FRL 201 Exam 2 Cal Poly Pomona

Elements of Offer:

-Offer -Acceptance -Consideration

Which of the following is the best example of a void contract?

A contract which has an illegal purpose

Jon said to Anthony: "I will buy your car for $10,000.00." Anthony responded: "I agree, as long as you agree not to sell it to someone else for more than $10,000.00." What is Anthony's response?

A counteroffer, because Anthony's response changed the terms of the offer

Punitive Damages and their relation to breach of contract:

Breach of contract cannot support an award of punitive damages because punitive damages are serious injuries or loss of life cases

Counter Offer:

Changing terms of offer

Mark sold a car to Mary, who was persuaded to buy the car because Mark said that "this car gets 27 miles to the gallon." Mary soon discovered that the car got only 17 miles to the gallon. The sale price of the car ($25,000.00) was higher than the fair market value based on its actual gas mileage ($21,000). Assume for the purposes of this question only that Mary successfully sued Mark for breach of contract. Which of the following best shows the damages Mary should win against Mark?

Compensatory damages in the amount of $4,000.00

Bilateral Contract:

Contract based on both parties making promises to each other

Unilateral Contract:

Contract based on one party's making a promise that calls for action

Executed Contract:

Contract has been fully performed

Express Contract:

Contract is communicated in writing, orally, or both

Written Contract:

Contract is in writing

Executory Contract:

Contract is not fully performed

Oral Contract:

Contract made orally

Statue of Frauds states:

Contract voidable if purchases over $500 (orally)

Valid Contract:

Enforceable in court

Liquidated Damages:

Exact amount of damages stated in contract

A contract to purchase a home that is communicated orally is which type of contract:

Express contract., Oral contract., voidable contract because of the statute of frauds

Which of the following is the best example of liquidated damages?

Grace sued Ken for $10,000.00 based on a contract which stated that "in the event of a breach of this contract, damages shall be set in the amount of $10,000.00."(the contract already stated what the amount)

In September 2011, Rebecca said to Larry: "If you finish the Long Beach Marathon, I will pay you $5,000.00 upon your request." Larry began running 10-15 miles every day and he was soon in fine physical condition. On the day of the Long Beach Marathon, Larry was sick but he was able to run 20 miles before he had to quit.. Larry called Rebecca after he finished running the 20 miles around the track and requested the $5,000.00. She refused to pay so Larry sued her for the $5,000.00. What should be the result of Larry's lawsuit?

He should lose because he did not perform the contract with Rebecca

Consequential Damages:

Loss based on consequences of defendant's breach of contract

Compensatory Damages:

Mathematical calculation based on vale of contract less value of defendant's performance

The phrase "a meeting of the minds" applies to:

Mutual Assent

Implied Contract:

No express contract but parties' actions/relationship supports avoiding unjust enrichment

In California, the statute of limitations for breach of an oral contract is two years after the breach. If Angela, a party to an oral contract made in July 2012, breached the contract in July, 2013, can Robert, the other party to the contract, now sue for breach of the oral contract?

No, because Angela is discharged from performing the contract

Henry sued Donald for breach of contract. If Henry can prove that Donald intentionally breached the contract so he could make more money performing a different contract, can Henry get an award of punitive damages in the judgment against Donald?

No, because a breach of contract cannot support an award of punitive damages. Punitive damages are serious injury and loss of life cases

Jose was running in a cross country race at Cal Poly Pomona when another runner, Frank, tripped Jose and he suffered a broken nose. Frank hit Jose by accident and was truly sorry. However, Jose sued Frank for negligence. What should be the result of Jose's lawsuit?

None of the above because there was assumption of risk when he decided to participate in the event

Voidable Contract:

One party can disavow a contract under certain circumstances

Assuming the risk

Person knew what they were getting into and took on the risk of injury or harm

Which of the following best features a situation where specific performance would be an appropriate remedy?

Taylor breached a contract with Swift to sell her house to Swift. Specific performance typically involves real estate because it is unique, office equipment is not unique.

Lola sued Ryan for injuries resulting from an ordinary car accident. They were attempting to negotiate a settlement without having to have a court decide the matter. They agreed that Lola's special damages were approximately $10,000.00. Using the traditional formula discussed in class, what should be the approximate amount of Lola's general damages?

The answer was D, which was all of the above. Originally you put A, which was special times 3. It can be multiplied by 3, 3.5, or 4

Louis and Greg signed a written contract which stated that Louis would transfer real estate he owned in Long Beach to Greg. In exchange, Greg agreed to pay $100,000.00 to Louis. After Louis recorded the grant deed to finalize this transaction, Louis received an offer from Ken to buy the real estate for $500,000.00 (way above the fair market value). Louis then claimed that his contract with Greg was unenforceable since there was no consideration by Greg. Which of the following is the best description of Louis's claim as to his contract with Greg?

The contract had consideration because Greg agreed to pay $100,000.00 for Louis's real estate

Novation:

To substitute one party for another

Void contract:

Unenforceable in court due to illegal purposes

Scott lost his dog and posted signs in his neighborhood offering a $100.00 reward for the dog's return. Dominic found Scott's dog and was returning the dog to Scott at Scott's house when he saw the sign offering the $100.00 reward on a telephone pole. Dominic asked for the reward, but Scott refused to pay. Is Scott obligated to pay the reward to Dominic?

Yes, because Dominic saw the sign offering the reward by Scott

Victor said to Ivan: "I'll buy your car for $10,000.00." Ivan replied: "I accept your offer to buy my car, but I need to get all of my personal stuff out of the first." Ivan's reply was:

acceptance

Which of the following is the best example of a claim for general damages?

damage which you can't calculate monetarily (emotional distress)

2012, Carl made an offer to sell real estate to William for $500,000.00 which was near the fair market value for the real estate. The offer contained no deadline. In 2015, after the real estate boom market had caused the real estate's fair market value to go up to about $750,000.00, William accepted Carl's offer. Do Carl and William have a valid contract?

no, cause there is a time lapse. It depends on the industry

Which of the following is the best example of a voidable contract?

none of the above. voidable contracts are, in itself legal, but either one or both parties in the contract could leave it at anytime and treat it as void

Alan and Robert entered into a contract under which Alan was to deliver products on a regular basis to Robert for two years and Robert was to pay for these products upon delivery. After about two months, Lauren told Robert that Alan was "selling counterfeit products." Lauren had no reason to believe the statements were true. Due to Lauren's statement, Robert told Alan he would not accept or pay for any more products delivered by Alan. Alan wants to sue Lauren. What is his best theory against Lauren?

wrongful interference with a business relationship. It is not business libel because libel is required to be in writing, if it is stated, then it is slander