BLA Exam 2
Metro City Mall requires its tenants to sign a lease that includes a clause releasing Metro from liability in the event of monetary or physical injury no matter who is at fault. Coco's Chocolate Creations signs a lease with the mall that contains the clause. This is
an exculpatory clause.
In Simone's selling a 300-acre farm to Rural Investments, Inc., she tells the buyer that the land "will be worth twice as much by next year." This is
an opinion
Based on Nan's conduct, Odel reasonably believes that Poppy has the authority to act on Nan's behalf even though Poppy does not have the actual authority to do so. In this circumstance, Poppy has
apparent authority.
Frisco offers to buy a Gibson guitar owned by Hayden for twice what Hayden paid for it. She accepts and hands the guitar to Frisco. Her delivery of the guitar is
consideration.
Gary drives a truck as an employee for Hauling Inc. Gary would most likely be considered acting outside the scope of her employment if he
crashed into a car at the airport while off duty.
Dumont threatens physical harm to force Eddie to sell his business, Citywide Vending, Inc., to Dumont for a below-market price. This is
duress
Flo tells Ginger during a phone call that she will buy her textbook from last semester for $65. Ginger agrees. These parties have
express
A contract entered into by a minor is voidable at the option of either of the contracting parties.
false
A promise to do what one already has a legal duty to do constitutes legally sufficient consideration.
false
All contracts between adults and minors are void.
false
An agent must keep confidential any information acquired through an agency during the term of the relationship, but can disclose it after the agency ends.
false
In contract law, "consideration" refers to the time that a party takes to evaluate a deal.
false
One of the requirements of a valid contract is an adequate price.
false
The doctrine of respondeat superior imposes liability for an agent's tort on a principal without regard to the personal fault of the agent.
false
The duties that an agent owes a principal must be set forth in the agency agreement because they do not arise by operation of law.
false
Ben manages a warehouse and its inventory for Coffee Roaster Inc. To operate this part of the business, Ben's authority can be inferred
from the position Ben occupies.
Jon contracts with Kino to buy a certain number of sheep for Kino's Animal Farm. Jon makes a deal with Lila for the sheep, but neither Jon nor Kino pays the price. Lila sues Jon for breach. Jon's right to hold Kino liable for any damages is the right to
indemnification.
Nyoko signs a covenant not to compete with her employer, Midstates Distribution, Inc. The covenant will be enforced if it
is reasonable with respect to scope, geographic area and duration.
Clark hires Dell, a real estate broker, to sell his beach house. The house is destroyed in a storm before it can be sold. Dell is Clark's agent
no more
A bilateral contract comes into existence at the moment promises are exchanged
true
A promise by one party to pay another for refraining from an action that one has a legal right to undertake is enforceable.
true
Under the mailbox rule, an acceptance becomes valid when it is dispatched.
true
Carl and Debra orally agree on the sale of Carl's Electrical Supplies Company to Debra and jot down the terms on the back of one of Carl's blank invoices, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain
the essential terms.
Miklos employs Nathalie to handle a list of financial transactions on Miklos's behalf. This power will terminate on
Miklos's death or incapacity.
Clay offers to pay Dot $50 for a golf lesson for Erin. They agree to meet the day after tomorrow to exchange the cash for the lesson. These parties have Correct!
a bilateral contract.
Diamonds & Gold LLC hires Elle to buy gems and precious metals from various sources on its behalf. In this relationship, Diamonds is
a principal.
Mica, a minor, signs a contract to pay National Health Club a monthly fee for twenty-four months to use its facilities. Six months later, after reaching the age of majority, Mica continues to use the club. This act is
a ratification.
Shannon signs a contract with Tevin, an unlicensed contractor, to build a deck and gazebo at the rear of her house. This contract is enforceable by
no one
William obtains a loan from a bank at 24.5 percent interest. The state where he obtains the loan has a usury statute that limits interest rates to a 21.5 percent maximum. William's contract with the bank is
not enforceable.
Rafi offers a tour of Bay Harbor aboard his sailboat, Sea Siren, to Tiara's Travel Group for $500. Referring to the prices for similar tours, Tiara's says, "We'll pay no more than $400." Rafi's offer is
rejected and subject to a counteroffer.