law 1

The term _______ refers to the fact that the agreement in question is so unfair that it is void of conscience.

unconscionable

All but which of the following is true regarding silence as a means of acceptance of an offer?

Silence can be acceptance if the offeror demonstrates the benefits of the offered services with reasonable expectation to be compensated.

According to the Uniform Commercial Code (UCC), the remedy of last resort available to sellers and lessors in the case of breach of a sales contract is

canceling the contract

Nominal damages are primarily

designed to signify that the plaintiff has been wronged by the defendant

A "severable" contract is also known as a _______ contract.

divisible

When courts grant damages to a nonbreaching seller to recover the purchase price from the breaching buyer, the court is typically granting the seller the right to _______. When a seller sues a buyer for the breach of a sales contract to get the benefit of the bargain, and nothing more, courts typically

get the benefit of the bargain

Brian offers to sell Rachel his computer for $200. Rachel says that she will look at the computer in the morning, and if she likes it she will buy it for $200. At this point, Rachel has not committed to doing anything. This is an example of a(n)

illusory promise

When a party attempts to ratify an agreement right after reaching the age of majority, there is a(n)

implied ratification

When, after reaching the age of majority, the former minor takes some action consistent with the intent to ratify the contract.

implied ratification

In a(n) _______, the original parties and a third party all agree that the third party will replace one of the original parties and that the original party will then be discharged.

novation

Kevin is offered a job by a reputable company in a different city. To take the new job, Kevin quits his previous job and moves to the new city along with his family. When he shows up at work, he is told that there is no job. Kevin can sue the employer under the theory of

promissory estoppel

_______ occurs when one party makes a promise knowing the other party will rely on it, the other party does rely on it, and the only way to avoid injustice is to enforce the promise.

promissory estoppel

Under the Uniform Commercial Code (UCC), which of the following statements is true of the remedies available to buyers and lessees when a seller or lessor breaches a sales contract?

Buyers or lessees are allowed to accept nonconforming goods and then seek monetary damages to give them the benefit of the bargain.

_______ are best described as foreseeable damages that result from special facts and circumstances arising outside a contract itself.

Consequential damages

Which of the following conditions must be present for an offer to have a legal effect?

Definite and certain terms.

_______ is when the means by which acceptance can occur is expressly stated in the offer.

Express authorization

Felipe, Adam, and Shirley are neighbors. Felipe overhears Adam's offer to sell an antique clock to Shirley for $3,000. Under these circumstances,

Felipe makes a new offer to Adam when he offers to buy the clock for $3,000.

Ronald agrees that he owes a bank $10,000, as claimed by the bank. Ronald explains to the bank that he can only pay the bank $8,000 as full payment toward the money he owes. The bank agrees to accept $8,000 from him. The following month, Ronald receives his new bank statement claiming that he still owes the bank $2,000. Which of the following statements is true of this scenario?

If Ronald does not agree to pay the remaining $2,000, the creditor may sue Ronald for the balance it believes is owed.

Under the UCC, which of the following statements regarding liquidated damages is accurate?

Liquidated damages must be identified before the breach occurs by the parties.

Amy offers to paint Louis's house for $1,000. The offer stated that acceptance in person was required. Within a reasonable time, Louis e-mailed Amy his acceptance. Which of the following statements is true about this situation?

Louis has not accepted the offer as required by the offeror, and there is no contract.

Maya pays $5,000 and purchases a car from her friend, Jane. Later, Maya realizes that the car is worth less than $3,000. Which of the following statements will be true if Maya plans to sue her friend?

Maya cannot sue Jane because the court seldom considers adequacy of consideration.

Which of the following statements most accurately reflects the preexisting duty rule?

Performance of a duty you are obligated to do under the law is not good consideration.

_______ is the preferred remedy for nonbreaching sellers as it provides an easy means to determine damages in a breach of sales contract by buyers.

Resale of goods

How is an offeror's intent to be bound by an agreement demonstrated?

The courts determine an offeror's intent based upon how a reasonable person would interpret the offeror's words and actions.

To justify recovery based on a quasi-contract, a plaintiff must prove all but which of the following elements?

The defendant would be enriched by receiving the benefit that was the result of a unilateral mistake on behalf of the plaintiff.

When a minor enters into a contract, the minor has which of the following rights?

The minor has the right to disaffirm the contract before or within a reasonable time of reaching the age of majority.

An offer must include all but which of the following elements?

The offer must always be in writing.

Under common law, if the offeree's acceptance with terms that are not identical to the offeror's terms, then which of the following is true?

The offeree's attempted acceptance is considered a counteroffer rather than an acceptance

Which of the following must occur when nonbreaching buyers or lessees obtain specific performance under the Uniform Commercial Code (UCC)?

The sellers or lessors must deliver the goods identified in the contract.

Which of the following conditions would terminate an offer, even if the offeree does not know of the terminating event?

When the offeror loses the legal capacity to enter into a contract

UCC Sections 2-703(f) and 2A-523(1)(a) allow a seller or lessor to cancel the contract if the buyer or lessee is in

breach

A person who has legal _______ has the mental ability to understand his or her rights and obligations under a contract.

capacity

If a condition requires each party's performance to occur at the same time, then the contract contains a(n):

concurrent condition

Suppose that Hannah agrees to purchase Rachel's computer for $500. Hannah's payment of $500 is the _______ that Rachel will receive for her car.

consideration

Unless remedies fail in their _______, courts will generally uphold modifications or limitations to those remedies.

essential purpose

A(n) _______ damages clause in a contract is one that identifies a remedy before a breach occurs.

liquidated

Damages specified in the parties' contract are known as _______ damages.

liquidated

When parties agree that a debt is owed and the amount of that debt, then that debt is considered to be _______.

liquidated

Laurens, Inc. contracted with GSP, LLC to widen a four-lane road to a six-lane road for ten miles. When Laurens, Inc. and GSP, LLC drafted the contract, the agreement contained a provision that if either party breached the contract, that party was liable to pay $10 million dollars to the nonbreaching party. This scenario is an example of _______.

liquidated damages

When the parties agree to discharge each other from the contract, _______ has occurred.

mutual rescission

If a buyer decides to terminate a contract because the seller changes the price of the contract without the knowledge of the buyer, then the contract is discharged by

operation of law

When the obligations of a contract are terminated by a future event, that future event is referred to as a condition _______.

subsequent

_______ performance occurs when nearly all of the terms of the agreement have been completed, the obligor has made a good faith effort to complete all of the terms of the agreement, and no "willful departure" from the terms of the agreement has occurred.

substantial

Legal capacity is

the mental ability of a person to understand his or her rights and obligations under a contract and comply with the terms.

If a party to a contract asks for an additional amount of money and agrees to do more work than the contract requires, the result is that the promise

to do the extra work is valid consideration.

In a(n) _______ debt, the parties either disagree about whether money is owed or dispute the amount.

unliquidated

If a person has been adjudicated insane and has a guardian appointed, any contract the person attempts to enter into is

void

When an agreement is deemed illegal, courts will label the contract

void

As a general rule, any contract entered into by a minor is _______ by the minor until he or she _______.

voidable; reaches the age of majority or a reasonable time thereafter

In an auction _______, the seller is treated as making an offer to accept the highest bid and therefore must accept it

without reserve