that a document that contains an absolute obligation to repay a loan together with interest in excess of the allowed amount is usurious on its face.
When the court ruled on Alcoa Concrete & Masonry v. Stalker Bros. what law did the court use for its ruling?
The court reviewed the matter under the case law and statutes in the state on enforcement of the contracts of unlicensed contractors.
Francisco is a concert violinist who is scheduled to perform at the Kennedy Center for the first time. He buys what he is told is a Stradivarius violin from a well-known, reputable dealer in quality violins, and he pays the going rate for a Stradivarius. He later learns the violin is an imitation, sold by the dealer who was trying to make quick money. In this case:
The dealer has committed fraud in the inducement
Which of the following would be material to the sale of a racehorse? a. The horse's coloring is chestnut. b. The horse's running time in the last race was the fastest in the circuit. c. The horse was ridden by Josh Jockey in the last race. d. All of these are correct.
The horse's running time in the last race was the fastest in the circuit
What is a requirement of an express contract?
The terms are stated in words
Joe sends for a MBA catalog from State University. According to the catalog, the MBA applications are evaluated on the basis of undergraduate grades, GMAT (the appropriate standardized test) scores, and references. Joe has a 3.1 GPA, scores very well on the GMAT, and has excellent references. Based on the criteria listed in the catalog, Joe applies and pays the $100 application fee. His application is rejected. Later he finds out that others with low grades and test scores were accepted based on their family connections with the University. If Joe followed all of the guidelines in the college catalog and paid the required application fee, then according to the court in Steinberg v. Chicago Medical School:
There is a valid contract
Joe sends for a MBA catalog from State University. According to the catalog, the MBA applications are evaluated on the basis of undergraduate grades, GMAT (the appropriate standardized test) scores, references, and other factors that the University, in its discretion, believes will enhance the standing of the University. Joe has a 3.1 GPA, scores very well on the GMAT, and has excellent references. Based on the criteria listed in the catalog, Joe applies and pays the $100 application fee. His application is rejected. Later he finds out that others with low grades and test scores were accepted based on their family connections with the University. If Joe followed all of the guidelines in the college catalog and paid the required application fee, then according to the court in Steinberg v. Chicago Medical School:
There is a valid contract, but there has been no breach of that contract by the University or by Joe.
In order to have a valid contract, in addition to the four basic requirements of a contract, what must also occur?
There must be an absence of invalidating conduct, such as duress
Sam agrees to sell Gina a BMW automobile, both believe to be inoperable, purely for parts. The contract price is $500. Prior to the delivery of the BMW, Sam discovers that the car was simply out of fuel, runs like a dream, and refuses to deliver the automobile to Gina. The value of the operable BMW is now at $3,000. if the court allows Sam to rescind the contract, what would be the reason?
This is a case of material mistake by both parties.
Every adult is presumed to have capacity unless:
it is proven that capacity is lacking or there is status incapacity.
Pam and Alexander enter into a contract on January 1 of this year. Pam's friend Callie tells Pam, "There is a statute that restricts the period of time within which an action may be brought." Callie's statement is:
True because of statute of limitations
__________ means contrary to the dictates of the conscience; unscrupulous or unprincipled; exceeding that which is reasonable or customary; inordinate, unjustifiable.
Unconscionable
Sergio buys an LED television from The Television Superstore in Sacramento, California. What law governs this transaction?
Uniform Commercial Code (UCC)
Susie told Kelly, "If you wash my car, I promise to pay you $20." Kelly does not reply. This exchange is an example of:
Unilateral contract
Juan sold his gas station business in San Antonio, Texas to Fred and promised Fred not to enter the gas station business in Texas for the next twenty-five years. If the court finds this agreement unreasonable and invalid, what grounds would support the court's decision?
Unreasonable in time AND geography
One issue before the court in Vanegas v. American Energy Services case was:
whether AES was bound by a promise to pay at-will employees 5% of the value of the sale of the company if they continued their employment after the sale.
Nila is working hard on Sam's election campaign for the legislature. She thinks that just a few more votes could win the election, so she promises to pay her friend Daphne $50 if she will register and vote for Sam. Daphne does so, but Sam loses the election, and Nila now refuses to pay. This:
agreement is unenforceable and opposed to public policy
Daniel owes Amanda $5,000 and they both agree that Daniel will mow the grass of Amanda's 10-acre field to satisfy Daniel's outstanding balance. The agreement to mow the grass represents:
accord
Ordinarily, courts do not consider the __________ of the consideration given for a promise.
adequacy
If an offer has no stated time by which it must be accepted, when does the offer terminate?
after a reasonable period of time
General contract provisions of a writing must:
a. specify the parties to a contract. b. specify the subject matter and essential terms. c. be signed by the party to be charged or his agent.
A(n) __________ is a contract by which an obligee promises to accept a stated performance in satisfaction of the obligor's existing contractual duty.
accord
Andrew owes Rachel $200 for a used television which he bought last year at Rachel's yard sale. When Andrew is unable to pay, the two agree that the debt can be paid by Andrew's typing all of Rachel's term papers for the school year. The new contract is a(n):
accord
Jacqueline entered into an employment contract with The Umbrella Corporation that contained a covenant not to compete, as well as other provisions involving salary, a severance package, holiday compensation, and other employment-related benefits. If the court finds only the covenant not to compete illegal, what effect will such a ruling have on the remainder of the contract?
because this is a partially legal contract, the remainder of the contract may be enforced.
Even though all creditors have not been paid in full, a discharge under the __________ eliminates ordinary contract claims against the debtor.
bankruptcy
In the case of Hochster v. De La Tour the court considered the following issue:
whether Hochster was allowed to treat the repudiation of the contract by De La Tour as breach of contract and immediately bring suit.
One issue before the court in the In Re The Score Board, Inc. case was:
whether Kobe Bryant, by his actions, ratified a contract with Score Board after reaching the age of majority.
Contracts induced by threats of __________ are not voidable, unlike threats of __________ regardless of whether the coerced party had committed an unlawful act.
civil prosecution criminal prosecution
In the case of Merritt v. Craig, the plaintiff sued for a rescission of the contract along with:
compensatory and punitive damages
A __________ is an event that terminates an existing duty.
condition subsequent
Which type of condition is more common?
conditions precedent are common in contracts
Compensatory damages are designed to place the injured party in a position as good as the one he would have been in had the other party performed, and are known as:
consequential damages
A given agreement may not violate any statute but may still be so offensive to society that courts feel that enforcing the contract would be:
contrary to public policy
A buyer of a business may negotiate a __________ contract clause to keep the seller from running a competing business.
covenant not to compete
Where, after a contract is made, a party's principal purpose is substantially frustrated without his fault by the occurrence of an event whose nonoccurrence was a basic assumption on which the contract was made, his remaining duties can be discharged by:
frustration of purpose
A minor may avoid or __________ a contract by any expression of an intention to repudiate the contract.
disaffirm
The fact that the consideration turns out to be disappointing __________ the binding character of the contract.
does not affect
A person should not be held to an agreement he has not entered voluntarily. Accordingly, the law will not enforce any contract induced by:
duress
Furniture Store runs an ad in the local Sunday newspaper announcing a special sale on a Brandname chairside table. The ad states the price of the table, the dimensions, the SKU#, and what the table is made of. Other parts of the ad indicate the store's location, the hours, and a website where purchases may be made online. Joe goes to the store to purchase the table but sees another very similar table that is not on sale ("the regularly priced table"). He offers to buy the regularly priced table from the store for the sale price of the Brandname table. The store says that it cannot sell it at the sale price, but it can sell it for 10% off the listed price. Joe says that is too much money to spend for the regularly priced table. Joe continues to shop around. Seeing nothing he likes, he decides to buy the regularly priced table for 10% off. When he goes to pay for the table, the store charges him full price. If challenged in court, the court is most likely to:
find that Joe's initial rejection of the store's offer to sell the regularly price table for 10% off effectively terminated that offer; that Joe is now making an offer to purchase the regularly price table for 10% less than the asking price; and the store is free to accept or reject Joe's offer.
Which of the following is most likely to be classified as a necessary for which a minor will be held liable on a contract? - a TV -school supplies -education -food
food
Courts of equity will not grant specific performance of contracts:
for a personal services contract
The breaching party is not liable for loss that was not __________ at the time of entering into the contract.
forseeable
Furniture Store runs an ad in the local Sunday newspaper announcing a Veteran's Day special on a Brandname chairside table. The ad states the price of the table, the dimensions, the SKU#, and what the table is made of. Other parts of the ad indicate the store's location, the hours, and a website where purchases may be made online. If Joe goes into the store sometime during the day on Veteran's day and tries to buy a Brandname chairside table, but is told the store has sold out of that particular table, according to the court in Lefkowitz v. Great Minneapolis Surplus Store, Inc.:
the store is not likely to be in breach of contact because the facts and circumstances regarding its ad indicate that the ad was intended to be like most ads - an invitation for the public to make an offer - and the store did not accept Joe's offer.
For the issue of capacity, a court will examine whether a party to the contract lacked contractual capacity when:
the time the contract was made
Marilyn sells her highly successful travel agency to Adelle. In the sales contract, Marilyn agrees never to open a travel agency in the state. Which of the following best describes this contract clause?
unenforceable as a violation of public policy
When only one party is mistaken as to a fact or facts of the transaction, it is termed:
unilateral mistake
The customs and __________ or commercial activity to which the contract relates may be used to interpret the terms of a contract.
usage of trades
Mabel is 88 years old and under the court ordered legal guardianship of her daughter. One day Mabel receives a telephone call from a health insurance salesman and purchases a $400-a-month Medigap insurance policy. The contract is:
void
Mary is a person who experiences hallucinations and other psychotic episodes. She has been adjudicated incompetent and a guardian has been appointed to care for her. Any contracts from this point forward are:
void
In a __________, the parties stipulate that one shall win and the other lose depending on the outcome of an event in which their only interest is the possibility of such gain or loss?
wager
Sally offers to sell her Business Law textbook from last semester to Bob for $50.00. Bob accepts Sally's offer and tells her he will pay her on Friday when he gets his paycheck. A contract is formed:
when Bob accepts Sally's offer