Law Exam 1 part 3
Bill sends Carla an offer by express mail. Carla receives it at 10 a.m. on Tuesday. At 11 a.m. on Tuesday, Carla delivers an acceptance to Federal Express, but due to an error, the letter is not sent out by the company until Wednesday at 8 a.m. At what time does the law consider the acceptance to be effective?
At 11 a.m. on Tuesday.
Anna by mistake delivers to Bob a plain, unaddressed envelope containing $50 intended for Cora.
Bob's obligation to return the money is quasi contractual.
Ken promises not to foreclose on a mortgage that he holds on an office complex that Christopher owns. In reliance on this promise, Christopher expends $200,000 to remodel the complex. Which of the following is correct with regard to Ken's promise?
Ken's promise not to foreclose is unsupported by consideration, Ken's promise is non-contractual, and Ken's promise will be enforced against him based upon the doctrine of promissory estoppel.
Maxine offered to sell her video camera to Tom for $200 and also stated to Tom, "I will give you two weeks to accept my offer." One week later Tom learned that Maxine had sold the video camera to Cindy.
Maxine has revoked her offer to Tom.
Chad has offered to take Miles into his accounting firm as a partner upon payment of $5,000 cash. In response, Miles says, "I'll give you $3,000 cash now and I will pay you the remainder in two months after I see whether things are working out as a partnership."
Miles has made a counteroffer; hence there is no contract.
Brian makes a material misrepresentation of fact regarding his horse to Rosalind while out riding one day. Later that day, Rosalind makes an offer to buy the horse. Brain accepts without correcting his earlier misrepresentation of fact.
Rosalind may avoid the contract.
The Rogers family has always wanted to buy the beautiful house at the top of the hill. The owners of the house, the Thompsons, decided to sell and called Mr. Rogers. Before he could get back in touch with Mr. Thompson, Mr. Rogers suffered a heart attack and died. Mrs. Rogers, to whom the Thompsons had not spoken, still wants the house.
She may not accept since the offer is terminated.
Michelle's Boutique places an ad in the Sunday paper for beautiful, top-of-the-line designer suits for $3.00. Irene sees the ad in the paper and goes to the store to stock up on business suits for her new job. Michelle apologizes for the misprint. Irene has just finished a class in contract law and insists that the store sell her 5 suits for $15.00. Irene threatens to sue Michelle for breach of contract.
The ad in the newspaper is a solicitation seeking offers, but is not an offer to sell; therefore, Irene will not be able to successfully sue for breach of contract.
Marilyn read an ad in the school newspaper offering a thousand dollar swimming scholarship to anyone who could swim 500 laps in the school pool. Marilyn called the advertiser and began swimming. She has reached lap number 460; she feels great and is sure she can make it all the way.
The advertiser must permit Marilyn the opportunity to finish her attempt to swim the 500 laps, or pay damages if he interferes with the completion of the laps.
Albert read ElectroCorp's ad in the local newspaper advertising a 4-head VCR for $89. Albert rushed to the store to buy the VCR only to be told by the salesperson that the ad was a misprint and the price should have been $289. Albert gave the salesperson $89 plus sales tax and demanded the VCR.
The court decision acts as a rejection of the offer by the offeree.
Elvis makes an offer to Miguel, but before Miguel can accept, the state supreme court decides a case that makes the offer illegal. What is the effect of the court decision on the offer?
The court decision automatically terminates the offer.
Shirley hears about a reward being offered by the local television station for information leading to the arrest and conviction of a local rapist. She supplies the requested information, and the suspect is then arrested and convicted.
The offer by the television station was an offer made to the general public to enter into a unilateral contract, which offer Shirley has accepted.
When does acceptance of an offer to enter into a unilateral contract generally occur?
Upon full performance by the offeree.
Gary mails an offer to Brian on June 15. Brian receives the offer on June 16. Gary mails a revocation of the offer on June 17. Brian mails a letter of acceptance on June 18. Brian receives the revocation on June 19. Was a contract formed?
Yes, on June 18.
Wes, who is an art collector, offered to buy a Miro original from Le Monde Gallery. Le Monde balked at the price, sending Wes a letter of rejection. That day it discovered that the print was not as highly valued as originally thought. Le Monde immediately telephoned Wes to accept his offer. Is there a contract?
Yes, since the acceptance was received before the rejection.
Lynn offers to sell his house to Dennis for $50,000. Dennis responds, "I will pay you $50,000 if you will paint the second floor." This response could best be described as:
a counteroffer.
Gail sent a letter of acceptance to an offer that has expired. Gail has made:
an offer.
An ad in a newspaper or a circular describing goods and stating prices would generally be considered a(n):
invitation to buyers to make an offer to buy goods.
If an offer requires acceptance by fax and the offeree mails acceptance:
there is a contract if the acceptance is actually received within the time the authorized means would have arrived, under the Restatement, if the acceptance is received within the time the authorized means would have arrived, the acceptance is effective when sent.
Will sends for a law school catalog from Outer University. According to the catalog, the law school applications are evaluated on the bases of undergraduate grades, standardized test scores, and references. Sam is a straight-A student, has high test scores, and excellent references, but his application is rejected. Later he finds out that others with low grades and test scores were accepted based on their family connections and donations made to the University. If Will followed all of the guidelines in the college catalog and sent in the required application fee, then:
this is a valid contract, the terms of which are set forth in the college catalog.
Sarah offers to pay Allison $150 if Allison will paint her apartment while she is out of town on vacation for two weeks. Allison makes no promise but tells Sarah that she will think about it. While Sarah is out of town, Allison paints the apartment. This is best described as a(n):
unilateral contract.
James offers to sell his fishing boat to Brenda for $3,000. Brenda says she will apply for a loan and will buy the boat within a week. A contract is formed:
when Brenda tells James she will buy the boat.
Able is involved in an automobile accident and is injured. While he is unconscious, the police call an ambulance which takes him to a hospital. Able is treated at the hospital and released a day later. The hospital sends him a bill for $1,000, which Able refuses to pay, claiming it is too high and he never consented to the treatment because he was unconscious.
Able will have to pay the bill, because this is a quasi-contractual agreement.
Leonard offers to sell his diamond ring to Emily. Diane overhears the offer and says, "I accept the offer."
Diane cannot accept the offer, because it wasn't made to her.
Elmer wrote a letter to his friend Fred offering to sell Fred an 80-acre farm for $200,000. After mailing the letter, Elmer learns that the farm is actually worth $300,000 and changes his mind about selling.
Elmer can revoke his offer at any time before acceptance, because there is no consideration to keep the offer open.
Samuel Tate enters into a contract with Bill Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, which term describes the type of contract in existence?
Executory contract.
Jesse makes an offer to Ike, but before Ike can accept, the state legislature passes a law that makes Jesse's offer illegal. What is the effect of the new statute on the offer?
The statute automatically terminates the offer.
Jack has been in the business of selling carpeting for 20 years. He calls Bob, who is opening another branch of his furniture stores, and offers to sell him 100 yards of carpet at $20 per yard. Bob agrees and sends back the following letter confirming the deal: Dear Jack: As we discussed on the phone January 3, we accept your offer of 100 yards of Saxony "heather blue" carpeting at the price of $20 per yard. We also reserve the right to purchase any additional yardage we need to carpet our other showroom facilities at the same rate for one year from that date. Very truly yours, Bob Which of the following is true?
There is a contract for only 100 yards of carpeting.
James offers to sell four acres of land to Jennifer for $8,000 and further offers to keep the offer open for one month if Jennifer will pay him $100 for the privilege. Jennifer pays James $100. Which statement describes the payment of $100?
This is an option contract.
Alice offers to sell her computer, monitor, and printer to Bradley for $300. Bradley says he will accept provided that Alice includes her word processing software. What is the status of their discussions?
There is no contract, because Bradley has made a counteroffer.
Alice verbally offered to sell her computer, monitor, and printer to Bradley for $300. Two days later Bradley mails a letter to Alice in which he accepts the offer. Three days later, before Alice has received the letter, Bradley calls to say he won't be able to accept her offer. What is the status of their negotiations?
There is no contract, because Bradley has rejected the offer.
Assume an offeree mails a rejection to the offeror on November 1. This rejection arrives at the offeror's place of business on November 5. In the meantime, on November 4, the offeree sends the offeror an acceptance that arrives November 6. Which of the following statements correctly describes the situation?
There was no contract.