Contract Law 2

Which of the following examples has never been a way of identifying a contract under seal?

If both parties sign the contract, it is presumed to be under seal

Frank works as a cell phone salesman. He has worked at the same company for the past two years, and one day his boss approaches him with good news. He says because Frank has sold so many phones lately, he is going to give Frank a $500 bonus. Three weeks later, Frank has still not received the bonus. Can Frank sue his boss to enforce the promise?

No, this is an example of past consideration

Natalie promises Brett that she will pay him $1,000 for painting her house. Brett agrees and purchases the painting materials, costing him $300. The following day Brett arrives at Natalie's house to paint but she had hired Kobe instead. Is Brett entitled to damages?

Yes, Brett relied on Natalie's promise and bought the materials with his own money

Suppose Victor promises to stop smoking cigarettes during the winter. What type of promise has Victor made?

A promise to refrain from doing something

Which of the following types of agreements is not a type of agreement that is generally illegal in many states?

Agreements for the sale of used products

The minor's right to disaffirm is designed to protect the minor from competent parties who might otherwise take advantage of him or her. But most states have determined that the minor should not have the right to disaffirm which of the following types of contracts?

All of these

Which of the following terms is not a condition required in promissory estoppel? I. One party makes a promise knowing the other party will rely on it. II. The other party does rely on the promise. III. The only way to avoid injustice is to enforce the promise

All of these are required

In which of the following situations would the contract in question be void?

An individual who has been adjudicated insane enters into a contract

For a court to enforce a promise, who must offer consideration?

Both parties

Suppose a 17-year-old, Kendall, enters into an agreement to purchase a Harley Davidson from an ad she saw in the paper. She will pay $1,000/month until the bike is paid off. After making the third payment, Kendall turns 18 and decides to move out of state. She e-mails the seller of the motorcycle and tells him not to worry because even though she is moving, she still intends to make her monthly payments to purchase the bike. The above scenario is an example of what legal concept?

Express ratification

Technically, minors can disaffirm contracts for necessaries, but they will still be held liable for the reasonable value of the necessary. Which of the following is generally an example of a necessary?

Medical services Shelter Clothing Food ALL OF THESE

Bekah agrees to do bodywork on Fatima's car. In exchange, Fatima agrees to be a poker dealer at Bekah's underground casino. In the state where Bekah and Fatima live, there is a gaming statute that says all games of chance other than slot machines and the state lottery are illegal. Would the agreement be enforceable?

No, because part of the agreement violates a law and the agreement therefore calls for crime

Donna is an accountant and decides to do her friend Mike a favor by filing his taxes for free. Mike is very thankful and tells Donna "I will pay you $500 for being so kind and generous!" Mike fails to keep his promise and does not pay Donna the $500. Donna then brings an action to have the promise enforced. Will the court hold that a contract exists?

No, past consideration is no consideration at all

Eugene agrees to finish painting Hazel's house within two weeks. A week in, Eugene realizes he cannot finish without additional help. He tells Hazel he will need an extra $700 to do this. Hazel agrees. With the additional help, Eugene finishes painting the house within the agreed two weeks. Does Hazel have to pay the extra $700?

No, under the preexisting duty rule, Hazel does not have to pay

A door-to-door hearing aid salesman specifically targets elderly clients. When the clients ask questions about the contract, the salesman is not truthful with them entirely. The answers to their questions are usually found on the tiny, hard-to-read print on the very back of the long contract the clients must sign. The salesman knows that his clients have poor vision and hearing, and uses this to his advantage in his sales techniques and with the small contractual terms. The scenario above is a possible example of which type of agreement?

Procedural unconscionability

Which of the following is an exception to the preexisting duty rule?

Unforeseen circumstances

In some states, courts consider the purpose of the licensing statute when determining the effect of the agreement. If a licensing statute is intended simply to generate revenue, then the contract of an unlicensed person is _________

Valid

After a football game, Tyler and Austin want to enter into a contract together. Tyler is completely sober, but he knows Austin is very intoxicated and is so impaired that he is unable to understand the terms of the contract. If they enter into a contract, the contract would be ________

Voidable

Usury occurs when ________________

a party gives a loan at an interest rate above the legal maximum

Covenants not to compete in conjunction with the sale of a business are generally __________ if they are for a reasonable length of time and involve a reasonable location

enforceable

A(n) __________ releases one of the contracting parties from all liability, regardless of who is at fault or what injury is suffered

exculpatory clause

Suppose Markus offers to sell Zara his surfboard for $200. Zara responds, "I'll look at it on the weekend, and if I like it, I'll pay you." At this point, Zara has not committed to doing anything. The law considers this a(n) ____________

illusory promise

A person has _________ to enter into a contract if she suffers from a mental illness or deficiency that prevents her from understanding the nature and obligations of the transaction

limited capacity