Legal Studies exam 2

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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


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