Legal Studies exam 2
I offer to sell you my shoe collection for $5000. you say "yes, if you only give me left footed shoes." is there acceptance?
NO! - this is a counteroffer which is not acceptance
TF: if someone enters into a contract while intoxicated, it will be voidable at the intoxicated party's discretion once they are sober
true
TF: if terms of a contract are ambiguous courts try to determine intent by looking at what was expressed in the K
true
TF: if there is a mutual mistake of fact, it is considered innocent misrepresentation
true
TF: if there is no intent to deceive but a material fact is incorrect, it is considered non-fraudulent misrepresentation
true
TF: if value of what one party is getting decreases in an unforseeable way after contract is made, it may be considered frustration of purpose
true
TF: intent is required in order to rescind a contract
true
TF: objective impossibility may discharge a contract if it is determined that it is impossible to perform by anyone
true
TF: precedent conditions trigger performance
true
TF: promissory estoppel may be an exception to statute of frauds
true
TF: rejections are effective when received by offeror
true
TF: sale of property must be in written form
true
TF: satisfaction is acceptance to settle for less than agreed
true
TF: voidable and valid contracts apply to those who aren't adjudicated
true
TF: when an offer is revoked, it is at the offeror's discretion
true
TF: Smith v Hughes is an example of a unilateral mistake
true - Hughes did not pay attention and bought the wrong oats and could not rescind contract
TF: misrepresentation of a fact must be material in order for it to be considered fraudulent
true - also required in order to rescind
TF: Raffles b Wichelhaus is an example of a bilateral mistake
true - ambiguous terms about "pearless" ship
TF: implied in law contracts are also known as quasi or fictional contracts
true - implied in law contracts avoid unjust enrichment
TF: economic need is generally not sufficient to constitute duress even if one party exacts a very high price for an item that the other party needs
true - it is only economic duress if the party creates the need
TF: secondary obligations with respect to collateral promises must be in writing
true - primary obligations do not need to be in writing
TF: in a bilateral promise, the offeree must only promise to perform
true - promise for a promise
TF: if contract cannot be completed within one year it must be in writing
true - one year rule. if it is possible (even if unlikely) to be done in less than a year, it does not need to be written
a contract for the sale of and that is done orally instead of in written form is considered - void - voidable - formal - unenforceable
unenforceable
a contract that cannot be enforced due to legal defense is known as - void - voidable - illegal - unenforceable
unenforceable
I promise to pay you $100 if you paint my car what type of contract is this? - unilateral - bilateral - void - voidable
unilateral - promise for an act
listing a loan above legal interest rates is known as - usury - loan sharking - covenant-not-to-compete - a voidable contract
usury and loan sharking (same thing)
if an individual is on medication that causes them to be mentally incapacitated or lose memory at some points, but is aware of the contract when it is made, the contract is - void - voidable - valid
valid
a contract with no legal effect in which no party is liable is said to be: - informal - void - voidable - unenforceable
void
if I enter into a contract for you to kill my roommate the contract is - valid - void - voidable - informal
void - criminal contract
a contract that can be avoided by one of the parties causing both parties to be released or ratified causing both parties to be bound would be considered - executory - executed - voidable - unenforceable
voidable
if an individual enters into a contract with someone who has a mental incapacity, but they are not adjudicated, the contract is - void - voidable - valid
voidable
what is the test for the one year rule?
whether the performance is possible (even if unlikely) within one year. contracts that cannot be performed within one year must be written
auctions ___________ (with/without) reserve are definite offers - with - without
without - goods cannot be withdrawn
I promise to pay you $100 if you paint my car is there a contract?
yes
I promise to pay you $60 if you promise to clean my yard is there a contract? - yes - no
yes
our contract states that I am to sell you "three bushels of tomatoes." a storm comes through and destroys all of my tomatoes. Is our contract discharged - yes, because of objective impossibility - yes, by operation of law - no, because I did not specify that they were "my" tomatoes
- no, because I did not specify that they were "my" tomatoes
TF: silence is generally considered acceptance in some cases
FALSE
TF: contractual capacity outlines that a promise should be supported by a bargained for exchange that is legally sufficient
FALSE: this is consideration
TF: outside/extrinsic evidence is allowed to prove meaning behind a contract if K terms are clear
FALSE; the contract is enforced as read according to the plain meaning rule
what did the court find in Lopez V Kmart?
Lopez did disaffirm arbitration agreement via conduct (implied) because he decided not to sue in arbitration after turning 18
Signing a credit card agreement is an example of an _________________ contract - express - implied
express
which of the following is not one of the elements of an offer? - intent to be bound - communication of the offer - reasonably certain or definite terms - agreement
agreement
how is intent determined in contract formation? - reasonable person standard - by what the parties said or did - how the parties acted or appeared - the circumstances surrounding the K - all - none
all are used by the reasonable person standard to determine intent
which of the following is not something that contract law does? - ensures promises are kept - defines excuses society will accept for breaking promises - defines un-enforceable contracts - all of the above - none of the above
all of the above
which of the following would result in lack of definiteness if it were absent from a contract - identity of parties - identification of object/subject matter - consideration to be paid - time of payment/delivery/performance - all of the above are required for something to be definite - none of the above
all of the above
which of the following means intent is found? - party knows fact is untrue - party does not believe a fact to be true - party implies statement is made on basis of knowledge or investigation when it's not
all of these are correct
I promise to pay you $60 if you promise to clean my yard. what type of contract is this? - unilateral - bilateral - void - voidable
bilateral - promise for a promise
If I alter the terms of a contract, it is discharged - by agreement - by operation of law - by breach - by conditions met
by law
if a contract is impossible to complete, it is discharged - by agreement - by operation of law - by breach - by conditions met
by operation of law
which of the following does not follow under that statute of frauds? - one year rule - marriage - land - sale of goods over $500 - collateral promises - collateral promise for my own benefit
collateral promise for my own benefit
which of the following is required to revoke an offer? - communication of withdrawal is before acceptance - definiteness - lack of acceptance
communication of withdrawal is before acceptance
we have a contract to sell my car to you. me needing to give you my car at the same time you pay me is an example of _______________ conditions - precedent - subsequent - concurrent
concurrent - simultaneous obligations
which of the elements of a K distinguishes a contract from a gift - agreement - consideration - contractual capacity - legality
consideration - bargained for exchange --> both parties bring something to the contract
I promise you to pay you $100 to paint my car. you substantially performed 75% of it. which of the following is true? - contract can be revoked - contract cannot be revoked - contract is illegal - contract has no consideration
contract cannot be revoked
if the terms of a contract are in written or oral form, it is said to be - expressed - implied
expressed
TF: all adhesive contracts are unconscionable
false
TF: unilateral mistakes can be rescinded by either party
false
tF: if someone enters into a contract while intoxicated, they cannot ratify the contract once sober
false
you and I discuss selling my car. we both agree on the terms of sale. this would be an ________________ contract - express - implied
express
what does Lopez V Kmart have to do with - consideration - disaffirmance - ratification
disaffirmance
what is the intent to discontinue obligations before or within reasonable time of reaching the age of majority? - emancipation - ratification - disaffirmance - capacity
disaffirmance
I threaten to kill you if you do not fulfill our contract. this is considered - duress - undue influence - fraud - legal
duress - party is forced into K by fear of threat of wrongful/illegal action - exercising a legal right is not duress
Which of the following is not an element of a K - agreement - consideration - execution - capacity - legality
execution
I promise to give you $20 if you clean my yard. you agree by cleaning my yard, but I have not paid you yet. what is this considered? - fraud - executory - ambiguous - executed
executory - would be considered executed once I've paid
what is applicable to a car loan - accord - satisfaction - both - neither
neither - this is liquidated debt
TF: illegal K's can never be enforced
false - can be enforced if: - one party is the member of a protected group - one party was induced into K from duress, fraud, or undue influence - justifiable ignorance of illegality
TF: if innocent party did not rely on the fraudulent misrepresentation of material fact, it can still be rescinded
false - innocent party must rely on fraudulent misrepresentation of fact
TF: in a unilateral contract, the offeree needs only to promise to perform
false - offeree must perform
TF: illegal contracts are voidable
false - void
TF: exculpatory clauses are usually voidable
false usually void unless it's a non-essential entity like an amusement park, bungee jumping, etc.
TF: mutual mistakes can be rescinded by one party only
false, can be rescinded by either party (bilateral mistake)
TF: a contract is formed once an offer is made
false, it is once there is acceptance
TF: lies are always considered fraud
false, there must be reliance!!! - deceived party must have justifiably relief on misrepresentation of material fact. its not reasonable reliance if the other party knows the facts or it's an obvious exaggeration
TF: undue influence turns a contract void
false, voidable
TF: you can revoke a contract if it is substantially performed
false, you cannot
TF: the offeror has the right to accept or reject an offer from an offeree
false; OFFEREE has right to accept/reject from OFFEROR
TF: satisfaction is an offer to settle for less than agreed
false; accord is an offer to settle for less than agreed
TF: rejection is when an offer is terminated at the discretion of the offeror
false; at the discretion of the offeree
TF: contracts must always be written
false; can be oral
TF: loan sharking is legal in some states
false; it is illegal
TF: injury is required in order to rescind a fraudulent contract
false; it is required in order to sue and acquire damages
TF: if someone enters into a contract with someone who is adjudicated and they try to go around the guardian, the contract is voidable
false; it is void
TF: revocations take effect when it is sent to the offeree
false; revocations are effective when received by offeree
TF: concurrent conditions terminate performance
false; subsequent
TF: minors can disaffirm for necessaries
false; they cannot
TF: accord and satisfaction are applicable to liquidated debt
false; unliquidated debt
TF: if all 4 requirements of a contract are met, it is said to be void
false; valid
TF: contracts between adults and minors are void
false; voidable
what does Hamer v Sidway have to do with - forbearance - bargained for exchange - past consideration - intent
forbearance
if I experience an injury as a result of negligent misrepresentation, it will be treated equivalent to - fraud - innocent misrepresentation - bilateral mistake - mutual mistake
fraud - rescind, enforce/seek damages
if I say to you "I promise to pay you $10,000 if I take out a loan," I am making a ________________ promise - definite - illusory - voidable - formal
illusory
which of the following means "equally at fault" - scienter - in pario dilecto - promissory estoppel
in pario dilecto
what does Lucy v Zehmer have to do with? - intent - consideration - capacity - illegality
intent
TF: charitable contributions do not require consideration to be enforced if there was reliance to the party's detriment
true
TF: commercial impracticability may discharge a contract by law if it is extremely difficult or costly to do so, and the reassign was unforeseen when contract was made
true
TF: contracts are voidable at the minor's discretion
true
As the chief of police, I put a reward in the newspaper for a mass murderer that says "Ashley wanted dead or alive. reward: $1,000,000." I later learn that Ashley is not a mass murderer. how can I revoke this offer? - you can't - it needs to be revoked publicly - revocation is not required in this case - it can be revoked once the act is performed
it needs to be revoked publicly
On Tuesday I send you a letter offering to sell you my car for $10,000, giving you until Saturday to decide, and that your acceptance letter needs to be shipped via FedEx. You accept my offer and put your letter of acceptance in the mail on Thursday to be shipped via UPS. The letter reaches you on Saturday. when was the contract formed? - it was never accepted because you did not accept within authorized means - it was accepted on Saturday because acceptance is effective when received - it was accepted on Thursday because acceptance is acceptance is effective when sent - it was accepted on Saturday because you did not accept within authorized means
it was accepted on Saturday because you did not accept within authorized means - although acceptance is effective when SENT, if it is not sent within the authorized means of acceptance, it is effective when received
On Tuesday I send you a letter offering to sell you my car for $10,000, giving you until Saturday to decide. You reject my offer and put your letter of rejection in the mail on Thursday. I change my mind and put my letter of acceptance in the mail on Friday. the letter of rejection is delivered first on Saturday. when was the contract formed? - it was not formed - thursday - friday - Saturday
it was not formed - because in this case, the letter of acceptance would have to get there first if you change your mind
which of the following is not one of the three exceptions to capacity - minors - intoxication - mental incompetence - joking
joking
I threaten to sue you if you do not fulfill our contract - duress - undue influence - fraud - legal
legal - it is a threat, but it is a threat to exercise a legal right. threat must be wrongful/illegal to be duress
damages received for fraudulent misrepresentation are typically - legal remedies - equitable remedies
legal remedies
what are the two requirements for consideration? - legally sufficient value/detriment - offer - bargained for exchange - acceptance
legally sufficient value/detriment and bargained for exchange
anticipatory repudiation is a type of ___________ breach - material - minor
material
I have a contract for a machine to be delivered by May 5. On may 2, I was told that I will not receive the machine. It is may 7, and I have not received it. when can it be treated as a breach? - may 5 - may 2 - may 3 - may 7
may 2 - it is anticipatory
on May 1 I offer to hire you. on May 6, you accept. when does the one year rule begin? - may 1 - may 6 - may 7 - may 8
may 7 - the day after contract is made (acceptance)
if a contract has ambiguous terms, it is likely to be a(n) ____________ - mutual mistake - unilateral mistake - illusory promise - misrepresentation
mutual mistake - because both parties interpret terms differently
I buy custom made goods for $300. does this need to be in writing?
no
my husband and i made a prenuptial agreement, but it was not in writing. is it enforceable?
no - according to statute of frauds
I buy custom made goods for $600. does this need to be in writing?
no - custom goods over $500 do not need to be in writing
on Tuesday I offer to sell you my car for $10,000 and give you until Saturday to decide. You put a letter in the mail indicating acceptance on Friday. I total the car on Saturday. is there a K? - yes - no
no - due to destruction of subject matter which terminates offer by law
on Sunday, Stephen told me that he will pay me $69,000 to wash his car. I pay him $1500 to keep the offer open until Saturday. can he revoke on Tuesday? - yes - no
no - he cannot revoke within the time period because it is an option contract
on Sunday, Stephen told me that he will pay me $69,000 to wash his car. I pay him $1500 to keep the offer open until Saturday. I accept the offer on Wednesday. can he revoke on the next Sunday? - yes - no
no - revocation must be done before acceptance
a doctor on vacation in Hawaii sees a wreck and rushes to the scene to offer life saving service until an ambulance arrives. she asks for an applied in law contract. is there a contract - no - yes
no implied in law contracts are not contracts, but they do receive remedy
I go to a furniture store and buy a couch. when I get home I notice that the couch has tears all over it. is this a mutual mistake?
no because I bought it as is
at a garage sale, you buy some old vintage photos that I was selling for $1 a piece. you later find out that these were the last old photos old Jesse James and that they are actually worth $1000 a piece. can I get the photos back or make you pay more?
no because both parties assume the risk that value of subject matter may change in the future
I have been craving a good cup of coffee. I see a sign outside a coffee shop that says "the world's best coffee." I purchase a coffee and it is indeed, not the world's best coffee. is there fraud? - yes - no, this is a prediction - no, this is puffery
no because this is puffery - exaggeration
TF: gambling contracts are generally illegal unless allowed in your state
true
if we enter into a contract that states that there will be no remedy for you if I breach the contract, is there a K? - yes - no, no offer - no, no acceptance - no, no legally sufficient value - no, no bargained for exchange - no, no capacity - no, illegal
no, illegal - this is substantively unconscionable, which is illegal and therefore not a valid k
TF: if a party making a collateral promise receives a personal benefit, it does not need to be in writing according to the main purpose rule
true
I hit your car and claim to have whiplash. I tell you that I won't sue you if you pay me $5000. you refuse, so I tell you I will sue you for $25,000. you then give me a check for $5000. if you try to avoid the agreement later and claim duress, will you win?
no! because I have a legal right to sue even though it was a threat. a court wouldn't normally consider a threat of civil suit to be duress.
if both parties do not bring something to the contract, is the contract sufficient? - yes - no
no, it must be a bargained for exchange
I go to the car wash and ask for a basic exterior wash for $30. without me realizing, they mistakenly add an extra paint job that I did not ask for, which was an additional $100. Am I expected to pay $130 due to quantum meruit? - yes - no
no, quantum meruit may not apply to mistake where actual contract exists
I have a contract for a machine to be delivered by May 5. On may 2, I was told that I will not receive the machine. It is may 7, and I have not received it. if I do not look for a new seller asap, can I receive damages?
no, I have a duty to mitigate damages and look for a new seller asap so that I can decrease the monetary damages that I will accrue through breach.
I make collateral payments for my debtor. I do this because if his business stays alive, he will be able to pay off my debts. does this need to be in writing? - yes - no
no, because I am making collateral payments for my own benefit - main purpose rule (exception)
we enter into a contract that states that you must submit your research paper to me within two years. does this need to be written?
no, because it is POSSIBLE that it can be done in less than a year
as a real estate agent, I am aware that someone was murdered in the house I am attempting to sell to you. I do not disclose this information to you. you purchase the house and find out about the murder later. is there fraud? - yes, this is express misrepresentation - yes, this is misrepresentation by conduct - no, because misrepresentation by silence is not fraud - no, because this is a unilateral mistake
no, because misrepresentation by silence is not fraud because buyers have the duty to ask probing questions. the murder would not be considered material to your purchase decision unless you ask.
if I enter into a contract for employment for life, does this need to be in writing? - no, because of the one year rule - yes, because of the one year rule - no, because it's a collateral promise - yes, because it's a collateral promise
no, because of the one year rule - it is POSSIBLE that the business could fail in less than a year or I could die in less than a year.
I move into my new apartment with my cat because my landlord told me it was okay outside of the contract. I sign the lease a day after he tells me this. the lease stated no pets were allowed. can I argue that what my landlord tells me allows me to keep my cat in the apartment?
no, because of the parol evidence rule. oral representations made outside of contract formation may not be admitted in court to change terms. I have broken the lease
if I enter into a contract with an unlicensed attorney, will the contract be enforceable?
no, because the purpose of the license is for safety reasons
I am a much beloved vet in Norman. I am getting older and need to retire. I want to sell my practice to a new, younger vet. would I be able to open up a new vet office down the street after selling my practice to the vet? - yes, it is completely legal good competition - yes, because there is legality - no, because there is a restriction of ongoing business - no, because of covenant-not-to-compete
no, because there is a restriction of ongoing business - I sold my office AND my client base
as a real estate agent, I am aware that the house I am selling to you has a haunted history. you have a huge fear of ghosts and being aware of this information would affect your buying decision. however, you do not ask me about any haunted history. you buy the house and find out later that the house is haunted when you see a ghost. is there fraud?
no, because you did not exercise your duty to ask probing questions
if we enter into a written contract for something and I include unfavorable terms in very small print that a reasonable person would not notice, would there still be a k? - yes - no, no offer - no, no acceptance - no, no legally sufficient value - no, no bargained for exchange - no, no capacity - no, illegal
no, illegal - this is procedurally unconscionable, which is illegal and therefore is not a valid contract
I send you a letter offering to sell you my car for $10,000. Before the letter arrives, you send me a letter offering to buy my car for $10,000. My letter reaches you, and your letter reaches me, on the same day. Do we have a contract - yes - no, no offer - no, no acceptance - no, no consideration - no, no capacity - no, illegal
no, no acceptance - two offers
I promise you to pay you $100 to paint my car. you get 75% of the way done. is there a contract? - yes - no, no agreement - no, no offer - no, no acceptance - no, no legality - no, no consideration - no, no capacity
no, no acceptance - you would be accepting the offer when you performed the act to 100% completion
on Tuesday I offer to sell you my car for $10,000 and give you until Saturday to decide. You put a letter in the mail indicating acceptance on Sunday. is there a K? - yes - no, no acceptance - no, no bargained for exchange - no, no capacity - no, illegal
no, no acceptance due to lapse of time which terminates offer by law
I invite you to my house for dinner and you accept my invitation. You show up at the appointed time, carrying a bottle of my favorite wine, which cost you $32.99. I'm not at home, having decided instead to go to Las Vegas. Did we have a contract? - yes - no, no offer - no, no acceptance - no, no legally sufficient value - no, no bargained for exchange - no, no capacity - no, illegal
no, no bargained for exchange
Joseph Smith says to his son James, "In consideration of the fact that you received an A in your business law course, I will pay you $1,000 in two weeks." Is there a contract? - yes - no, no offer - no, no acceptance - no, no legally sufficient value - no, no bargained for exchange - no, no capacity - no, illegal
no, no bargained for exchange - this is past consideration. parties need to bring what binds them to the contract to the table at the same time
Ashley is a police officer who sees a sign that says "Stephen wanted dead or alive! reward: $10,000." Ashley captures Stephen and brings him to the police station asking for her $10,000 reward. is there a contract? - yes, because she saw the sign before capturing the criminal (offer) and her bringing the criminal to the police station is her agreement - no, no offer - no, no agreement - no, no consideration - no, no capacity
no, no consideration - Ashley is a cop and has a pre-existing duty to capture criminals, and therefore there is no contract
"I will sell you my TV for $50 unless I get a better offer" is there a K? - yes - no, no offer - no, no agreement - no, no consideration - no, no capacity - no, illegal
no, no consideration - this is an illusory promise which lacks consideration and is unenforceable
if I offer to pay you $5000 if you stop doing heroine is there a contract? - yes - no, no bargained for exchange - no, no legally sufficient value/detriment - no, no capacity because you were probably high when I made the offer
no, no legally sufficient value/detriment - doing heroine is illegal in the first place --> no consideration
If I offer to pay you $5000 if you don't drink alcohol until you're 21, is there contract? - yes - no, no bargained for exchange - no, no legally sufficient value/detriment - no, no capacity
no, no legally sufficient value/detriment - this offer would have had to be made before the offeree was 21 (of legal drinking age), making drinking alcohol illegal in the first place --> no consideration
I see a billboard for Ross Dress for Less. I love that store. the billboard says that "all mens bootcut jeans originally priced at $40 are $30 today!" This is awesome! I go to Ross! the clerk tells me that she will not accept my $30 and that the jeans are $40... was there a K? - yes! - no, no offer - no, no agreement - no, no consideration - no, no bargained for exchange - no no capacity - no, illegal!!!
no, no offer - ads are generally no offers, but rather invitations to make an offer or negotiate
I send you a letter on Tuesday offering to sell you my car for $10,000, giving you until Saturday to accept. the letter reaches you on Wednesday. On Friday, I am murdered. on Saturday, not knowing that I have died, you put a letter in the mailbox accepting my offer. is there a contract? - yes - no, no offer - no, no acceptance - no, no bargained for exchange - no, no capacity - no, illegal
no, no offer - death of offeror terminates OFFER by law
On May 1, I offer to give you a loan at a 3% interest rate. on may 5, legislature changes the legal interest rate to 4%. is there a K? - yes - no, no offer - no, no acceptance - no, no consideration - no, no capacity - no, illegal
no, no offer - due to subsequent illegality (offer becomes illegal after it's made) --> terminates offer by law
my dog, Lady, ran away from home! I go around town and put up signs that say "Missing dog! if found please return for a $100 reward!" My best friend notices Lady running around the neighborhood and peeing on trees. she cannot control her bladder. my friend brings Lady home to me. When she leaves my house, she notices one of the signs and asks me to pay her $100. is there a K? - yes - no, no offer - no, no consideration - no, no capacity - no, illegal
no, no offer - offeree was unaware of the offer before performing the act and therefore the offer was not properly communication. lack of communication means there is no offer and therefore no agreement. no agreement means no contract.
I have had an extremely bad day. My wife has been nagging at me an my children are a**holes. I tell you that I will sell you my wife and children for $20. is there a K? - yes!!!!!!!! - no, no offer - no, no acceptance - no, no consideration - no, no legality - no, no bargained for exchange
no, no offer - this is not a serious intent to be bound, because a reasonable person would assume that I am joking
I tell you that I am thinking of selling my house. you tell me that you're thinking of buying it. is this a K? - yes - no, no offer - no, no agreement - no, no consideration - no, no legality - no, no bargained for exchange
no, no offer (and therefore no agreement) - this is a statement of future intent, which are not considered intent to be bound and there for are invalid offers
TF: a K that meets all 4 requirements can be voidable
true
TF: a covenant not to compete can be too restrictive and illegal/unenforceable
true
I go in for surgery on my leg. the doctor tells me that I should be walking normally in three days. This ends up not being the case. would him saying that I will be walking in two days be considered an offer? - yes, this is an offer - no, because of the reasonable person standard - no, this is a statement of future intent - no, this is an expression of opinion
no, this is an expression of opinion - therefore not considered intent to be bound, making it an invalid offer
A car salesman tells me that this car will last me years and years. after buying the car, it breaks down within 6 months. is there fraud/misrepresentation? - yes - no, this was a prediction - no, this was puffery
no, this was a prediction - qualified statement considered opinion
under the substantial performance doctrine: I promised to pay you $100 if you washed my car. f you wash my car 75% of the way, do I need to pay the full amount? - no you would have to pay nothing and the contract is discharged - no you would only have to pay costs of completion - yes, because of substantial performance
no, you would only have to pay costs of completion ($75)
I own Ashley Inc. which has a contract with s supplier. I sell Ashley Inc. to Stephen Co. Stephen Co. has been replaced by Ashley Inc. in the contract with this supplier. this is an example of - mutual rescission - novation - liquidation - frustration of purpose
novation
what are the two parts of an agreement - offer - written signature - consideration - acceptance
offer and acceptance
If I extend an offer to you, I am the _________ - offeror - offeree
offeror
which of the following would not allow for discharge of a contract? - I offer to pay you $60 if you mow my lawn. you do it and I pay you - one party does not substantially perform their obligation - one party substantially performs their obligation - I leave the contract and substitute a third party in my place - I alter the terms of a contract without a mutual agreement
one party substantially performs their obligation - this would be a minor breach and does not allow for discharge. courts care about material breaches, which would be anything below substantial performance,
contract law rests on what phrase that means "agreements should be kept?" - caveat emptor - pacta sunt servanda - res ipsa loquitur
pacta sunt servanda
what does Blackmon v Iverson have to do with - pre-existing duty - past consideration - illusory promise - promissory estoppel
past consideration
once a house passes a termite inspection it triggers a contract and therefore is a ____________ condition - precedent - subsequent - concurrent
precedent - must occur before contract
TF: all unconscionable contracts are adhesive
true
TF: an agreement must have definite terms
true
TF: any breach allowed innocent party to sue for costs of completion
true
my parents co-sign on a loan for a car. the contract says that dealership can come after me or my parents for payments. my parents have taken on a ______________ obligation and it _______________ need to be in writing. - primary; does not - primary; does - secondary; does not - secondary; does
primary; does not
contracts that are extremely harsh in the formation of the contract are said to be - illusory - substantively unconscionable - procedurally unconscionable - adhesive
procedurally unconscionable
what allows a gift to be enforceable? - nothing - capacity - promissory estoppel - illusory promise
promissory estoppel - relying on something to one's detriment - clear definite promise - promisor expected promisee to rely on promise
a doctor on vacation in Hawaii sees a wreck and rushes to the scene to offer life saving service until an ambulance arrives. she asks for an applied in law contract. how does the court determine remedy? - quantum meruit - unjust enrichment - pacta sunt servanda
quantum meruit - "as much as he deserves" - provides remedy where contract does not exist
what is the express or implied intent to complete a contract after reaching age of majority? - emancipation - ratification - disaffirmance - capacity
ratification
Someone says "I would give my left nut for the Astros to win the World Series." why is this not considered an offer for a contract? - illegality - reasonable person standard - no communication of offer
reasonable person standard - courts judge intent to be bound to a contract based on the reasonable person standard. no one takes this offer seriously because a reasonable person would know someone is joking if they said they would give up their legs nut.
if there is an injury as a result of innocent misrepresentation (no intent), the injured party can: - sue - rescind - both - neither
rescind - intent must also be found in order for it to be fraudulent
which of the following means "guilty knowledge" and intent to deceive - scienter - in pario dilecto - promissory estoppel
scienter
I promise to pay for my brother's lease if he fails to pay it. this is a _____________ obligation and it ______________ need to be in writing. - primary; does not - primary; does - secondary; does not - secondary; does
secondary; does
my parents co-sign on a loan for a car. the contract says that dealership can come after me or my parents for payments. if it is contingent on my failure to pay, my parents have taken on a _____________ obligation and it ____________ need to be in writing. - primary; does not - primary; does - secondary; does not - secondary; does
secondary; does
which of the following is a defense to an oral contract that should be in writing? - statute of frauds - duress - fraud - scienter
statute of frauds
if I fail my bar exam and then my employment contract is terminated, failing my bar exam would be a ______________ condition - precedent - subsequent - concurrent
subsequent - discharges party if it doesn't occur
according to __________________ acceptance must match the offer exactly. if it has additional conditions it is a counteroffer - lapse of time - common law - the mirror image rule - promissory estoppel
the mirror image rule
TF: at auctions with reserve, the seller ay withdraw goods at any time prior to closing sale
true
TF: business could not function without contracts
true
on Sunday, Stephen told me that he will pay me $69,000 to wash his car. I pay him $1500 to keep the offer open until Saturday. can he revoke on the next Sunday? - yes - no
yes
I send you a letter on Tuesday offering to sell you my car for $10,000, giving you until Saturday to accept. the letter reaches you on Wednesday. On Saturday, you put a letter in the mailbox accepting my offer. I am murdered on Sunday. your letter of acceptance is delivered on Monday. is there a K? - yes - no, no offer - no, no acceptance - no, no bargained for exchange - no, no capacity - no, illegal
yes - acceptance is valid when SENT, not when received
I promise to pay $50,000 to the cleats for kids foundation. as a result, the nonprofit spends $50,000 on cleats and events. I decide not to pay the $50,000. is there a K? - yes - no, no offer - no, no acceptance - no, no legally sufficient value - no, no bargained for exchange - no, no capacity - no, illegal
yes - because the nonprofit relied on my promise to their detriment even though it was a gift
my husband and i made a prenuptial agreement, but it was not in writing. in court, he admits that the contract existed. is it enforceable?
yes - exception to statute of frauds
I buy goods for $700. does this need to be in writing?
yes - not custom goods over $500 need to be in writing
PayPal's terms state that all disputes are to be taken to arbitration in California. when looking closer at the contract, I would have to pay $2,000 just to file a claim. is this unconscionable? - yes - no
yes - this would not be a viable remedy and therefore is substantively unconscionable
on Tuesday I offer to sell you my car for $10,000 and give you until Saturday to decide. You put a letter in the mail indicating acceptance on Friday. it is delivered on Sunday. is there a K? - yes - no, no offer - no, no bargained for exchange - no, no capacity - no, illegal
yes - because you sent the acceptance before the deadline
my attorney tells me that something is legal when it is not, even though he thinks its legal. I do the illegal action, which causes me to lose money due to fines. can I sue?
yes because of negligent misrepresentation - attorney is a professional
a guardian influences a minor to enter into a contract that benefits the guardian. is this contract voidable? - yes, because of undue influence - yes, because of duress - no, because its a minor - no this is legal
yes because of undue influence
if a truck driver is transporting goods that he does not know are stolen goods, can he still get paid for transporting them?
yes because there was no intent and there is justifiable ignorance of illegality
my dog, Lady, ran away from home! I go around town and put up signs that say "Missing dog! if found please return for a $100 reward!" my neighbor sees the sign and goes looking for my dog. she eventually finds Lady and brings her home to me. is there a K? - yes - no, no offer - no, no consideration - no, no capacity - no, illegal
yes! - rewards, if specific enough, are valid offers as long as the offeree is aware of the offer before performing the act
you enter into a hot dog eating contest at work because your boss told you in a conversation in his office that if you win the contest, you will receive a new Toyota. You win the contest and you're so excited to win a new car! later your boss tells you that he was only joking and hands you a toy Yoda as your prize. you're devastated. Your boss argues that it was April fools day, and you should have known better than to fall for something like that. is there a K? - yes - no, no offer - no, no acceptance - no, no intent - no, no bargained for exchange - no, no capacity - no, illegal
yes! your boss would owe him a new car since a reasonable person would assume that the boss meant a "Toyota" and not a "Toy Yoda" since it was an oral contract. Even though your boss did not INTEND to enter into a contract with you to give you a Toyota in exchange for winning a hotdog eating contest, it does not matter due to the reasonable person standard.
as a real estate agent, I am aware that someone was murdered in the house I am attempting to sell to you. you ask me if any crimes have been committed in the house. I tell you no. is there fraud? - yes - no
yes, - although misrepresentation by silence is not generally fraudulent, I have a duty to inform you if you ask. and you have a duty to ask probing questions as a buyer.
If a pilot flies over the legally allowed amount of hours is there still a contract that can be enforced that would allow him to be paid for the hours he flew over the limit? - yes - no
yes, - this is an example of an enforceable illegal contract because he is a member of a protected group
on Sunday, Stephen told me that he will pay me $69,000 to wash his car. I pay him $1500 to keep the offer open until Saturday. I begin washing his car. I get 75% of the way done when Stephen suddenly revokes the offer. am I able to be remedied?
yes, I could argue detrimental reliance due to partial performance, which would bar Stephen from revoking the offer (remedy).
I tell you that I will sell you my motorcycle for $15,000. I later send you an email and accidentally tell you that I will sell it to you for $50,000. can I rescind the contract?
yes, this is an exception to a unilateral mistake because the other party is aware of the mistake
I go into a hair salon and ask for a haircut. she tells me at the end of the appointment that it is $100. We never agreed to terms before hand. is there a contract? - yes - no
yes, because it is implied in fact that I accepted to the terms by staying seated during the appointment. I could have rejected contract by getting up to leave
as a real estate agent in the state of Oklahoma, I am aware that this house used to have black mold. a statute in OK states that this must be disclosed; however, you do not ask about it, so I don't tell you. is there fraud?
yes, because a statute states it must be disclosed
if I enter into a contract with an unlicensed florist, will the contract be enforceable?
yes, because the purpose of the license is to increase revenue
on your 21st birthday I offer to pay you $5000 if you don't drink alcohol or smoke cigarettes until you're 50 years old. you agree. is there a contract? - yes, there is consideration - no, no bargained for exchange - no, no legally sufficient value - no, no capacity
yes, there is consideration - he is refraining from doing something that he is legally allowed to do under the law. the thing causing both parties to come to the table is mutual consideration.
I want to sell you a painting for $10,000. I tell you that it is painted by Picasso, when really it's not. you believe me and purchase the painting. is there fraud? - yes, this is express misrepresentation - yes, this is misrepresentation by conduct - no, because you assume the risk of changing future value - no, because this is a unilateral mistake
yes, this is express misrepresentation - written/spoken, false, meant to deceive
As a real estate agent, I notice some cracks in the foundation. I decide to cover them up before showing you the house. is there fraud? - yes, this is express misrepresentation - yes, this is misrepresentation by conduct - no, because you assume the risk of changing future value - no, because this is a unilateral mistake
yes, this is misrepresentation by conduct
I offer to buy your phone for $200. you say "is that your best offer? would you buy for $300?" which of the following is true? - there is acceptance in this case - this is a counteroffer - you are testing the firmness of the offer
you are testing the firmness of the offer
which of the following would be considered termination of an offer: - you tell me that you will sell me 5 books for $50. I say "I accept, but that's a bit pricy" - you sell me scented candles and I complain that they do not smell as great as I expected - you offer to sell me six picture frames for $80. I say "I accept, but would you mind bringing the price down to $70?" - you offer to sell me your used car for $20,000. I say "I accept if you get the car detailed and washed beforehand"
you offer to sell me your used car for $20,000. I say "I accept if you get the car detailed and washed beforehand" - this would be considered a counteroffer, which is a way to terminate an offer
