contracts quiz

I enter into an agreement with Curtis, age 17, to sell him my car for $10,000. He writes me a check for $10,000, and I give him the title to my car. Do we have a contract?

No because both parties have to be mentally compotent. No minor is mentally compotent

I send you an unsolicited email offering to sell you my Saquon Barkley autographed jersey for $400 and stating that if I do not hear from you by Thursday, I am assuming that you have accepted my offer. You read the email and delete it. I don't hear from you by Thursday. Do we have a contract?

No because silence is not a valid acceptance

Wyatt is the sheriff of an old western town. The town's bank has just been robbed by Jesse James. Wyatt posts a notice saying "Wanted Dead or Alive - Jesse James. $5,000 Reward." The next day, you see the reward poster, find and shoot Jesse James, and bring his body to Wyatt's office. Was there a contract?

No because the subject matter is legal

Michael says to his son, Matthew, "In consideration of the fact that you earned an "A" in your Business Law course, I promise to pay you $1,000 in two weeks." Is there a contract?

No because this is "past consideration". For it to be valid it has to happen now or in the future

I hire you as an employee, agreeing to pay you $1,000 per week for a full year. After six months, you are doing such a great job that I increase your salary to $1,500 per week. One month later, you fail to complete a very important project on time, and I reduce your pay back to $1,000 for the remainder of the one-year term of employment. Can you successfully sue me for the difference between what you would have received under the $1,500 per week salary and the $1,000 salary during the remainder of your one-year employment period?

No, not legally binding the contract was originally for $1000. No mutual assent for $1500

I own a paper company, and I have had a very bad day. I say to you, my top salesperson, "I offer you this entire business for $25." You say, "I accept your offer." Do we have a contract?

No, the offer has to be reasonable

8. I send you a letter on Tuesday offering to sell you my motorcycle for $2,000, giving you until Saturday to accept or reject my offer. The letter reaches you on Wednesday. On Friday, I am killed in an auto accident. On Saturday, not knowing that I have died, you deposit in a mailbox a letter that indicates acceptance of my offer. Is there a contract?

no because the person who offered you the contract prior to the acceptance so the contract is terminated

Suppose that you come to Wyatt's office with the dead body of Jesse James. Wyatt congratulates you for capturing such a public menace. On the way out of Wyatt's office, you see the reward poster for the first time, and come back, asking for the $5,000. Was there a contract? (Assuming this is legal)

no because their is no mutual assent. The offer wasn't made till after the performance

I say, "I want to sell my house." You say, "I want to buy it." Do we have a contract?

no because their is no mutual assent. Their was no offer or acceptance

Brady, age 20, agrees to start immediately and work at a manufacturing facility until the day that he dies. To be enforceable, does the agreement have to be in writing?

no, because he could die at any time

Same facts as 8, except I was killed on Sunday, and your acceptance letter reaches my house on Monday. Is there a contract?

yes , acceptance happened before the person who offered died.

I say to you, "If you paint my house on Saturday, I will pay you $1,000." You don't respond, but on Saturday, you come by, and paint my house. Do we have a contract?

yes because action speaks louder than words by showing up to the house you showed you cared

Noah agrees to work at Evie's store for 13 months, starting tomorrow. To be enforceable, does the agreement have to be in writing?

yes, if the job cant be completed in one year then it has to be in writing to be enforceable

A clothing store advertised leather jackets in the following way: "Normally priced at $350, today only $150." You come to the store in response to the advertisement, select a jacket, and take out $150 in cash to pay for it. The store clerk refuses to take your cash, saying that the price is $350. Was there a contract?

yes, it creates a binding offer -in general advertisements dont create a valid offer

Susan, age 16, enters into an agreement to purchase ten pairs of pants from a clothing store. After the pants are delivered to Susan, she refuses to pay. May the clothing store force Susan, a minor, to pay for the pants?

yes, they are required to be legally required to pay for the necessary product(clothing) regardless of the age

I say, "I am selling my car for $10,000." You say, "I will buy it. Here's a check for $10,000." Do we have a contract?

yes becuase both sides provide a value. One side provides a payment while the other provides a car

I send you a letter offering to sell you my computer for $1,000. Before the letter arrives, you send me a letter offering to buy my computer for $1,000. My letter reaches you, and your letter reaches me, on the same day. Do we have a contract?

-No because their no mutual assent -their are just two offers

4 elements that construct a binding contract

1)Subject matter is legal 2) Mutual Assent= offer + Acceptance 3) Consideration - Binding Legal Action (either payment or Performance) 4)Capacity- Both parties have to be mentally compotent(No minor is mentally compotent)

A fire breaks out in the Business Building. Dean Whiteman immediately calls the fire department and tells them that the building is on fire. The fire department tells Dean Whiteman that they will put out the fire if the Smeal College of Business will donate a brand new fire truck to the fire department. Dean Whiteman says, "Ok, we will do it." The fire department gets to the Business Building in three minutes and puts out the fire. Is there a contract between the College and the fire department?

No, the fire department has a preexisting legal duty to put out the fire

Kelly would like to marry Kyle. Kyle verbally agrees to marry Kelly in exchange for Kelly's father paying Kyle $100,000. Is the agreement enforceable?

No, wedding contract has to be written for something other than love(prenup or postnuptial agreement)

Brady, age 20, agrees to start immediately and work at a manufacturing facility until the day that he retires. To be enforceable, does the agreement have to be in writing?

no, becuase he could potentially retire next year.

Prior to the game, a student foolishly made a bet with me that the Wolverines would beat the Nittany Lions. The student agreed to pay me $25 if the Nittany Lions won, and I agreed to pay the student $25 in the highly unlikely event that the Nittany Lions lost. Do we have a contract?

no, subject matter has to be legal