Blaw test 3

Which situation would be considered sufficient consideration for a contract to exist?

Pam agrees to pay Derek $500 if he does not sit next to her in class anymore.

Isabel is 17 years old and wants to stop paying for the use of the local gym, but wishes to continue teaching classes. Her contract with the company includes terms regarding her employment and use of the facility. What must she do to properly disaffirm the contract? Choose 2 answer choices.

1. Isabel must disaffirm both the gym membership obligations and the employment terms in the contract. 2. Isabel must let gym staff know she is terminating the contract.

What conditions must be met for an offer to be legally accepted? Choose 2 answers.

1. It may only be accepted by the intended offeree or the offeree's agent. 2. Acceptance must be unequivocal with no requests for changes in the offer.

What are the legal differences between a material breach and an immaterial breach of contract? Choose 2 answer choices.

1. Whether the court will discharge the contract 2. The level of the performance of the contractual obligations

Which of the following is legally sufficient consideration? Choose 2 answers.

1. forbearance of a legal act 2. a promise to do a legal act

To succeed on a promissory estoppel claim, and plaintiff must show: (Select all that apply)

1. the defendant made a promise to the plaintiff 2. the plaintiff relied on the defendant's promise. 3. the defendant knew the plaintiff would rely on the promise.

Which act or statement is a valid offer?

A detailed advertisement

A police officer who finds a missing child as part of his duties may not collect any reward for finding the child. Why?

Because the officer already had a pre-existing duty to do so.

Which of the following is a valid offer?

Eric offers to buy Arun's house for $775,000 with no contingencies because Eric's lease ends in two months. Arun wants to think about it and six days later has not yet responded.

What type of condition specifies an event that must happen before a person is obligated to perform the duties specified in the contract?

a condition precedent

What is the most common way that duties under a contract are discharged?

by performance

Contests, lotteries, and competitions with prizes are common examples of:

unilateral contracts

How is substantial performance involved with the classification of material breaches versus immaterial breaches?

Substantial performance involves an immaterial breach.

Under the UETA, if a party does not follow the security procedures and then fails to detect an error, what happens?

The party who followed the procedures can avoid the effect of the error.

When are covenants not to compete in employment contracts considered to be against public policy? Choose 2 answers.

1. when the specified time of restraint is excessive 2. when the geographical restriction is too broad

You go out drinking and playing cards with your buddies. After you have consumed a huge amount of alcohol, you agree to sell your motorcycle to your buddy. The next morning, after you sober up, your buddy tells you what you did. Do you think your buddy can legally hold you to the deal to sell him your motorcycle?

No, he can't, if you were so intoxicated that you could not form the mental capacity to enter into a contract, and your buddy knew you were intoxicated.

What is an example of commercial impracticability?

Tariffs quadruple on a key raw material, making the manufacturing of a product very expensive

If a buyer agrees to purchase "all the widgets I require" and the seller agrees to sell him "all the widgets you require" is there sufficient consideration?

Yes, because this is a requirements contract.

What is the term for when a party to a contract performs his duties exactly according to the terms of the contract?

strict performance

In order for an accord and satisfaction to be valid, the debt must be:

unliquidated.

In what situation is a minor most likely to be able to terminate a contract?

When a minor orders books for school

Which of the following creates a bilateral contract?

a sale of goods with payment at delivery

When one party's performance in a contract is substantial, then the other party's duty to perform is:

absolute.

Carol and Al enter into a contract for the sale of a painting. Carol pays Al the asking price and Al delivers to Carol the painting. This contract is an:

executed contract.

When party A and B form a contract and both parties fully perform, the contract is considered:

executed.

When an agreement fails to qualify as an enforceable contract, but one of the parties breaches the agreement, the non-breaching party:

may sue for unjust enrichment.

A contract for an illegal purpose is:

void.

What type of contract exists when at least one party has the option of canceling it?

voidable

How may a revocable offer effectively be revoked? Choose 2 answers.

1. The offeror may withdraw the offer with a clear expression. 2. The offeror may take an action that contradicts the offer and make that known to the offeree.

Why would parties use accord and satisfaction regarding a negotiable instrument? Choose 2 answer choices.

1. The parties could wish to end the obligation without further conflict. 2. The parties might wish to avoid a lawsuit.

What are the types of situations that may qualify as grounds for discharge due to impossibility? Choose 3 answers.

1. The subject matter of the contract becomes illegal. 2. The specific subject matter of the contract is destroyed. 3. A party to a personal contract dies or becomes incapacitated.

Which of the following statements is an offer?

I will sell you my house for $400,000.

Which of the following distinguishes promissory estoppel cases from quasi-contract cases?

In promissory estoppel cases there is a promise; in quasi-contract cases there is not.

Must all terms of a deal be included in an offer?

No, but the terms required will depend on the type of contract.

You agree to paint your neighbor's house for a certain price. You get ninety percent of the painting done and then have to leave town for your real job. Your neighbor is pretty mad because you didn't finish the job, and says she is not going to pay you a penny! What do you think will happen when you try to collect payment from your neighbor for painting her house?

You will probably receive the price you agreed on, less the amount it will take for her to have the painting finished.

Don and Kim have entered into a contract for the purchase of a car. Don has paid money for the car, but Kim has not yet delivered it. This is an:

executory contract.

If two parties have an on-going oral agreement that that one will ship and the other will accept 50 pounds of produce each week unless the buyer informs the seller one week before not to ship the next order, then the buyer's failure to speak up and tell the shipper not to send the produce:

qualifies as acceptance of that week's delivery offer.

If the terms of an agreement seem to be very one-sided, which public policy could it be violating? Choose 2 answer choices

1. Restraint of Trade 2. Substantive Unconscionability

Melissa felt pressured into signing a contract that released her employer from any liability if she is injured on the job. What prohibited behavior under public policy could this be?

Exculpatory Clause

What must a party show to win a substantial performance lawsuit? Choose 2 answer choices.

1. He or she acted in good faith. 2. The breach was not intentional.

Samuel has mental competency issues. Samuel entered into a contract with Beth, but now Samuel is petitioning the court to terminate the contract. What options does the court have in ruling in the case? Choose 2 answer choices.

1. The contract is void if Samuel has been previously determined to be mentally incompetent. 2. The contract is voidable if Samuel was incompetent at the time the contract was formed.

Which statement is true about the ability of minors to enter into contracts?

A minor may enter into any contract an adult can, except for contracts that are expressly prohibited for minors.

You haven't used your professional camera in a while, so you offer to sell it to your friend who just started photography classes at the local college. Later in the day, you start having second thoughts. You call your friend and tell her that you changed your mind, and the camera is not for sale after all. What do you think would happen if your friend tried to enforce your offer and make you sell her the camera?

Your friend cannot force you to sell her the camera because you let her know you changed your mind before she accepted the offer.

A creditor on a liquidated debt of $1 million may agree to take which of the following from the debtor in satisfaction of that debt? (Choose 2 answers.)

1. a horse in exchange for the $1 million that is due 2. 100 cents on the dollar

When may a contract be modified?

at any time, if the parties are in agreement

What types of contracts violate public policy? Choose 3 answers.

1. conducting trade with a country that is an enemy to the United States 2. a candidate for public office paying his competitor to retire 3. employment contracts that forbid membership in a union

What is the term for the legal ability to enter into a binding contract?

contractual capacity

When ambiguity in a contract's language exists, a court will: (Select all that apply)

interpret the terms against the drafting party

What type of acceptance requires an affirmative action for the offeree to accept that offer?

Unilateral contracts

When might a contract made by a mentally incompetent person be enforceable?

The incompetent person was lucid at the time the contract was made.

What is the term for a contract agreement in which an offeror promises to pay after the occurrence of a specified act, and the offeree is not required to respond in words?

unilateral contract

What elements are required for courts to apply the doctrine of promissory estoppel? Choose 3 answers.

1. Enforcement of the promise is necessary to avoid injustice to the promisee. 2. There was a detrimental result from reliance on the promise. 3. The promise must be definite and relied upon.

Which of the following words, if added to an offer, will cause the offer to fail for definiteness? (Select two)

1. In the future, as in "I will sell you my boat sometime in the future for $1000" 2. Might, as in "I might want to sell you my boat for $1000"

What function does a severability clause serve? Choose 2 answers.

1. It preserves the rest of the contract if one part is unenforceable. 2. It specifies what will happen with a potentially unenforceable part of a contract.

Lilly hired Harris Lawn Service to cut her grass one summer, and paid through automatic charges to her credit card. After taking three months off for winter weather, Harris staff cut Lilly's grass for four weeks in a row before charging the fees on Lilly's credit card. Lilly protested the charges, stating she did not hire the company to cut grass for the second summer. Harris sues Lilly. What law applies? Choose 2 answer choices.

1. Lilly's silence is acceptance because the offeree accepted the benefit offered. 2. Lilly's silence is acceptance because of the parties' past dealings.

What is the difference between commercial impracticability and frustration of purpose? Choose 2 answer choices.

1. One focuses on the challenges in performing the contract. 2. One focuses on the reasons why the parties entered into the contract.

What factors are used to judge if consideration is adequate to ensure a fair bargain? Choose 2 answers.

1. Promises must be made with voluntary consent. 2. Promises exchanged may not be a preexisting duty.

In general, certain terms must be included in contracts to satisfy the requirement of definiteness. What are the exceptions to this rule? Choose 2 answer choices.

1. Sales contracts under the UCC 2. Courts can complete a contract to supply some missing items.

What is the evaluation standard for a personal satisfaction contract? Choose 2 answer choices.

1. Subjective personal taste 2. Objective, reasonable person standard

What factors make an agreement enforceable under the principle of quasi-contract? Choose 2 answers.

1. The enriched party knows about the benefit and keeps it. 2. One party is being enriched at the expense of the other.

What factors may overturn a minor's right to disaffirm a contract? Choose 3 answers.

1. The minor ratifies the contract after reaching the age of majority. 2. The minor misrepresented the minor's age while engaging in business as an adult. 3. The contract is for necessaries.

How may an offer be terminated? Choose 3 answers.

1. The offeree may make a counteroffer. 2. A reasonable amount of time has passed. 3. An offeror may terminate an offer by revocation.

How can the legal concepts of accord and satisfaction apply to negotiable instruments? Choose 2 answer choices.

1. The parties can agree to discharge the instrument for less than the stated amount. 2. The UCC provides debtors a way to prove accord and satisfaction.

What elements are required for an offer to be effective under the common law? Choose 3 answers.

1. The terms of the offer must be reasonably definite so that all parties understand them. 2. The offer must be communicated to the offeree. 3. The offeror must intend to be bound by the offer.

In what situation could a party enforce strict performance?

1. When the requirement is reasonable 2. When the parties specifically agree to it in the contract

In what situations would a court be likely to award a quasi-contract? Choose 2 answer choices.

1. When the unjust enrichment is a relatively insignificant amount of money 2. If the defendant was unjustly enriched and played a part in deceiving the plaintiff

What is the standard to which most personal satisfaction contracts must adhere? Choose 2 answers.

1. satisfaction of a reasonable person 2. satisfaction of the receiving party (buyer)

What factors may cause a person to lack contractual capacity? Choose 3 answers.

1. severe intoxication 2. being under the age of majority (usually 18) 3. mental incompetence

What are the elements of consideration? Choose 2 answer choices.

1. something of value from each party 2. an exchange to which the parties agree

Quon and Bert have signed a contract for Bert to mow Quon's grass every week in June, July, and August for a price of $40 per week. They have agreed to all the necessary terms, but Bert has not yet mowed because it is still May. What type of contract do they have?

executory

In January, Victor contracted with Delrita to cater a Cinco de Mayo (May 5th raised to the th power) party for 500 of his closest friends. Neither of them anticipated that their entire state would be under stay-at-home orders on May 5 due to a global pandemic. Under what principle may Victor cancel his contract with Delrita?

frustration of purpose

In a unilateral contract:

substantially undertaking performance prevents the offeror from revoking the offer.

In an auction, the bidder is:

the offeror.

What does the law require for a personal service contract?

The personal service requirement must be stated.

In a bilateral contract, the consideration which supports the forming of the contract is:

a promise to perform.

Which type of lack of capacity is easiest to prove?

Minor status

An agreement will lack consideration if:

a person makes a promise in return for an act which has already taken place.

Jayden is restoring a house for Jane when Hurricane Emma hits and washes out the foundations of the house. The cost for restoration has just increased by 400%. Under what principle may Jayden's obligations be excused?

commercial impracticality

A contract for a purpose that causes the parties to violate a law is:

illegal and void.

Sal has ordered 100 pounds of shrimp for his restaurant from Sam every Friday for 5 years and has always paid that week's market price. One Friday, Sal decides to take a vacation but doesn't tell Sam. Sam claims they have a contract, even though it was never written down. What kind of contract do they have?

implied-in-fact

If an individual shopping for groceries opens a bottle of water from their cart and drinks it before they have paid for their items:

a quasi-contract has been created.

What is the difference between a material breach and an immaterial breach?

A material breach results in damages to the non-breaching party, while an immaterial breach is minor.

In general, which of these contract terms is NOT required to meet the requirement of definiteness?

Acceptance

Your friend meets you for coffee one day driving a brand new motor scooter. You immediately fall in love with it and offer them $2,000 for it. Your friend politely declines and states they paid $3,000 but goes on to say "I may sell you my scooter, if you pay $2,700." If your friend later refuses to go through on the deal, can you hold them liable for breach of contract?

No, because there was never any consideration.

You decide to get a credit card in order to begin building your credit history. It is your first credit card and when you receive the agreement with the credit card company filled with legally complex boilerplate language, you sign it knowing that if you do not, you will not be able to get the card. Buried deep within the terms, however, a discrepancy existed that the credit card company never caught before sending the agreement to customers. One section allowed for the credit card company to raise interest rates as long as it provided users a 30 day notice, but another section stated that interest rates could only be changed once per year. The company has increased your interest rate four times already this year and you decide you have had enough and take them to court. In whose favor will the court interpret the terms of the contract?

The court will interpret it in your favor because you did not draft the agreement.

What must a plaintiff show to be awarded a quasi-contract in a lawsuit?

The defendant was unjustly enriched.

If unforeseen difficulties arise during the performance of a contract, may the parties change the terms of the contract without giving additional consideration?

Yes, if the modification is fair and equitable.