bul2241 module exam 2

Pablo and Roth agree that Pablo will fix Roth's boat dock in exchange for $5,000. Pablo spends half of the amount due under the contract to acquire the materials for the job from Seaside Lumber. Seaside is

an incidental beneficiary

Lon says to Misty, "I would like to sell you my sports memorabilia." This statement is

an invitation to negotiate, not an offer

Lark promises to buy Mac's used textbook for $60. Lark is

promisor

Restore Construction Company enters into a contract with Sam to remodel Tess's Home Store, using products from United Building Supplies. Refer to Fact Pattern 15-1. United will realize a profit from the sale of products to Restore to remodel Tess's store. United is

an incidental beneficiary

Gliders, LLC, and Hang Time, Inc., are parties to a contract. They subsequently agree that In the Wind Inc. should take Gliders' place and assume all of its rights and duties under the contract. This is

novation

In many states, if a minor engages in employment in the manner of an adult, his or her related contracts are fully enforceable.

true

In some states, the lack of a license in certain occupations bars the enforcement of work-related contracts.

true

Licenses provide a means of protecting the public against actions that could threaten the general welfare.

true

Objective impossibility may discharge a contract.

true

Parol evidence is testimony or other evidence about communications between the parties not contained in the written contract.

true

Persuasion that induces a person to act according to the will of the dominant party is undue influence.

true

Quasi contracts are not true contracts.

true

Specific performance is not granted unless the party's legal remedy is inadequate.

true

The general rule is that no party to an illegal contract can sue for breach.

true

What a party said when entering into a contract is an example of an objective fact.

true

Expressly designating a third party as a beneficiary in a contract indicates whether the beneficiary is intended or incidental.

false

Failure to perform a moral obligation usually creates legal liability.

false

Prenuptial agreements made in consideration of marriage need not be in writing to be enforceable.

false

Simply inquiring about an offer constitutes rejection.

false

When a seller uses "seller's talk" to tout their products and services, a seller risks being liable for fraud.

false

Emma, a minor, seeks and engages in employment for Farmland Foods in the manner of an adult. In many states, the employment contract between Emma and Farmland would be

fully enforceable

Through attorneys, Ethel, a minor, does business in the manner of an adult to negotiate and buy Front Street Villas, an apartment building. In many states, this contract would be

fully enforceable

Nate promises to pay for dental services provided by Otto to Polly. Nate receives no personal benefit for the promise. To be enforceable, the promise must be in writing if

Nate promises to pay only if Polly does not pay.

Ranchland Properties and Prairie State Investments sign a written contract for a sale of land. In some states, to be enforceable, this contract must include

a description of the land.

Ilene and Jerry enter into a contract under which Ilene agrees to provide groundskeeping services for Jerry's Family Fun Center. Under an anti-delegation clause, the contract can prohibit and prevent the transfer of

all duties under the contract.

Lee, a minor, enters into a contract to buy a dirt bike from Motor Bikes & Cycles. Lee can ordinarily disaffirm the contract a.for a reasonable time after coming of age.b.in a timely manner.c.at any time during minority.d.all of the choices.

all of the choices

Paolo offers to sell a truckload of fresh vegetables to Quality Market. No time for acceptance is specified in the offer. A reasonable period of time for termination of the offer is determined by business conditions. the subject matter of the contract. all of the choices. market conditions.

all of the choices

Chuck, a minor, signs a contract with Denise, an adult. The contract is voidable at the option of

chuck only

New Builders, Inc., enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Pete challenges the project as a violation of the local zoning laws. A court orders a halt to the project. O'Reilly's contract with New Builders is

discharged

Best Restoration, Inc., begins renovating houses for City Edge Property Company under a contract for a stated amount per house. After six months, Best demands an extra $20,000 per house. City Edge agrees to pay. Refer to Fact Pattern 10 - 3. Suppose Best asks for the extra $20,000 because of extraordinary difficulties that were totally unforeseen at the time the contract was formed. The agreement is

enforceable due to unforeseen difficulties.

A release enables recovery beyond that specified in its terms.

false

Duane and Evan orally agree to a transfer of forty acres of farmland. Evan asks Finance Bank to lend him the funds to buy the land. Under the Statute of Frauds, the agreement between Duane and Evan is enforceable by a.Duane, Evan, or Finance Bank.b.none of the choices.c.Duane or Evan.d.Finance Bank.

none of the choices

Carlos and David contract for the sale of five hundred head of Carlos's cattle for $195 per head. Unknown to either party, an unforeseen storm has struck the herd and many of the cattle have died. David is

not required to pay due to the bilateral mistake.

Domestic Gas Company offers to sell Energy Ltd. a certain quantity of liquefied natural gas. If Energy sends an acceptance via Domestic's authorized mode of communication, it will be effective when it is

sent

Mark fails to reveal a material fact in a business deal with Nancy. This constitutes fraudulent misrepresentation if

the fact concerns a serious defect known to Mark but not to Nancy.

A breach of contract occurs when a party fails to perform part or all of the required duties under a contract.

true

A n expression of a willingness to discuss the possibility of entering into a contract is not an offer.

true

A transaction that lacks a bargained-for exchange does not lack an element of consideration.

true

Bev and Chuck negotiate a deal to transfer stolen goods for counterfeit currency that Chuck will attempt to spend at Discount Mart. This contract is

void

Car Lot's salesperson Dick offers to sell Ernie, who is twenty years old, a car. Dick intentionally misrepresents the vehicle's use and repairs. In reliance, Ernie buys the car. To prove fraud, Ernie does not have to show that

Ernie is under twenty-one.

Lionel obtains a loan from Mortgage Company at an interest rate that exceeds the state's maximum. The lender has

committed usury.

Larry advertises a reward for the return of his lost dog. Miguel does not learn of the reward, but nevertheless finds and returns the dog. With respect to Miguel, Larry's ad is not an offer because it lacks the element of

communication

A minor can ordinarily disaffirm a contract at any time during minority but not after coming of age.

false

A promise is illusory when the contract terms express such uncertainty that the promisor has not definitely promised to do anything.

false

A promise to do what one already has a legal duty to do constitutes legally sufficient consideration.

false

An executed contract is one that has not been fully performed.

false

An illusory promise is a promise that is enforceable without consideration.

false

Any party who does not receive what he or she considers a fair bargain can successfully argue mistake.

false

Shelby offers to make digital copies of Reliable Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule, Reliable's acceptance by e-mail will be considered effective when

sent

An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional.

true

Any confirmation, invoice, sales slip, check, or e-mail may constitute a writing that satisfies the Statute of Frauds.

true

Delegation is prohibited when the duties are personal in nature.

true

Disaffirmance is the legal avoidance, or setting aside, of a contractual obligation.

true

Formal contracts require a special form or method of creation to be enforceable.

true

Fraudulent misrepresentation is a tort.

true

If performance of a contract is not substantial, there is a material breach.

true

A contract to commit a crime is

unenforceable

Oscar owns Payroll Company, a bookkeeping service. Oscar pays Remy $5,000 to steal a list of a competitor's clients. This deal is

void

Dale's Uncle Ed tells Dale, "If I feel you deserve it at the time, I will give you a new car when you graduate from college." Ed's promise is

illusory

FixitCo contracts with James to repair James's first floor electrical system. FixitCo's employee, Patricia, misreads the work order and repairs the electrical system on both the first and second floors of James's home. James is

liable only for repairs done on the first floor.