Business Law I: Exam #3 Study Guide

Bo signs a lease with Capri Apartments to lease a studio apartment for the next year for $650 per month. Daisy signs on Capri's behalf. Bo and Capri have

an express contract

Raj defends against a breach-of-contract suit by Student Loan Corporation by claiming that their deal—a student loan—was unfair because the consideration for the contract was inadequate. With respect to Raj's defense, the court will most likely rule in favor of the lender on the ground that

none of the choices

fagin and gretel agree to hijack a truck carrying a load of almonds. if fagin later refuses to go through with the crime, gretel can

none of the choices

owen, the owner of parts company, pays quint to obtain a competitiors design patent. quint keeps the money but does not deliver. owen can

none of these choices

Sean promises to pay his personal assistant Terry $50,000 in consideration of the services she provided over the years. Sean never makes the payment. Sean's promise is

not enforceable because consideration is in the past

Molly's motorcycle is damaged in an accident caused by Luc's negligence. Luc agrees to pay Molly $25,000 if she agrees to release him from further liability. Molly agrees. If Molly's damages ultimately exceed $25,000, she can

not recover the balance

carlos and david contract for the sale of five hundred head of carlos cattle for $195 per head. unknown to either party, an unforseen storm has struck the herd and many of the cattle have died. david is

not required to pay due to the bilateral mistake

Cathy agrees to sell her Daily Donut shop to Ernie. In the agreement, there is a covenant not to compete that prohibits Cathy from operating a donut shop within a certain distance. If the restriction is unreasonable, a court will most likely

reform the covenant

ned threats physical harm to force omar to pay for "protecting" omars restaurant, pasta plates, from vandalism. most likely, omar may

rescind the contract or refuse to comply with its term

Ken, a real estate agent, assures Lily that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City. Lily buys the property and then discovers that the street has no more traffic than any other in its vicinity. Lily is most likely a victim of

the agetns fraudulent misrepresentation

floyd, a minor, misrepresents his age when entering into a contract to buy a car from gas hogs inc. floyd takes possession of the car, but makes no payments on the contract and tries to disaffirm it. most likely, gas hogs can recover

the balance due on the contract

rex contracts with spicy pizza to deliver its products. after the deal has been partially performed, both parties inform each other that they would like to cancel the contract. rex and spicy may rescind

their contract to the extent that it is executory

Eugene, an accountant, convinces his client Faye to enter into a contract to invest her savings in Gathering, a non-existent social media site. There is clear and convincing evidence that Faye did not act out of her free will. This is

undue influence

Huey, a tennis pro, convinces Ian, who has no athletic ability, that he has considerable skill and induces him to pay $1,000 for tennis lessons. This is most likely

undue influence

a contract to do something that is prohibited by statute is

unenforceable

apps inc promises to give stock options to belden, a creative coder, for processes he has already designed. the promise is

unenforceable

Onsite Restoration Inc. begins renovating houses for Property Company under a contract for a stated amount per house. After six months, Onsite demands an extra $20,000 per house, stating no reason for the extra $20,000, but asserting that it will stop work if it is not paid. The agreement is

unenforceable due to the preexisting duty rule

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

void

Analytics LLC processes misinterpreted data furnished by Botch Services to propose a marketing plan for Clientele Inc. Analytics and Clientele are both ignorant of the mistaken data. Their contract can be rescinded on the basis of

a bilateral mistake

Allen promises to pay Barb, his niece, $5,000 if she obtains her degree at City University, where she is in her third year. Barb graduates. Allen must pay barb because

barb obtained a degree at city

county title company processes information furnished by others to transfer title to real estate from dale to ezra. The furnished information is mistaken. the contract between dale and ezra may be rescinded

because the mistake is about a meterial fact

A misunderstanding concerning a basic assumption on which a contract is made will support the recission of the deal if the mistake is

bilteral

Saul claims that his agreement with Teri for saxophone lessons is voidable. If this contract is avoided, both parties

both parties are released from it

quint enters into a contract to buy a quarter horse from rancho mirage. quint can disaffirm the contract

by words or conduct

darien, a minor, wants to disaffirm a contract that he entered into with echo, a cell service company. the law in dariens state, as in all states, permits minors to disaffirm

executory and fully executed contracts

al induces beth to enter into a contract for her purchase of a chefs burger restaurant. al knowlingly misrepresents a number of material features about the restaurant and the business. when beth discovers the truth, she can rescind the contract on the basis of

fraudulent misrepresentation

luc, a vehicle dealer, offers to sell may a truck and trailer, which luc claims can haul a certain weight. he knows nothing about the capability of the truck, but it is not as he asserts. may buys the truck. on learning the truth, she confronts luc, who says he was not trying to fool her - he was only trying to make a sale. this is

fraudulent misrepresentation

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

Reed agrees to sell his Sports Equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely

invalid because of the unreasonable terms of area and time

Kim promises to pay Leo $500 to install a sump pump in Kim's warehouse. Leo completes the installation. The act of installing the pump

is the consideration that creates kims obligation to pay leo

Kris buys Liz's house for $300,000, which is the fair market value of the house. If the contract is later disputed in court, the court is likely to declare Kris's consideration

legally sufficient

van a minor wants to return a set of skis that he bought from winter sports. he used and wrecked the skis, in a state in which a duty of restitution is imposed, van most likely

must return the skis and pay for the damage