Legal & Social Exam 2
ratification by a former minor (who is not an adult) must be express
False
Today you told your boss that you quit your job—tomorrow will be your last day. Your super-rich uncle finds out what has happened, and tonight he calls you. He says to you, "Don't worry about the money, I'll pay you $500 a week to help make up for your lost wages." The doctrine of promissory estoppel allows you to enforce his promise.
False No reliance (you had already quit your job when he promised you this gift)
A written contract that results from the buyer's promise to buy a dog, in return for the seller's promise to sell the dog, would be classified as an informal, bilateral contract.
True
An assignment is legal at the moment it is made, and the assignee owns the rights as of the date of the assignment.
True
Assume that Betty agrees to pay $100 to Jim, but Jim assigns his right to receive the money to Thomas. If Betty is not notified of the assignment, then Betty can discharge her obligation by paying Jim.
True
Fog offers to sell her car to Ben for $400. Ben replies, "I accept the offer, but I wish I could have gotten a better price." A contract now exists.
True
Generally speaking, revocation is effective when received by the offeree, regardless of who tells the offeree of the revocation.
True
I have made an offer to you to sell the Picasso painting which I own. Unfortunately, tonight the painting is destroyed by a flood. Under these circumstances, the offer is terminated.
True
If a contract falls within the Statute of Frauds and only one of the parties has signed a writing that gives evidence of the contract, the contract can be enforced only against that party.
True
It an agreement is void, it is unenforceable
True
Most offers are revocable anytime before acceptance
True
Parents are not automatically liable on contracts that were by the parent's minor child
True
Pete asks Mary to paint her house while he is on vacation. When Mary paints the house Pete pays her, the contract will be executed.
True
Ratification of a contract can be implied from a party's actions
True
Tim says to Sue, "I offer to sell you my car for $400." Sue then says, "I accept; please send a written contract." Under these circumstances contract was created.
True
Ben Bully is not a nice man, and Curt Coward is afraid of him. Today Ben says to Curt, "I'm going to beat you up unless you pay me $20." Curt is very afraid, so in front of witnesses Curt says to Ben "Ok, Ben, I'll pay you the $20—just don't beat me up! I'll give you the money in our night class this evening." Ben then leaves without beating up Curt. Under these circumstances Curt does not owe Ben the money.
True Ben provided no consideration (he did not give up anything that he has a legal right to do)
Sam Seller makes an oral contract with Paula Purchaser to sell her his car for $600. Delivery and payment are to occur on March 1 (when Paula is expecting her tax refund check). Paula is so excited and anxious to get the car, on February 15 she calls up Sam and asks if she can take possession of the car that day—then pay him on March 1, when he will sign over title. Sam agrees, and Paula takes the car that day. Over the few days, Paula has a new engine put in the car, a new frame, and new seats installed. On March 1 Sam meets with Paula, but when he sees what great shape the car is in, he refuses to transfer it. The Statute of Frauds will not make this oral contract unenforceable.
True promissory estoppel takes this contract --which would normally be inside S/F, meaning oral is unenforceable--and moves it outside meaning oral is enforceable
Generally, the law will not allow an assignment if it materially increases the obligor's burden of performance.
True!
Where a truly unforeseen difficulty arises and a promise is made to pay an additional sum over the amount already owed, that promise usually will be enforced
True!
Carol Contractor makes a contract to build Hank Homeowner a house for $100,000. When she is halfway through construction, Carol tells Hank she's just discovered that her kids need braces, and she needs extra money to pay for them. Carol tells Hank she won't finish his house unless he agrees to pay her $115,000 (instead of $100,000) for the job. Hank agrees to pay Carol $115,000 to finish the house. When the house is completed, Hank owes Carol only $100,000.
True, pre-existing duty rule
No performance, such as payment of funds or delivery of goods, needs to take place for a bilateral contact to be formed
true
Some written contracts are not formal
true
Suppose that a law requires that a person have a license to conduct a certain activity, and I contract with an unlicensed person to do that activity. That contract is sometimes enforceable
true
a contract made by a perons who has been adjudicated insane is void
true
a doctor-patient relationship is an example of a fiduciary relationship
true
a minor cannot ratify a contract until he or she becomes an adult
true
a mistake as to the value of the subject matter of a contract will usually not enable a party to the contract to avoid it.
true
a price list is considered an offer
true
a statement made in anger which a reasonable person would consider serious is interpreted to be an offer
true
a voidable contract means that a party to the contract has the legal right to refuse to perform his promise
true
although the general rule is that the offeror can revoke an offer any time before acceptance, an option is an exeception to this rule
true
an offer will be automatically revoked if the subject matter of the contract is destroyed before the acceptance
true
an offeror ordinarily may revoke an offer simply by giving notice to the offeree
true
and it might be unenforceable under other circumstances, as well....such as if it is not only an agreement but instead an actual contract--but there are defenses like lack of voluntary consent or lack of proper form
true
formal contracts are less common than informal contracts
true
generally, contracts concerning real estate must have written evidence to be enforceable but can be valid—meaning have offer, acceptance, consideration, capacity and legality—even if oral
true
in BILATERAL, acceptance occurs at the moment THE PROMISE IS MADE (even BEFORE performance occurs!!!!)
true
in order for a promise to be enforceable by promissory estoppel, the plaintiff must prove that they relied on a promise made by the defendant
true
only a guardian can enter into a contract on behalf of a person who has been adjudged insane; the insane person does not have the ability
true
only a merchant can make a firm offer
true
promising to do something that one does not have an obligation to do usually constitues consideration
true
ratification of a contract can be implied from a party's actions
true
silence or failure to speak might be grounds for misrepresentation
true
suppose that a law requires that a person have a license to conduct a certain activity, and i contract with an unlicensed person to do that activity. that contract is sometimes enforceable
true
the duty of restitution states that a person who has disaffirmed a contract must return property received under the contract
true
to be enforceable a covenant not to compete must be reasonable with respect to both time and to geography
true
unlicensed garage sale, because the purpose of requiring a license to have a garage sale is to raise government revenue (not to protect the public)
true
even if a contract is valid, it could be unenforceable, due to such defenses as lack of voluntary consent or lack of proper form
true (so if a contract is valid that means it is enforceable is false)
she made a primary promise (I will pay his bill), which is outside S/F & oral is enforceable. Only a secondary promise (I will pay if his bill if he doesn't) is inside S/F, meaning oral would be unenforceable.
yea
An express contract cannot be oral.
FALSE
Can I avoid ("get out of") the contract based on the fact that I made a mistake?
-Not if it is a Mistake in Value. -Sometimes if it is a Mistake in Fact
Ben agrees to sell, and Ann to buy from him, cocaine. This is an agreement—but it is void, because it's illegal—therefore it is not a contract at all (lacks the element of legality)
...
Generally speaking, contracts concerning real estate must have written evidence in order to be valid.
FALSE
Jane's son, Tarzan, has accumulated quite a bill at Banana Store (BS), where he has charged $100 worth of bananas. He has not made his payments as scheduled, and BS calls up Jane and says, "We're going to sue your worthless son, get a judgment, and garnish his wages to pay his outstanding bill." Jane says, "Please don't do that. I'll pay his bill." This oral promise is unenforceable because of the Statute of Frauds
FALSE
Most courts are very concerned about the fairness of contracts
FALSE
an offer for a unilateral contract is accepted when performance begins
FALSE
In a unilateral contract transaction, the acceptance of the offer occurs when the requested performance begins.
FALSE FALSE FALSE
The right to disaffirm a contract does not extend to persons who become intoxicated voluntarily
FALSE!!
Polly's Polishing orally contracts with Big Bank for the "monthly polishing of all brass light fixtures" inside Big Bank for the price of $100 per month. This contract is within the Statute of Frauds, so oral is unenforceable.
FALSE...Since no ending date is specified, it MIGHT be completed within 1 year, so it is outside the S/F and oral is enforceable
A contract which has not been formed on either side is classified as a voidable contract
Fakse
A valid contract must be stated in writing and signed by both parties.
False
An implied-in-face contract is never enforceable
False
Generally speaking, contracts concerning real estate must have written evidence in order to be valid
False
If there is a unilateral mistake of face when a contract is made, usually, the o contract rescinded can be by either party
False
It is possible to accept an offer without knowing about that offer.
False
On Monday afternoon Cathy's Cupcakes offers to sell Frank one dozen cupcakes for $10. Frank accepts, and arranges to pick up the cupcakes on Wed. On Tues Cathy makes the cupcakes, then Tues night a small fire in her kitchen burns up the table on which the cupcakes were sitting. The offer is terminated.
False
The objective theory of contracts states that both parties must provide considersation
False
If duties are delegated and not performed, as a general rule the obligee can successfully sue the delegatee, but not the delegator.
False delegation does not relieve the delegator of liability (so obligee can sue the delegator) AND the obligee can sue the delegatee, because the obligee is the intended 3rd party creditor beneficiary of the delegator/delegate contract
Although an offer usually is communicated to the offeree by the offeror or a duly authorized agent, usually an offer is effectively communicated if the offeree actually learns of the offer from some other outside source
False!
Ann is declared insane on Monday, and on Tuesday she enters into a contract with Paul. This agreement is voidable at Ann's option
False. it is VOID
Bob is a sane adult. Tonight he is at a bar, and he has been drinking a great deal. In fact, he is so drunk that he doesn't know what he is doing. At this time he enters into a contract with Jane. This agreement is void.
False. it is voidable
Mary was in a car accident, and Greg Good Samaritan stopped, and helped her, staying with her until the police arrived. Just before Greg leaves, in front of witnesses Mary says: "Thank you for helping me, Greg. When I get paid next week, I'm going to pay you $100." Mary now has a legal duty to pay Greg.
False. past consideration is not valid consideration
Fog mails to Adam an offer to sell Adam her (Fog's) car for $400, and in the offer Fog promises to hold the offer open for three days. The three days begins on the day Fog puts the offer in the mail.
False. pg 200
Anytime a person receives an unrequested benefit, s/he is legally required to pay because of implied contract
False...only if all 3 elements (pg 193, 2nd column) are present can there be an implied contract that includes a legal obligation to pay
A void agreement is not a contract
true
Agreement between the parties consists of offer and acceptance
true
A check is an example of an express formal contract.
True
A minor cannot ratify a contract until s/he becomes an adult
True
A statement made in anger which a reasonable person would not consider serious is not interpreted to be an offer.
True
A voidable contract means that a party to the contract has the legal right to refuse to perform his/her promise
True
If a bilateral contract is made by mistake (BOTH parties are mistaken), can the contract be rescinded?
Yes, either party can rescind it
An express contract might be oral
true
In UNILATERAL, acceptance is when the requested performance is COMPLETED
true
can a unilateral mistake (only ONE party mistaken), can the contract be rescinded?
contract is ENFORCEABLE unless: other party knew that mistake was made OR mistake was made due to math error or without negligence
a contract can never be rescinded on the grounds of unilateral mistake
false
a promise to make a gift is generally enforceable
false
a promise to pay $50,000 for land valued at $40,000 is invalid consideration
false
an assignment is not "legal" until notice is given to the obligor
false
an offer can only be accepted in writing
false
anything less than complete performance is a material breach of the contracts
false
if an adult enters into a contract with a minor, either party can disaffirm
false
ordinarily, an offer will lapse after 90 days if no time limit is stated in the offer
false
someday i am going to sell this particular vase for $100" would be viewed as an offer.
false
the right to disaffirm a contract does not extend to persons who become intoxicated voluntarily
false
an offer is effective when it is communicated to the offeror
flase
if a party who is obligated to perform personal services dies before the contract can be completed, the decendent's estate is legally obligated to perform the contracts
flase
parents are liable for the contracts made by their minor children
no
"in consideration for your having helped me when i was knocked unconscious, I promise to pay you $500," is not a binding promise because there is no consideration for it.
true
A owes B 10,000. A promises to pay 5,000 and give B his (a's) favorite pen to pay off the 10,000. b agrees. the consideration for B's promise to accept less is legally sufficient.
true
A promise without consideration but which induces another to act to his determent might be a binding promise
true
