BLAW test 2

What is parol of evidence?

...

According to the contract laws of capacity, the age at which a person can contract is

18 years

To determine if a person is lucid, courts employ

A flexible standard

Mutual assent is typically referred to as ______

A meeting of the minds

According to the mailbox rule, an acceptance if effective

when dispatched by the offeree in a commercially reasonable manner.

I say to you, "If you paint my house on Saturday, I will pay you $1,000." You don't respond, but on Saturday you come by and paint my house. Do we have a contract?

yes

Same facts, except I was killed on Sunday and your acceptance letter reaches my house on Monday. Is there a contract?

yes

__________ is a model law that most states have adopted to govern service contracts and real estate contracts

Restatement (Second) of Contracts

Oxley contracts to buy a pizza oven from Restaurant Supplies Warehouse (RSW) for $2500, but RSW fails to deliver. Oxley buys the appliance elsewhere for $3500. Oxley's measure of damages is:

$1000 plus incidental damages (same job plus incidental)

The 4 elements of a valid contract are:

Mutual assent, consideration, legality of purpose, and capacity

I offer to sell you as many fasteners as you want to order for a one-year period at my prevailing catalogue price at the time of the order. You accept my offer. Six months later, you order 154 dozen fasteners from me. I am out of stock and you are forced to buy the fasteners from another supplier at a much higher price than that listed in my current catalogue. Can you successfully sue me for damages based on my failure to honor our agreement?

yes

You're interested in buying my car. We talk on the phone and I tell you that I will consider what price I want to sell the car for, and will send you an offer by email. In our phone conversation, we agree if you dont respond to my offer by Friday, I can assume that you have accepted my offer. I send you an email offering to sell my car for $10,000, which states our understanding that if I don't hear from you by Friday, I can assume that you have accepted my offer. You read the email and delete it. I don't hear from you by Friday. Do we have a contract?

yes

I say "I want to sell my car" You say "I want to buy it" Do we have a contract?

No

Rita contracts to work for SMC during April for $4500. On March 31st, SMC cancels the contract. Rita declines a job of a different type and rank with Tech Talk, which would have paid $3500. Rita files a suit against SMC. As compensatory damages, Rita can recover:

$4500 (because job is in different type/rank; if the same, then subtract $$)

Toy Tech (TT) has ordered 50,000 aluminum widgets from the Acme Widget Corporation (AWC) with delivery to be made on November 1. These widgets will be used in TT products to create toys for the holiday season. Under which circumstance may TT claim that AWC has made an anticipatory repudiation of the contract?

AWC's sole manufacturing plant burned down on October 1, yet AWC insists that it will rebuild and honor the contract.

Most advertisements appearing in mass media are ___

An invitation for consumer to make an offer

In order to have mutual asset, there must be

An offer and an acceptance that is the precise mirror image of the offer

An event that occurs after the performance under a contract and discharges the parties' contractual obligations is best referred to as a(n)

Condition subsequent.

Meghan has some very embarrassing pictures of Kalieh. Meghan tells Kalieh that she will post the pictures all over various social media accounts unless Kalieh agrees to sell Meghan an antique wedding ring for $500.00. Out of fear that Meghan will indeed publish the pictures, Kalieh agrees to sell the ring for $500.00. Kalieh will be able to claim the defense of

Duress

True or false: voluntary consent is never lacking because of a mistake

False

True or False: A minor who enters into a contract for necessaries may disaffirm the contract without liability for value of the goods.

False (he is liable and must pay back value of goods)

Every contract is premised on the notion of ______ dealing

Good faith

Laurel enters into a contract to sell her bike to Melanie. Melanie takes possession of the bike as a minor and continues to use it well after reaching age of majority. She has:

Impliedly ratified the contract

Tasha contracts with Marquel to mow her lawn. Totally unexplained and unplanned, it snow six inches before Marquelis supposed to mow her lawn. Most likely the contract will be discharged by operation of law under the concept of

Impracticability

Maddie cannot read. She signs a cell phone agreement without being able to read the document. This is an example of

Information asymmetry

Which of the following is not an example of when a contract must be in writing according to the statute of frauds?

Jeff agrees to mow Julie's lawn for $100.00

A contract is a:

Legally enforceable promise or set of promises

In which of the following situations would anticipatory repudiation not be allowed?

Manny calls Moe and tells him that the sculpture he's creating for him is coming along slower than anticipated but he's pretty sure he'll be done by the contract deadline.

Bob wants to sell his recreational vehicle (RV) for $21,000. He emails Curt with the offer but mistakenly types price $20,100. Curt accepts offer and pays bob $20,100. Bob:

Must deliver the RV

Suppose you come to my office with the dead body of Jesse James. I congratulate you for capturing such a public menace. On the way out of my office, you see the reward poster for the first time, and come back asking for the $5,000. Was there a contract

No

Gabrielle, a 19 year old college freshman, promises not to drink any alcohol while she is away at college in exchange for her parents' promise to pay for her tuition. Is there consideration?

No because Gabrielle is not giving up something of legal value as she is under 21 years.

Shannon signs a contract with Tevin, an unlicensed contractor in a state that requires contractors to be licensed for safety reasons, to build a deck/gazebo. This contract is enforceable by:

No one

Drugs Ltd contracts with Supermarket Ltd to manufacture and supply 50 cases of a drug called SuperX. Supermarket Ltd pay the contract money, $5,000, to Drugs Ltd but before delivery takes place the government introduces a new law banning the manufacture and supply of SuperX. Can Supermarket Ltd enforce the contract?

No, the contract is impossible

Cliff sells a calculator to Lydia. He states he has only used it for his geometry class which was a lie because he never took geometry. He used it in his basic math class. Since Cliff lied to Lydia, most likely would Lydia be successful in asserting the defense of misrepresentation to get out of the contract?

No, unless the court determines his lie about the class in which he used the calculator was a lie about a material fact.

Carlos and David contract for the sale of 500 of Carlos' cattle for $95/head. Unknown to either party, an unforeseen storm has struck and many of the cattle have died. David is:

Not required to pay due to bilateral mistake (because both parties had no idea)

The first step in determining whether a valid offer exists is analyzing the offeror's

Objective intent

Parties reach mutual assent using combination of

Offer and acceptance

Most business contracts are bilateral because they are enforceable before the other party performs because

One party does not have to wait to see if the other person will breach the agreement before taking action.

In selling 300 acres of rural land to Organic Farms, Peyton tells buyer it will be worth double in a year. This is:

Opinion

The 3 ways in which an offer may be terminated by action of the parties are:

Revocation, rejection, and a counteroffer

Sally has just purchased a home and wants to have an in-ground pool installed. She calls Cool Pools, the company that put in her neighbors' pools. When the company rep comes to her property, he does some soil tests that are standard for the industry and gets the same results as he got when the other pools were put in, so the company gives her a price quote of $16,000. When Cool Pools begins excavating, it discovers solid rock four feet below ground level. The neighbors had no such rock. Cool Pools stops work and informs Sally that it will have to use explosives to remove the rock and the cost of thepool will now be $32,000

Sally can have the contract discharged based on impracticability.

Rita, a minor, misrepresents her age as 21 and signs contract with Sporty Motors to buy a sport utility vehicle (SUV). In most states,

She can disaffirm the contract

Les orders a set of vitamins online. When it arrives the vitamins were packaged in shrink wrap. When he opens the packaging, he is accepting what type of agreement?

Shrink Wrap

Ready Repair Service enters into a contract to fix washers and dryers in Scrub n' Dry Company's coin-operated laundries. If Ready Repair breaches by only

Sue ready repair for compensatory and consequential damages

The duty to mitigate damages requires the non-breaching party to

Take reasonable steps to lessen damages

At an after work networking event, Mike drinks wine while negotiating the terms of an employment contract with Cyndy to start the next day. Cyndy shows up to work the next day and Mike states that he was drunk the night before and therefore lacked capacity. The court will most likely rule

The contract is voidable by Mike if he can prove that at the time he entered into the contract his intoxication prevented him from understanding the consequences of his actions.

Handicrafts & Hobbies Store agrees to hire Iliana for one year at a salary of $600 per week. When H&H cancels the contract, Iliana spends $150 to obtain a similar job that pays $450 per week for a year. Iliana is entitled to recover:

The difference between the wages at the two jobs plus $150

Tile & Grout contracts to resurface the insides of the pools at Water Park. T&G knows that without the resurfacing, Water Park will have to delay its seasonal opening. T&G does not perform as promised. As consequential damages, Water Park can recover:

The loss of profit from the delayed opening

Cell phone contracts are an example of which type of contract

Transactional

True or false: Executed contracts are presumed ratified.

True

Which law limits government interference with contracts by saying "no state shall pass any law impairing the obligation of contracts?"

United States Constitution

Amaya is a new attorney who is focusing on business matters especially contract negotiations. When she is hired by Holshauser Industries to negotiate all of their product purchase contracts for their car detailing business, as a strategically qualified attorney, she should do all the following except,

Use strong-arm techniques to exploit maximum advantage over opposing interests

Courts that support freedom of contract principles

Will enforce valid contracts against parties absent evidence of fraud, mistake, oppression, or lack of legal purpose

I'm the Sherrif of an old western town. The town's bank has just been robbed by Jesse James. I post a notice saying "Wanted Dead or Alive- Jesse James, and bring his body to my office. Was there a contract

Yes

Mandy, a minor, disaffirms an agreement to purchase a car from Jamie, an adult, for $1000.00. Must Mandy give back the car?

Yes in order to disaffirm it, the minor must return whatever consideration received

In which of the following scenarios would enforcement of specific performance be appropriate?

You own the pistol used by Hamilton and contract to buy the pistol used by Burr in the Hamilton-Burr duel to complete your set, but despite the contract the Burr pistol owner refuses to sell at the last minute.

If the promises to perform in a contract are not conditional, the duty to perform is __________.

absolute

Under the Doctrine of _______, one party agrees to render a substitute performance in the future, and the other party promises to accept that substitute performance in discharge of the existing performance obligation. Once the substitute performance has been rendered, this acts as a ________ of the obligation

accord and satisfaction; satisfaction

Beth has just signed a contract to work for a bank. A clause in the contract says that before she begins work,she must pass a drug test and should drug use be discovered, the contract becomes void. This clause would be a

condition subsequent.

A clothing store advertised leather jackets in the following way. "Normally priced at $350, today only $150" You come to the store in response to the advertisement, select a jacket and take out $150 in cash to pay for it. The store clerk refuses to to take your cash, saying that the price is $300. Was there a contract?

no

A fire breaks out in the college of business building. The dean immediately calls the fire department and says the the CoB building is on fire, and if they come and put it out, the CoB will donate a brand new fire truck to the fire department. The fire department gets there in three minutes, and puts out the fire with little damage to the building. Is there a contract between the College of Business and the fire department?

no

I hire you as an employee, agreeing to pay you $1,000 per week for a full year. After 6 months, you are doing such a great job, that I increase your salary to $1,500 per week. One month later, you fail to complete a very important project on time, and I reduce your pay back to $1,000 for the remainder of the one-year term of employment. Can you successfully sue me for the difference between what you would have received under the $1,500 per week salary and the $1,000 salary during the remainder of your one-year employment period?

no

I invite you to my house for dinner and you accept my invitation. You show up at the appointed time, carrying a bottle of my favorite wine, which cost you $32.99 I'm not home, having decided to go to Las Vegas. Did we have a contract?

no

I own an office equipment and have had a very bad day. I say to you, my top sales person, "I will sell you this business for $25" You say, "I accept your offer." Do we have a contract?

no

I say, "I am going to sell my car for $10,000." You say, "I will buy it. Here's a check for $10,000." Do we have a contract?

no

I send you a letter offering to sell you my car for $10,000. Before the letter arrives, you send me a letter offering to buy my car for $10,000. My letter reaches you, and your letter reaches me, on the same day. Do we have a contract?

no

I send you a letter on Thursday offering to sell my car for $10,000, giving you until Saturday to accept or reject my offer. The letter reaches you on Wednesday. On Friday, I am killed in an auto accident. On Saturday, not knowing that I have died, you deposit in a mailbox a letter that indicates acceptance of my offer. Is there a contract?

no

I send you an unsolicited email offering to sell you my car for $10,000 and stating that if I do not hear from you by Thursday, I am assuming that you have accepted my offer. You read the email and delete it. I don't hear from you by Thursday. Do we have a contract?

no

Joseph Smith says to his son James, "In consideration of the fact that you received an A in your business law course, I will pay you $1,000 in two weeks" Is there a contract?"

no

If contracting parties perform their obligations completely, this is known as _______

perfect performance