BLAW 265 CH 9 - 18
Which of the following is true of a minor's ability to disaffirm?
A minor may disaffirm his contract at any time during his minority and for a reasonable time after attaining majority.
Which of the following is true of the test of incapacity?
A person could be periodically insane but can enter a binding contract during a lucid moment.
Which of the following is true regarding a quasi contract?
A person is not held liable under quasi contract for benefits he or she received unknowingly.
Which of the following is true regarding consideration?
A promisor's promise not to commit a crime or a tort can never be consideration.
With regard to rejection of an offer, which of the following is correct?
A rejection must be actually received by the offeree to be effective.
Which of the following is correct regarding the assignment of contractual rights?
Contractual rights can be given away as well as sold.
A creditor beneficiary has rights against the promisee, but not the promisor.
False
A guarantor is secondarily liable to perform his or her contractual duties.
False
Emancipation can occur when a minor marries or gets a job and moves away from home and the parent does not object.
True
Misrepresentation can result from negligence on the part of the misrepresenter.
True
Promisors in complete performance contracts who do not completely perform their contractual duties cannot recover the contract price. They may, however, recover in quasi contract for benefits conferred on the other party.
True
The transfer of duties under a contract is called a delegation.
True
To prove fraud, one must establish that a misrepresentation was knowingly made with the intent to deceive.
True
When determining the legality of an agreement, the courts presume the parties intended a legal result.
True
The basic thing courts require for the creation of an offer is __________ on the part of the offeror.
a present intent to contract
According to the Uniform Commercial Code (UCC), __________.
a sale of goods costing $500 or more is not enforceable without a writing or other specified evidence
Injunctions are __________.
available when a breach of contract threatens to produce an irreparable injury
A(n) __________ is a new, separate agreement by the promisee to release the original promisor from liability in exchange for a third party's agreement to assume the promisor's duties.
novation
If an offer does not state a time for acceptance, it is valid:
for a reasonable time, which depends on the circumstances of the offer.
The time limit set by the Uniform Commercial Code (UCC) statute of limitations for contracts involving the sale of goods is __________ from the time the goods are tendered.
four years
Generally, a promise to discharge a(n) __________ debt for part payment of the debt at or after its due date is unenforceable due to lack of __________.
liquidated; consideration
When two parties have directly, but orally, stated all the terms of a contract at the time it was formed, they have:
made an express contract.
When a person whom a regulatory statute seeks to protect enters into an agreement in violation of the statute, the protected person:
may either enforce the contract or recover any consideration he or she has parted with.
The Uniform Commercial Code (UCC) has created an exception to the __________ in cases where contracts for the sale of goods are made by exchanging forms.
mirror image rule
Jessica, a minor, rented an apartment in Berkeley, California for $1,500 a month. She signed a one-year lease. After living there for three months, Jessica decided to move to another apartment complex. She is liable for the reasonable value of three months' rent in Berkeley, but not for the remaining nine months' rent. This is because a minor is liable for the __________ she has received before disaffirming the contract.
necessaries
Due to his frequent absences, Polly promises to pay city council member Danforth $50 to show up for each weekly city council meeting, and Danforth agrees to do so. Polly's promise to pay Danforth is:
not supported by consideration.
In determining whether the offeree accepted the offer, the court looks for the offeree's __________ intent to contract.
present
The equitable doctrine of __________ allows some parties to recover under oral contracts that the statute of frauds would have ordinarily rendered unenforceable.
promissory estoppel
If an oral contract has been declared unenforceable under the statute of frauds, yet one of the parties has rendered some performance under the contract that conferred benefits on the other party, he or she can recover the reasonable value of the performance in __________.
quasi contract
Minors are generally held liable on a(n) __________ contract basis for the __________ value of necessaries furnished to them.
quasi; reasonable
"One who waits too long to complain has indicated satisfaction with the agreement despite the initial lack of true consent" is the idea behind the doctrine of __________.
ratification
People lacking mental capacity are liable for the __________ value of necessaries __________ minors.
reasonable; on the same basis and for the same reasons as
A key difference between duress and undue influence exists in the __________.
relationship between the parties at the time of the contract
If a contract is entered into as a result of misrepresentation, fraud, duress, and undue influence, the injured party may __________ the contract.
rescind
A party who enters into an illegal contract can recover the consideration he or she gave, if the party __________.
rescinds the contract before any illegal act has been performed
Article 2 of the Uniform Commercial Code (UCC) applies to all contracts for the:
sale of goods.
Forbearance occurs when:
someone promises not to file a legal suit in exchange for a promise to pay a certain sum of money or some other consideration.
Contract law is based on the idea that a contract is a(n) __________ agreement between parties.
voluntary
Under the parol evidence rule, parties cannot vary the terms of a(n) __________.
written contract by introducing evidence of terms allegedly agreed on prior to, or contemporaneous with the writing
Contracts entered into as a result of misrepresentation are void.
False
Contractual rights and duties cannot usually be transferred to third persons.
False
Duress exists only when parties entered into a contract at a time when they had a relationship where one party was dependent on and subject to the control of the other party.
False
Generally, minors may disaffirm their contracts at any time during their minority and for up to six months after attaining majority.
False
Generally, statutes that require proof of character and skill and impose a penalty for violation are considered revenue-raising statutes.
False
If Jamal tells, Mai "I'll give you $500 if you find my lost cat Dexter," Mai must promise in writing to find Dexter in order to accept Jamal's offer.
False
The UCC applies only to commercial sales of goods, whereas the CISG governs both consumer and commercial transactions.
False
The minor who does not disaffirm within a reasonable time after attaining majority is held to have rescinded the contract.
False
The parol evidence rule says that a party can vary the terms of a written contract by introducing evidence of terms allegedly agreed on prior to, or contemporaneous with, the writing.
False
The person who makes an assignment is called the assignee.
False
Usury laws prohibit charging less than a stated amount of interest for the use of money.
False
contractual
False
Which of the following is true of justifiable reliance?
It cannot lead to rescission of a contract if the complaining party was aware of the truth.
Which of the following is true regarding Article 2 of the Uniform Commercial Code (UCC)?
It does not apply to contracts for the provision of services.
Which of the following is true about a contract?
It is an agreement based on an offer and an acceptance of the offer.
Which of the following is a reason for voiding a contract based on illegality?
It is contrary to public policy.
Which of the following is true of anticipatory repudiation?
It occurs if promisors, prior to the time for performance, indicate an intent not to perform their duties under the contract.
Yael sent Jen an offer to sell his mountain bike for $150. After thinking about the offer for a few days, Jen sent Yael a letter accepting his offer and asked if he intended to leave the book basket attached to the bike. The next day, before Jen's letter arrived, Yael phoned Jen and told her that he had decided to sell his bike to Jake, who had offered him $200. Which of the following statements holds true of this case?
Jen's acceptance was good and a contract was created when Jen's letter was mailed.
Jewel buys a laptop from Francisco for $1,000. Francisco knew that the laptop had hardware problems. However, he told Jewel that it was in excellent condition. In this scenario, which of the following is most likely to be true?
Jewel can sue for the difference between purchase price and actual value of the laptop with hardware problems.
Which of the following is true of personal service contracts?
Personal service contracts are the only contracts that terminate with the promisor's death.
Which of the following is true regarding exculpatory clauses?
Public policy generally favors holding people responsible for their own behavior.
Which of the following is true regarding public policy?
Public policy may change with the times.
Fernando is the owner of Pick Food Restaurant. He makes an oral agreement with Purple Lotus Works for the design and production of 5,000 unique custom-made dinner plates with the logo of Pick Food Restaurant on them. Purple Lotus reworks its production schedule and creates dyes to add Pick Food Restaurant's logo in the designer plates. A week later, Fernando calls Purple Lotus and says that he no longer wants the plates and calls off the deal. In this scenario, it is most likely that __________.
Purple Lotus is protected by the statute of frauds exception for specially-manufactured goods
Which of the following is intended to avoid unjust enrichment?
Quasi contract
Rudy asked Harun to detail his brand-new sports car by painting flames on the side of the vehicle. After the parties signed a contract and after Harun had already started to paint, Rudy decided that he also wanted Harun to install a new stereo system in the car at the same cost and modified the contract likewise. Harun painted the flames on the side of the vehicle as originally agreed but did not install a new stereo. Rudy refuses to pay the originally agreed- upon price. If Harun sues Rudy for the contract price, he will win because:
Rudy's modification was unenforceable due to lack of consideration.
Which of the following is true of employment contracts?
They involve personal rights and are therefore generally nonassignable.
What is the fundamental reason for the legal rule allowing minors to disaffirm contracts?
They may not be able to bargain effectively with older, more experienced persons.
Catherine is contracted to perform a violin solo for Patricia. Catherine assigns the contract to Dillon. Which of the following is true regarding a delegation of duty in this case?
This is not a valid delegation of Catherine's duty, since the contract is one in which Catherine's personal skill as a musician is an essential part of the agreement.
A voidable contract is enforceable against both parties unless a party with the right to cancel the contract has done so.
True
According to the Uniform Commercial Code (UCC), a timely expression of acceptance creates a contract even if it states additional terms on points the offer did not address.
True
After an assignment, the assignee is entitled to whatever performance the assignor had a right to under the original contract.
True
An assignee is entitled to all the rights his or her assignor had under the assigned contract, including the right to the promisor's performance.
True
An illusory promise cannot serve as consideration because there is no mutuality of obligation.
True
Any assignment that would materially alter the duties of the promisor is unenforceable, because the promisor cannot be required to do something significantly more than, or different from, what he or she originally agreed to do.
True
Because the basis of contract law is the voluntary agreement of the parties, the law generally requires some affirmative indication of assent from an offeree before it binds the offeree to the terms of an offer.
True
Capacity refers to the ability of a person to do a legally valid act.
True
Compositions are agreements between a debtor and two or more creditors who agree to accept a stated percentage of their liquidated claims against the debtor at or after the due date, in full satisfaction of their claims.
True
Consideration is legal value, bargained for and given in exchange for an act or promise.
True
Consideration may be an act or a promise.
True
Contract law is based on the idea that a contract is a voluntary agreement between parties.
True
Courts are increasingly willing to prevent oppression and unfair surprise by finding agreements to be unconscionable or contracts of adhesion.
True
Courts generally do not enforce a promise against the promisor unless the promisee has given up something in exchange for the promise.
True
Contracts entered into as a result of misrepresentation are __________.
voidable
Which of the following is true of public policy?
A court's view of public policy is determined by what the court believes is in the best interests of society.
Which of the following is true regarding discharge by alteration?
Alterations by third parties without the knowledge or consent of either contracting party do not affect the parties' rights.
Angie owes Roderick $10,000, payable in six months. Roderick, who is leaving the country, gives his rights to the payment to Margaret for $800. Which of the following is true regarding this scenario?
Angie owes Margaret $10,000.
Beck tells his mom that he is thinking of selling his motorcycle to his neighbor, Sam, for $100. Beck's mom calls Sam and tells him about her conversation with Beck. Sam then calls Beck and tells him that he accepts his offer. Under these circumstances, __________.
Beck's offer has not been communicated
On March 10, Brian entered into an oral contract with Becky. Under the oral contract, they agreed that Becky would work for Brian for two years for a salary of $70,000 per year. Becky quit her job the next day so that she could join Brian. On March 12, however, Brian called Becky and repudiated the contract, stating that he had decided not to hire her after all. If Becky decides to sue, which of the following is most likely to be true?
Becky may use the doctrine of promissory estoppel to show that she had materially relied on the oral promise and will suffer serious losses if the promise is not enforced..
Which of the following is true about auctions?
Bidders are treated as offerors, making offers the seller is free to either accept or reject.
On October 29, 2018, Alex agrees to paint Georgia's house during the Thanksgiving holiday for $8,000 in exchange for Georgia's promise to pay him $8,000 in cash immediately upon completion of the work. Which of the following is true in this case?
Both parties are contractually bound on October 29, 2018, since each has given consideration for the other's promise.
Which of the following is true of discharge of contracts?
Both parties to a contract are discharged when they have completely performed their contractual duties.
Which of the following is true regarding capacity to contract?
Capacity to contract is presumed, which means that the party who claims incapacity must prove it.
Which of the following must be present for an offer to have a legal effect?
Definiteness
A third person is a donor beneficiary if the promisee's primary purpose in contracting was to make a gift of the contracted performance to the third party.
False
According to the Uniform Commercial Code (UCC), if one or both parties are nonmerchants, additional terms proposed by the offeree automatically become part of the agreement unless the offer expressly limited acceptance to its own terms.
False
After a court has found that one of the parties to a dispute made an offer, the next thing it looks for to determine if a contract resulted is whether the offeree revoked the offer.
False
All promises are contracts.
False
An agreement to discharge a contract need not be supported by consideration to be enforceable.
False
If the parties' agreement is represented by a written instrument, a non-material, negligent alteration of the instrument by one of the parties discharges the other party.
False
Items sold to a minor are considered necessaries even if the minor's parent or guardian has supplied or is willing to supply similar items.
False
Once a binding accord and satisfaction has been entered into, the parties have agreed to have a trial jury decide their liability.
False
Ordinarily, punitive damages are recoverable for breach of contract.
False
Suppose that Miranda offers to sell her business to Jolene. Jolene tells Malachi about the offer, and Malachi sends Miranda a letter attempting to accept her offer. There is a contract between Malachi and Miranda.
False
Which of the following is true of contracts made illegal by statutes?
Forfeiture of excess or all interest is a common penalty for violation of usury laws.
Which of the following refers to misstatements about the content or legal effect of something usually contained in a form or preprinted contract?
Fraud in the execution
Which of the following is true regarding a delegation of duties?
If the duty to be performed could be performed fully by many different persons, it is delegable.
Which of the following is true of the parol evidence rule?
If the writing in a contract is clearly incomplete, a party can introduce proof of consistent oral terms that "fill the gaps" in the writing.
Which of the following would terminate an offer without notice to the offeree?
Insanity of either party
LeBron wants to sell a car to Mark. LeBron tries to convince Mark that it is a good buy. LeBron lies by telling him that the car has 10 months of free service left in order to convince him to buy it. The car actually has only 2 months of service left. Which of the following is true in this scenario?
LeBron is guilty of fraud.
The manager of Mack's Bar sent Olive Outlet an order for 200 cases of olives to be shipped "as soon as possible." The day Olive Outlet receives Mack's order, it ships the olives. Later that day, Mack's manager phones Olive Outlet and tries to revoke his offer. Under these circumstances:
Mack's Bar cannot revoke because a contract was created when Outlet shipped the olives.
According to the Uniform Commercial Code (UCC), when acceptance is made expressly conditional on agreement to new terms proposed by the offeree, __________ contract is created.
No
Suppose that Iverson makes an offer to sell his dining room table to Betty for $400 and says to her, "If you do not object within five days, we have a contract." The five days comes and goes, and Betty does not object. Is there a contract between Iverson and Betty for the dining room table?
No
What damages are very small damages that a court may award a plaintiff when a technical breach of contract has occurred without causing any actual loss?
Nominal
Sixteen-year-old Chuck Olson buys a used car from Bobby Duncan Used Car Center on September 15, 2018. Olson agrees to pay $400 a month for 12 months. One month after the purchase, Olson is involved in an accident and wrecks the car. He immediately calls Bobby Duncan Used Car Center and informs the seller that he is disaffirming the contract. According to traditional common law, which of the following is most likely to be true?
Olson does not have a duty to place Bobby Duncan Used Car Center in the status quo ante.
Which of the following is true of the right to disaffirm a contract due to mental incapacity?
On disaffirmance, the party with mental incapacity must return to the other party any consideration they received under the contract and still have.
Stenson Corporation agreed to create employee identification cards for McLaughlin, Inc. for $60,000. Some of the cards delivered by Stenson were damaged during the lamination process. McLaughlin promised Stenson an additional $20,000 to replace the damaged identification cards, and Stenson did so. McLaughlin refused to pay Stenson more than $60,000 for the work. Which of the following is true in this case?
Stenson Corporation is only entitled to $60,000 for its work.
Which of the following is a recognized exception to the parole evidence rule?
Subsequent oral contracts
Which of the following is true regarding the Uniform Commercial Code (UCC)?
The UCC has been adopted by all states except Louisiana, which has adopted only part of the code.
An auction house puts a painting up for sale which is purportedly Claude Monet's "Boulevard des Capucines." A Japanese businessperson purchases the painting for $50 million. The businessperson appraises the painting for insurance purposes and discovers that it is a clever fake that is worth only a few thousand dollars. Which of the following is true of the scenario?
The buyer can rescind her purchase on the basis of mutual mistake.
Which of the following is a primary reason for allowing part performance to substitute for the statute of frauds writing requirement?
The courts are preventing the injustice that would occur to the party who has acted in reliance on the oral contract.
Which of the following is true regarding an offer?
The death of the offeror will terminate the offer.
Which of the following is true about building and construction contracts?
The engineer's or architect's certificates, which are often issued at each stage of completion, indicate that the work is done to the satisfaction of the architect or engineer.
Brian offers to sell Jerry his house for a designated price, but a hurricane destroys the house before Jerry accepts the offer. Which of the following is true regarding the offer and Jerry's legal rights in this case?
The offer terminated when the hurricane destroyed the house, as it happened without the fault of either party.
Which of the following is true regarding a unilateral mistake?
The plaintiff needs to promptly notify the defendant when a mistake is discovered.
According to most states, which of the following is true if there is only a memorandum of two parties' agreement?
The writing can be in any form but must indicate that the parties had a contract.
Which of the following is a basic Uniform Commercial Code (UCC) writing requirement for contracts?
The written evidence should indicate the quantity of goods sold.
Which of the following remedies is used for cases involving illegal wagering contracts?
There are no remedies for such cases.
Nina sent a letter to Adrian that stated she wanted to hire him to decorate the interior of her house. She wrote that he must accept the offer by mail. Adrian received the letter and telephoned Nina to say that he accepted the offer. Which of the following statements is true in this case?
There is no acceptance and no contract in this situation as it is clearly mentioned by the offeror that the acceptance must be by mail.
Which of the following is true regarding the rules related to consent?
They are designed to protect a party from their own innocent mistakes and from the other party's unacceptable behavior.
Selena enters into an agreement with Tops-n-Tails, Inc., an event management company, to coordinate her wedding in June 2019 for $10,000. In March 2019, Selena calls Tops-n-Tails to tell the company the deal is off, since she thinks she can do a better job herself. Tops-n-Tails sues Selena, and Selena argues lack of consideration as a defense. Which of the following is true regarding this case?
Tops-n-Tails has given consideration.
A contract is executory if it has not been fully performed.
True
A contract is express when the parties directly state its terms at the time the contract is formed.
True
A mere untrue assertion does not constitute misrepresentation if it is not relied upon by, or does not cause harm to, the other party.
True
A party is always allowed to introduce oral proof that the contract the writing represents was entered into as the result of fraud, misrepresentation, duress, undue influence, or mistake.
True
A person could be medically insane but still have the legal capacity to contract.
True
A statute of frauds essentially says that for certain categories of contracts, the law requires more evidence that the parties had an agreement (i.e., a writing) than the oral testimony of a party claiming that a contract existed.
True
Generally, a party's contractual duty to perform arises at the time the contract is formed, even though the time for performing is set for a future date. The parties may, however, provide that a party's duty to perform is contingent by the happening of some event, or condition.
True
Generally, a promise to discharge a liquidated debt for part payment of the debt at or after its due date is unenforceable due to lack of consideration.
True
If the consideration given by the contracting parties has legal value, courts generally do not concern themselves with whether the parties received any actual value in exchange for their promises or whether the promises or performances exchanged were of relatively equal value.
True
If the legal remedies for breach of contract are not adequate to fully remedy a party's injuries, a court has the discretionary right to grant an equitable remedy.
True
If the offer does not state a time for acceptance, it is valid for a "reasonable time," which depends on the circumstances surrounding the offer.
True
If the parties have dealt with each other before and silence signaled acceptance in their prior dealings, the offeree who remains silent in the face of an offer may be held to have accepted.
True
If the promisor's performance will satisfy a legal duty that the promisee owes a third party, the third party is a creditor beneficiary.
True
In effect, the requirement of consideration requires a promisee to pay the "price" the promisor asked for in order to gain the right to enforce the promisor's promise.
True
In some cases, the doctrine of promissory estoppel prevents offerors from revoking their offers.
True
Life insurance contracts are a common form of donee beneficiary contract.
True
Robert was under contract to play football for the United Lions in May 2019. However, he died in an accident before he could perform his contract. Robert's death terminates his contract.
True
The basic idea of misrepresentation is that one of the parties to a contract created in the mind of the other party a mistaken impression about an important fact or facts concerning the subject of the contract.
True
The biggest reform of contract law has resulted from the adoption of the Uniform Commercial Code (UCC).
True
The Uniform Commercial Code (UCC) differs from the United Nations Convention on Contracts for the International Sale of Goods (CISG) in that the:
UCC holds merchants to higher standards in certain circumstances, while the CISG does not make a distinction between merchants and nonmerchants.
If Kate promises a stereo system to Uli, which of the following is true regarding consideration?
Uli will not be able to enforce Kate's promise if he has not done anything in return.
To create acceptance to an offer for a bilateral contract, __________.
acceptance must always be properly communicated to the offeror
In an insurance contract, if one of the two parties involved drafted a contract, __________.
ambiguities are resolved against the party who drafted the contract
Assignments of future wages are not effective because they __________.
are contrary to public policy
With respect to property, under the common law, minors:
are entitled to the return of their property given as consideration, even if that property is possessed by a third party at the time of disaffirmance.
Punitive damages __________.
are recoverable only when extreme circumstances justify penalizing the defendant
In a contract involving elements of both goods and services, a court will determine whether Article 2 of the Uniform Commercial Code (UCC) applies by:
asking which element predominates in the contract.
An incidental beneficiary can __________.
be a member of the general public
Mike D'Arruda, the owner of Preferable Purchase Electronics, Inc., orders 100 stereo receivers from Sandy Talley, a salesperson for Dulcet Sound Manufacturing Company. Mike has made a promise to pay for the receivers in exchange for Dulcet Sound's promise to deliver them. This is a(n) __________ contract.
bilateral
If possible, courts interpret an offer as proposing a(n) __________.
bilateral contract
If Gwen hands Lisa a detailed offer for the purchase of Lisa's pottery wheel and Lisa signs the offer without changing any of its terms, the parties have created a:
bilateral contract.
The "Battle of the Forms" rules of the Uniform Commercial Code (UCC) apply only when __________.
both parties have forms
Ali enters into a contract with The Iniquitous Iris Brewpub to be a bartender. Ali is not aware that the pub does not have a liquor license. Under these circumstances, it is most likely that Ali __________.
can recover the wages for bartending before he learned of the violation
Assignees __________.
can sue a promisor for nonperformance
The doctrine of promissory estoppel does NOT require:
consideration.
Tony contracted to buy wheat from Brown, a farmer. It was contracted that Tony would pay Brown three days after the delivery of the wheat (delivered as of a stated date). Brown's delivery would be a(n) __________ of Tony's duty to pay.
constructive condition precedent
A contract in which the only choice for one of the parties is between agreeing to the terms dictated by the other party or not contracting at all is known as a __________.
contract of adhesion
Contracts that are traditionally required to be in writing by the statute of frauds are __________.
contracts for the transfer of an interest in land
By far, the greatest number of preexisting duty cases involve __________ duties.
contractual
In a contract involving a minor, whether an item can be considered a necessary:
depends on the minor's station in life.
William and Carole Yates live in Overland Park, Kansas, where they have raised their son Benjamin and daughter Elizabeth. Eighteen-year-old Benjamin has always been close to his parents, but sixteen-year-old Elizabeth has had quite the "rebellious streak." Recently, she moved to San Francisco, California and got a full-time job in a tie-dye t-shirt shop in the Haight-Ashbury District. William and Carole were quite relieved to see her go. Elizabeth is said to be __________ from her parents.
emancipated
If a contract is divisible, the court __________.
enforces the legal parts of the contract
A(n) __________ clause is a provision in a contract that attempts to relieve one party to the contract from liability for the consequences of his or her negligence.
exculpatory
Timothy is a laborer in one of the leading construction firms located in Detroit, Michigan. His employment contract includes a clause which says he cannot work as a construction worker within the Detroit metropolitan region for fifteen years once he leaves the company. This clause is __________.
illegal as a contract in restraint of trade
A counteroffer:
impliedly rejects an offer.
Under the Uniform Commercial Code (UCC), a sales contract can be created:
in any manner sufficient to show agreement.
In an agreement between two parties, if the facts indicate that a term was left out because the parties were unable to reach an agreement about it, it would probably mean that the:
intent to contract is absent, and no contract was created.
Website advertisements for the sale of goods or services are generally considered as:
invitations to buyers to make an offer.
The parol evidence rule __________.
is a potential source of danger for parties who reduce their agreements to written form
According to the Uniform Commercial Code (UCC), the "reasonableness" standard:
is a practical standard used to gauge what people really do in the marketplace.
A donee beneficiary __________.
is a third-party beneficiary to whom a gift of the contracted performance is given
A subcontractor's bid:
is considered an offer.
Commercial frustration __________.
is very similar to impracticability
A restraint of trade that is merely ancillary to a contract may be legal if __________.
it is designed to protect interests created by the contract
Consequential damages __________.
occur when the special circumstances of the plaintiff cause him or her to suffer losses that would not ordinarily be foreseeable because of the breach
A mandatory injunction __________.
occurs when a court orders a party to do a certain act
An offeree who attempts to accept after an offer that has terminated is himself making a(n) __________.
offer
A person who has made an offer, the __________, has given the party to whom he or she has made the offer, the __________, the power to create a binding contract by accepting.
offeror; offeree
The legal concept of unconscionability __________.
pertains to unequal bargains
When parties fail to expressly agree on the terms of a sales contract, __________.
the contract will not fail if the court finds that the parties intended to make a contract and that their agreement is complete enough to allow the court to reach a fair settlement of their dispute
A person lacking mental capacity must return the other party to the status quo when:
the other party was unaware of the person's lack of mental capacity.
With respect to contracts, status quo ante refers to:
the position one would be in if a given contract had never come into existence.
When a contract is partly printed and partly written, __________.
the written terms control the printed terms if the two conflict
According to the Uniform Commercial Code, a(n) __________ contract is one that is grossly unfair or one-sided.
unconscionable
After Cassandra's death, her children discovered that she had sold her house a week prior to her death to her niece, Angelica, for $50,000. Cassandra lived the last ten years of her life in Angelica's house, under her care. The market value of the house at the time of the sale was $500,000. Cassandra's children may attempt to have the sale set aside, arguing that it was the product of __________.
undue influence
A publisher makes an oral deal with an author in which the author agrees to write a new Business Law textbook. They agree that the book is due in two years. In this scenario, the contract is most likely to be __________.
unenforceable
Jane tells Mark that she would pay him $50 if he finds her lost bag. This is an example of a __________ contract.
unilateral
Patricia runs an advertisement in the local newspaper offering a $500 reward for the return of her lost Snowshoe cat, Dexter. Patricia has made a promise to pay the person who performs the act of returning Dexter. This is a(n) __________ contract.
unilateral
Doug says to his neighbor Warren, "I will pay you $50 if you mow my yard right now." Doug is proposing a __________ contract, and Warren will accept the contract by __________.
unilateral; mowing Doug's yard right now
Mayor Michael Myerson wants to recruit a Harvard economist, Friedman, as the chief developer for Greenwood, Indiana's Economic Development Commission. The legal cap on the job of chief developer is $80,000. Mayor Michael Myerson offers Friedman $100,000. The contract is __________.
unlawful
Maya makes an agreement with Ravi for Ravi to steal Professor Hussain's laptop computer. The agreement between Maya and Ravi is __________.
void
