L201 Final (moore)

Sarah is 16 years old. She left home at age 15; her parents no longer support her. Sarah entered into a contract with Best Groceries for the purchase of $100 of groceries on credit. The groceries consisted of basic, necessary items. However, their reasonable value is only $80. If Sarah discovers that she has been overcharged and refuses to pay, Best is entitled to collect:

$80

Aaron promises to sell his boat to Matt, and Matt promises to buy it from Aaron. What type of contract is this?

A bilateral contract

Output Contract

A contract in which one party agrees to buy all produced goods of another party

Which of the following contracts is void?

A contract made by a person who has been adjudicated insane and institutionalized

King sent Foster, a real estate developer, a signed offer to sell a specified parcel of land to Foster for $200,000. King, an engineer, had inherited the land. Foster telephoned King the same day that he received his letter and accepted the offer. Which of the following statements concerning the contract is correct under the statute of frauds?

A contract was formed, although it would be enforceable only against King

Liquidated

A debt that is both due and certain (Set amount that was agreed upon)

X, Inc offers to sell 9 discs to Y, Inc. for $999- assurances in signed writing keep open 1 year

A firm offer that cannot be revoked for 3 months

Which of the following meets the requirements of consideration?

A promise that involves the exchange of a legal value

Which of the following does the statute of frauds cover?

A real estate mortgage

Offers that fail to specify a time limit are only open for

A reasonable time

When a promisee who has an existing claim agrees with the promisor that he will accept some performance different from that which was originally agreed on, both parties can use the remedy of:

Accord and satisfaction

C agrees to start portrait of Z beginning on 4/1/17. On 3/27 C writes Z that he wont be able to perform

Anticipatory repudiation

Calvin tells Sara that he will sell her his car for $5,000. Sara agrees. The exchange is to take place in 10 days. The contract between Calvin and Sara is now:

Bilateral, executory, and express

Xena and Yoni have a contract, which obligated Xena to sell Yoni 100 boxes of screws for $100. Xena seeks to cancel the contract but instead the parties agree to orally modify the contract so that Xena will sell Yoni the same 100 boxes of screws for $75. The second agreement is:

Binding by virtue of being mutually agreed upon

Shipping nonconforming goods without notice to the buyer is __________.

Both acceptance of the offer and a breach.

Austen Construction, a general contractor, advertised for bids from subcontractors on the electrical work for the renovation of one of State University's parking structures. The advertisement announced that the contract will be awarded to the lowest responsible bidder. Bronte, a responsible electrical subcontractor, submitted the lowest bid to Austen for the electrical portion of the work. Austen informed Bronte that she should begin work immediately. Bronte then stated that she is "withdrawing" her bid from Austen. Which of the following statements is most accurate?

Bronte has accepted Austen's offer by submitting the lowest bid

Morton Reeves, a building subcontractor, submitted a bid for construction of a portion of a high-rise office building. The bid contained material errors in computation. Lago Corp., the general contractor, accepted the bid with the knowledge of Reeves' errors. Reeves:

Can avoid liability on the contract since Lago knew of his errors

Bing engaged Dill to perform personal services for $2,200 a month for a period of four months. The contract was entered into orally on July 1, 1984, and performance was to commence September 1, 1984. On August 10, Dill anticipatorily repudiated the contract. As a result, Bing:

Can immediately sue for a breach of contract

Which form of damages is intended to give the victim of the breach of contract the "benefit of the bargain"?

Compensatory

E & B enter oral contract for sale of land priced at $500,000. B pays $400,000 and takes possession of land.

Contract enforceable- B paid part of purchase price and took possession. (acceptance)

The remedy for a violation of the statute of frauds in an executory contract

Contract unenforceable; possibly recover Promissory Estopple/ quasi-contract

$500

Contracts for the sale of goods for $500 or more must be in writing in order to be enforced

The shipment of nonconforming goods, intended as an accommodation to the buyer, is a(n) _______________.

Counteroffer

Misrepresntation

Defined as party seeking to rescind b/c reliance on unintentional, materially false statements.

In a hybrid contract, which includes both the sale of goods & services, most courts will apply:

Depends on which element predominates (goods or services; UCC or common law)

In general, ambiguities in a written agreement are resolved against the _____.

Drafter

Contract induced by an improper threat & victim had no reasonable alternative

Duress

Physically forcing someone to sign a contract

Duress- void because of physical force

In order for the consideration requirement in contracts to be met:

Each party must give consideration

A signed writing, by a merchant, containing assurances that the offer will be held open

Elements of a firm offer

If part of an agreement is legal and part is illegal, the courts will:

Enforce legal parts so long as its possible to separate 2 parts

Which of the following characterizes the effect of incapacity caused by mental impairment?

If a contract is found to be voidable on the ground of mental impairment, the person who lacked capacity at the time the contract was made has the right to disaffirm the contract

Y will purchase all the gas that it wants to buy in 2017 at a price of $2/gal; V agrees to the terms

Illusory contract

When the surrounding facts and circumstances indicate that an agreement has in fact been reached, a(n) _____ has been created.

Implied contract

Quasi-contract

Imply promise to pay for benefits he received from another to avoid unjust enrichment

Scienter

Intent or knowledge of wrongdoing

When the consideration given in exchange for the collateral promise is something the guarantor seeks primarily for his own benefit rather than for the benefit of the primary debtor, the contract:

Is outside the statute of frauds

Daniel owes Casey a debt, the amount of which is subject to a good faith dispute. The parties agree to settle the debt, with Daniel promising to pay Casey $15,000 and Casey promising to release Daniel on a $25,000 debt. The settlement agreement:

Is supported by consideration

An oral contract for the sale of land that has been completely performed by the vendor (seller)

Is taken out of SOG and can be enforced without any writing

Why is past consideration not a consideration in a present promise?

It does not pertain to the present exchange

What is the legal status of an improperly dispatched acceptance that was sent by a means of communication that was nonauthorized by the offeror (traditional common law)?

It is effective when received

A bilateral contract is "taken out of the statute of frauds" when:

It is fully performed by at least one party

Which of the following conditions characterizes a firm offer regarding the sale of goods?

It must be made by an offeror who is a merchant

Damages that are agreed upon at the time the contract is entered into are called _____.

Liquidated damages

Only state to only partially adopt Uniform Commercial Code (UCC)

Louisiana

A bilateral contract is accepted by when the offeree:

Makes the promise requested by the offer

Quantity

Memo on sale of goods that doesn't indicate _____ of goods to be sold does not satisfy UCC writing requirement

On May 1, 1985, Mint, a 16-year-old, purchased a sailboat from Sly Boats. Mint used the boat for six months, at which time he advertised it for sale. Which of the following statements is correct?

Mint may disaffirm the May 1 contract at any time prior to reaching majority

Guy and Boyd make an oral contract whereby Guy agrees to sell Boyd, 480 widgets (goods) at a price of $480. Later, the parties want to modify the contract so that the price would become $520. This modification:

Must be in writing

Can a local businessman pay a police officer $50 a week to watch the business more closely?

No, Public Officials cannot give consideration on duties they are already supposed to perform

Milner Developers proposed an offer to Henry Wright, an independent contractor, offering to hire him for their next project. They offered him a certain rate and specified the contract details along with describing the stipulated mode of acceptance but received no response. Wright responded to the offer after a delay of two months with a quote for a higher amount than that mentioned by Milner Developers. Do the two parties have a binding contract?

No, because Wright's letter was a counteroffer to the original offer

Sue offers to buy a house from John and they were negotiating the price of the house. In the meantime, Sue confides in John's girlfriend that she is willing to pay an amount of $50,000 for the house. Delighted to hear this, John's girlfriend tells him the good news. John immediately calls up Sue and accepts her offer. Is there a binding contract?

No, because the offeror had not communicated the terms of the offer to the offeree

Sara tells Kate that she will give her $50 to clean her garage. When Kate is halfway done, Sara decides to revoke her offer. Is this a valid revocation?

No, because this is now a bilateral contract

Helen worked for ABC Motors for 25 years. The president of ABC said to her: "In consideration of your past service for 25 years, I promise to give you a new car next week." However, he did not give the car. Is this promise legally enforceable?

No, legal consideration is absent

Betty, age 16, buys a car and wrecks it one week later. She takes it back to the seller and demands all her money back. According to the traditional rule, is she entitled to get all her money back?

No, she is entitled to get some money back but less the value of the damage to the car

What is the status of offer when offeree tries to accept offer, on its exact terms, after expiration?

Offeree becomes the offeror making a new offer

Option

Offeror agrees not to revoke offer for stated time in exchange for valuable consideration

Whose signatures are needed in order to satisfy the statute of frauds?

Only the signature of the party against whom enforcement is being sought

Parol Evidence

Oral context introduced to a written contract to resolve ambiguities

Written agreement, F agrees to sell Q 100 boxes of cookies at $6 a box ($600); F then orally agrees to $4 a box ($400)

Oral modification is valid (modified to be under $500)

Contracts in which one party to the agreement agrees to buy all of the other party's production of a particular commodity is called a(n):

Output contract

A minor entered into a contract with GAM & Co. On attaining majority, he wishes to enforce the contract. The adult party must:

Perform the contract

Offeree

Person who accepts or declines offer

Offeror

Person who makes promise

Contract btw Stella and Painture, LLC for paint purchase ($50) and installation ($1000). Stella sues Painture.

Predominant purpose=service; common law contract rules apply

Promissory estoppel

Prevent offeror from revoking offer prior to acceptance when offeree relies on it being kept open

Which of the following will likely be legally binding despite lack of consideration

Promise to donate money to a charity which a charity relied on (reliance)

A agrees to paint S car for $500 on complete agreement. S tries to cancel b/c B offered to paint for $400

Promisee: A, Promisor: S

Requires reasonable reliance on the promisor's promise

Promissory estoppel

Which of the following is true of a revocation?

Promissory estoppels are used to prevent revocations

April and Brian entered into a partially integrated written contract. Before the written contract was completed, April made an oral statement to Brian regarding the terms of the contract. This statement was not contained in the written contract. Under the parol evidence rule, evidence of April's oral statement would be admissible if it were used to:

Prove an additional term consistent with the written agreement

A memorandum on the sale of goods that does not indicate the _________ of goods to be sold will not satisfy the UCC's writing requirement.

Quantity

Which of the following allows a party who has materially breached a contract to recover the reasonable value of any benefits he has conferred on the promise?

Quasi-contract

Which of the following ends the right to rescind a voidable contract?

Ratification

Disaffirming minors required to pay

Reasonable value of necessaries

The "confirmatory memorandum" exception to the UCC's statute of frauds provision:

Requires that both parties to the contract be merchants

Where the parties to a contract wish to cancel their contract and be in the same position as they were prior to forming the contract, they should seek to obtain a(n) ___________.

Rescission

The legal remedy of __________ requires the defendant to pay the value of the benefits that the plaintiff has conferred on him.

Restitution

Mailbox rule

Rule that states acceptance occurs when offeree dispatches acceptance by an authorized means

S=emancipated 15yr old. S enters into a contract with B for $100 of groceries on credit. Real value is $80

S must pay $80

Accord and satisfaction

Settlement of an unliquidated debt

Price signed a contract to sell Wyatt a parcel of land for $90,000. The entire sales price was payable at the closing. Price has decided to keep the land. If Wyatt commences an action against Price, what relief is Wyatt most likely to receive?

Specific performance

Specific Performance

Specific performance is an order of a court which requires a party to perform a specific act.

Governs contract btwn Greg & Jones Chevy where G signed contract to work as manager for J

State common law (not sale of goods)

Executory

Status of a contract when there is still more to be performed

Nina has breached a contract between Milo and her, but not materially. This means that Milo can:

Sue only for damages caused by the breach

According to the Code, when there is an acceptance that contains terms that are different from the original terms of the contract, the contract will consist of _______________ and the appropriate gap-filling presumptions of the Code.

Terms on which the parties' writings agree

Impossibility test

Test to determine if contract can be performed within 1 year for purposes of Statute of Frauds

Mr. White enters into a contract to sell a car to Joe Jr. who is 15 years old and is considered a minor in the state where he lives. What is the status of the contract that Mr. White and Joe Jr. entered into?

The contract is voidable and is enforceable unless and until Joe Jr. cancels it

Three days before she was judicially declared mentally incompetent and institutionalized, Irma bought a $50,000 automobile by cash and took delivery of it. Which of the following is true about this contract?

The contract is voidable due to Irma's institutionalization

James goes to a dentist to have a tooth extracted. James never signs a written contract for this service, and he and the dentist never made an oral agreement either. Later, the dentist bills James who refuses to pay. The dentist sues James. Which of the following is true?

The dentist can recover under quasi-contract

Revocations and rejections

The general rule is that ______ are only effective upon receipt.

Consideration

The glue that holds the bargain together

Which of the following is true of necessaries?

The liability for necessaries is quasi-contractual

Mirror image rule

The rule that states the offeree must accept the terms as stated in the offer

Mr. Yellow delivers a stack of newspapers to Mr. Green's store to see if he wants them. A note attached indicates the stack of papers is $50. Mr. Green without communicating an acceptance sold the entire stack of papers to his customers. What is the status of the agreement between Mr. Yellow and Mr. Green?

There is a contract because Mr. Green accepted by implied action

In deciding whether consideration necessary to form a contract exists, a court must determine whether:

There is mutuality of consideration

Mr. White contracts with his wife Ms. White to watch their kids, Joe and Jimmy, for $50 for night. What is the status of the contract between Mr. Smith and Ms. White?

There is no contract because Ms. White gave inadequate consideration

Kyle sent Tara a letter offering to sell Tara his car. Tara left the letter on her desk, where her roommate, Maggie, saw it. After reading the letter, Maggie wrote to Kyle and stated that she (Maggie) wanted to accept Kyle's offer. Which of the following is true?

There is no contract between Kyle and Maggie because Kyle did not communicate the offer to Maggie

Tracy, aged 12, is named the sole inheritor of her family mansion, which is valued to be worth millions. She has disaffirmed the agreement on the advice of her uncle and guardian Pete. This automatically transfers the title to the latter. Which of the following statements is true of the case?

Tracy cannot disaffirm until she has reached majority

Common Law= offeror can revoke offer at any time prior to acceptance even if promied not to

True

The effect of recission before performance of an illegal act

Typically, each party can recover what they parted with

The law that applies to a sale of goods when the seller is not a merchant

UCC applies, but merchants held to higher standard

In a sale of goods contract, if a term is left open, that open term can be filled by

UCC's gap-filling rules

Normally, an illegal contract is:

Unenforceable

An otherwise valid contract whose enforcement is barred by the applicable contract statute of limitations is an example of a(n):

Unenforceable contract

Nolan Ryan 1968 Topps Rookie baseball card was talked about in relation to the doctrine of:

Unilateral Mistake

Which of the following contracts are agreements that create no legal obligations and for which no remedy is given?

Void contracts

"Sign this contract or I'll kill you" is

Voidable because of duress

A contract in which one or more of the parties have the legal right to cancel their obligations under the contract is called a(n):

Voidable contract

Written memorandum, indicates existence of contract, quantity and signed by the party to be charged

What the UCC requires to satisfy the Statute of Frauds

Recission

When a court undoes a contract to retun parties to the position they were in before contract existed

Revocation

When an offer is withdrawn by the offeror before acceptance by the offeree

Partial Integration

When parties are permitted to use parol evidence to prove the additional terms of the agreement

Barney is 23 years old. His aunt had promised in writing to pay him $1,000 if Barney would refrain from drinking alcohol for one year. Barney refrained from drinking alcohol for one year. However, his aunt now refuses to pay Barney as agreed-upon. The aunt claims that because Barney suffered no detriment by refraining from alcohol, his non-drinking does not constitute legal consideration and therefore no contract was formed. If Barney sues his uncle, Barney will:

Win because Barney had a legal right to drink alcohol

Injunction

a court order that compels a party to do or refrain from continuing a specific act.

Attempt to introduce oral evidence in action relating to written contract is PROHIBITED if

it results in a change in the meaning of an unambiguous provision in the contract

Restitution

restoration of something lost or stolen to its proper owner.

Reggie went to the Napa Valley Harvest Festival, when he stopped at Tracy's booth where she was selling paintings of vineyards. Reggie admired a painting of vineyards, which did not appear to be for sale. Reggie said to Tracy, "I will give you $200 if you give me that painting right now." Tracy said nothing in response, but she gave Reggie the painting, and Reggie gave her $200 in cash. This is an example of a contract that is now:

unilateral and executed