BLAW exam 2 (11-19)

To cater a holiday banquet, Food Service LLC agrees to buy one hundred pumpkin pies from Great Desserts Inc. To be enforceable, the agreement must be in writing if the pies cost at least

$500

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

An oral contract that would otherwise be unenforceable under the Statute of Frauds will not be enforced under the doctrine of promissory estoppel.

True

For a valid acceptance, the offeree must accept the offer without adding or changing any terms.

True

Taylor sends Pat an offer to sell Pat Taylor's art collection for the sum of $75.00. Which of the following is not a recognized method for termination of an offer in contracts law?

counteroffer

Without a legal framework of reasonably assured expectations within which to make plans, businesspersons would most reliably be able to count only on others'

good faith

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

manifest their voluntary consent to the same bargain.

Architect LLC enters into a contract with Barn & Silo Inc. to provide designs for a certain number of farm buildings. Architect provides fewer than half of the designs by the time specified in the contract because the firm is busy with other projects. Architect's performance is most likely

material breach

Situations in which agreements lack consideration include those involving a preexisting duty.

true

When the original parties to a contract agree that its performance should directly benefit a third party, that party can sue the promisor directly for breach.

true

Bee is an employee of Credit Agency Inc. On the termination of Bee's position, Credit pays Bee $10,000 to agree not to disclose the employer's confidential information. Later, Bee sells the information to Debt Records LLC for $100,000. In a suit for breach, Credit is most likely to recover

$10,000 from Bee

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

Air Flo, Inc., and Banyan Grove Apartments enter into an oral contract in which Air Flo agrees to provide air-conditioning and heating maintenance for Banyan Grove's facilities for two years. This contract is enforceable by

Air Flo. Banyan Grove. any third party, such as a HVAC supplies provider. Correct Answer - none of the choices.

Duane and Evan orally agree to a transfer of forty acres of farmland. Evan asks Finance Bank to lend him the funds to buy the land. Under the Statute of Frauds, the agreement between Duane and Evan is enforceable by

Duane or Evan. Duane, Evan, or Finance Bank. Finance Bank. Correct Answer - none of the choices.

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

Sam enters into a contract to sell Bill his vintage 1972 Corvette after Bill has the car inspected. The next day, Rick knocks on Sam's door and tries to buy the Corvette by enforcing the contract Sam entered into with Bill. Rick will likely fail because he is not

a delegator of duties under the contract

Bern, a minor, signs a contract to buy a Caterwauler jet boat from Dahl, an adult. Dahl

cannot avoid the contract

Voluntary consent to a contract is not lacking if one of the parties is mistaken about an important fact concerning the subject matter of the bargain.

false

Mel agrees to work as a freight broker for National Shipping Inc. In determining whether a contract has been formed, an element of prime importance is the parties'

intent

Restaurant Food Inc. intends to sell a certain quantity of beef for $1,100. In e-mail, however, the firm's sales representative mistakenly offers to sell the beef to Steak House for $1,000, Steak's manager immediately accepts. The seller

is bound to the deal at the offered price.

Evelyn is a minor. As a minor, she

is not usually legally bound by a contract. has the right to avoid liability under a valid contract. has the capacity to enter into a valid contract. Correct Answer- all of the choices.

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.

Arnie receives a book worth $10 as a gift from Bob. Subsequently, Arnie promises to pay Bob the value of the book. Is there consideration for Arnie's subsequent promise?

no

Gina, a 16-year-old minor (who, as such, is deemed to lack capacity to enter into contracts), enters into a contract with Rosie, a retired mechanic, to buy Rosie's 1972 Ford Pinto. Rosie has second thoughts and decides she would like to terminate the contract. Rosie disaffirms the contract based upon the Gina's lack of capacity. Will a court uphold Rosie's disaffirmance if it is challenged?

no

City Nurses College loses its accreditation. As a consequence, City students can still obtain a state nurse's license, but their earning capacity is impaired. In a suit against the school for breach, the students are most likely to recover

nothing

Pye tries to start his car with no success. He yells that he will sell the car to anyone for $10. Qua, a passerby, hears Pye's yell. This is not an effective offer because it lacks

serious intent

At an auction, Ben bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is

still liable on the bid

Steel Mill Inc. and Transport Delivery LLC enter into a contract. UniOil Corporation will indirectly benefit from the deal. Under the principle of privity, UniOil has the right to

sue Steel Mill for breach. require Transport to perform. demand performance from both original parties. Correct Answer - none of the choices.

Marlo and Nita enter into a contract for the sale of Marlo's apartment for which Nita agrees to pay $250,000. Nita assigns her right to buy the apartment to Owen. Owen is

the assignee.

Deb is a minor. She can enter into any contract an adult can, provided:

the contract is not one prohibited by law for minors.

Boca claims that he intended to enter into a contract with Carla for tutoring, and she breached it. Carla responds that she never intended to enter into a contract with Boca. Their intent to enter into a contract is determined with reference to

the objective theory of contracts.

Big Dig LLC makes an offer to perform an excavation and related tasks for Commercial Development Corporation, but due to a substantial mathematical mistake, significantly underprices the work. Commercial accepts the offer. Data Big's best defense against enforcement of the contract is that Commercial knew

the price was below the prices of comparable services.

Sparkle Jewelers breaches its lease with Town Mall and vacates the premises six months before the end of the term. In some states, the mall would be required to

use reasonable means to find a new tenant

A requirement in a contract for the sale of property requires the Seller to correct any unacceptable features of the property within 30 days after Buyer requests they be corrected, or Buyer can cancel the contract. Seller's obligation to correct features is a(n):

condition precedent

Emil enters into a contract to buy Foley's cultivated bottomland if County AgriCredit will lend Emil the funds to pay for the land. Emil's duty to perform is

conditional.

Michael is induced by his guardian, Alice, to sign a contract to invest funds in Gold Inc. through Alice's investment firm. Unknown to Michael, Alice realizes a commission from the investment. Most likely, Michael can rescind the contract on the basis of:

undue influence