Quiz Week 6

False

A court will only impose a quasi-contract if the parties originally had a contract with one another.

True b/c Novation is the substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated.

A novation terminates the original contract.

False

A seller who places goods at the disposal of a buyer has tendered delivery, but cannot yet demand payment.

True b/c In this context, a lease is a transfer of the right to possess and use goods for a period of time in exchange for payment.

An agreement to transfer the right to possess and use goods for a commercial purpose for a period of time in exchange for payment is a lease.

vested. b/c An intended third-party beneficiary cannot enforce a contract against the original parties until the third party's rights have vested, meaning that the rights have taken effect and cannot be taken away.

An intended third-party beneficiary cannot enforce a contract against the original parties until the third party's rights have

True b/c For mutual rescission to take place, the parties must make another agreement that also satisfies the legal requirements for a contract—there must be an offer, an acceptance, and consideration.

For mutual rescission of a contract to take place, the parties must make another agreement that satisfies the legal requirements for a contract.

Grocers

Grocers Mart buys one hundred cases of berries from Hilltop Farms. The parties agree that the berries will be transported "F.O.B. Hilltop Farms" via Refrigerated Trucking Company. Refrigerated's truck is lost in a fire with the berries inside, following an accident. The loss of the berries is suffered by

True b/c Indicates that the selling price of goods includes transportation costs to the specific F.O.B. place named in the contract. The seller pays the expenses and carries the risk of loss to the F.O.B. place named [UCC 2-319(1)].

If a seller supplies ten white dishwashers in response to an order for ten black washing machines—"F.O.B. the seller's warehouse"—and the goods are damaged in transit to the buyer's store, the loss falls on the seller.

True b/c However, if the writing (or record) contains some of the terms the parties agreed on but not others, the contract is not fully integrated. In this situation, a court may allow evidence of consistent additional terms to explain or supplement the terms stated in the contract.

If a writing indicating a sales contract contains only some of the terms that the parties agreed to, a court may allow evidence of consistent additional terms.

False b/c In the majority of states, a person whose employment has been wrongfully terminated has a duty to mitigate damages incurred because of the employer's breach of the employment contract. In other words, a wrongfully terminated employee has a duty to take a similar job if one is available.

In most states, a person whose employment is wrongfully terminated, has no duty to take a similar job if one is available.

do whatever is reasonable to minimize the damages. B/c In most situations, when a breach of contract occurs, the injured party is held to a duty to mitigate, or reduce, the damages suffered.

Ochre holds one ton of perishable fruit in storage for Produce Corporation. If Produce does not pay for the storage, under the doctrine of mitigation of damages, Ochre is held to a duty to

a consumer lease. b/c Under UCC 2A-103(1)(e), a consumer lease involves three elements: 1. a lessor who regularly engages in the business of leasing or selling; 2. a lessee (except an organization) who leases the goods "primarily for a personal, family, or household purpose;" and 3. total lease payments that are less than a dollar amount set by state statute.

Skyscape LLC regularly engages in the business of leasing construction equipment, primarily to commercial contractors. Tilde, a consumer, leases a backhoe from Skyscape to landscape the property at her home. The price is less than the amount set by state statute. Under the UCC, the deal with Tilde is

restitution b/c To rescind a contract, both parties generally must make restitution to each other by returning goods, property, or funds previously conveyed. Essentially, restitution involves the recapture of a benefit conferred on a defendant who has been unjustly enriched by that benefit.

Under ______, parties are restored to their original position prior to loss or injury, or placed in the position they would have been in had the breach not occurred. This often involves returning goods, property, or funds.

- refuse to enforce the contract. - enforce the remainder of the contract without the unconscionable part. - limit the application of the unconscionable term, in order to avoid an unconscionable result. Under the UCC, if a court deems a contract (ora clause) to have been unconscionable at the time it was made, the court can do any of thefollowing: 1. refuse to enforce the contract; 2. enforce the remainder of the contract without the unconscionable part; and 3. limit the application of the unconscionable term to avoid an unconscionable result.

Under the UCC, if a court deems a contract (or a clause) to have been unconscionable at the time it was made, the court can do any of the following

True b/c However, under the CISG, the price term must be specified, or at least provisions for its specification must be included in the agreement. Otherwise, no contract will exist.

Under the United Nations Convention on Contracts for the International Sale of Goods, when the parties to an agreement do not specify a price term, or at least provide for its specification, normally no contract will exist.

True b/c There are, however, some exceptions to this rule. Delegation is prohibited in the following circumstances: 1. when special trust has been placed in the obligor; 2. when performance depends on the personal skill or talents of the obligor; 3. when performance by a third party will vary materially from that expected by the obligee; and 4. when the contract expressly prohibits delegation.

When the performance of a contract depends on the personal skill of the obligor, a delegation of the duty is prohibited.

discharged.

Don enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation of the structure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be

True

In response to an order for a hundred baseballs, the shipment of a hundred basketballs is both an acceptance of the offer and a breach of the contract.

a breach.

Talk, Inc., offers to buy from Ultra Corporation 1,000 phones with certain features. Without notifying Talk, Ultra timely ships phones with fewer features. With respect to the offer, this shipment is an acceptance and

False

To satisfy the UCC's Statute of Frauds, a writing indicating an intent to form a sales contract must be signed by both parties