Blaw Test 2

Which of the following amounts to an offer? I. Ed says to Carmen, "I offer to sell you my pen for $1." II. Ed says to Carmen, "I'll sell you my pen for $1." III. Ed writes, "I'll sell you my pen for $1," and gives the note to Carmen.

all of these

Tyler entered into a contract with Leah to provide supplies for her business. What form can the writing of the contract take?

1. A check 2. An email 3. An invoice NOT--Several separate docs written over time

What must be included in a contract to satisfy the requirement that it be in writing? Choose 3 answers.

1. All of the parties to the contract must be named in the writing. 2. Consideration to be paid must be defined in the contract. 3. The subject matter of the contract must be identified.

What evidence outside of the written contract is a party allowed to present?

1. Evidence to prove agreement on an essential element of the contract 2. Evidence showing a change to the contract after it is signed

Which of these types of contracts must be in writing under the requirements of the Statute of Frauds? Choose 3 answers.

1. contracts for the sales of land 2. collateral promises to pay the debt of another person 3. promises made in consideration of marriage

Jerry offers to shovel snow from Ben's driveway for $35. Ben says ok. What kind of contract is this?

Express contract

Angela makes a material misstatement of fact to Lance, which he relies on when he signs Angela's contract. Fraud exists if Angela made the misstatement: I. intentionally II. recklessly III. carelessly

I & II; intentionally & recklessly

Which of the following requires consideration in order to be binding on the parties? I. Modification of a contract involving the sale of real estate II. Modification of a sale of goods contract under the UCC

I. Modification of a contract involving the sale of real estate

Which is NOT an exception to the parol evidence rule?

Jayden wants to present evidence that Jignesh verbally promised he would include the trailer with the boat he sold to Jayden.

Bryan owns Snow Country, a business that leases out snow cone stands. Kaylee agrees to lease one of the snow cone stands for $500 per month. Kaylee and Bryan sign a written contract that states the monthly lease amount is $5,000. When Kaylee refuses to pay the $5000 for the first month's rent, Bryan sues for breach of contract. If Kaylee tries to introduce evidence in court that shows that the amount stated in the written contract is incorrect:

Kaylee will be allowed to introduce the evidence under the parol evidence rule.

What is an exception to the Statute of Frauds?

Promissory Estoppel

What is the test for whether a contract is governed by the Statute of Frauds because of the one-year rule?

The contract must be objectively impossible to perform within one year.

What must a plaintiff show to be awarded a quasi-contract in a lawsuit?

The defendant was unjustly enriched.

May a writing consistent of multiple separate documents?

Yes, if they are attached together in some manner.

A partially integrated contract means:

a contract contains only some terms, to which the parties agree but not others.

Which of the following contracts violate public policy? a. A contract for the sale of a kidney b. A contract to insure your own life c. A contract for a loan which charges an interest rate of 4% d. A contract for the sale of a business which limits the previous owner's right to operate a similar business for 1 year within a 100 mile radius

a. A contract for the sale of a kidney

Which act or statement is a valid offer? a. A detailed advertisement b. A price quote c. A completed auction with a reserve e. A typical advertisement

a. A detailed advertisement

A contract for a purpose that causes the parties to violate a law is: a. illegal and voidable. b. illegal and void. c. enforceable as a quasi-contract. d. illegal and dischargeable.

b. illegal and void.

If the requirements are met, which of the following will allow parties to enforce a promise that is otherwise not supported by consideration? a. res judicata b. promissory estoppel c. accord and satisfaction d. respondeat superior

b. promissory estoppel

What are the elements of consideration? Choose 2 answer choices. a. a preexisting duty b. something of value from each party c. past consideration d. an exchange to which the parties agree

b. something of value from each party d. an exchange to which the parties agree

In order for an accord and satisfaction to be valid, the debt must be: a. of fair market value for the exchange that took place. b. unliquidated c. over a year old. d. liquidated

b. unliquidated

Which situation would be considered sufficient consideration for a contract to exist? a. Alice promises to give her granddaughter $10,000. b. Alice's grandson quit smoking, so Alice promises to give him $5,000. c. Pam agrees to pay Derek $500 if he does not sit next to her in class anymore. d. Bethany is remodeling a kitchen for Tonya. Bethany tells Tonya she will finish the work within a reasonable time if Tonya pays her a bonus.

c. Pam agrees to pay Derek $500 if he does not sit next to her in class anymore.

What type of acceptance requires an affirmative action for the offeree to accept that offer? a. Offeree's silence in response to an offer b. Browsewrap Agreements c. Unilateral contracts d. The typical type of acceptance to an offer

c. Unilateral contracts

Now assume the same facts, except that Vicki has loaned George $50,000. If the insurance company refuses to pay, a. Vicki will win $100,000, but only if she mentioned animal bites to the insurance agent. b. Vicki will win $100,000 regardless of whether she mentioned animal bites to the insurance agent. c. Vicki will win $50,000. d. Vicki will win nothing.

c. Vicki will win $50,000.

If a law requires a person to have license to operate, any contract with an unlicensed person will be: a. voidable. b. illegal if the license is designed to raise revenue. c. illegal if the license is designed to protect the public. d. legal if the license is designed to protect the public's safety.

c. illegal if the license is designed to protect the public.

Contests, lotteries, and competitions with prizes are common examples of: a. void contracts. b. implied in law contracts. c. unilateral contracts. d. bilateral contracts.

c. unilateral contracts.

Forcing a party to agree to the terms of a contract through the use of threats or blackmail is called:

duress

Ralph and Lydia plan to be married soon, so Ralph drafts a prenuptial agreement for them. Lydia reviews the prenuptial agreement and decides that everything looks fine. Lydia signs the prenuptial agreement electronically using Adobe E-Signature. After Ralph and Lydia have been married for two years, Ralph sues Lydia for divorce. Ralph wants to enforce the terms of the prenuptial agreement, but Lydia objects. Lydia's best argument for invalidating the prenuptial agreement is that:

e-signatures cannot be used on prenuptial agreements.

Arturo hires Kate to work in his new sporting goods store. "Look," he explains, "I can only pay you $9.00 an hour. But if business is good a year from now, and you're still here, I'm sure I can pay you a healthy bonus." Four months later, Arturo terminates Kate. She sues. a. Kate will win her job back, plus the year's pay and the bonus. b. Kate will win the year's pay and the bonus. c. Kate will win only the bonus. d. Kate will win only her job back. e. Kate will win nothing.

e. Kate will win nothing.

Substantive unconscionability in a contract means the contract:

has terms that are unfairly one-side.

What is the term for evidence of communication between parties to a contract that is not included in the contract?

parol evidence

What is the primary purpose of the Statute of Frauds?

requiring written evidence of agreements concerning important transactions

Which act provides that no contract, record, or signature may be "denied legal effect" solely because it is in electronic form?

the Electronic Signatures in Global and National Commerce Act (E-SIGN Act)

What is the result if parties agree to a contract orally, but it is a contract that must be in writing under the statute of frauds?

1. The contract is voidable 2. The parties can complete the contract

Under the Uniform Electronic Transactions Act (UETA) an electronic signature can be used for: (Choose 3 answers.)

1. obtaining a business license. 2. wholesale purchase of alcoholic beverages for resale. 3. sales of real estate. NOT--wills & testamentry trusts

party normally cannot present any evidence of which of the following if that evidence contradicts or varies the terms of the written contract? Choose 3 answers.

1. oral agreements that happened at the same time as contract formation 2. agreements prior to contract formation 3. negotiations prior to contract formation

Which of these statements is true? I. Under the UCC, an output contract is acceptable II. Under the UCC, a requirements contract is acceptable

Both I & II

T/F: Express contracts have to be in writing.

F

What is the term for the legal ability to enter into a binding contract? a. mental competence b. emancipation c. legal capability d. contractual capacity

d. contractual capacity

Don and Kim have entered into a contract for the purchase of a car. Don has paid money for the car, but Kim has not yet delivered it. This is an: a. illusory contract. b. implied contract. c. executed contract. d. executory contract.

d. executory contract.

In a contract where the payment is broken down such that 80 percent of the cost is for materials and 20 percent is for installation of those materials, the contract will be governed by: a. both the common law and the UCC. b. the common law. c. neither the common law nor the UCC. d. the UCC.

d. the UCC.

Rebecca, in Honolulu, faxes a job offer to Spike, in Pittsburgh, saying, "We can pay you $55,000 per year, starting June 1." Spike faxes a reply, saying, "Thank you! I accept your generous offer, though I will also need $3,000 in relocation money. See you June 1. Can't wait!" On June 1, Spike arrives and finds that his position is filled by Gus. He sues Rebecca. a. Spike wins $55,000. b. Spike wins $58,000. c. Spike wins $3,000. d. Spike wins restitution. e. Spike wins nothing.

e. Spike wins nothing.

Marla offers to sell Kennedy her property on Lake of the Ozarks for $90,000. Marla drafts a written agreement that contains the property description and price, and has places for both Kennedy and Marla to sign. Marla sends the agreement to Kennedy to review. Kennedy signs the agreement and sends it back to Marla, who never signs it. Marla then has second thoughts about the deal and refuses to complete the transaction. If Kennedy tries to enforce the contract against Marla, Kennedy:

will be unsuccessful, because Marla never signed the agreement.

Alfred is having trouble with his car so he visits his friend Glen, who is a mechanic, for some free advice. Alfred asks Glen just to look at the car and determine what is wrong, but not to fix it. Glen looks at the car, determines the problem, and repairs the car using parts and materials he already had in his garage. Alfred takes the car out for a test drive, and it performs better than it ever has. Alfred tells Glen that because Glen fixed his car, when Alfred gets paid again he will buy Glen the new torque wrench that Glen has been wanting. A week later, Glen asks Alfred about the torque wrench, and Alfred tells Glen that he has changed his mind. If Glen sues Alfred to enforce his promise to buy Glen the torque wrench: a. Alfred will win because the act of repairing Alfred's car is past consideration, and therefore no valid contract was formed. b. Glen will win because all the elements required for a valid contract are present. c. Alfred will win because the contract between Glen and Alfred was not in writing, and therefore not valid. d. Alfred will win because the contract between Glen and Alfred was not in writing, and therefore not valid. Glen will win because consideration flowed from each party, and therefore a valid contract was formed.

a. Alfred will win because the act of repairing Alfred's car is past consideration, and therefore no valid contract was formed.

Ruby, a seventeen-year-old, purchases a car from Smitz Used Auto Sales and agrees to pay for it over a period of twenty-four months. Ruby makes the payments for four months but then decides the car payment is too much for her limited budget. Ruby tells Smitz that she wants to stop making payments and that she wants out of the contract completely. The contract between Ruby and Smitz can be canceled by: a. Ruby, because she is a minor, but Ruby must return the car. b. Smitz, because Ruby is a minor, but Smitz must allow Ruby to keep the car. c. Ruby, because she is a minor, and Ruby may keep the car. d. Smitz or Ruby, because Ruby is a minor, and Ruby may keep the car.

a. Ruby, because she is a minor, but Ruby must return the car.

If the terms of an agreement seem to be very one-sided, which public policy could it be violating? Choose 2 answer choices a. Substantive Unconscionability b. Mutual mistake c. Duress d. Restraint of Trade

a. Substantive Unconscionability d. Restraint of Trade

For consideration to exist, there must be: a. a bargained-for exchange. b. a manifestation of mutual assent. c. genuineness of assent. d. substantially equal economic benefits to both parties.

a. a bargained-for exchange.

What elements are required for courts to apply the doctrine of promissory estoppel? Choose 3 answers. a. The promise must be definite and relied upon. b. There was a detrimental result from reliance on the promise. c. Enforcement of the promise is necessary to avoid injustice to the promisee. d. There must have been consideration given with the promise.

a. The promise must be definite and relied upon. b. There was a detrimental result from reliance on the promise. c. Enforcement of the promise is necessary to avoid injustice to the promisee.

In what situations would a court be likely to award a quasi-contract? Choose 2 answer choices. a. When the unjust enrichment is a relatively insignificant amount of money b. If the defendant did not know the plaintiff would expect to be paid for the services c. If the defendant was unjustly enriched and played a part in deceiving the plaintiff d. When the party provided the services for unwilling recipients

a. When the unjust enrichment is a relatively insignificant amount of money c. If the defendant was unjustly enriched and played a part in deceiving the plaintiff

If unforeseen difficulties arise during the performance of a contract, may the parties change the terms of the contract without giving additional consideration? a. Yes, if the modification is fair and equitable. b. No, both parties must provide new consideration. c. Yes, but only if the modification is a rescission of the contract. d. No, at least one of the parties must provide additional consideration.

a. Yes, if the modification is fair and equitable.

Which of the following creates a bilateral contract? a. a sale of goods with payment at delivery b. reward posters c. lottery tickets d. a competition with prizes

a. a sale of goods with payment at delivery

Ryder goes to a baseball game. The back of his ticket clearly reads: "Fan agrees to hold team blameless for all injuries occurring at the stadium—pay attention to the game at all times for your own safety!" In which of the following scenarios can Ryder sue the baseball franchise? a. In the first inning, a foul ball hits Ryder in the elbow, injuring her. b. After Ryder heckles the star player for several innings, he grabs the ballboy's chair and throws it into the stands, injuring Ryder's other elbow. c. Ryder eats a stadium hot dog, which causes terrible stomach upset. d. None of these are actionable because Ryder agreed to the exculpatory clause.

b. After Ryder heckles the star player for several innings, he grabs the ballboy's chair and throws it into the stands, injuring Ryder's other elbow.

Huseyin and Ashish are negotiating the details of a new garage that Ashish plans to build on Huseyin's property. They agree on the building specs, the delivery date, and a price of $25,000. Ashish draws up the contract and sends it to Huseyin to sign. Huseyin reviews the contract and notices the price is listed as $2,500 instead of $25,000. Elated at the unbelievably low price, Huseyin quickly signs the contract and sends it back to Ashish, who signs it as well. If Ashish later tries to rescind the contract due to the mistaken price: a. Ashish will not be successful, because parol evidence is not admissible to disprove the terms of a written contract. b. Ashish will be successful, because it is a mathematical mistake that Huseyin was aware of. c. Ashish will be successful, because the parties made a mutual mistake. d. Ashish will not be successful, because a unilateral mistake is not a basis to rescind a contract.

b. Ashish will be successful, because it is a mathematical mistake that Huseyin was aware of

Frank, an accountant, says to Missy, "I'll sell you my laptop for $100." Missy asks, "Will you give me until tomorrow to make up my mind?" "Sure," Frank replies. Which of the following is true? a. Frank cannot revoke his offer, no matter what. b. Frank cannot revoke his offer, but only if Missy pays him to keep the offer open until tomorrow. c. Frank can revoke his offer no matter what because he is not a merchant. d. Frank can revoke his offer no matter what because he did not promise Missy anything in writing.

b. Frank cannot revoke his offer, but only if Missy pays him to keep the offer open until tomorrow.

In general, certain terms must be included in contracts to satisfy the requirement of definiteness. What are the exceptions to this rule? Choose 2 answer choices. a. If the contract is in writing, not all terms are required to be included. b. Sales contracts under the UCC c. Courts can complete a contract to supply some missing items. d. Courts can rewrite contracts even if the intent is vague.

b. Sales contracts under the UCC c. Courts can complete a contract to supply some missing items.

How can the legal concepts of accord and satisfaction apply to negotiable instruments? Choose 2 answer choices. a. Accord and satisfaction offers guidelines regarding how the parties should discharge the debt. b. The UCC provides debtors a way to prove accord and satisfaction. c. Similar to bankruptcy, the debt is forgiven with accord and satisfaction. d. The parties can agree to discharge the instrument for less than the stated amount.

b. The UCC provides debtors a way to prove accord and satisfaction. d. The parties can agree to discharge the instrument for less than the stated amount.

What is the result of a contract in which both parties are wrong about a material fact of the contract? a. The contract is enforceable by both parties as both parties assumed the risk in making the contract. b. The contract is voidable. c. The contract is void. d. The contract must be nullified and renegotiated.

b. The contract is voidable.

Scarborough's Department Store opens for business on a busy shopping day just before Christmas. A hurried clerk places a sign in the middle of a table piled high with red cashmere sweaters. The sign reads, "SALE—100% Cashmere—$0.99 Each." The sign, of course, was supposed to read "$99 each." a. The mistake is unilateral and therefore customers are entitled to buy the sweaters for 99 cents. b. The mistake is unilateral and therefore customers are not entitled to buy the sweaters for 99 cents. c. The mistake is mutual and therefore customers are entitled to buy the sweaters for 99 cents. d. The mistake is mutual and therefore customers are not entitled to buy the sweaters for 99 cents.

b. The mistake is unilateral and therefore customers are not entitled to buy the sweaters for 99 cents.

If an individual shopping for groceries opens a bottle of water from their cart and drinks it before they have paid for their items: a. a bilateral contract has been created. b. a quasi-contract has been created. c. a unilateral contract has been created. d. a voidable contract has been created.

b. a quasi-contract has been created.

An insurance contract may be unlawful if: a. it is taken out by a child on the life of their parent. b. the person taking out the policy does not have an insurable interest in the subject of the contract. c. it is taken out by a person on a business partner. d. it is for an amount higher than the value of the person's life that is the subject of the policy.

b. the person taking out the policy does not have an insurable interest in the subject of the contract.

What is the term for a contract agreement in which an offeror promises to pay after the occurrence of a specified act, and the offeree is not required to respond in words? a. open contract b. unilateral contract c. executed contract d. bilateral contract

b. unilateral contract

In general, which of these contract terms is NOT required to meet the requirement of definiteness? a. The subject matter of the contract b. The parties involved c. Acceptance d. The time of payment

c. Acceptance

Must all terms of a deal be included in an offer? a. Yes, an offer is not complete unless all terms are included. b. Yes, unless it is an offer for services in which case some terms can be filled in later. c. No, but the terms required will depend on the type of contract. d. No, unless the offeror purposely leaves terms of the offer ambiguous.

c. No, but the terms required will depend on the type of contract.

If a buyer agrees to purchase "all the widgets I require" and the seller agrees to sell him "all the widgets you require" is there sufficient consideration? a. No, because without knowing the number of widgets, there can be no bargained-for exchange. b. No, this is illusory. c. Yes, because this is a requirements contract. d. Yes, because this is an output contract.

c. Yes, because this is a requirements contract.

If two parties have an on-going oral agreement that one will ship and the other will accept 50 pounds of produce each week unless the buyer informs the seller one week before not to ship the next order, then the buyer's failure to speak up and tell the shipper not to send the produce: a. cannot be held against them as acceptance of an offer. b. fails as an acceptance for lack of timeliness. c. qualifies as acceptance of that week's delivery offer. d. does not qualify as a valid acceptance of the offer.

c. qualifies as acceptance of that week's delivery offer.

The mirror image rule requires: a. acceptance to be on substantially similar terms as the offer. b. acceptance to be on any terms of the offeree. c. acceptance to be given within one week of the offer. d. acceptance to be on exactly the same terms as the offer.

d. acceptance to be on exactly the same terms as the offer.

What factors are used to judge if consideration is adequate to ensure a fair bargain? Choose 2 answers. a. Promises must be made with voluntary consent. b. Items or promises exchanged must be of nearly equal value. c. Promises exchanged may not be a preexisting duty. d. Consideration must be a promise to pay money.

a. Promises must be made with voluntary consent. c. Promises exchanged may not be a preexisting duty.

What elements are required for an offer to be effective under the common law? Choose 3 answers. a. The offeror must intend to be bound by the offer. b. The offer must be communicated to the offeree. c. The terms of the offer must be reasonably definite so that all parties understand them. d. The offer must be irrevocable for a set period of time to allow acceptance.

a. The offeror must intend to be bound by the offer. b. The offer must be communicated to the offeree. c. The terms of the offer must be reasonably definite so that all parties understand them.

Why would parties use accord and satisfaction regarding a negotiable instrument? Choose 2 answer choices. a. The parties could wish to end the obligation without further conflict. b. Accord and satisfaction is a legal method to force both parties to perform the terms of the original instrument. c. The parties might wish to avoid a lawsuit. d. The parties could use it as a first step to filing a lawsuit.

a. The parties could wish to end the obligation without further conflict. c. The parties might wish to avoid a lawsuit.

Ellen offers to sell her 1997 Mustang convertible to Fred for $2,000. Fred agrees to pay $2,000 for Ellen's Mustang. Before Fred picks up the Mustang, Ellen discovers that the Mustang is considered a classic car and is worth much more than $2,000. Ellen refuses to sell the Mustang to Fred, stating that the consideration is insufficient. If Fred tries to enforce the deal by taking Ellen to court: a. the court would probably enforce the deal because there was valid consideration on both sides. b. the court would probably not enforce the deal because there is no consideration flowing from Ellen to Fred. c. the court would not enforce the deal because $2,000 is too low to be valid consideration. d. the court would probably enforce the deal because the amount of consideration is never an issue.

a. the court would probably enforce the deal because there was valid consideration on both sides.

What conditions must be met for an offer to be legally accepted? Choose 2 answers. a. The offer must be accepted within 24 hours of communication. b. It may only be accepted by the intended offeree or the offeree's agent. c. Acceptance must be unequivocal with no requests for changes in the offer. d. Acceptance must be communicated in words, either written or oral.

b. It may only be accepted by the intended offeree or the offeree's agent. c. Acceptance must be unequivocal with no requests for changes in the offer.

Manny offers to sell Gina his television for $100 on January 1. On January 2, Gina writes out a letter of acceptance. On January 3, Gina drops the letter in a mailbox. On January 4, a postal worker gets the letter out of the mailbox and takes it to the post office. On January 5, the letter arrives in Manny's mailbox. When (if ever) was a contract formed? a. January 2 b. January 3 c. January 4 d. January 5 e. None of these—a contract has not been formed

b. January 3

In a unilateral contract: a. acceptance may occur through a promise or an act. b. substantially undertaking performance prevents the offeror from revoking the offer. c. the parties exchange a promise for a promise. d. the offeror may revoke the offer at any time before performance has been completed.

b. substantially undertaking performance prevents the offeror from revoking the offer.

Milo is the owner of a sporting goods store that has only been open for three months. The holiday season is coming up, and Milo realizes that he will need extra help. Milo asks his friend Jess to help him out at the store. Milo and Jess agree that Jess will work during the months of November and December. However, because Milo is unsure how much help he will need and how much he will be able to pay, they agree to decide each week on the hours that Jess will work for the following week, and to decide the hourly rate after Jess has worked two weeks before she receives her first paycheck. Just before November 1, Jess takes a job at another store. If Milo tries to sue Jess for breach of contract, the court will probably decide: a. that the parties had no contract because the terms were not in writing. b. that the parties had no contract because the terms of the offer were not definite. c. that the parties had a contract, and Jess breached the contract. d. that the parties had a contract, but the damages could not be ascertained because the hourly rate and number of hours had not been determined.

b. that the parties had no contract because the terms of the offer were not definite.

Lilly hired Harris Lawn Service to cut her grass one summer, and paid through automatic charges to her credit card. After taking three months off for winter weather, Harris staff cut Lilly's grass for four weeks in a row before charging the fees on Lilly's credit card. Lilly protested the charges, stating she did not hire the company to cut grass for the second summer. Harris sues Lilly. What law applies? Choose 2 answer choices. a. Lilly's silence is not acceptance and Harris's service in the spring is considered a gift to her. b. Lilly's silence is not acceptance in this case because the offeree must affirmatively accept the terms of the offer in full and communicate that acceptance to the offeror. c. Lilly's silence is acceptance because of the parties' past dealings. d. Lilly's silence is acceptance because the offeree accepted the benefit offered.

c. Lilly's silence is acceptance because of the parties' past dealings. d. Lilly's silence is acceptance because the offeree accepted the benefit offered.

Geraldo is the owner/manager of Geraldo's Cleaning Service, a firm that cleans office building. Geraldo has a team of seven employees who do a fantastic job. To encourage them to keep up the good work, Geraldo tells his employees that if they continue to work hard until the end of the quarter and if he is pleased with his profits at the end of the quarter, he will give them each a $100 bonus. At the end of the quarter, the company's profits were extremely high. Will Geraldo have to make good on his promise of a $100 bonus for each employee? a. Yes, Geraldo will have to award the bonuses because profits were extremely high. b. No, Geraldo will not have to award the bonuses because the work of the employees is not valid consideration. c. No, Geraldo will not have to award the bonuses because his offer of a $100 bonus if he is pleased with his profits was an illusory promise. d. Yes, Geraldo will have to award the bonuses because the work of the employees is valid consideration.

c. No, Geraldo will not have to award the bonuses because his offer of a $100 bonus if he is pleased with his profits was an illusory promise.

Anna purchases a wedding dress and takes the dress to Jessica for alteration. Anna and Jessica agree that Anna will pay Jessica $75 for the alterations. After Jessica begins working on the dress, she has second thoughts. Jessica contacts Anna and advises her that the alternations will cost $150 instead of $75. Because Anna's wedding is in just two weeks, Anna reluctantly agrees. Once the alterations are completed, Anna pays Jessica the $75 originally agreed on. Is Jessica entitled to the additional $75? a. Yes, Jessica is entitled to the additional $75 because the original contract contained insufficient consideration. b. No, Jessica is not entitled to the additional $75 because contracts cannot be altered once the terms are agreed on. c. No, Jessica is not entitled to the additional $75 because there is no additional consideration for the revision to the contract. d. Yes, Jessica is entitled to the additional $75 because Anna agreed to it, forming a valid contract.

c. No, Jessica is not entitled to the additional $75 because there is no additional consideration for the revision to the contract.

Carol says, "Pam, you're my best friend in the world. I just inherited a million bucks, and I want you to have some of it. Come with me to the bank tomorrow, and I'll give you $10,000." "Sweet!" Pam replies. Later that day, Carol has a change of heart. She is allowed to do so. Examine the list of the elements of a contract and cite the correct reason. a. The agreement was not put into writing. b. The agreement lacks a legal purpose. c. Pam did not give consideration. d. Pam does not have the capacity to make a contract.

c. Pam did not give consideration.

Sarah is shopping at Sylvia's thrift store, and notices that the inside of the store needs repainting. Sarah offers to paint the store for $400. Sylvia does not respond to Sarah's offer. Later that day, Sarah returns to the store with painting supplies in hand and begins painting the store. When Sarah is finished, she demands payment of $400 from Sylvia. Will Sylvia have to pay Sarah for painting the store? a. No, Sylvia will not have to pay Sarah for painting the store because Sarah did not verbally agree to the contract. b. No, Sylvia will not have to pay Sarah for painting the store because silence can never be an acceptance of an offer. c. Yes, Sylvia will have to pay Sarah for painting the store, even though she did not verbally agree to the contract. d. Yes, Sylvia will have to pay Sarah for painting the store because silence is always an acceptance of an offer.

c. Yes, Sylvia will have to pay Sarah for painting the store, even though she did not verbally agree to the contract.

Jones Construction Company is building a series of new subdivisions in Newtown over the next two years. Jones enters into a verbal agreement with Harley Concrete Inc. to construct all the driveways and sidewalks in the subdivisions that Jones will be building. Jones and Harley agree on a price of $130 per cubic yard and that Jones will pay Harley at the end of each project. Harley completes the first project, which is four sidewalks and sixteen driveways, and bills Jones for the project. Jones decides that the price is too high and refuses to pay, claiming that they have no obligation to pay because the parties did not have a valid contract. If Harley sues Jones for payment the court would probably: a. apply quasi contract theory and award $130 per cubic feet, the contract price, to Harley. b. hold that Harley is entitled to nothing because parties are free to terminate contracts if they so choose. c. apply quasi contract theory and award the fair market value of the work that Harley completed. d. hold that Harley is entitled to nothing because the contract violates the Statute of Frauds.

c. apply quasi contract theory and award the fair market value of the work that Harley completed.

Which of the following is a valid offer? a. Eric offers to buy Arun's house for $290,000. Arun says, "No, but I will sell it to you for $300,000." Eric seems to be upset, so Arun says he will sell it for $290,000. b. Arun tells Eric he will sell one of his houses for $250,000 by the end of the summer. c. Arun distributes flyers at work stating he wants to sell his house, listing the address and the asking price. d. Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's lease ends in two months. Arun wants to think about it and six days later has not yet responded.

d. Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's lease ends in two months. Arun wants to think about it and six days later has not yet responded.

Robert inherited lots of antique tools when his father died. Because Robert is not interested in woodworking, he decides to sell several of the tools. Robert agrees to sell an antique hand-held wood planer to Geoffrey for $50. After agreeing to the deal, Robert discovers that the planer is a pre-WWII Norris Jointer Planer worth over $5,000, and refuses to sell the planer to Geoffrey. Can Geoffrey enforce the deal? a. No, Geoffrey cannot enforce the deal because Robert was unaware of the true value of the planer. b. No, Geoffrey cannot enforce the deal because the amount of consideration is insufficient. c. Yes, Geoffrey can enforce the deal but only if Geoffrey was not aware of the true value of the planer. d. Yes, Geoffrey can enforce the deal because the contract contained valid consideration.

d. Yes, Geoffrey can enforce the deal because the contract contained valid consideration.

What is required for a writing to be legally sufficient to form a contract?

1. The writing must provide evidence of agreement 2. The UCC requires that the quantity be included (not price) DOESNT have to be signed by both parties, just the one who is resisting enforcement of contract

During an evening spent wining and dining customers,Veronica signs two contracts. When she signs the first contract, her blood alcohol level is 0.09, which is just above her state's threshold for drunk driving. When she signs the second contract, she is so drunk she does not know where she is or what she is doing there. Which of the following statements are true: a. Both contracts are valid. b. Both contracts are voidable. c. Only the first contract is valid. d. The second contract is void.

c. Only the first contract is valid.

Jerry is so mentally ill that he is unable to understand the nature and consequences of his transactions, but he has not been adjudicated insane. Penny has been adjudicated insane and has a court-appointed guardian. Which of the following statements are true: a. Both contracts are void. b. Both contracts are voidable. c. Jerry's contract is void and Penny's is voidable. d. Jerry's contract is voidable and Penny's is void.

d. Jerry's contract is voidable and Penny's is void.

Kerry finds a big green ring in the street. She shows it to Leroy, who says, "Wow. That could be valuable." Neither Kerry nor Leroy knows what the ring is made of or whether it is valuable. Kerry sells the ring to Leroy for $100, saying, "Don't come griping if it turns out to be worth two dollars." Leroy takes the ring to a jeweler who tells him it is an unusually perfect emerald, worth at least $75,000. Kerry sues to rescind. a. Kerry will win based on fraud. b. Kerry will win based on mutual mistake. c. Kerry will win based on unilateral mistake. d. Kerry will lose.

d. Kerry will lose.

The common law Statute of Frauds requires that to be "in writing," an agreement must be signed by: I. The plaintiff II. The defendant III. A notary public

II. The defendant

What type of contract is created by an agreement that is oral when it is required by the Statute of Frauds to be in writing?

voidable

Which of the following contracts would be enforceable? a. A contract with an unlicensed retail clothing store b. A contract with an unlicensed contractor c. A contract with an unlicensed lawyer d. A contract with an unlicensed cosmetologist

a. A contract with an unlicensed retail clothing store

What factors must be present to prove fraudulent misrepresentation in a contract? Choose 3 answers. a. A misrepresentation of a material fact has occurred. b. There has been an intent to deceive. c. The innocent party has justifiably relied on the misrepresentation. d. The defrauding party must have exerted undue influence on the innocent party.

a. A misrepresentation of a material fact has occurred. b. There has been an intent to deceive. c. The innocent party has justifiably relied on the misrepresentation.

What are the possible remedies for a contract formed under duress? Choose 3 answer choices. a. Allow duress as a defense for breach of contract b. Enforce the contract. c. Make the contract voidable. d. Rescind the contract.

a. Allow duress as a defense for breach of contract c. Make the contract voidable. d. Rescind the contract.

A police officer who finds a missing child as part of his duties may not collect any reward for finding the child. Why? a. Because the officer already had a pre-existing duty to do so. b. Because the officer did not promise to perform the act. c. Because the reward is not a valid offer. d. Because the officer did not accept the offer prior to finding the child.

a. Because the officer already had a pre-existing duty to do so.

Melissa felt pressured into signing a contract that released her employer from any liability if she is injured on the job. What prohibited behavior under public policy could this be? a. Exculpatory Clause b. Substantive Unconscionability c. Procedural Unconscionability d. Restraint of Trade

a. Exculpatory Clause

Ron buys 1,000 "Smudgy Dolls" for his toy store. Karen, the seller, tells him the dolls are in perfect condition, even though she knows their heads are defectively attached. Ron sells all of the products, but then he has to face 1,000 angry customers with headless dolls. Ron sues Karen seeking rescission. What is the likely outcome? a. This is fraud, and Ron will be able to rescind. b. This is an innocent misrepresentation, and Ron will be able to rescind. c. This is fraud, but Ron will not be able to rescind. d. This is an innocent misrepresentation, but Ron will not be able to rescind. e. This is neither fraud nor an innocent misrepresentation.

a. This is fraud, and Ron will be able to rescind.

Which of the following distinguishes promissory estoppel cases from quasi-contract cases? a. In promissory estoppel cases there is a promise; in quasi-contract cases there is not. b. In a quasi-contract case, the plaintiff did not expect to be paid, but in a promissory estoppel case they did. c. In promissory estoppel cases, there is a valid contract but not in a quasi-contract case. d. In promissory estoppel cases there is never a promise, but in quasi-contract cases there are.

a. In promissory estoppel cases there is a promise; in quasi-contract cases there is not.

Isabel is 17 years old and wants to stop paying for the use of the local gym, but wishes to continue teaching classes. Her contract with the company includes terms regarding her employment and use of the facility. What must she do to properly disaffirm the contract? Choose 2 answer choices. a. Isabel must disaffirm both the gym membership obligations and the employment terms in the contract. b. Isabel must wait until she turns 18 to disaffirm the contract. c. Isabel can choose to disaffirm the gym membership portion of the contract and retain the employment terms. d. Isabel must let gym staff know she is terminating the contract.

a. Isabel must disaffirm both the gym membership obligations and the employment terms in the contract. d. Isabel must let gym staff know she is terminating the contract.

Which type of lack of capacity is easiest to prove? a. Minor status b. Mental incompetence c. Contracting for necessities d. Intoxication

a. Minor status

Before surgery a doctor makes a patient sign a contract with an exculpatory clause. Will it be enforceable if the doctor is negligent? a. No, because non-negligent medical care is in the public's best interest. b. No, because exculpatory clauses may not excuse negligence. c. Yes, because there is freedom of contract. d. Yes, because the parties have equal bargaining power and the patient could go to another doctor.

a. No, because non-negligent medical care is in the public's best interest.

Samuel has mental competency issues. Samuel entered into a contract with Beth, but now Samuel is petitioning the court to terminate the contract. What options does the court have in ruling in the case? Choose 2 answers. a. The contract is void if Samuel has been previously determined to be mentally incompetent. b. The contract is voidable if a court has previously determined Samuel to be mentally incompetent. c. The contract is void if Samuel was incompetent at the time the contract was formed. d. The contract is voidable if Samuel was incompetent at the time the contract was formed.

a. The contract is void if Samuel has been previously determined to be mentally incompetent. d. The contract is voidable if Samuel was incompetent at the time the contract was formed.

What factors may overturn a minor's right to disaffirm a contract? Choose 3 answers. a. The minor ratifies the contract after reaching the age of majority. b. The contract is for necessaries. c. The object of the contract has been destroyed. d. The minor misrepresented the minor's age while engaging in business as an adult.

a. The minor ratifies the contract after reaching the age of majority. b. The contract is for necessaries. d. The minor misrepresented the minor's age while engaging in business as an adult.

What must a plaintiff prove to show duress in the formation of a contract? Choose 2 answer choices. a. The plaintiff was incapable of voluntarily agreeing to the contract. b. The plaintiff was injured or feared he or she would be injured. c. The defendant intended to harm the plaintiff. d. The defendant committed a wrongful or illegal act.

a. The plaintiff was incapable of voluntarily agreeing to the contract. b. The defendant committed a wrongful or illegal act.

In what situation is a minor most likely to be able to terminate a contract? a. When a minor orders books for school b. A minor entering into a marriage contract c. When the minor purchases food d. When a minor lied about his or her age when making the contract

a. When a minor orders books for school

In December 2019, Eric hired a band to play at his MBA graduation party in 2021. The parties agreed that the band would play five songs for $450 on May 15, 2021, but the deal was never put into writing. In January 2021, if Eric wanted to cancel the job without penalty, would he be able to do so? a. Yes, Eric would be able to cancel because the contract terms could not be completed within one year and a definite time was fixed. b. Yes, Eric would be able to cancel because this contract was for less than $500—and only contracts greater than $500 must be in writing. c. No, Eric would not be able to cancel because the agreement did not have to be in writing to be enforceable. d. No, Eric would not be able to cancel because this contract could have been completed within a year of execution.

a. Yes, Eric would be able to cancel because the contract terms could not be completed within one year and a definite time was fixed.

Which of the following is a voidable contract? a. a contract in which the parties made a mutual mistake about the terms b. a contract made with someone declared mentally incompetent by a court c. a contract hiring someone to blackmail a public official d. a contract hiring someone to commit arson

a. a contract in which the parties made a mutual mistake about the terms

What remedies are available in the case of a unilateral mistake in making a contract? Choose 2 answers. a. reformation b. rescission c. punitive damages d. enforcement

a. reformation b. rescission

Dora has been in a nursing home for three years and rarely has visitors. Vanita works at the nursing home and regularly takes care of Dora. Vanita and Dora have become very close, and Dora depends on Vanita to help her with decisions about her finances. Just before Dora dies, Vanita and Dora enter into a contract to sell Dora's family home to Vanita for $20,000. The home is worth $100,000. If Dora's children try to void the contract between Vanita and Dora: a. the children may be able to void the contract based on undue influence. b. the children may be able to void the contract based on fraud. c. the children may be able to void the contract based on illegality. d. the children will not be successful in voiding the contract, because there is valid consideration and the contract is in writing.

a. the children may be able to void the contract based on undue influence.

To succeed on a promissory estoppel claim, and plaintiff must show: (Select all that apply) a. the defendant made a promise to the plaintiff b. the plaintiff expected payment from the defendant. c. the plaintiff relied on the defendant's promise. d. the plaintiff received a benefit from the defendant e. the defendant knew the plaintiff would rely on the promise.

a. the defendant made a promise to the plaintiff c. the plaintiff relied on the defendant's promise. e. the defendant knew the plaintiff would rely on the promise.

Which of these contracts would be enforceable, despite the existence of a mistake? Choose 2 answer choices. a. Christopher agrees to sell his washer and dryer to Ella. He bought them at a yard sale and the sellers told him they were new. Ella believes they are new as well and, as a result, pays a higher price. When Ella encounters problems, a friend shows her parts that are worn. b. Christopher agrees to sell his washer and dryer to Ella in "as is" condition. Ella thinks the set is in excellent condition and is willing to take a chance on buying it. Neither works after a few weeks of use. c. Christopher agrees to sell his washer and dryer to Ella. Ella thinks the dryer uses gas instead of electricity, but she is incorrect. d. Christopher agrees to sell his washer and dryer to Ella. Christopher overhears Ella telling her friend that she is happy she is getting such a great deal on a new washer and dryer, although Christopher knows he has used them for a year, but he does not correct her.

b. Christopher agrees to sell his washer and dryer to Ella in "as is" condition. Ella thinks the set is in excellent condition and is willing to take a chance on buying it. Neither works after a few weeks of use. c. Christopher agrees to sell his washer and dryer to Ella. Ella thinks the dryer uses gas instead of electricity, but she is incorrect.

Alexander is a resident of Utah, where gambling is illegal. Alexander visits Goldstrike Casino in Reno, Nevada, and loses all the money he brought with him. Frustrated with his losses and determined to win his money back, Alexander writes a check to Goldstrike drawn on his bank in Utah for $5,000 to obtain more cash so that he can keep gambling. Goldstrike also requires him to sign an agreement guaranteeing that he will repay any money advanced to him. Fortunately, Alexander's luck turned; he walks away from Goldstrike with $35,000 in his pocket. As soon as he gets home, Alexander issues a stop payment order on the $5,000 check. If Goldstrike files suit against Alexander in Utah to collect its money: a. Goldstrike will lose because suits over gambling on credit cannot be enforced across state lines. b. Goldstrike will lose because gambling is illegal in Utah. c. Goldstrike will win because it required Alexander to sign a separate agreement guaranteeing payment. d. Goldstrike will win because the full faith and credit clause of the U.S. Constitution requires each state to honor the laws of its sister states.

b. Goldstrike will lose because gambling is illegal in Utah.

Nadine visits Urban Air, a trampoline park. Before Nadine can enter the trampoline park, Urban Air requires her to sign a release stating that Urban Air will not be held responsible for any injury of any kind that Nadine incurs while on Urban Air property, no matter what the cause of the injury is. While Nadine is jumping on a trampoline, her boyfriend Trevor joins her. Trevor's ex-girlfriend Valarie, who is an Urban Air employee, becomes enraged and pushes Nadine off the trampoline. Nadine breaks an arm in the incident. Who can Nadine sue for her injuries? a. Nadine cannot sue anyone because she signed a release of liability form. b. Valarie and Urban Air c. Urban Air only d. Valarie only

b. Valarie and Urban Air

Which of the following is a void contract? a. a contract for the sale of a car to someone who is intoxicated b. a contract for prostitution c. a contract for the sale of a house to a minor d. a contract in which one party induced the other to enter by undue influence

b. a contract for prostitution

An agreement will lack consideration if: a. a person makes a promise in return for an act which is yet to take place. b. a person makes a promise in return for an act which has already taken place. c. a person settles a disputed claim through an accord and satisfaction. d. a person performs an act required by an offer.

b. a person makes a promise in return for an act which has already taken place.

In a bilateral contract, the consideration which supports the forming of the contract is: a. a past act. b. a promise to perform. c. a past promise. d. an act.

b. a promise to perform.

The following types of contracts are generally unenforceable: (Choose 2 answers) a. adhesion contracts b. exculpatory clauses for intentional torts c. unconscionable contracts d. contracts with exculpatory clauses for negligence

b. exculpatory clauses for intentional torts c. unconscionable contracts

Which of the following is legally sufficient consideration? (Select all that apply) a. forbearance of an illegal act b. forbearance of a legal act c. a promise maybe pay money in the future d. a promise to do a legal act

b. forbearance of a legal act d. a promise to do a legal act

Usury laws prohibit: a. determine what is considered "excessive" interest on loans. b. the charging of excessive interest on loans. c. prohibit credit card companies from charging high interest rates. d. the charging of interest on loan.

b. the charging of excessive interest on loans.

Non-compete agreements which limit an employee's right to obtain employment elsewhere upon leaving are only valid if: (Select two) a. they are not ancillary to employment. b. they are limited in time and geographic scope c. the non-compete clause is contained in the employee handbook and are equally applied to all employees. d. they are reasonably necessary for the protection of the employer

b. they are limited in time and geographic scope d. they are reasonably necessary for the protection of the employer

If Ramona changes her will at age 88 to leave the bulk of her fortune to her home health care nurse instead of her children, what factor will the courts consider in judging whether or not her will is valid? a. duress b. undue influence c. mistake d. fraudulent misrepresentation

b. undue influence

Non-compete agreements are common features of employment contracts. Currently, courts ______enforce these clauses. a. always b. usually c. rarely d. never

b. usually

Ted's wallet is as empty as his bank account, and he needs $3,500 immediately. Fortunately, he has three gold coins that he inherited from his grandfather. Each is worth $2,500, but it is Sunday, and the local rare coins store is closed. When approached, Ted's neighbor Andrea agrees to buy the first coin for $2,300. Another neighbor, Cami, agrees to buy the second for $1,100. A final neighbor, Lorne, offers "all the money I have on me"—$100—for the last coin. Desperate, Ted agrees to the proposal. Which of the deals is supported by consideration? a. Ted's agreement with Andrea only b. Ted's agreements with Andrea and Cami only c. All three of the agreements d. None of the agreements

c. All three of the agreements

Which mistake is likely to be voidable? a. A prediction mistake b. Unilateral mistake c. Bilateral mistake d. Mistakes of Value

c. Bilateral mistake

KwikFix, a Fortune 500 company, contracts with Allied Rocket, another huge company, to provide the software for Allied's new Jupiter Probe rocket for $14 million. The software is negligently designed, and when the rocket blasts off from Cape Kennedy, it travels only as far as Fort Lauderdale before crashing to Earth. Allied Rocket sues for $200 million and proves that, as a result of the disaster, it lost a huge government contract, worth at least that much, which KwikFix was aware of. KwikFix responds that its contract with Allied included a clause limiting its liability to the value of the contract. Is the contract clause valid? a. The clause is unenforceable because it is unconscionable. b. The clause is unenforceable because it is exculpatory. c. The clause is enforceable because both parties are sophisticated corporations. d. The clause is enforceable because $200 million is an unconscionable claim.

c. The clause is enforceable because both parties are sophisticated corporations.

Mandy verbally tells a motorcycle dealer that she will make her son's motorcycle payments if he falls behind on them. Will Mandy be legally required to live up to this agreement? a. Yes, absolutely. b. Yes, if her son is under the age of 18. c. Yes, if Mandy will be the primary driver of the motorcycle. d. Yes, if the motorcycle is worth less than $500. e. No, absolutely not.

c. Yes, if Mandy will be the primary driver of the motorcycle. (leading object)

Are gambling contracts illegal? a. No, and judgments can be enforced in all jurisdictions. b. Yes, unless the gambling takes place across state lines such as online wagers. c. Yes, unless they are specifically authorized by state statute. d. No, but judgments cannot be enforced out of the state in which the wager was made.

c. Yes, unless they are specifically authorized by state statute.

A creditor on a liquidated debt of $1 million may agree to take which of the following from the debtor in satisfaction of that debt? (Select all that apply) a. a promise by the debtor not to engage in any illegal behavior b. $500,000 c. a horse in exchange for the $1 million that is due d. 100 cents on the dollar

c. a horse in exchange for the $1 million that is due d. 100 cents on the dollar

Marie and Molly enter into a written contract to sell Marie's home to Molly. At the time the contract is executed, Marie tells Molly that for the last six months she has been sharing the home with a family of extraterrestrial beings. Marie states that she has asked the extraterrestrials to move out, but they won't; therefore, she is selling the family home to get rid of them and is willing to sell the home to Molly for well below market price. After the sale of the home is complete, Marie's children challenge the sales contract on the grounds that Marie did not have the mental capacity necessary to enter into a contract, even though Marie has not been declared incompetent by the courts. The contract between Marie and Molly can be rescinded: a. under no circumstances, because Marie was not adjudicated insane before she signed the contract. b. only if Marie's children have Marie committed. c. if Marie's children can prove that Marie lacked the mental capacity to comprehend the nature, purpose, and consequences of the contract. d. by either Marie or Molly.

c. if Marie's children can prove that Marie lacked the mental capacity to comprehend the nature, purpose, and consequences of the contract.

Two individuals signed a contract that was intended to be their entire agreement. The parol evidence rule will prevent the admission of evidence offered to: a. explain the meaning of an ambiguity in the written contract. b. establish that fraud had been committed in the formation of the contract. c. prove the existence of a contemporaneous oral agreement modifying the contract. d. prove the existence of a subsequent oral agreement modifying the contract.

c. prove the existence of a contemporaneous oral agreement modifying the contract.

Sophia just moved into her first apartment and has no furniture. Sophia visits The Furniture Showcase and finds some great bedroom and living room furniture. Sophia does not have the money to purchase the furniture, so the sales clerk presents Sophia with a retail installment sales contract. The contract calls for monthly payments until the purchase price is paid in full, and also includes annual interest at a rate of seventeen percent. Sophia knows that interest rates in her state are capped at ten percent by law, but she really needs the furniture so she signs the agreement. If Sophia later contests the amount of interest and wins, The Furniture Store may forfeit: a. the entire loan. b. all interest. c. the illegal interest, all interest, or, in some states, the entire loan. d. the illegal interest.

c. the illegal interest, all interest, or, in some states, the entire loan.

Which statement is true about the ability of minors to enter into contracts? a. A minor may enter into a contract but must ratify it within one year of the date of the contract. b. A minor may enter into a contract only if the minor has an adult co-signer. c. A minor cannot legally enter into contracts. d. A minor may enter into any contract an adult can, except for contracts that are expressly prohibited for minors.

d. A minor may enter into any contract an adult can, except for contracts that are expressly prohibited for minors.

Adina owns Yogi's Yogurt in Fort Smith, Arkansas. Adina sells the yogurt shop to Dagmar. The contract for the sale of the business includes a clause that prohibits Adina from owning or working in any restaurant in Arkansas for two years from the date of the sale. One year after the sale is completed, Adina opens a steakhouse in West Memphis, Arkansas, which is 300 miles from Fort Smith. If Dagmar sues Adina for breaching the terms of the contract: a. Dagmar will probably win because Adina opened a new restaurant in Arkansas within two years of the sale of Yogi's Yogurt and this was directly prohibited by the contract. b. Dagmar will probably lose because covenants not to compete are never enforceable. c. Dagmar will probably win because covenants not to compete are always enforceable. d. Dagmar will probably lose because the covenant not to compete is too restrictive.

d. Dagmar will probably lose because the covenant not to compete is too restrictive.

Marco hires Franco to burn down a clothing store that belongs to one of Marco's competitors. Marco pays Franco $1,000 upfront and promises another $3,000 when the job is done. Franco burns down the clothing store and then asks Marco for the rest of the payment. Marco just laughs at Franco and walks away. If Franco sues Marco for payment under the contract: a. Marco will not have to pay because of the lack of competent parties. b. Marco will have to pay because all the elements of a contract have been met. c. Marco will not have to pay because the agreement lacks consideration. d. Marco will not have to pay because the subject matter of the contract is illegal.

d. Marco will not have to pay because the subject matter of the contract is illegal.

Selma wants to buy Matilda's house. Selma has been admiring the house for a long time and has asked Matilda repeatedly to sell the house to her, but Matilda has always refused. Finally, Selma tells Matilda that if Matilda does not sell Selma the house, Selma will kill Matilda's daughter. Afraid for her daughter's life, Matilda signs the contract to sell the house to Selma. If Matilda later tries to rescind the contract: a. Matilda may rescind the contract on the grounds of unconscionability. b. Matilda may rescind the contract on the grounds of undue influence. c. Matilda may not rescind the contract because it has all the elements of a valid contract. d. Matilda may rescind the contract on the grounds that she signed the contract under duress.

d. Matilda may rescind the contract on the grounds that she signed the contract under duress.

What happens when a party with the right to avoid a contract chooses to not avoid it? a. The contract becomes void. b. The contract is rejected. c. The contract becomes a quasi-contract. d. The contract is ratified.

d. The contract is ratified.

When might a contract made by a mentally impaired/incompetent person be enforceable? a. The impaired/incompetent person signs a second contract affirming that he understands the nature of the contract. b. The impaired/incompetent person has a court-appointed guardian, and that guardian is aware of the contract. c. The impaired person has not been declared incompetent by a court. d. The impaired/incompetent person was lucid at the time the contract was made.

d. The impaired/incompetent person was lucid at the time the contract was made.

At a party, George casually mentions that he is going to learn to BASE jump during spring break. (BASE jumping involves jumping off a cliff and deploying a parachute to land.) Vicki, an acquaintance, overhears him, and the next day she purchases a $100,000 life insurance policy on George's life. George has a happy week of BASE jumping. But on the way home, he is bitten by a parrot and dies of a rare tropical illness. Vicki files a claim for $100,000. The insurance company refuses to pay. a. Vicki will win $100,000, but only if she mentioned animal bites to the insurance agent. b. Vicki will win $100,000 regardless of whether she mentioned animal bites to the insurance agent. c. Vicki will win $50,000. d. Vicki will win nothing.

d. Vicki will win nothing.

When Boris arrives at the restaurant, he realizes that his cell phone only has 3% charge left. The waiter offers to charge his phone in the kitchen, but requires him to sign an exculpatory clause saying that the restaurant is not liable for anything that happens to the phone under any circumstance. A kitchen worker with a known criminal past hacks Boris's phone, steals all of his passwords and credit card information, and sends embarrassing emails on Boris's behalf. Is the restaurant responsible? a. No, because Boris signed the exculpatory clause. b. No, because contemporary society is dependent on charged cell phones. c. Yes, because the restaurant was not in the business of charging phones. d. Yes, because the restaurant worker intentionally hacked the phone.

d. Yes, because the restaurant worker intentionally hacked the phone.

Able hired Carr to restore Able's antique car for $800. The terms of their oral agreement provided that Carr had 18 months to complete the work. Actually, the work could be completed within one year. The agreement is: a. unenforceable because it covers services with a value in excess of $500. b. unenforceable because it covers a time period in excess of one year. c. enforceable because personal service contracts are exempt from the Statute of Frauds. d. enforceable because the work could be completed within one year.

d. enforceable because the work could be completed within one year. (this is a contract for SERVICES not sales so the over $500 rule does not apply & the contract CAN be performed in 1 year)

Harold offers to sell Emma his farmland in Bryson County. After discussing the sale at length in front of their friends Nicole and Jackson, Harold and Emma orally agree on a price of $120,000 for the land. The next day, Emma goes to the bank and withdraws $120,000 to pay Harold for the land. When Emma presents the $120,000 to Harold, Harold tells Emma he was just joking and does not wish to sell the land. Emma tries to enforce the deal, and Harold continues to refuse by saying that the deal was not in writing, and, therefore, it is unenforceable. The contract between Harold and Emma for the sale of the land:

is not enforceable because it violates the statute of frauds.

Alvin's Department Store agrees over the telephone to purchase $1,000 worth of blankets from Blanket Emporium. Blanket Emporium sends an invoice for the blankets before shipping them, and Alvin's Department Store refuses to go forward with the deal, saying their deal is not a valid contract. The oral agreement between Blanket Emporium and Alvin's Department Store for the purchase of $1,000 worth of blankets:

violates the statute of frauds, and is, therefore, unenforceable.

What type of contract exists when at least one party has the option of canceling it?

voidable