BLAW 2
Luc, a vehicle dealer, offers to sell Mel a truck and trailer, which Luc claims can haul a certain weight. He knows nothing about the capability of the truck, but it is not as he asserts. Mel buys the truck. On learning the truth, Mel confronts Luc, who says he was not trying to fool Mel—he was only trying to make a sale. This is
. fraudulent misrepresentation.
Beta contracts to design and deliver marketing materials to Cesar. Beta cannot delegate this duty to Devon
. if performance depends on Beta's personal skill.
At Mattress Store, Nate signs a contract to buy bedroom furniture. The contract sets a schedule of $500 monthly payments, subject to a late fee of 150 percent. Nate finds the language of the contract difficult to understand. This is most likely
. procedural unconscionability.
Rocco orally agrees to sell his Spring Beverage Company to Thirsty Inc. Rocco notes the terms on a sheet of Spring stationery and signs it. This agreement is most likely enforceable against
. Rocco.
Apps LLC enters into a contract with Birk, the chief executive officer of Corporate Sales Inc., to create an app for the firm. To fulfill the contract, Apps hires Dave as a student intern. With respect to the app contract, Dave is
. an incidental beneficiary.
Ralph enters into a contract with Skye to buy her land based on her assertion that the land is open to development. After the sale, Ralph learns that only a small section of the land can be built on. A local law prohibits construction on the rest of the property. Ralph can
. not avoid the contract because persons are assumed to know the law
In a contract for a sale of goods, the right to receive payment on an account may be assigned unless the sales contract prohibits such an assignment.
False
Real Fries Inc. and Spud Farm discuss periodic deliveries of potatoes. Despite the absence of an invoice or other writing evidencing the terms of a deal, Spud begins to perform, and Real accepts the deliveries but refuses to pay. As a contract, this arrangement is most likely enforceable against
Spud and Real, at least to the extent of the performance.
An obligee can legally refuse performance from a delegatee only if the duty delegated is one that cannot be delegated.
True
To be enforceable, a memorandum evidencing an oral contract must identify the consideration.
True
Mako and Nico agree to buy and develop certain real estate. The parties intend their written contract to be a final statement of the terms, which are complex, lengthy, and subject to many conditions. This writing is
a completely integrated contract
A contract that includes a bilateral mistake may be rescinded if the mistake involves
a material fact.
The rights under a contract for personal services can normally be assigned
a. if all that remains on the deal is a payment of money.
Fra enters into a contract with Global Shipping Ltd. to insure and ship a painting from Holland to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would
allow the parties to rescind the contract.
Opal is a minor. In at least some states, Opal can enter into a legally binding contract when she
b. all of the choices.
Molly is a third party beneficiary under a contract between Ned and Otis. Ned and Otis can modify or rescind their contract to take away Moly's rights under the contract without her consent
before Molly's rights have vested.
Retail LLC contracts with Paving Inc. to grade and pave a parking lot. The contract provides that it cannot be assigned without Retail's consent. Later, Paving assigns the contract to Roadwork Company without obtaining Retail's consent. Retail could most successfully argue that the contract cannot be assigned because
d. the contract prohibits assignment.
Leo contracts to install watering troughs in Ken's dairy barn. When Leo becomes seriously ill, he contracts with Jay to do the work. Jay is unreliable and never shows up. Ken hires Ike to do the installation. To recover for any loss on the deal, Ken can sue
d. Jay or Leo.
Evelyn is a minor. As a minor, she
d. all of the choices
Carlos and David contract for the sale of five hundred head of Carlos's cattle for $195 per head. Unknown to either party, an unforeseen storm has struck the herd and many of the cattle have died. David i
d. not required to pay due to the bilateral mistake.
Dari, a minor, wants to disaffirm a contract that she entered into with Echo, a cell service company. The law in Dari's state, as in all states, permits minors to disaffirm
executory and fully executed contracts.
A debt collector who is delegated the right to payments on a student loan owes no obligation to the debtor arising under the original terms of the loan.
false
A memorandum evidencing an oral contract must contain every term of the deal to be enforceable.
false
A party's signature must be at the end of a writing for the writing to constitute an enforceable contract.
false
Any contract involving consumer goods must be in writing to be enforceable.
false
If a person was sufficiently intoxicated to lack mental capacity, his or her contracts are void.
false
If contracting parties attach materially different meanings to a contract word or term subject to more than one reasonable interpretation, the contract is void.
false
The general rule is that any party to an illegal contract can recover for performance rendered.
false
To clarify the terms of a written contract, a court will admit any parol evidence.
false
Restaurant Food Inc. intends to sell a certain quantity of beef for $1,100. In e-mail, however, the firm's sales representative mistakenly offers to sell the beef to Steak House for $1,000, Steak's manager immediately accepts. The seller
is bound to the deal at the offered price.
County Title Company processes information furnished by others to transfer title to real estate from Dali to Ezra. The furnished information is mistaken. The contract between Dali and Ezra may be rescinded because the mistake
may be rescinded because the mistake is about a material fact
Von, a minor, wants to return a set of skis that he bought from Winter Sports. He used—and wrecked—the skis. In a state in which a duty of restitution is imposed, Von most likely
must return the skis and pay for the damage.
Ralph enters into a contract with Skye to buy her land based on her assertion that the land is open to development. After the sale, Ralph learns that only a small section of the land can be built on. A local law prohibits construction on the rest of the property. Ralph can
not avoid the contract because persons are assumed to know the law
Bianca, a minor, enters into a contract to buy two all-season passes from Chalet Ski Park. The contract will be made enforceable if Bianca
ratifies it
On an assignment to a loan broker by an auto dealer of the payments due on an auto loan, the broker obtains only those rights that the dealer originally had.
true
Parol evidence can be introduced at trial to correct an obvious clerical error in a contract if the error clearly does not represent the parties' agreement.
true
When the performance of a contract depends on the personal skill of the obligor, a delegation of the duty is prohibited.
true
Data Inc. offers to provide certain services to Enterprise LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprise accepts the written offer. Enterprise's best argument in favor of enforcement of the contract is
unilateral mistake does not afford relief from a contract.
Seth is mentally incompetent but has not been adjudged by a court to be incompetent. Seth enters into a contract with Toby for the cleaning and maintenance of Seth's warehouse. Most likely, the contract is
voidable if Seth did not comprehend the consequences.
