Business Law Final (Chapters 11-19)

valid ways that mark agreement to an electronic contract

"X", check mark, initials, digitalized signature, typing name,

Misrepresentation by Silence

- Ordinarily neither party has duty to disclose facts (both parties have to take care of discovering their facts) -However, seller will be liable if she knows of material defect that cannot be reasonably discovered by buyer (happens a lot in construction)

A party may be discharged (released) from avalid contract by:

-A condition occurring -- or not occurring. -Full performance or material breach by the other party. -Agreement of the parties. -Operation of law.

exceptions to the privity of contract

-Assignment or Delegation ("assign your right") -Third Party Beneficiary Contract

definiteness of terms (terms that must be included in a contract)

-Identification of the parties -Object or subject matter of the contract. -Consideration to be paid. -Time of payment, Delivery, or Performance.

material breach of contract

-Occurs when performance is not substantial. -Non breaching party is excused from performance and entitled to damages.

sanctity of promises (you must keep your word)

-Rooted in our western tradition (if you make a promise you should keep it, parents) -Morally important (bible) -Economic Necessity (keeping promises is what makes things work)

"plain meaning" rule

-The judge will read the contract and give everything its "plain meaning" -However, if terms are unclear, court may have to get "extrinsic" (external) evidence (ask someone outside of court to clarify meaning)

rights that cant be assigned

-When a statute expressly prohibits assignment. -When the contract expressly prohibits assignment.

Elements of a contract

-agreement -consideration (there must be something of value in the contract) -contractual capacity (your mental ability to contract, 5 y/o or someone with Alzheimer's should not sign) -legality (must be legal)

two types of auctions

-auctions with reserve (min price that the highest bid must exceed, can withdraw goods) -auctions without reserve (highest bidder wins no matter what the price is, cannot withdraw goods)

types of performance

-complete (Party A completes performance, Party B isnt obligated to complete performance until party A has completed) -substantial (not complete, but complete to the extent that the subject of the contract can be used how it was intended to be used, even though job not complete you are expected to complete performance) -inferior (no performance at all, item is not able to be used as it was intended to be used)

examples of illegal contracts

-contracts to do something prohibited by federal or state statutory law is illegal and therefore void (never existed) (auburn high rise exp height differing by state) -contracts to commit a crime -contracts for usury -gambling -licensing Statutes: only remember that where a license is required, a contract without a license is unenforceable

Things that are not offers

-expression of an opinion ("i think your boats worth $15,000) -statements made in jest,frustration, or anger (new BMW exp) -statements of future intent (might want to sell something next year) -negotiations or invitations to negotiate

things that have legal value

-money or expensive things -promise -performance (worker performance) -forbearance (not doing something that you have the legal right to do in exchange for something of value)

requirements of an offer

-offerors offer must be serious -terms must be definite (outsider could look at contract and easily determine what it is being offered) -offer must be communicated to the offeree

what is included in the written contract (written or electronic)

-quantity -signature -names of parties -subject matter -consideration

what can the parties do to terminate an offer?

-revocation (revoke offer, "maybe I shouldn't have made that offer) -rejection (of the offer by the offeree) -counteroffer (by the offeree, rejection of original offer and simultaneously making another offer)

unilateral mistakes cannot be cancelled unless...

-the other party to the contract knows or should have known that a mistake of fact was made OR -mistake was due to an inadvertent mathematical error and without gross negligence (missed due date in college exp)

for something to be an offer...

-the parties must show mutual voluntary assent to terms of the contract (agreement) -all other elements of a contract must be present

2 rules of delegations

1) the delegatee must agree to the delegation 2) if the delegatee does not fulfill the obligation then the delegator must still fulfill the obligation

what are the elements of consideration?

1. "legally sufficient value" (there must be something of legally sufficient value in the contract) 2. "Bargained-for-Exchange" (both parties have the right to say yes or no to the contract)

Two contract rules

1. if you don't read the contract but you sign it, thats on you "i didn't know what was in the contract" is not an excuse. 2. you read the contract and don't understand it, thats on you "i didn't understand the contract" is not an excuse

rules to disaffirm contract

1. must not have done anything irresponsible or illegal during time that they had the consideration, get back full value REGARDLESS of the condition of the consideration that they received 2. if they have done something irresponsible, they must return consideration in the condition its in BUT will only get compensation for the value its returned in

age of majority per the common law?

18 for females and 21 for males

executed

A contract that has been fully performed on both sides.

executory

A contract that has not been fully performed on either side.

mirror image rule

At common law, any change in terms automatically terminates the offer and substitutes the counteroffer

Bilateral vs. Unilateral Contracts

Bilateral-exchange promises between two people (promise for a promise) Unilateral -promise of performance/act (doesn't matter what they say it matters what they do,mow grass exp)

novation

Both parties agree to substitute a new third party for one of the original parties.

The most important reason courts enforce contracts is/are: a. "a person's word is their bond." (It's the moral thing todo.) b. The law says one will keep one's promises, so you must obey the law. c. Contracts are a foundation of our economy . d. Keeping one's promises shows you can be trusted.

C

Chapter 12

Contracts- Agreement in traditional and E-contracts

Chapter 15

Contracts- mistakes, fraud, and voluntary consent (genuineness of assent)

Chapter 13

Contracts-Consideration

Chapter 11

Contracts-nature and terminology

Chapter 14

Contractual Capacity and Legality

non material breach of contract

Duty to perform is not excused and the non-breaching party must resume performance of the contractual obligations undertaken.

Express vs implied Contracts

Express- Formed by words (CAN BE ORAL OR WRITTEN) Implied- formed by the conduct of the parties (its expected that both parties do something) exp food delivered to restaurants when nobody's there, check is left by restaurant and food left by driver)

Bill offered to pay Jennifer $100 for her bike if she would paint it blue. Jennifer agreed and painted the bike a beautiful Carolina Blue. Bill refused to buy the bike saying it wasn't a manly blue and Jennifer should have known that . T/F Bill wins, Jennifer loses.

False

legality

For a contract to be enforceable, it must be formed for a legal purpose. A specific clause in contract can be illegal, but rest of contract can be enforceable. A contract to commit a tortious act is illegal

Formal vs informal Contracts

Formal - specified in law/special form of creation (exp check must put things in specific places) (every formal contract will be in writing) Informal- requires no special form for creation (doesn't matter where the elements of the contract are as long as they are somewhere)

destruction of the subject matter termination

If it occurs before acceptance of the offer, then the offer is canceled

substitute mode of acceptance

If the offer calls for a specific way of acceptance that should be the only way you accept. Use an alternative way at your own risk (exp "must deliver via fedex")

Contractual capacity

Legal ability to enter into a contractual relationship

contracts that require writing

MY LEGS -Marriage contracts -Contracts which can't be performed within a year -Contracts which involve interests in land -Executor's contracts -Contracts for the sale of goods worth over $500.00 -Surety (Guarantor) contracts

lapse of time termination

Offer terminates by law when the period of time specified in the offer has passed (If no time period for acceptance is specified, the offer terminates at the end of a reasonable period of time.)

parol evidence rule

Oral representations or promises made prior to the contract's formation or at the time the contract was created, may not be admitted in court. (only take what is on the contract into consideration disregards what you say, 4 corners) exceptions: -contracts that are subsequently modified (modified after signed) -voidable or void contracts

preexisting duty

Promise to do what one already has a legal duty to do does not constitute legally sufficient consideration exp. contractor, only owes 200,000

illusory promises

Promisor has not definitely promised to do anything (no promise at all) (will pay you more if we have a good summer exp, has not obligated himself to pay her)

function of contract law

Provides stability and predictability for commerce (allows businessmen to plan and invest in the future based on promises or contracts)

1677 England passed the law "An Act for the Prevention of Frauds and Perjuries"

Required that, to be enforceable, certain types of contracts must be in writing and signed by the party against whom enforcement is sought to be enforceable

exception to contracts for the sale of goods worth over $500

Specially manufactured goods (do not have to be in writing, sorority t shirt exp)

acceptance

Voluntary act (expressed or implied),by the Offeree that, shows assent (agreement), to the terms of an offer

mitigation of damages

When breach of contract occurs, the innocent injured party is held to a duty to reduce the damages that he or she suffered

A contract for a sale of land from Beachfront Properties Inc. to City Development Corporation contains an erroneous legal description. The appropriate remedy for these parties is most likely a. reformation. b. a quasi contract. c. damages. d. specific performance.

a

A contract that includes a bilateral mistake may be rescinded if the mistake involves a. a material fact. b. any fact. c. an opinion. d. none of the choices.

a

A novation requires a. the existence of a previous, valid obligation. b. an accord and satisfaction. c. performance of the original contract by all of the parties. d. consideration greater than $5,000.

a

Beau borrows $15,000 from Credit Center to buy a car. The lender assigns the right to receive the loan payments to Debt Collections Inc. If Beau does not pay the debt, the assignee can a. enforce the payment in court. b. demand performance of the deal from any of the original parties. c. extinguish the contract rights of the assignor. d. none of the choices.

a

City Delivery, Inc., enters into a contract to deliver furniture to Damien's house with payment due on July 4. On July 4, Damien's bank is closed, and for this reason, he claims that he cannot pay on time. In this situation a. Damien is in breach. b. the bank is liable for breach. c. the contract is suspended. d. the contract is discharged.

a

Dari, a minor, wants to disaffirm a contract that she entered into with Echo, a cell service company. The law in Dari's state, as in all states, permits minors to disaffirm a. executory and fully executed contracts. b. none of the choices. c. fully executed contracts only. d. executory contracts only.

a

Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have a. an express contract. b. a quasi contract. c. no contract. d. an implied contract.

a

Fra enters into a contract with Global Shipping Ltd. to insure and ship a painting from Holland to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would a. allow the parties to rescind the contract. b. award damages to Fra for the mistake. c. enforce the contract as is. d. award damages to Global for the mistake.

a

Generally, the duties under a contract can be delegated a. unless the contract expressly prohibits delegation. b. under no circumstances. c. unless the rights under the contract have previously been assigned. d. unless the delegation involves only a payment of money on the deal.

a

Glen offers to sell Helen his iPad for $200. Under the mirror image rule, Helen's response will be considered an acceptance if the terms of the acceptance a. exactly mirror those of the offer. b. change both the price and the items offered. c. change the items offered, but do not change the price. d. change the price, but do not change the items offered.

a

Gwen is indebted to Home Loan Company for $75,000. Gwen agrees to pay, and Home Loan agrees to accept, a lesser amount than the lender originally claimed was owed. The performance of this agreement is a. a satisfaction. b. a release. c. an illusory promise. d. an accord.

a

Hilton enters into a contract to erect a fence around Irene's cattle pasture. When the fence is built, Hilton's performance will be a. complete. b. substantial. c. conditional. d. material.

a

Jana, a nurse practitioner, renders aid to Kurtz, who is injured and unconscious. Jana can recover the cost of the aid from Kurtz a. on a quasi contract theory. b. under no circumstances. c. only if Kurtz recovers because of the aid. d. only if Kurtz was aware of the aid.

a

Kip enters into a contract with Life Insurance Company for a policy that designates Mia as the beneficiary. Kip reserves the right to change the designated beneficiary. Mia's rights under the policy are a. subject to any change that Kip makes. b. subject to the first-in-time rule. c. not affected by the reservation. d. terminated by the reservation.

a

Larry advertises a reward for the return of his lost dog. Miguel does not learn of the reward, but finds and returns the dog. With respect to Miguel, Larry's ad is not an offer because it lacks the element of a. communication. b. none of the choices. c. serious intent. d. definite terms.

a

Luc, a vehicle dealer, offers to sell Mel a truck and trailer, which Luc claims can haul a certain weight. He knows nothing about the capability of the truck, but it is not as he asserts. Mel buys the truck. On learning the truth, Mel confronts Luc, who says he was not trying to fool Mel—he was only trying to make a sale. This is a. fraudulent misrepresentation. b. puffery. c. a mistake of value. d. a valid defense to a charge of fraud.

a

Lumber LLC files a suit against Mill Company to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds. The court could enforce such a contract if a. Lumber foreseeably and justifiably relied on Mill's promise. b. neither party has begun to perform. c. the deal does not involve customized goods. d. Mill denies the existence of any contract.

a

Maria is the sheriff of Narez, Texas. Oscar robs a Narez gas station and a $500 reward is offered for his capture. When, later, Maria finds and arrests him, with respect to the reward, she can a. not collect it because she had a preexisting duty to capture Oscar. b. collect it. c. not collect it because it is not legally sufficient consideration. d. not collect it because it is an illusory promise.

a

Marlo and Nita enter into a contract for the sale of Marlo's apartment for which Nita agrees to pay $250,000. Nita assigns her right to buy the apartment to Owen. Owen is a. the assignee. b. the obligor. c. a third party beneficiary. d. the assignor.

a

Mel agrees to work as a freight broker for National Shipping Inc. In determining whether a contract has been formed, an element of prime importance is the parties' a. intent. b. objectives. c. subjective beliefs. d. motives.

a

Rafi offers to sell his sailboat, Sea Siren, to Tara for $50,000. Referring to the prices for similar vessels, Tara says, "I'll pay no more than $40,000." Rafi's offer is a. terminated. b. revoked. c. still open. d. rejected and subject to a counteroffer.

a

Real Fries Inc. and Spud Farm discuss periodic deliveries of potatoes. Despite the absence of an invoice or other writing evidencing the terms of a deal, Spud begins to perform, and Real accepts the deliveries but refuses to pay. As a contract, this arrangement is most likely enforceable against a. Spud and Real, at least to the extent of the performance. b. neither party. c. Real only. d. Spud only.

a

To be enforceable, a contract that is required to be in writing must include a. the signature of the party against whom enforcement is sought. b. the signature of the party who is seeking enforcement. c. no particular signatures. d. the signatures of all of the parties to the agreement.

a

Vicky asks Walt, a cobbler, to repair a pair of boots. There is no discussion of a price, and Vicky and Walt do not sign any documents. After the repair, Walt hands Vicky a bill. With respect to Vicky's obligation to pay the bill, this is a. an implied contract. b. a quasi contract. c. no contract. d. an express contract.

a

Vida, a user of phone-app.com's website, can download apps for free by first clicking on "I accept" after viewing certain terms. This is a. a contract that includes the terms. b. unenforceable. c. not a contract but the terms are enforceable. d. a contract that does not include the terms.

a

valid contract

a contract that has all necessary contractual elements

Transfer of contractual duties is

a delegation

bilateral mistake

a mistake that occurs when both parties to a contract are mistaken about the same material fact (you can get out of)

if an agreement is made but one party is not satisfied...

a new agreement can be made

mailbox rule

acceptance is effective when offeree places the acceptance in the mailbox

an offer may be terminated prior to acceptance by either...

action of the parties or by operation of law

Transfer of contractual rights is

an assignment

an agreement has two elements...

an offer and an acceptance

Contract

another word for agreement, promise or a set of promises for breach of which you do not follow through on the law provides a remedy or the performance of which the law in some way recognizes as a duty

offer can be revoked when?

anytime before offeree accepts the offer, as lond as the termination is made the same way the offer was made (oral,oral) (written, written)

formal contracts...

are always in writing

sometimes damages

are an inadequate remedy

any contract that discriminates on the basis of race, color, national origin, religion, gender, age, or disability...

are contrary to both statute and public policy, and unenforceable

Advertisements...

are not offers they are invitations to negotiate (lobster exp)

Auctions

are not offers, the bid is the offer, auctioneer can accept or reject the offer

effect of an assignment

assign right to third party (third party is substituted for the original party, no longer have the right to sue or bargon) TRANSFER OF RIGHTS TO THE THIRD PARTY

Death of Incompetence of the Offeror or Offeree termination

automatically terminates unless it is an irrevocable offer

A contract to do something that is prohibited by statute is a. enforceable if the parties are ignorant of the prohibition. b. unenforceable. c. enforceable if the contract does not negatively affect society. d. enforceable if the parties are aware of the prohibition.

b

Alvin induces Beth to enter into a contract for the purchase of a Chef's Burger restaurant. Alvin knowingly misrepresents a number of material features about the restaurant and the business. When Beth discovers the truth, she can rescind the contract on the basis of a. mistake. b. fraudulent misrepresentation. c. none of the choices. d. undue influence.

b

Architect LLC enters into a contract with Barn & Silo Inc. to provide designs for a certain number of farm buildings. Architect provides fewer than half of the designs by the time specified in the contract because the firm is busy with other projects. Architect's performance is most likely a. a reasonable breach. b. a material breach. c. no breach. d. a minor breach.

b

At an auction, Ben bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is a. not liable on the bid because he underestimated the cost of repairs. b. still liable on the bid. c. not liable on the bid because the need for repair is not a material fact. d. not liable on the bid because the auctioneer misrepresented the value.

b

Business Center signs an agreement with Credit Lending Inc. to borrow $40,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent. The borrower's best argument for avoiding payment to the lender is that a. the specific subject matter of the contract has been destroyed. b. the law has rendered performance of the contract illegal. c. payment of the loan would force the debtor into bankruptcy. d. performance of the contract is commercially impracticable.

b

Char and Dill sign a written contract for the sale of Dill's BBQ Food Truck to Char. The parties intend their written contract to be a final statement of the terms of their agreement. Later, Dill disputes some of the provisions in the deal with Char. If the dispute results in litigation, a court will most likely exclude evidence that a. reinforces the written terms. b. contradicts the written terms. c. duplicates the written terms. d. supports the written terms.

b

Coffee Beans Inc. offers to buy Brewing Company's roasting services for a certain price. Brewing responds that the price is too low and thereby rejects the offer. The offer is a. valid until Coffee Beans revokes the offer. b. terminated. c. valid for the period of time prescribed by a state statute. d. valid for a reasonable time.

b

Deb is a minor. She can enter into any contract an adult can, provided a. Deb is willing to disaffirm the contract. b. the contract is not one prohibited by law for minors. c. the adult is willing to enter into contracts with minors. d. an adult is willing to ratify the contract.

b

Dore's Aunt Em tells her, "If I feel you deserve it at the time, I will give you a new car when you graduate from college." Em's promise is a. enforceable. b. illusory. c. a preexisting duty. d. a forbearance.

b

Fabien offers to sell his Graphic Signs LLC business to Hanna for $100,000. Hanna replies, "The price is too high. I will buy it for $75,000." Hanna has a. made a counteroffer without rejecting the offer. b. rejected the offer and made a counteroffer. c. rejected the offer without making a counteroffer. d. accepted the offer.

b

Fay offers to pay Grey $50 for a tennis lesson for Hetty. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have a. no contract. b. a bilateral contract. c. a unilateral contract. d. a third-party contract

b

Gaia tells Franco that she will pay him $50 to haul lawn debris from her property. Franco's acceptance is complete a. once he starts to work. b. only after he hauls away the debris. c. as soon as he says he will do the job. d. when he hears the offer.

b

Jen promises to pay Kam $500 because "she does not have as much money as other people." Jen's promise is a. enforceable because society wants people to keep their promises. b. not enforceable because Kam has not given consideration in return. c. enforceable because the redistribution of wealth is a valid social goal. d. not enforceable because Jen could have paid Kam more.

b

Leroy and Bubba commit to put up $500.00 each to attend the NASCAR race in September. Leroy thought this commitment was for the Talladega race, but Bubba thought this commitment was for the Darlington, SC race. Either party may get out of this contract because: a. This was a mutual mistake of value. b. This was a bilateral mistake. c. This was a unilateral mistake. d. None of the above.

b

Lew and Mavis enter into a contract for the clearing and plowing of Mavis's 350-acre tract for which she agrees to pay $1,000. Lew transfers his duty under this contract to Nye. With respect to the duties under the original contract, this transfer a. requires a special form to constitute a valid transfer. b. does not relieve Lew of the potential obligation to perform. c. is an invalid transfer of a non-transferable obligation. d. extinguishes Lew's obligation to perform.

b

Mary owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Neil enters into a contract to buy "Mary's ATV" for $750. Mary believes, in good faith, that she is selling the $500 ATV. Neil believes, in good faith, that he is buying the $1,000 ATV. In this situation a. Neil must buy both ATVs for $1,500. b. the contract is not enforceable. c. Mary is entitled to $750 for the $500 ATV. d. Neil is entitled to the $1,000 ATV for $750

b

Merl buys a tablet for $500, running shoes for $200, and a set of the Game of Crowns books for $100. To be enforceable as a contract, a writing is required for the purchase of a. the books only. b. the tablet only. c. the books, the shoes, and the tablet. d. the shoes and the tablet only.

b

Quinn and Ruth orally agree on the sale of Seafood Shippers Inc. and jot down the terms on the back of one of Seafood's blank invoices, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain a. the preliminary terms. b. the essential terms. c. the quality terms. d. all terms.

b

Reed agrees to sell his Sports Equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely a. valid because it is part of a sale of an ongoing business. b. invalid because of the unreasonable terms of area and time. c. invalid because it is part of a sale of an ongoing business. d. valid if both parties are justifiably ignorant of the facts.

b

Reese contracts to sell a Saucy Pizza restaurant to Titian. As part of the deal, Reese agrees not to open a competing business within a hundred-mile radius for ten years. Reese later sues Titian, alleging that the agreement is illegal. To enforce the covenant not to compete, the court will most likely a. order specific performance. b. reform the contract to make the distance and time limits reasonable. c. award damages for Reese's complete compliance with the terms. d. rescind the contract and require restitution.

b

Renew Turf Inc. enters into a contract with Sports Park to provide surface material for Sports Park's baseball field by a certain date. The contract specifies an amount to be paid if Renew breaches the deal. This clause is enforceable if the amount is a. designed to penalize Renew. b. a reasonable estimate of the loss on the breach. c. intended to quickly provide cash to Sports Park. d. meant to pay for additional work in the event of damage.

b

Restore Inc. contracts to resurface the pools at Swim Park by June 1. Restore knows that if performance is not timely, Swim Park will have to delay its seasonal opening. Restore finishes the job June 15. In a suit for breach, Swim Park can recover a. the difference between the contract and market prices for the work. b. the loss of profit from the delayed opening. c. nothing—the work is done. d. the cost of new pools.

b

Si promises to pay his personal assistant Tery $50,000 in consideration of the services she provided over the years. Si never makes the payment. Si's promise is a. not enforceable because the failure to pay is an unforeseen difficulty. b. not enforceable because the consideration is in the past. c. enforceable to the extent of what Tery's services were actually worth. d. enforceable for the entire $50,000.

b

Sui enters into a contract with Trey to act as a personal sports trainer. If a dispute later arises over the parties' promises, the court will interpret the contract according to a. what the parties now agree they intended. b. the parties' intent at the time they entered into the contract. c. what the promisor claims was the parties' intent. d. what the promisee claims was the parties' intent.

b

While sailboarding, Jolie is injured when Kirby carelessly crosses her path. Kirby's insurance company offers Jolie $50,000 to release Kirby from liability, and she accepts. Later, she learns that her injuries are more serious than she realized. The release is a. unenforceable because Kirby has a preexisting duty to pay. b. enforceable. c. unenforceable because Jolie's injuries are unforeseeably difficult. d. unenforceable because the release is an illusory promise.

b

Ziplines Inc. enters into a contract to employ Scot as a manager for two years. If Ziplines breaches the contract, Scot has a duty to a. act to punish Ziplines as an example to deter others from similar acts. b. reduce the damages that Scot might otherwise suffer. c. do nothing. d. rescind the contract with Ziplines.

b

a bilateral contract... a. must be in writing b. is an exchange of a promise for a promise c. is an exchange of a promise for performance d. a and b above e. a and c above

b

Undue Influence

based on a relationship of dependence (weak party talked into doing something not beneficial for him)

why do we have to have consideration in a contract?

because consideration is critical to a contract and with contracts, good things happen

Lucy vs. Zehmer (1954)

both farmers and between the two farms there was another farm. both wanted the farm. owners died and gave farm to their sons. lucy on vacation and owners showed up to try and sell it since he didnt answer they went to zehmer and offered it to him instead. lucy offered money to zehmer and they wrote contract on a napkin both signed. zehmer said they were too drunk to know what they were doing.

where is consideration in a contract?

both parties have to bring something of value to the contract

Chapter 19

breach of contract and remedies

A contract between Max and Nye provides for an "assignment of all rights." Max "assigns the contract" to Olin. Because a court will normally construe this wording as implying both an assignment of rights and a delegation of duties, if Olin fails to perform a. the contract is void. b. Nye is liable. c. Max is liable. d. the contract is discharged.

c

A fire threatens to engulf a commercial building in Middletown. The building's owner promises a cash reward to the Middletown Fire Department to extinguish the blaze. The firefighters cannot claim the reward because a. the promise of a cash reward is illusory. b. extinguishing the fire represents past consideration. c. extinguishing the fire is the firefighters' preexisting duty. d. extinguishing the fire is a foreseen difficulty.

c

Beta contracts to design and deliver marketing materials to Cesar. Beta cannot delegate this duty to Devon a. under any circumstances. b. if the delegatee's performance will match the obligee's expectations. c. if performance depends on Beta's personal skill. d. if special trust has not been placed in the obligor.

c

Desu, an accountant, and Engineers PA enter into a contract under which Desu agrees to perform audits for Engineers. Desu can delegate the duty to perform the audits to a. any accountant performing other financial services for Engineers. b. any accountant working at Desu's firm. c. no other party. d. any reputable accountant.

c

Fritz offers to buy a guitar owned by Holle for twice what she paid for it. She accepts and hands the guitar to Fritz. Holle's delivery of the guitar is a. not consideration because the value is not legally sufficient. b. not consideration because its adequacy is unfair. c. consideration. d. not consideration because the exchange is not a bargain.

c

Henry promises not to open his Hank's Lunchbox Café before 10:00 A.M. if Danni, who owns Danni's Danish & Donuts next door, promises to close by 1:00 P.M. Henry's consideration is a. the destruction of a legal relationship. b. the creation of a legal relationship. c. a forbearance. d. an exchange of money.

c

In selling a 300-acre tract to Organic Farm, Peyton tells the buyer that the land "will be worth twice as much by next year." This statement is not likely to support rescission of the contract because it is a. a misrepresentation. b. a mistake. c. an opinion. d. a material fact.

c

Kelly offers to sell a certain used forklift to Lumber Outlet, but Kelly dies before Lumber Outlet accepts. Most likely, Kelly's death a. shortens the time of the offer but does not terminate it. b. does not affect the offer. c. terminates the offer. d. extends the time of the offer.

c

Mesa County contracts with New Construct Inc. to build a courthouse. New Construct hires Odell to excavate the site. Odell's work damages adjacent properties. Mesa files a suit against the excavator, who argues that the county is not named in his contract with New Construct. Most likely, the court will hold that Odell is a. not liable because Mesa is not named in Odell's contract. b. liable on the ground that Mesa is an incidental third-party beneficiary. c. liable on the ground that Mesa is an intended third-party beneficiary. d. not liable because Odell's contract was with New Construct, not Mesa.

c

On behalf of the jazz group Fusion, their manager Gabe agrees to a performance in Hilltop Amphitheatre on July 4. Gabe and Hilltop sign a written copy of the agreement. These parties have a. an implied contract. b. no contract. c. an express contract. d. a quasi contract.

c

Onsite Restoration Inc. begins renovating houses for Property Company under a contract for a stated amount per house. After six months, Onsite demands an extra $20,000 per house, stating no reason for the extra $20,000, but asserting that it will stop work if it is not paid. The agreement is a. unenforceable as an illusory promise. b. enforceable as the consideration is past. c. unenforceable due to the preexisting duty rule. d. enforceable due to unforeseen difficulties.

c

Oscar owns Payroll Company, a bookkeeping service. Oscar pays Remy $5,000 to steal a list of a competitor's clients. This deal is a. enforceable. b. voidable at the option of the party having less bargaining power. c. void. d. voidable at the option of either party.

c

Owen, the owner of Parts Company, pays Quint to obtain a competitor's design patent. Quint keeps the money but does not deliver. Owen can a. recover from the competitor. b. enforce the contract with Quint. c. none of the choices. d. recover from Quint.

c

Rocco orally agrees to sell his Spring Beverage Company to Thirsty Inc. Rocco notes the terms on a sheet of Spring stationery and signs it. This agreement is most likely enforceable against a. Thirsty. b. Spring and Thirsty. c. Rocco. d. no one.

c

Simone offers Tom a dozen guitar lessons for a certain price per lesson but conditions the deal on Tom accepting the offer by April 1. Simone may revoke the offer a. only after Tom accepts it. b. only after April 1. c. before Tom accepts it. d. before April 1, whether or not Tom has accepted it.

c

Sol offers Tiff $1,000 for her collection of rare coins. She accepts. If a dispute arises, a court would likely a. enforce the deal after questioning the adequacy of consideration. b. set aside the deal after questioning the adequacy of consideration. c. not question the adequacy of the consideration. d. rewrite the deal after questioning the adequacy of consideration.

c

Sy enters into a contract with Truck Company to work as a driver. If a dispute arises over the deal, under the plain meaning rule, the court cannot consider any evidence not contained in the document if a. a contract term can be interpreted in more than one way. b. the contract lacks a provision on a disputed issue. c. the words in the contract appear clear. d. the parties' intent cannot be determined from the contract's language.

c

Express contracts...

can be oral or written

Sources of contract law

common law- used for all contract except for sales and leases Uniform Commercial Code- used for sales and lease contracts

compensatory vs consequential damages

compensatory are direct out of pocket expenses and consequential are as a result of the breach of contract

integrated contract

complete contract, whats within the four corners

quasi contract

contract that is implied in law (no contract exists) guy in coma exp

what is the most important aspect of contracts?

contracts facilitate planning (allows people to change their economic position of the payment they have promised in the deal that they have made.

Berry Farm hires Chun to repair its irrigation system on site by a certain date for $2,500, but Chun fails to perform. Berry Farm hires Diego to do the job for $2,000. In a suit for breach, Berry Farm may recover from Chun a. nothing—there is only a technical injury. b. compensatory damages. c. punitive damages. d. nominal damages

d

Charter Company offers to provide an air-conditioned bus to Denny's tour group for $1,500 plus the cost of the fuel. The mailbox rule applies if Denny accepts the offer by a. e-mail. b. phone. c. any of the choices. d. regular mail

d

Cow's Milk LLC needs a certain part for its pasteurizing equipment to continue its operations and orders one for $3,000 from Dairy Supplies Inc. Cow's Milk tells Dairy Supplies that it must receive the part by Tuesday or it will lose $10,000. Dairy Supplies ships the part late. Cow's Milk can recover a. $3,000. b. $13,000. c. $0. d. $10,000

d

Dairy Farm enters into a contract with EZ Ice Cream Inc. to supply milk. Later, Dairy decides that it is no longer advantageous to fulfill the contract and subsequently fails to perform as promised. EZ files a suit against Dairy. A breach occurred when Dairy a. entered into the contract. b. decided that it was not advantageous to fulfill the contract. c. was sued by EZ. d. failed to perform as promised.

d

Denis sells a motorcycle to Elton without disclosing that the odometer, which reads 10,000 miles, was disconnected 100,000 miles ago. Denis is most likely liable for a. none of the choices. b. puffery. c. mistake. d. fraudulent misrepresentation.

d

Dim threatens physical harm to force Eb to sell his Flower Shop to Dim for a below-market price. This is a. undue influence. b. mistake. c. fraudulent misrepresentation. d. duress.

d

Discharging a contract by executing a new agreement with performance different from what was originally promised is a. a novation. b. a material breach. c. substantial performance. d. an accord and satisfaction.

d

Elena offers to invest a certain amount in Falco's business if Falco marries Elena's daughter Glenna. This promise is enforceable a. only if the amount of the investment is more than $500. b. only if Glenna agrees to marry Falco. c. under no circumstances. d. only if it is in writing.

d

Gliders LLC and Hang Time Inc. are parties to a contract. They subsequently agree that In the Wind Inc. should take Gliders' place and assume all of its rights and duties under the contract. This is a. a mutual agreement to rescind. b. specific performance. c. an accord and satisfaction. d. a novation.

d

Gretchen is adjudged by a court to be mentally incompetent. Gretchen a. is presumed to have contractual capacity. b. can enter into a valid contract but has the right to avoid liability under it. c. can enter into a valid contract and cannot avoid liability under it. d. cannot form a legally binding contract with another party.

d

Guy orally agrees to buy a unique collection of sports memorabilia for $10,000 from Hec and sends $2,500 as an initial payment. When Guy pays the rest of the price, Hec refuses to ship the collection. In a suit for breach, Guy should seek a. a quasi contract. b. restitution. c. damages. d. specific performance.

d

Jet enters into a contract to buy a certain commercial building from Kim. At the closing, Kim refuses to transfer title. In a suit for breach, Jet should seek specific performance to a. reform the contract to reflect the parties' true intentions. b. return the parties to the positions they occupied before the contract. c. make the terms reasonable and enforce the contract as reformed. d. obtain the exact bargain promised in the contract.

d

Juan and Isidro enter into a contract to buy, restore, and reopen the Coastal Park Carousel. Before either party begins to perform, they make a new agreement to rescind their deal. This a. suspends both parties duties to perform. b. has no effect on Juan's performance. c. changes Isidro's duties under the contract. d. discharges the original contract.

d

Lew tells a representative of Music Inc. that he will pay for Nora's trumpet if she does not. Lew does not secure any personal benefit for this promise. This promise is enforceable as a contract a. only if the value of the trumpet is more than $500. b. any of the choices. c. only if Nora agrees to it. d. only if it is in writing.

d

Macy offers to sell his fitness watch for $50 to Nona. Nona promises to pay Macy the price. Later, they exchange the watch for the funds. A contract was created when a. Macy offered to sell the watch. b. Nona paid for the watch. c. Macy delivered the watch. d. Nona promised to pay for the watch.

d

Music Masters Inc. enters into a contract to pay Nag for a dozen original songs. Nag transfers the right to payment under the contract to Omni Artists. After the transfer, Nag's contract right to the payment is a. secondary. b. unaffected. c. conditional. d. extinguished

d

Ned threatens physical harm to force Omar to pay for "protecting" Omar's restaurant, Pasta Plates, from vandalism. Most likely, Omar may a. do nothing once he has agreed to pay. b. recover from the local police for their failure to protect his restaurant. c. recover from his insurer for the cost. d. rescind the contract or refuse to comply with its terms.

d

New Builders Inc. enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Pete challenges the project as a violation of the local zoning laws. A court orders a halt to the project. O'Reilly's contract with New Builders is a. breached. b. not affected. c. suspended. d. discharged.

d

Ochre holds one ton of perishable fruit in storage for Produce Corporation. If Produce does not pay for the storage, under the doctrine of mitigation of damages, Ochre is held to a duty to a. set an example to deter similar misconduct in the future. b. continue to store the fruit until Produce pays. c. dispose of the fruit immediately. d. do whatever is reasonable to minimize the damages.

d

Omar orally agrees with Pi Pizza to provide delivery service to its customers for nine months. This contract is enforceable by a. Pi only. b. any interested third party, such as a Pi customer. c. none of the choices. d. either Omar or Pi

d

Opal is a minor. In at least some states, Opal can enter into a legally binding contract when she a. is emancipated from her parents. b. reaches the age of majority. c. gets married. d. all of the choices.

d

Rough Water LLC and Schafer enter into a contract for the delivery of a certain number of river rafts. Until the rafts are delivered and paid for, the parties have a. an executed contract. b. no contract. c. a quasi contract. d. an executory contract.

d

Seth is mentally incompetent but has not been adjudged by a court to be incompetent. Seth enters into a contract with Toby for the cleaning and maintenance of Seth's warehouse. Most likely, the contract is a. void. b. enforceable if Toby did not know that Seth was mentally incompetent. c. enforceable if the warehouse needs cleaning and maintenance. d. voidable if Seth did not comprehend the consequences.

d

The purpose of the right to disaffirm a contract is to a. restore persons to positions they held before contracting. b. recognize the legitimate interests of those who contract with minors. c. ratify a contract and make it enforceable. d. protect minors.

d

most common breach of contract remedy

damages (money)

most common remedies

damages and specific performance

specific performances

dont ask the party for damages but ask them to order the party to do what they promised to do

not genuine assent might be due to

duress (person was forces to agree), mistake, undue influence, misrepresentation

Duties can not be delegated when...

duties are personal in nature, Performance by a Third Party Will Vary Materially From that Expected by the Obligee (coach exp)

An offer may be terminated by: a. Operation of the Law b. The Objective Theory of Contracts c. Actions of the Parties d. All of the above e. a. and c. only

e

T/F A bilateral mistake occurs if one party to a contract is mistaken about a material fact and the other party knew or should have known that a mistake was made.

false

T/F A contract clause that releases an employer from liability for any injury to an employee, no matter who is at fault, is generally enforceable

false

T/F A landlord can avoid liability for injuries that occur on rental property by including an exculpatory clause in the lease.

false

T/F A minor can enter into any contract an adult can, without exception.

false

T/F A promise made in return for an act or event that has already taken place is fully enforceable.

false

T/F A promise to pay another's debt only if that party fails to pay does not need to be in writing to be enforceable.

false

T/F A request to negotiate is an offer.

false

T/F An agreement exists when one party offers a certain bargain to another party.

false

T/F An agreement subject to the writing requirement must be written on paper.

false

T/F An expression of opinion can indicate an intent to enter into a binding agreement.

false

T/F An offer can be accepted by the offeree or any third party.

false

T/F An oral sales contract for goods priced at less than $500 is unenforceable.

false

T/F Any contract involving consumer goods must be in writing to be enforceable.

false

T/F Any contract that is not in writing is not enforceable.

false

T/F Consideration has to be essentiallyequal in any contract.

false

T/F Contracts in restraint of trade always violate one or more federal or state statutes.

false

T/F Following a transfer by a lender of a right to receive payments on a mortgage, the homebuyer must continue to make those payments to the original lender.

false

T/F Forcing a party to enter into a contract under the fear of threats constitutes undue influence.

false

T/F If a contract condition is not satisfied, the obligations of the parties are not discharged.

false

T/F If a mistake concerns the quality of the object of the contract, the mistake is one of fact.

false

T/F If a party is already bound by contract to perform a certain duty, that duty can serve as consideration for a second contract.

false

T/F If one party's performance on a contract is substantial, the other party's duty to perform need only comport with the level of the rendered performance.

false

T/F In a contract for a sale of goods, the right to receive payment on an account may be assigned unless the sales contract prohibits such an assignment.

false

T/F In contract law, damages compensate for harm suffered as a result of another's wrongful act, not for the loss of a bargain.

false

T/F In general, courts question the adequacy of consideration.

false

T/F In most situations, when a breach of contract occurs, the injured party is held to a duty to mitigate, or reduce, the damages that he or she suffers.

false

T/F In most states, a person whose employment is wrongfully terminated has no duty to take a similar job if one is available.

false

T/F Normally, a court will not award damages unless the appropriate equitable remedy is inadequate.

false

T/F On a delegation of contract duties, the delegator is absolved from any liability for performance under the contract.

false

T/F Once an offer is made, the offeror cannot revoke it.

false

T/F One of the requirements of a valid contract is an adequate market for the deal's goods or services.

false

T/F Past consideration is consideration

false

T/F Privity of Contract means that contracts are private agreements and the parties therefore have an expectation of privacy concerning their contract.

false

T/F Privity of contract establishes the basic principle that contracting parties have a right to privacy in the information expressed in their contracts.

false

T/F Reliance on a misrepresentation is justified even if the innocent party knows the true facts.

false

T/F The breach of a contract for a sale of goods qualifies for specific performance only when substantially identical goods can be bought or sold in the market.

false

T/F The most important consideration indetermining value is the cost involved.

false

T/F The power of acceptance continues forever.

false

T/F The term consideration refers to the deference shown by contracting parties to each other.

false

T/F There is no difference between complete and substantial performance.

false

T/F There is only one way to discharge a contract—all parties must fulfill their contractual duties.

false

T/F Under the objective theory of contracts, a contract is not enforceable without a clearly defined objective.

false

T/F When both parties to a contract are mistaken about the same material fact, a unilateral mistake has occurred.

false

T/F consideration is the respect you pay the other person in a contract

false

T/F A bilateral contract is the exchange of a promise for performance.

false (bilateral contract is an exchange of a promise for a promise) (unilateral contract is promise for performance)

T/F The age of majority in the UnitedStates is 19.

false (depends on the state)

T/F In contract law, the term consideration refers to the serious thought that underlies a party's intent to enter into a contract.

false (in contract law consideration means value)

T/F Generally, what the parties intend to do matters in determining what a contract means.

false (objective theory of contracts)

T/F In contract law if a promise is made, it will be enforced.

false (some promises are not enforceable, if there is no consideration promise is not a contract)

rule with electronic contracts...

full contract should be available to both parties

contracts contrary to public policy are

generally void (strip club exp)

contracts in restraint of trade are

generally void except for contracts that have a covenant not to compete with an ongoing business (must be in reasonable geographic area, contract can not exceed 2 years, contract to compete can not exceed 75 miles)

contracts may be unenforceable if the parties have not

genuinely assented to its terms (might have all elements of contract but if it wasn't genuine its unenforcible)

Hamer v. Sidway

hamers uncle promised to pay him $10,000 if when he went to college he didn't smoke, drink, curse, gamble, or womanize... his uncle passed away and the state honored promise bc he was legally allowed to do those things and the only reason he didn't was bc of the promise (forbearance exp)

A court can supply missing terms if the parties intend to form a contract.

if parties have most terms but not all, the court can determine what they think is reasonable and put that in the contract

E-signatures and E-documents are are valid under federal law unless both parties agree otherwise... when does this usually happen?

in large business transactions

intended vs incidental (unintended) beneficiaries

intended- person was intended to benefit (life insurance) incidental (unintended)- never acquires rights in your contract, not intended to benefit

a contract entered into by a minor...

is generally voidable at the option of the minor (can disaffirm)

written, typewritten, or handwritten...

is given greater weight then preprinted

past consideration

is no consideration because the bargained-for exchange element is missing exp mow grass exp ALREADY mowed the grass, performance that was done in the past

a contract entered into by a minor

is voidable at the option of the minor (a minor may disaffirm the contract and they may get their consideration back)

consideration is only questioned when...

it is shockingly inadequate... "did the person really agree to this", is this person capable of protecting their own self interest (bible exp vs rolex exp)

Personal responsibility and "taking care of your own self interest"

it is your own responsibility to read and understand contracts

If you have to have a license to do something, if you don't have the license...

its a void illegal contract

if the wording you use is "all rights"

its both a delegation of duty and assignment of rights

objective theory of contracts

its what you do that matters not what they said they meant (actions speak louder then words, determined by the reasonable person standard)

punitive damages

meant to punish the breaching party

accord

new agreement

Is a breach of contract a "wrong"

no (only economically harming party)

is a breach of contract a crime

no (only economically harming party)

void contract

no contract exists (lacks a contractual element)

contractual capacity is either

not present (meaning the person does not have contractual capacity) or subject to special rules (minors)

innocent misrepresentation

occurs when a person makes statement hebelieves to be true but actually misrepresents facts

misrepresentation by conduct

occurs when aparty takes specific action to conceal a fact that is material to the contract

silence as a response

offeree should not be legally obligated to affirmatively reject or accept an offer (unless businessman have a previous relationship)

who are the parties in a contract?

offeror and offeree

Fraudulent Misrepresentation

one party lies to the other party, innocent party can usually get out of the contract

gift promise

one party promises to do something for nothing in return

offeror

party and initiates the offer (party that makes the offer)

Chapter 18

performance and discharge in traditional and e contracts

types of conditions (things you have to do/not do to fulfill a contract)

precedent (condition that has to be preformed first before the other party is obligated to preform) , subsequent (conditions that have to be met after the other party is obligated to begin performance)

Agreements that lack consideration

preexisting duty, past consideration, illusory promises, gift promise

Contracts are...

prevalent in our society (involved in our daily activities)

collateral promise

promises to answer for the debt of another (guarantor)

default rules

rules that the courts comply w if the parties do not take care of it

disaffirm

say it never existed

Incompetency

someone who does not have contractual capacity

consideration

something of value promised, given, or done that has the effect of making an agreement a legally enforceable contract

Chapter 16

statute of frauds

what is the age of majority?

the age at which you are considered an adult (either 18 or 19 depending on the state)

Courts Typically Will Not Consider Adequacy of Consideration. Why?

the buyer determines the value of the product

what is the effect of an illegal contract?

the courts don't interfere

public policy

the governments obligation to protect the health, safety, welfare, and morals of its citizens

offeree

the party to whom the offer is made

privity of contract

the two parties that started that contract have certain rights and obligations toward eachother... the only ones that can challenge/sue eachother are the parties in the contract

Both parties must get and give consideration

there must be consideration brought to the contract by both parties (if only one party brings something of value there is no consideration)

Why are contracts an economic necessity?

they allow people to depend on the promise to change their own position in reliance on the promise.

if the minor disaffirms the contract...

they can get their consideration back (must return what they got)

If certain conditions are met...

third parties can get involved in the contract

Chapter 17

third party rights

what is the goal of damages

to make the party whole or to give them the benefit of their bargain

purpose of statue of frauds

to prevent harm to innocent parties byrequiring written evidence of agreements

T/F A breach of contract occurs when a party fails to perform part or all of the required duties under a contract.

true

T/F A click-on agreement can indicate the acceptance of an online offer.

true

T/F A contract to do something that is prohibited by statutory law is void from the outset.

true

T/F A contracting party's transfer of the contract rights or duties to another person is an exception to the rule of privity of contract.

true

T/F A court usually will enforce a covenant not to compete provided its restrictions are reasonable.

true

T/F A fact that is important and central to the subject matter of a contract is a material fact.

true

T/F A party may have the capacity to enter into a valid contract and the right to avoid liability under it.

true

T/F A party who seeks the performance of an oral contract must prove that the contract existed.

true

T/F A preexisting duty may arise out of a previous contract.

true

T/F A promise is illusory when its performance depends solely on the discretion of the promisor.

true

T/F A promisee has the right to expect or demand that something will or will not happen in the future.

true

T/F A unilateral promise to pay a sum of money or to give property in consideration of a promise to marry must be in writing.

true

T/F Acceptance may consist of words or conduct.

true

T/F Acceptance of an e-contract must show that the offeree voluntarily assented to the offer's terms.

true

T/F After a transfer to a creditor by an investor of a right to receive payments on a business loan, the creditor can demand those payments from the borrower.

true

T/F An Agreement must have both anoffer and acceptance.

true

T/F An executed contract is one that has been fully performed by both parties to it.

true

T/F An insurance policy cannot be assigned if the assignment will significantly alter the risks to, or the duties of, the insurer.

true

T/F An offer terminates automatically when the period of time specified in the offer has passed.

true

T/F An oral contract for customized goods may be enforced in certain circumstances.

true

T/F An otherwise valid contract maystill be unenforceable.

true

T/F An unconscionable contract is one in which the terms of the agreement are oppressive, unscrupulous, or grossly unfair.

true

T/F By supplying procedures for enforcing private agreements, contract law provides an essential condition for the existence of a market economy.

true

T/F Contract law emphasizes personalresponsibility and accountability.

true

T/F Each party to a contract assumes the risk that the value of the object of the deal will change in the future.

true

T/F Forfeiting a right to sue to recover further damages can constitute consideration.

true

T/F Generally neither party to an illegal contract can sue for breach.

true

T/F Generally, a unilateral mistake does not give the mistaken party any right to relief from the contract.

true

T/F Handwritten items are given greater weight then pre printed items

true

T/F If a condition to a lease for university housing that the tenant must be a student is not satisfied, the landlord's obligations under the lease are discharged.

true

T/F If a statute expressly prohibits assignment, the particular right in question cannot be assigned.

true

T/F If performance of a contract is not substantial, there is a material breach, which excuses the nonbreaching party from performance.

true

T/F If what is written in a contract is clear, a court will enforce the contract according to its obvious terms.

true

T/F In a dispute regarding an insurance claim, if a term in the written policy is ambiguous, parol evidence is admissible to show the meaning.

true

T/F In effect, a counteroffer converts the original offeror into an offeree with the power of acceptance.

true

T/F In general, a person should not rely on a non-lawyer's statement about a point of law.

true

T/F On an assignment to a loan broker by an auto dealer of the payments due on an auto loan, the broker obtains only those rights that the dealer originally had.

true

T/F Providing accounting services is "something of legally sufficient value."

true

T/F Quasi contract are not actual contracts.

true

T/F Situations in which agreements lack consideration include those involving a preexisting duty.

true

T/F Sometimes, when a buyer breaches a contract for a sale of goods and the seller has not yet produced the goods, the seller can recover the lost profits.

true

T/F Tender is an unconditional offer to perform by a person who is ready, willing, and able to do so.

true

T/F The contracts entered into by a minor are voidable at the option of that minor.

true

T/F The purpose of the Statue of Frauds is to ensure that, for certain types of contracts, there is reliable evidence of the contracts and their terms.

true

T/F The remedy available when a court imposes a quasi contract is the recovery of the reasonable value of a benefit conferred or detriment suffered.

true

T/F There is a remedy available for nearly every breach of contract.

true

T/F To be legally sufficient, consideration must be something of value in the eyes of the law.

true

T/F To enforce a contractual promise, there must be an exchange of consideration underlying the bargain.

true

T/F Under a construction contract that requires a builder to meet certain specifications, complete performance is required to avoid material breach.

true

T/F Under the Statute of Frauds, a contract involving an interest in land must be in writing to be enforceable.

true

T/F Undue influence can arise from a confidential relationship or a relationship based on trust.

true

T/F When a buyer breaches a contract for a sale of land, the seller can recover the difference between the contract price and the market price of the land.

true

T/F When a contract mistakenly specifies a crane instead of a forklift, a court could reform the contract to reflect the parties' original intent as to the equipment.

true

T/F When the performance of a contract depends on the personal skill of the obligor, a delegation of the duty is prohibited.

true

T/F Whether performance under a contract is substantial is decided on a case-by-case basis, examining all of the facts of the particular situation.

true

T/F You may not delegate dutieswhich are personal in nature.

true

T/F a rejection is only effective when its received by the offeror or the offerors agent

true

T/F not all mistakes will allow a contract to be cancelled

true

T/F the law does not protect a person from entering into an unwise contract

true

T/F: Past consideration is not consideration

true

T/F You agree to pay Eddie $1,000.00 if he quits smoking. This is a valid contract.

true (because he has a legal right to smoke)

voidable

unenforceable (have elements of contract but unenforceable)

acceptance must be...

unequivocal (clear that offeree accepted the offer)

reasonable person standard

what would a reasonable person infer from the conduct that they see in conjunction with disagreement

when is acceptance considered timely?

when its made before the offer is terminated

unilateral mistake

when only one party makes a mistake (you cant get out of unless...see next flashcard)

satisfaction

when the new agreement is completed

can minors contract?

yes