L201 Final - Moore

Sarah is 16 years old. Se left home at age 15; her parents no longer support her. Sarah entered into a contract with Best Groceries for the purchase of $100 on credit, the groceries consisted of basic and necessary items. However their reasonable value is only $80. If Sarah discovers that she has been overcharged and refuses to pay, Best Groceries is entitled to collect:

$80

Aaron promises to sell his boat to Matt, and Matt promises to buy it from Aaron, what type of contract is this?

A bilateral contract

Which of the following contracts is void?

A contract made by a person who has been adjudicated insane and institutionalized

. King sent Foster, a real estate developer, a signed offer to sell a specified parcel of land to Foster for $200,000. On the same day that King's letter was received Foster telephoned King and accepted the offer. Which of the following statements is true under the statute of frauds?

A contract was formed although it would be enforceable only against King

Which of the following actions is considered to reflect a counteroffer?

A demand for additional terms

Which of the following meets the requirements of consideration?

A promise that involves the exchange of legal value

Price signed a contract to sell Wyatt a parcel of land for $90,000. The entire sales price was payable at the closing. Price has decided to keep the land. If Wyatt commences an action against Price, what relief is Wyatt most likely to receive? A. Specific performance B. Compensatory damages and specific performance C. Punitive damages D. Compensatory damages and punitive damages

A. Specific Performance

The settlement of an unliquidated debt is called an:

Accord and Satisfaction

When a promisee who has an existing claim agrees with the promisor that he will accept some performance different from that which was originally agreed on, both parties can use the remedy of:

Accord and satisfaction

Calvin tells Sara that he will sell her his car for $5,000. Sara agrees. The exchange is to take place in 10 days. The contract between Calvin and Sara is now:

Bilateral, Executory and Express

Xena and Yoni have a contract which obligated Xena to sell Yoni 100 boxes of screws for $100. Xena seeks to cancel the contract but instead to agree to orally midday the contract so that Xena will sell the same 100 boxes for $75. The second Agreement is

Binding by virtue of being mutually agreed upon

Austen Construction, a general contractor, advertised for bids from subcontractors on the electrical work for the renovation of one of State University's parking structures. The advertisement announced that the contract will be awarded to the lowest responsible bidder. Bronte, a responsible electrical subcontractor, submitted the lowest bid to Austen for the electrical portion of the work. Austen informed Bronte that she should begin work immediately. Bronte then stated that she is "withdrawing" her bid from Austen. Which of the following statements is most accurate? A. Austen should not rely on Bronte's offer to do the electrical work. B. Austen has accepted Bronte's offer, thereby forming a contract. C. Austen is not bound by Bronte's bid until he informs her of his intent to accept. D. Bronte has accepted Austen's offer by submitting the lowest bid.

Bronte has accepted Austen's offer by submitting the lowest bid

Morton Reeves, a building subcontractor, submitted a bid for construction of a portion of a high-rise office building. The bid contained material errors in computation. Lago Corp., the general contractor, accepted the bid with the knowledge of Reeves' errors. Reeves:

Can avoid liability on the contract since Lago knew of his errors

Bing engaged Dill to perform personal services for $,200 a month for a period of 4 months, the contract was entered into orally on July 1, and performance was to commence Sept 1. On Aug 10, Dill anticipatorily repudiated the contract. As a result, Bing:

Can immediately sue for breach of contract

Which of the following is an exception to the consideration requirement?

Charitable subscription

Trapani Construction Co v. Elliot Group

Commonly signed contracts together, sometimes there was no signature but still proceeded with both ends of the contract. Didn't sign but started working on project so they requested their first payment. In determining whether contracts exists, courts scrutinize the parties communications and conduct in light of the context in which the parties interacted and their prior dealings.

Which form of damages is intended to give the victim of the breach of contract the "benefit of the bargain"?

Compensatory

A contract is said to be __________ that is the legal part can be separated from the illegal part

Divisible

In order for the consideration requirement in contracts to be met:

Each party must give consideration

Which of the following characterizes the effect of incapacity caused by mental impairment?

If a contract is found to be voidable on the group of mental impairment, the person who lacked capacity at the time of the contract was made has the right to disaffirm the contract

When the surrounding face and circumstances indicate that an agreement has in fact been reached a(n) _________ has been created:

Implied Contract

When the consideration given in exchange for the collateral promise is something that the guarantor seeks primarily for his own benefit rather than for the benefit of the primary debit, the contract:

Is outside the statute of frauds

Daniel owes Casey a debt, the amount of which is subject to a good faith dispute. The parties agree to settle the debt, with Daniel promising to pay Casey $15,000 and Casey promising to release Daniel on a $25,000 debt. The settlement agreement:

Is supported by consideration

Why is past consideration not a consideration in a present promise?

It does not pertain to the present exchange

A bilateral contract is "taken out of the statute of frauds" when:

It is fully performed by at least one party

Damages that are agreed upon at the time of the contract is entered into are called

Liquidated damages

On May 1, Dix and Will entered into an oral agreement by which Dix Agreed to purchase a small parcel of land for $450; later he got a better offer close to the fair market value, If he takes that offer and Dix sues Will for specific performances, Dix will:

Lose, because the agreement was not in writing and signed by Wilk

A bilateral contract is accepted by when the offeree:

Makes the promise requested by the offer

On May 1st 1985, Mint, a 16 year old purchased a sailboat from Sly Boats. Mint used the boat for six months, at which time he advertised it for sale. Which of the following statements is correct?

Mint may disaffirm the May 1 contract at any time prior to reaching majority.

Guy and Boyd make an oral contract whereby Guy agrees to sell boyd 480 widgets (goods) at a price of $480. Later the parties want to modify the contract so that the price would become $520. This Modification:

Must be in writing

General Common law rule on contract modifications holds that an agreement to modify an existing contract requires:

New and Independent consideration

Milner Developers proposed an offer to Henry Wright, an independent contractor, offering to hire him for their next project. They offered him a certain rate and specified the contract details along with describing the stipulated mode of acceptance but received no response. Wright responded to the offer after a delay of two months with a quote for a higher amount than that mentioned by Milner Developers. Do the two parties have a binding contract?

No because Wright's letter was a counteroffer to the original offer

Sue offers to buy a house from John and they were negotiating the price of the house. In the meantime, Sue confides in John's wife that she is willing to pay an amount of $50,000 for the house. Delighted to hear this, John's wife tells him the good news. John immediately calls up Sue and accepts her offer. Is there a binding contract?

No because he offeror had not communicated the terms of the offer to the offeree

Can a local businessman pay a police officer $50 a week to watch the business more closely?

No, Public Officials cannot give consideration on duties they re already supposed to perform

Sara tells Kate that she will give her $50 to clean her garage. When Kate is halfway done, Sara decides to revoke her offer. Is this valid revocation?

No, because this is now a bilateral contract

Helen worked for ABC motors for 25 years. The president of ABC said to her "In consideration of your past service for 25 years, I promise to give you a new car next week." However he did not give her the car. Is this promise legally enforceable

No, legal consideration is absent

Todd is a licensed real estate broker in Ohio. One of Todd's largest clients, Sun Corp., contracted in writing with Todd to find a purchaser for its plant in New York and agreed to pay him a 6% commission if he were successful. Todd located a buyer who purchased the plant. Unknown to Todd, New York has a real estate broker's licensing statute which is regulatory in nature, intended to protect the public against unqualified persons. Todd violated the licensing statute by failing to obtain a New York license. If Sun refuses to pay Todd any commission and Todd brings an action against Sun, he will be entitled to recover

Nothing

Whose signatures are needed in order to satisfy the statute of frauds

Only the signature of the party against who enforcement is being sought

Contracts in which one party to the agreement agrees to buy all of the other party's production of a particular commodity is called an:

Output contract

A minor entered into a contract with GAM & Co. On attaining majority, he wishes to enforce the contract. The adult party must:

Perform the contract

Which of the following is true of revocation?

Promissory Estoppels are used to prevent revocations

April and Brian entered into a partially integrated written contract. Before the written contract was completed, April made an oral statement to Brian regarding the terms of the contract. This statement was not contained in the written contract. Under the parol evidence rule, evidence of April's oral statement would be admissible if it were used to:

Prove an additional term consistent with the written agreement

A written agreement was signed by 2 parties and it was intended to be their entire agreement. The parol evidence rule will prevent the admission of evidence that is offered to:

Prove the existence of a contemporaneous oral agreement that modifies the contract

A memorandum on the sale of goods that does not indicate the _________ of goods to be sold will not satisfy the UCC's writing requirement.

Quantity

Which of the following allows a party who has materially breached a contract to recover the reasonable value of any benefits he has conferred on the promise?

Quasi-Contract

Which of the following ends the right to rescind a voidable contract?

Ratification

The confirmatory memorandum exception to the UCC's statute of frauds provision:

Requires that both parties to the contract be merchants

Where the parties to contract wish to cancel their contract and be in the same position as they were prior to forming the contract,t they should seek to obtain an

Rescission

The legal remedy of __________ requires that the defendant to pay the value of the benefits that the plaintiff has conferred on him.

Restitution

Nina has breached a contract between Milo and her, but not materially. this means that Milo can:

Sue only for damages caused by the breach

According to the Code, when there is an acceptance that contains terms that are different from the original terms of the contract, the contract will consist of _____________ and the appropriate gap-filling presumptions of the Code.

Terms on which the parties' writings agree

Mr. White enters into a contract to sell a car to Joe Jr who is 15 years old and is considered a minor in the state where he lives. What is the status of the contract that Mr. White and Joe Jr entered into?

The contract is voidable and is enforceable unless and until Joe Jr cancels it

Three days before she was judicially declared mentally incompetent and institutionalized, Irma bought a $50,000 automobile by cash and took delivery of it. which of the following is true about this contract?

The contract is voidable due to Irma's institutionalization

James goes to a dentist to have a tooth extract, James never signs a written contract for this service and he and the dentist never made an oral agreement either, later the dentist bills james who refuses to pay, the dentist sues james, which of the following is true?

The dentist can recover under quasi-contract

Which of the following is true of necessaries?

The liability for necessaries is quasi-contractual

Mr. Yellow delivers a stack of newspapers to Mr. Green's store to see if he wants them. A note attached indicates the stack of papers is $50. Mr. Green without communicating an acceptance sold the entire stack of papers to his customers. What is the status of the agreement between Mr. Yellow and Mr. Green?

There is a contract because Mr. Green accepted by implied action

In deciding whether consideration necessary to form a contract exists, a court

There is mutual consideration

Mr. White contracts with his wife Ms. White to watch their kids, Joe and Jimmy, for $50 for one night. What is the status of the contract between Mr. Smith and Ms. White?

There is no contract because Ms. White gave inadequate consideration

Kyle sent Tara a letter offering to sell Tara his car. Tara left the letter on her desk, where her roommate, Maggie, saw it. After reading the letter, Maggie wrote to Kyle and stated that she (Maggie) wanted to accept Kyle's offer. Which of the following is true?

There is no contract between Kyle and Maggie because Kyle did not communicate the offer to Maggie

Tracy, aged 12, is named the sole inheritor of her family mansion which is valued to be worth millions. She has disaffirmed the agreement on the advice of her uncle and guardian Pete. This automatically transfers the title to the latter. Which of the following statements is true of the case?

Tracy cannot disaffirm until she has reached majority

An otherwise valid contract whose enforcement is barred by the applicable contract statute of limitations is an example of an

Unenforceable contract

Which of the following contracts are agreements that create no legal obligations for which no remedy is given

Void Contracts

A contract in which one or more of the parties have the legal right to cancel their obligations under the contract is called:

Voidable Contract

When do traditional contract (common law) rules apply to a contract for the sale of goods?

Where no specific UCC article 2 rule exists

Barney is 23 years old, his aunt promised in writing to pay him $1,000if Barney would refrain from drinking for 1 year, however now his aunt refused to pay him after he refrained from drinking. is non drinking does not constitute legal consideration and therefore no contract was formed. If barney sues his uncle, barney will

Win because barney has a legal right to drink alcohol

Betty, age 16, buys a car and wrecks it one week later. She takes it back to the seller and demands all her money back. According to the traditional rule, is she entitled to get all her money back?

Yes, regardless of the condition of the car, because this contract was voidable

Payne entered into a written agreement to sell a parcel of land to Stevens. At the time the agreement was executed, Payne had consumed alcoholic beverages. Payne's ability to understand the nature and terms of the contract was not impaired. Stevens did not believe that Payne was intoxicated. The contract is a. void as a matter of law. b. legally binding on both parties. c. voidable at Payne's option. d. voidable at Steven's option.

b. legally binding on both parties

The shipment of nonconforming goods intended as an accommodation to the buy is an

counteroffer

What is the legal status of an improperly dispatched acceptance that was sent by a means of communication that was non authorized by the offeror ( traditional common law)>

it is effective when recieved

Normally, an illegal contract is:

unenforceable

Reggie went to the Napa Valley Harvest Festival when he stopped at Tracy's booth where she was selling paintings of vineyards. Reggie admired a painting of vineyards, which did not appear to be for sale. Reggie said to Tracy "I will give you $200 if you give me that painting right now". Tracy said nothing in response, but gave Reggie the painting and Reggie gave her $200 in cash. This is an example of a contract that is now:

unilateral and executed