Business Law - Quiz 9 - Study

Hera contracts to work exclusively for Island Tours LLC during July for $5,000. On June 30, Island cancels the contract. Hera finds a similar job for the month of July but earns only $3,000. Hera files a suit against Island. As compensatory damages, Hera can recover

$2,000

Glen offers to sell Helen his iPad for $200. Under the mirror image rule, Helen's response will be considered an acceptance if the terms of the acceptance

Exactly mirror those of the offer.

Key promises to pay Liv, his niece, $5,000 if she obtains her degree at Metro College, where she is in her third year. Liv graduates. Key must pay because

Liv obtained a degree at Metro.

For a contract to be considered valid and enforceable, the parties to a deal must

Manifest their voluntary consent to the same bargain.

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

True

Quasi contracts are imposed on parties in the interest of fairness and justice.

True

Juno tells Liu she will give him her old car if he babysits her son Marc weekday evenings for six months. Liu agrees. Juno and Lee have formed

A bilateral contract.

Ghee agrees to buy Hole's Donut Shop on the express condition that the shop's suppliers extend the same credit terms to Ghee that the suppliers currently extend to Hole. This approval is

A condition precedent.

State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is

A condition.

Fez makes and sells camping gear. Fez and Gobi enter into a contract for a delivery of the gear to Gobi's Outfitters retail locations for an invoiced price. Fez transfers the right to payment under the contract to Haulers Distribution Inc. This transfer is

An assignment.

Steel Mill Inc. makes an offer to Tag to enter into a contract to work as a mechanical engineer for a certain salary for one year subject to a five-year renewal based on his performance. Tag accepts the offer. This is a valid contract because it includes

An offer and an acceptance.

Odette, a certified public accountant, agrees to perform an audit for Personnel Inc. These parties are most likely to follow the rules of contract law in order to

Avoid potential disputes.

Gretchen is adjudged by a court to be mentally incompetent. Gretchen

Cannot form a legally binding contract with another party.

Dom 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

Discharged.

Range Free Farms enters into a contract to deliver to Sara's Market a truckload of eggs for a certain payment. Range Free fails to deliver. Sara's Market

Does not have to pay because Range Free did not perform.

Megan contracts to sell Nonny her horse for $4,000. This contract will be fully discharged when Megan and Nonny

Exchange the horse for the money.

Denis sells a motorcycle to Elton without disclosing that the odometer, which reads 10,000 miles, was disconnected 100,000 miles ago. Denis is most likely liable for

Fraudulent misrepresentation.

Kee and Lu enter into a contract for the sale of Mountain Valley Ranch. To be enforceable, this contract must be

In writing or evidenced by a written memorandum.

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 Kim's obligation to pay Leo.

Ziplines Inc. enters into a contract to employ Scot as a manager for two years. If Ziplines breaches the contract, Scot has a duty to

Mitigate the damages that Scot might otherwise suffer.

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

Not enforceable because the consideration is in the past.

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.

Jet enters into a contract to buy a certain commercial building from Kim. At the closing, Kim refuses to transfer title. In a suit for breach, Jet should seek specific performance to

Obtain the exact bargain promised in the contract.

Movers LLC promises to deliver a certain couch to Nora, who promises to pay for the service. If Movers does not perform, it may be required to

Pay damages.

The most common way to terminate contractual duties is by

Performance

In a dispute regarding an insurance claim, if a term in the written policy is ambiguous, parol evidence is admissible to show the meaning.

True

Repair Service enters into a contract to fix washing machines in Soapy Suds Company's coin-operated laundries. Repair breaches the contract. Soapy is awarded compensatory damages. The purpose is to

Provide Soapy with funds for its loss of the bargain.

Intoxicated, Obo enters a contract for the sale of his business, Precision Parts, to Quad for less than its market value. This contract is voidable if, at the time,

Quad fraudulently induced Obo to become intoxicated.

Bianca, a minor, enters into a contract to buy two all-season passes from Chalet Ski Park. The contract will be made enforceable if Bianca

Ratifies it.

Fabien offers to sell his Graphic Signs LLC business to Hanna for $100,000. Hanna replies, "The price is too high. I will buy it for $75,000." Hanna has

Rejected the offer and made a counteroffer.

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

True

A promise is illusory when its performance depends solely on the discretion of the promisor.

True

An unconscionable contract is one in which the terms of the agreement are oppressive, unscrupulous, or grossly unfair.

True

Expressly designating a third party as a beneficiary in a contract indicates that the beneficiary is intended.

True

Under a contract with Soy Farms, Tai begins grading a terraced hillside for planting. Halfway through the project, Tai asks for $5,000 over the contract price, claiming an increase in the "cost of doing business." The farm agrees but later refuses to pay. The agreement to pay more is

Unenforceable because Tai's performance was a preexisting duty.

A lease between Mia and Niles for residential property contains an exculpatory clause. This clause is most likely

Unenforceable.

Dore's Aunt Em tells her, "If I feel you deserve it at the time, I will give you a new car when you graduate from college." Em's promise is

illusory.