Exam 3- Blaw
To be effective, an offer must:
be communicated to the offeree.
Ben and Kate had been negotiating Ben's employment contract in conversations over the phone for a couple of weeks. Finally, they agreed on some contract terms. Kate offered to create a draft of the contract for Ben to read over. On the same day Ben was fired from his job. Afraid he would be unemployed, Ben signed Kate's draft without reading it. In this example Ben:
cannot avoid the contract because of economic duress or failure to read.
Matt sells bikes at a local discount store. To encourage Bob to buy a more expensive model than he originally contemplated, Matt tells Bob, "This is the most awesome bike money can buy at this price. You can expect lots of riding pleasure." Based on this statement Bob buys the bike. A week later, before his bike is fully paid for, Bob sees a far superior bike for a lower price at another store. Bob
cannot avoid the contract because the statements were opinions
June offers to sell a puppy Cecil for $300 and that he can get the puppy on May 1st when it is six weeks old. Cecil says he will buy the puppy on May 1st since he will have received a paycheck at that time to cover the cost. A contract is formed:
when Cecil tells June he will buy the puppy.
Which of the following involves an invalid assignment that a court would not enforce?
An assignment of an automobile liability insurance policy accompanied by the delivery of the policy.
Aron ordered an truck bed toolbox for $249.99. Before it was delivered, the same store from which he ordered the toolboxran an ad in the paper for the same toolbox at $179.99. Aroncalled the store and demanded the advertised price. If the store says "okay":
Aron must pay $179.99.
A valid contract may be unenforceable for which reason(s)?
Both failure to satisfy the statute of frauds and running of the statute of limitations.
The UCC provides missing contract terms in which of the following instances?
Both failure to specify the price and failure to specify the place of deliver.
Lorene and Carolyn own a farm as joint tenants. When Lorene dies, her share will pass to:
Carolyn
In an employment agreement with Carl, Arnold promises to work for Carl for the rest of his life. This promise must be in writing or in proper electronic form to be enforceable. (Sneaky Question! Be careful!)
False
In order to be legally binding, contracts must always be in writing or they cannot be proven.
False
On March 20, Alan orally agrees to work for Trower, Inc. for a period of one year commencing on June 1. No writing is necessary here, because the contract can be performed within one year.
False
Barry's Sport Shop calls Champion Tee Shirt Company to order 200 designer tee shirts at $2 per shirt. The next day, Barry decides he can easily sell 100 more. Before the order is filled, he calls to change the order to 300 tee shirts. Champion sends 200. Can Barry force Champion to send the additional 100?
No, because Barry does not have a writing signed by Champion Tee Shirts.
Sam, a shopkeeper, dies unexpectedly at the age of 46. His lifelong business associate, Paul, is appointed the administrator of the estate. Sam had a personal debt of $8,000 which he owed to Art's Appliance Store. Paul said to Art, "If there isn't enough money in the estate, I'll personally see that the bill is paid." Which of the following is true regarding the statute of frauds?
The An oral statement such as this is not enforceable because it is within the statute of frauds and should be written.
Under the common law, a modification of a preexisting contract must be supported by mutual consideration; under the Code, a contract can be modified without new consideration.
True
Aunt Ellie promises her 21-year-old nephew, Robbie, that she will pay him $100 if he quits smoking for a month. If Robbie does, is there a binding contract?
Yes, because Robbie gave up a legal right.
Veronica entered into a contract with a local car dealer to have a new convertible sports car delivered to her daughter, Jasmine, as a college graduation present. In this contract, Jasmine is:
a donee beneficiary.
Which of the following would NOT be a merchant under article 2 of the UCC?
a person who inherits three motorcycles and wants to sell them to buy a car
Which of the following would be considered to be a misrepresentation of a material fact for purposes of establishing fraud in the inducement?
"This car has a new radiator."
The UCC Article 2 statute of frauds provision applies to the sale of goods for the price of __________ or more.
$500
Mary agrees to sew Georgia's prom dress for $50 plus costs. Georgia decides that she wants additional sequin trim around the neck and calls Mary who says it will now cost $60. When Mary finishes the dress (with the sequin trim), Georgia must pay:
$60, since the modified agreement is supported by additional consideration.
Albert and Bianca own a farm left to them by their father. Per the deed, when one of them dies, the ownership will automatically pass to the other who will own the property alone. Which type of ownership is this?
A joint tenancy.
Which of the following would NOT require a writing under the statute of frauds?
A landscaper agrees to landscape the lot surrounding an office building.
Which of the following is a true statement concerning a life estate?
A life estate is an ownership right in property for the life of any individual designated by the grantor.
Which of the following is a collateral promise that needs to be in writing to be enforceable?
A mother tells a merchant to extend $1,000 worth of credit to her son and says, "If he doesn't pay, I will."
In which of the following cases will an oral contract for the sale of goods of $750 be enforceable without a writing?
A party admits in an answer to a complaint in a lawsuit that the contract was made. Delivery and acceptance of the goods has been made. The goods are to be specially manufactured for the buyer and the seller has made a substantial beginning of their manufacture.
Langdon leases his hayfield to Tom for a period of ten years. What interest does Langdon have in the land?
A reversion.
Chris (just a private individual) receives a printed and signed form in the mail from Wyandott Heating & Air (a business) indicating that he has placed a telephone order for a $600 heater and confirming it will be delivered within the month. Chris doesn't recall placing the order but it is a good deal and he needs a heater. Which of the following is correct?
Chris can hold Wyandott to the order.
Which of the following is NOT true concerning the requirements for an effective assignment?
Consideration is required
Title to land may be transferred by which of the following?
Deed. Will or by the law of descent upon the death of the owner. Open, continuous, and adverse possession by a nonowner for a statutorily prescribed period of years.
Dan offers to sell his diamond ring to emily. If diane overhears the offer and says "i accept the offer:
Diane cannot accept because the offer wasn't made to her.
D owes C a past-due undisputed debt of $500. D sees C in a bar and pays him $400. C then says to D, "Forget about the other $100 you owe me. I'm glad to get the $400." C's promise to discharge the remainder of the debt is binding.
False
Dana gives care to Marnie's dog when Dana finds Marnie's dog injured on the side of the road. After Marnie locates her dog, Marnie promises to reimburse Dana for the cost of treating the dog. Marnie's promise is binding, because there is a bargained-for-exchange.
False
David's question to Albert, "would you be interested in buying my computer for $800?" is an offer to Albert.
False
If Coy tells Sari that he will give her two days to decide if she wants to buy his motorcycle, he cannot sell it to anyone else during that time.
False
Ron offers to sell Pete his stamp collection. Pete gives Ron $10 to induce him to keep his offer open for a week. If Ron decides on day four of the week that he really does not want to sell to Pete, he can revoke his offer without fear of a breach of contract lawsuit being filed against him.
False
The Abbot Corporation contracts with the Baker Corporation to sell to Baker its entire production. After signing the agreement, Abbot can increase its production from one shift to two shifts and Baker will have to buy all of the doubled production.
False
The Coastal Opera Company has a contract with a famous tenor to perform in its production of La Boheme. If the tenor chooses, he may delegate his duties under the contract to an equally well-known tenor.
False
The UCC statute of frauds requires that the writing include all agreed-upon terms.
False
The statute of frauds always requires that both parties sign the writing or it won't be enforceable.
False
Which of the following, if any, are requisites for fraud in the inducement?
False representation of a fact that is material. The representation is justifiably relied on. Representation is made with knowledge of its falsity and the intention to deceive.
Courts will enforce contracts for the benefit of all EXCEPT which of the following?
Incidental beneficiaries
If Brantly grants Anderson a life estate in Brantly's property for Anderson's lifetime and then Brantly dies, what happens to the land when Anderson dies?
It reverts to Brantly's heirs.
Marilyn read an ad in the school newspaper offering a thousand dollar swimming scholarship to anyone who could swim 500 laps in the school pool. Marilyn called the advertiser and began swimming. She has reached lap number 460; she feels great and is sure she can make it all the way. The advertiser:
Must permit marilyn the opportunity to finish her attempt to swim the 500 laps. or pay damages if he interferes with the completion of the laps.
Which of the following would be considered a material breach of a contract?
Partial performance that omits some essential part of the contract. Delivery of 90 chairs in a contract that calls for 100 chairs. An intentional breach of the contract.
George offered to paint Catherine's barn for $3,000. Catherine said she would accept the offer if George would paint the woodshed, too.
Presumming George receives Catherine's response and then starts painting, based on his conduct he has accepted her offer which includes painting the woodshed.
Which of the following carries with it no warranties or guarantees of title?
Quitclaim deed
Which of the following is a contract with a condition subsequent?
Roger bought a computer but he may return the computer within ten days and get all of his money back.
Sid contracts to put new kitchen cabinets in Ned's house. Sid repeatedly tries to install the cabinets, but Ned does not grant him access to the house. In this case:
Sid is discharged from his duties under the contract because Ned's prevention of Sid's performance constitutes a material breach.
Addison is approached by Archer Enterprises to work as a consultant for a period of two years, and he signs a two year agreement. This contract is governed by:
State common law
serefina's boutique places an ad in the sunday paper for finely tailored, top of the line designer suits for 10.00. which is a misprint. Alice sees the ad on the paper and goes to the store to stock up on business suits for her new job. Serefina apologizes for the misprint. Alice has just finished class in contract law and insists that the store sell her 5 suits for $50. Alice threatens to sue serefina for breach of contract.
The ad in the newspaper is a solicitation seeking offers, but it is not an offer to sell, therefore alice will not be able to successfully sue for breach of contract.
William agrees to drill a well up to 200-feet deep for John's rural cabin. The contract price is $3,000. After drilling 100 feet, William strikes solid granite rock. He talks to John and explains that this is highly unusual for the area and could not have been anticipated at the time of entering into the contract. He offers to get a special drill, but says it will cost him more money, so that he will be unable to complete the project for the agreed price. Because John is anxious to have the well, he agrees to pay William an additional $1,000 to complete the job. However, once the well is finished, he changes his mind and now says he will pay only the originally agreed-upon amount. What is the result?
The parties have agreed to a substitute contract which discharges the original contract. John is obligated to pay the additional $1,000.
Which of the following contracts is covered by Article 2 of the Uniform Commercial Code?
The sale of a new car.
Which of the following would not be enforceable without additional consideration?
The settlement of an undisputed debt.
A contract is a binding agreement that the courts will enforce.
True
A usage of trade is a practice or method of dealing regularly observed and followed in a place, vocation, or trade.
True
An assignee 'stands in the shoes of the assignor' so he gets whatever rights the assignor was entitled to receive.
True
At the marriage of her daughter, Lorna is given papers to sign, which the catering company says are the invoices for the food, service, and decorations. Underneath the invoices are a carbon and a contract of sale for a portion of the failing catering business. Lorna signs the papers; her signature is transferred to the sales contract. This is a void contract because it was entered by fraud in the execution.
True
Belinda has a household insurance policy, which requires that she notify the insurance company within 30 days of any loss before she is eligible to receive payment for her loss. The notification requirement is a condition precedent to the insurance company's obligation to perform, even though the notification must occur subsequent to the loss.
True
Contract rights are generally assignable.
True
For a misrepresentation to be material, it must be likely to induce a reasonable person to manifest assent or the maker must know that it would be likely to induce the recipient to do so.
True
If Marguarite promises to pay Neal $300 not to defame her, the promise is unenforceable because tort law imposes a preexisting obligation on Neal to refrain from such an act.
True
If no time limit is stated, an offer will not terminate automatically after a reasonable period of time.
True
In order to induce a car dealer to sell her son a car on credit, Mary promises that she will pay for the son's car if the son defaults on his monthly payments to the dealership. Mary's promise must be in writing or have a sufficient electronic record.
True
Most types of contracts are valid without being written.
True
Pedro receives an unordered three-CD set in the mail accompanied by the statement, "This CD set can be purchased for the special price of $19.95. If the CDs are not returned within two weeks they will be deemed accepted and the payment is due within 30 days of receipt of the CDs." Pedro is under no obligation to either return the CDs or to pay for them; he may use them or give or throw them away.
True
The common law "mirror image" rule applies to an offer and the acceptance of that offer in a contract for the sale of goods.
True
The common law of contracts governs all contracts outside the scope of the UCC.
True
The difference between an express contract and an implied in fact contract is the manner in which the parties manifest assent.
True
The general rule is that an assignee stands in the shoes of the assignor. He acquires the rights of the assignor but acquires no new or additional rights.
True
The student government of Baylor University has a contract with a famous rock band to perform at the university on homecoming weekend. After finding out they would be performing the day after the awesome Pigskin performance, they decided to try to get out of their obligation to avoid being embarrassed. Legally, the band cannot assign its rights and delegate its duties under this contract.
True
Undue influence is the taking of unfair advantage of a person by reason of a dominant position based upon a confidential relationship.
True
When the rights under a contract are highly personal, they are not assignable.
True
When does acceptance of an offer to enter into a unilateral contract generally occur?
Upon full performance by the offeree
In which of the following situations does the parol evidence rule not apply?
Where a typographical error occurs in the document and obviously does not represent the agreement of the parties. The parol evidence rule applies in both of the above situations. correct: The parol evidence rule does not apply in either (a) or (b).
An express condition is usually preceded by which of the following terms?
While. After. Provided that.
Nadira mails an offer to cade on march 15. Cade receives the offer on March 16. Nadira mails a revocation of the offer on march 17. Cade mails a letter of acceptance on march 18. Cade receives the revocation on march 19. Nadira receives the letter of acceptance on march 20. Was a contract formed?
Yes, on march 18
You are really hungry and just want a large pepperoni pizza to share with your dog for supper. You call up your favorite restaurant, Pizza Café and tell them your order. They respond with "Got it! Should be ready in 30 minutes. " Which statement is NOT correct?
You did not make a valid contract since you did not discuss price, payment or delivery terms.
Lyle offers to sell his house to Dennis for $95,000. Dennis responds, "I will pay you $95,000 for the house if you first paint the second floor." This response could best be described as:
a counteroffer
A deed ordinarily contains all of the following except:
a description of the consideration.
Simone offers to pay Andrea $150 if Andrea will paint her apartment while she (Simone) is out of town on vacation for two weeks. Andrea makes no promise but tells Simone that she will think about it. While Simone is out of town, Andrea paints the apartment. This is best described as:
a unilateral contract
Which of the following is NOT always necessary in order for a valid contract to be formed?
a writing
Brookes offers to sell four acres of land to Jennifer to 8,000 and further offers to keep the offer open for one month if Jennifer will pay him 100 for the privilege. Jennifer pays brooks 100. Which statement describes the payment of 100.
This created an irrevocable option contract under the common law so jennifer has one month to decide if she wants to buy the land.
Marilyn contracted with Bravo Builders to build an addition to her house for $15,000. After digging the foundation, Bravo decides that it will take more work and more concrete than it had originally thought and that it will need to charge an additional $5,000 for the job. Assuming Marilyn agrees, which of the following is correct?
This is a modification of a preexisting contract, which under common law must be supported by additional consideration on the part of Bravo Builders.
On January 1st, Mask manufacturing inc. makes an agreement to sell to helping hands hospital all of the protective masks that helping hands needs for a period of 3 months. Helping hands normally uses about 1,000 per month although the number varies a little. On March 1st, helping hands submitted an order for 5,000 masks. Masks manufacturing only provides 1,000. Which statement is true?
This is a requirements contract and Mask is not in breach of contract for failing to provide 5,000.
Ezekiel wrote a letter to his friend Fernando offering to sell Fernando a 75-acre farm for $150,000. After mailing her letter, ezekiel learns that the farm is actually worth 200,000 and changes his mind about selling In this case, Ezekiel
can revoke his offer at any time before Fernando accepts it, because there is no consideration to keep it open.
Harold hired Blake Painters to paint his house. Blake decides he has too many jobs and delegates the duties to the Andrews Company. If Andrews does a poor job, and drips paint on Harold's flowers and windows, Harold:
can sue both Blake and Andrews
Jill contracts to purchase Kevin's automobile under the belief that she can sell it at a profit to Linda, but after Jill has bought the car, she finds out that Linda isn't interested in buying it. Jill:
cannot avoid the contract
Under the UCC, a(n) __________ is a sequence of previous conduct between the parties to an agreement which may be fairly regarded as establishing a common basis of understanding for interpreting their conduct under the contract.
course of dealing
Will wants to buy a new car. He goes to the bank to get a loan for the purchase, and signs an agreement to pay $10 per month in premiums on a term life insurance policy which names the bank as the recipient of the policy proceeds in the event of his death before the loan is repaid. The bank is a(n):
creditor beneficiary
Bob, the tax accountant, promises to do Marge's individual federal, state, local, and gift taxes for the year and also the tax returns for her business. He completes all but the gift taxes. Under the substantial performance doctrine, Marge will:
have to pay Bob for all but the gift tax return.
A(n) __________ is a third party who obtains possible benefits but no rights under a contract.
incidental beneficiary
Albert found a stone in his yard and took it to Bob, a jeweler, for evaluation. Bob wasn't sure as to the nature of the stone, but told Albert he thought it was a topaz and believed that to be true. Bob then offered to buy the stone for $25 and Albert agreed. Later Albert found out the stone was an uncut diamond worth about $700. The sales contract:
is a valid contract that should be enforced by the law, because neither party knew the exact nature of the stone at the time of the sale.
Orwin, owner of a used furniture store, gives Maggie a signed offer to buy her living room furniture for $800. This offer:
is irrevocable for a reasonable time, not to exceed three months, even if there was no consideration.
Morris interviewed for a job as plant manager at Northland Bearings and was offered a two-year contract if she could relocate and start the new job within three weeks. Morris agreed. Northland promised to follow up the oral agreement with a written contract setting forth all the agreed terms, but the contract had not arrived within several days. Morris wanted to give two-weeks' notice to her present employer, so she called Northland to check on the written contract and was told it was ready to be sent to her and assured her the job was hers. She gave notice of her intention to quit her present job and moved two states away to the Northland location. When Morris arrived for her first day of work, she was told someone else with better qualifications had been found and hired for the position. Morris:
may be entitled to good-faith reliance damages under the doctrine of promissory estoppel to avoid injustice.
Remo helped Hank study all night for an important exam. After Hank got an "A" on the exam, he told Remo, "I will give you $10 for helping me get a good grade." Remo said, "Thanks, I'll take it." There is:
no contract because there is no valid consideration.
A contract was made for 125 bales of cotton to arrive on a ship named "Peerless" from Bombay. Unbeknownst to either party to the contract, there were two ships named "Peerless," both of which were sailing from Bombay. One sailed in October and the other in December. The buyer had in mind the ship sailing in October, but the seller had in mind the ship sailing in December. Each party held his belief in good faith. When the goods failed to arrive on time, the buyer sued for breach of contract. The court found:
no contract existed due to mistake in meaning of terms.
The Code greatly alters the common law doctrine of material breach by adopting what is known as the:
perfect tender rule
The Uniform Commercial Code
presumes the parties are acting in good faith and in a commercially reasonable manner
Barbara, a wealthy widow, promises the pastor of her church that she will donate $30,000 to the church to help pay off its mortgage if the stewardship committee can obtain enough pledges for the balance of the $60,000 mortgage. Other pledges are obtained to pay off the mortgage, but now Barbara has changed her mind and plans to take an around-the-world cruise instead. In this case:
presuming the church justifiably relied on her promise and acted to their detriment, Barbara's promise is enforceable.
The privilege to play tennis and socialize at the Capital City Country Club (CCCC) is obtained through application, references, resumes, and fees. Steven and Chanel want to assign the remaining 4 years of their 5-year membership to Charles and Prissy so that Steven and Chanel may join the posh Silver Hawk Tennis and Polo Club. CCCC sues to enjoin Steven and Chanel from assigning their membership. CCCC will most probably:
prevail because the parties intended the contract to be personal and non-assignable.
There are certain transactions that are enforceable without consideration. These include:
promises to pay a debt barred by the statute of limitations. a promise to pay a debt that has been discharged in bankruptcy if certain requirements are met. a new promise to perform a voidable obligation that has not previously been avoided.
A possibility of reverter is the complementary estate to a:
qualified fee.
The Uniform Commercial Code does not apply to:
service contracts. contracts involving real property. insurance contracts. employment contracts
Marcus is a salesman for Outdoor Life. He is telling a potential customer the virtues of a particular tent, by making the claim that "It's tougher than a Baylorbear!" If this customer buys the tent, only to find it destroyed by bears in the campground,
she does not have a valid claim because Marcus' talk was just sales puffery.
Scienter is a legal term which means:
that the seller had knowledge that his statements were false and the statements were made with the intention to deceive.
Darrell owns a parcel of land that he purchased by obtaining a loan from the First National Bank, and the loan has not been paid off yet. Darrell agrees to sell the land to Paul for $50,000. Darrell and Paul together go to the First National Bank to discuss the sale and purchase with the banker. Darrell, Paul, and the banker sign an agreement stating that Paul will assume the mortgage and that Darrell will be discharged from all further liability on the mortgage. In this case:
the agreement among the three is a novation.
Darla offers to pay Edward $6,000 for Edward's car, provided that Darla receives that much from her uncle's estate, which is currently being probated. She expects to know for sure how much she will receive within a week or so. If Edward agrees:
the consideration from Darla to Edward is the promise of $6,000 subject to a condition.
An arm's length transaction is one in which:
the parties are acting in their own self-interest.
Fred is a concert violinist who is scheduled to perform at Carnegie Hall 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, although it is a good imitation, which fooled even the dealer. In this case:
the sale may be rescinded, because the dealer has made a nonfraudulent misrepresentation.
Clint contests the amount of a bill he received from Car Care Specialists. If they reach an agreement that Clint will pay less,
there would be valid consideration for the modification if at the time of the settlement the claim was doubtful because of uncertainty as to the facts.
A and B enter into a contract on January 1 of this year. A's friend C tells A, "The law generally restricts the time within which an action can be brought by either party to a contract." C's statement is:
true because of statutes of limitations.
Barbara owes Arthur $2,000. On July 1, Arthur assigns the debt to Caleb. Thereafter on July 15, Arthur assigns the same right to David, who in good faith gives value for it and knows nothing about the first assignee. David immediately notifies Barbara of the assignment. In this case:
under the minority rule, David has priority.
Adonia and Merv enter a contract for the sale of a computer. If Merv breaches the contract and Adonia waits until the time specified in the statute of limitations has passed, the contract is now:
unenforceable
Jason's mother would like him to go to college, so in June he enrolls at the local university. He also quits his job and tells his mother his plans to take classes. His mother says, "I'm so happy that you are going to college that I want to pay for your books." Jason then sends her a bill for $485. Jason's mother's promise is:
unenforceable, because his mother is not getting any legal benefit for her promise to pay for his books.
A deed containing a number of promises including covenant of title, quiet enjoyment, against encumbrances, and warranty are found in a:
warranty deed.
Asher is involved in an automobile accident and is injured. While he is unconscious, the police call an ambulance which takes him to a hospital. Asher is treated at the hospital and released a day later. The hospital sends him a bill for $4,500, which Asher refuses to pay, claiming it is too high and he never consented to the treatment because he was unconscious. Asher:
will have to pay the hospital the reasonable value of their services because this is a quasi-contractual agreement.
A bank robbery has occurred, and the banker's association has offered a $1,000 reward for information leading to the arrest and conviction of the robber. Several people are claiming to be entitled to the money. Which of them is eligible?
An off-duty deputy sheriff from a county other than the one where the bank robbery and arrest occurred.
Anita, who is a seamstress, agrees to sew a suit for Bryan, who promises in return to pay Anita $500 for the suit if he is satisfied with it. Anita completes the suit, which fits Bryan perfectly. Nevertheless, he says that he is not satisfied and refuses to accept or pay for it. If Bryan is honest in his dissatisfaction,
Anita has no recourse against Bryan, because she agreed to the subjective standard.
Which of the following duties would not be delegable?
Arthur has a duty to teach an accounting class at a community college during the fall semester.
Which of the following can meet the scienter requirement to establish fraud in the inducement?
Actual knowledge that the statement was false Lack of belief in the statement's truthfulness Reckless indifference as to a statement's truthfulness.
Adam wants to buy a six-passenger car. The salesman tells him that the two-seat sports car Adam sees on the car lot would be just perfect for six people. Adam test drives the car and then buys it.
Adam is not entitled to relief based on fraud because he was not justified in relying upon the salesman's representation that the car would seat six people
Which of the following results in a void contract?
Duress by physical force.
Solomon Tate enters into a contract with William Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, which term describes the type of contract in existence?
Executory contract
Which of the following is NOT generally required in order to have a valid contract?
Fairness of the bargain.
Al owns a farm that he believes is worth $150,000. Betty knows that there is oil under the farm and offers Al $160,000 for it. Al accepts and sells the farm to Betty. Al later realizes that the land was worth more than $160,000. Al can have the contract avoided based upon fraud.
False
Assignments of all future wages to a specific creditor are legally permissible as long as the assignment is in writing.
False
Jim threatens to hit Kai in the head with a baseball bat unless Kai signs a contract agreeing to pay Jim $400 for his computer. Because of the threat, Kai signs the contract.
Jim has committed physical duress against Kai.
Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip to Canada. The contract was made on April 1 with the trip to begin on June 1. Jim blocked out the three weeks on his calendar and refused other work for that time period. On May 1, Kevin notified Jim that he had changed his mind and would be unable to make the trip. He also refused to pay Jim any compensation. In this case:
Kevin has anticipatorily repudiated the contract and is immediately liable to Jim for damages.
Paul promises Marty $1,500 if he will completely landscape Paul's yard. Which of the following would discharge Paul's obligations to pay under this contract?
Marty doesn't plant any flowers, trees or grass
Which one of the following assignments would probably be prohibited by a court?
Mary is heavily in debt. A credit card company calls and threatens to sue. Mary orally assigns her next 5 years of bimonthly paychecks to her creditor.
Maxine offered to sell her video camera to Tom for $200 and also stated to Tom, "I will give you two weeks to accept my offer." One week later Tom learned that Maxine had sold the video camera to Cindy. In this case?
Maxine has revoked her offer to Tom
Steven has a typed copy of a contract, which he would like to have Thomas sign. Thomas, who needs glasses to read typing, doesn't want to sign until he has read the document, but Steven convinces Thomas to sign it anyway, because it is a "standard" contract for this type of situation. Is the contract which Thomas signed binding upon him?
Yes, because he was negligent in not ascertaining its contents
On March 1, Tammy, a student, received a telephone call from Watterson, Inc. offering her a job for one year beginning on June 15, after completion of the school year. According to the personnel manager, she will have to move to California and be ready to start work at 8:00 a.m. on June 15. Should Tammy ask for a letter confirming the telephone conversation if she accepts the offer immediately?
Yes, because the job offer is for longer than one year from March 1.
Under the common law, the ____ must be the mirror image of the ____.
acceptance; offer
Bill recently borrowed $50 from Ricardo for a couple of weeks. Bill, still short of cash, tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you." Ricardo tells Bill, "OK, that's great!" and performs his new duty. This situation is
an accord and satisfaction.
Paul, a contractor, has a contract to build a new office building for Bill. The contract contains a provision requiring Paul to furnish a certificate of occupancy from the city's building inspector before Bill is required to pay. This provision is:
an express condition
Alice says to Brian, "If I decide to buy a digital camera next year, I will buy it from you." This is an example of:
an illusory promise.
Stark enters into a contract with a contractor to build a large shopping mall in River City. Donner will greatly benefit from this contract since his convenience store is adjacent to the mall. Donner in this instance is:
an incidental beneficiary.
The concept of consideration in contract law includes:
an inducement to each party to make a return exchange.
On November 1, Paula and Roberta enter into a contract where both parties are obligated to perform on December 31. On December 1, Paula tells Roberta, "I can, in no way, perform my duties in our contract." This statement is:
anticipatory repudiation.
The cameron park zoo offered to rent its facilities to Kids Camp, a local organization, to hold an Easter egg hunt for all children in the community on April 1st. However, before Kids Camp can accept, the city of waco passed a law making it illegal for groups of 10 or more to gather until april 7th. The city's new law
automatically terminates the offer
To be effective, an offer must:
be sufficiently definite and certain. be communicated to the offeree. manifest an intent to enter into a contract.
In order for a deed to be effective between the purchaser and the seller of real estate, the deed must:
be delivered by the seller with an intent to transfer title.
General contract law states that contracts that have to be in writing must:
be signed by the party to be charged or by his/her agent. specify the subject matter and essential terms. specify the parties to the contract.
A transfer to a third party of a contractual obligation is known as a(n):
delegation of duties
A characteristic of a tenancy in common is that:
each co-owner has an undivided interest in the property and has the right to possession.
A(n) __________ contract is one in which the terms have been definitely and specifically stated and agreed upon.
express