Ch 5 Quiz BULL3310

Which of the following is an illusory promise?

"I will go with you to the donkey basketball game if I can't think of anything better to do."

Which of the following is not an element of promissory estoppel? - There must be an underlying enforceable bilateral contract. - The promissor must foresee that the promissee would rely on the promise. - The promissee did in fact reasonably rely on the promise. - All of the above are elements of promissory estoppel.

- There must be an underlying enforceable bilateral contract.

Consideration in a bilateral contract always involves both

A legal benefit and a legal detriment

Mutuality of consideration is a requirement for a n_________________.

Bilateral contract

Vivian offered to buy Ben's violin for $2,000 and Ben accepted. Three days later Vivian gave Ben $2,000 in cash and Ben gave Vivian possession of the violin. Which of the following sets of terms best describes the contract between Vivian and Ben?

Bilateral, express, valid and executed

Brenda was the lead detective assigned to investigate the murder of a prominent local businessman. A local civic group offered a 10,000 reward to anyone who provided information leading to the arrest and conviction of the murderer. The murderer was found, tried, and convicted largely due to Brenda's efforts. Can Brenda collect the reward?

No, Brenda had a preexisting contractual duty to find and try to convict the murderer.

Kelly received a cookbook in the mail that she had not ordered. The packing slip read: " Return this book to the publisher within 14 days or send a check for 35 to the address below." Kelly did not return the book within the 14 days and she has not sent the money as requested. Is Kelly required to pay for the cookbook?

No, federal law allows Kelly to treat the unsolicited book as a gift, and she may do whatever she wants with it.

In an accord and satisfaction, the satisfaction is

The performance of the action called for in the substitute agreement.

A court will order the remedy of specific performance only if

The subject matter of the contract is unique and the innocent party cannot be made whole with money damages.

In an accord and satisfaction, the accord is

The substitute agreement

Which of the following is a requirement for a valid contract? - Offer and acceptance - Consideration - Legal capacity of the parties - All of the above are elements of a valid contract.

all of the above are elements of a valid contract

In which of the following circumstances would the remedy of rescission be used? - One party to the contract is a minor who wishes to disaffirm the contract. - The contract was based on fraud - The contract was based on a mistake by the parties - All of the above are grounds for rescission.

all of the above are grounds for rescission

Which of the following statements is true about modifying contracts governed by the Code? - No new consideration is required to modify an existing contract. - Modifications must be made in good faith - Parties may agree that all modifications to an existing contract must be in writing. - All of the above are true statements.

all of the above are true statements

Bob promised to pave Sue's driveway and Sue promised to pay him $5000 when the work was completed. The contract between Bob and Sue is a __________________contract.

bilateral

Ellen has a contract with Sue to buy her riding lawn mower for 200. Ellen has given Sue 200 in cash, and Sue has given Ellen possession of the mower. What is the status of this contract between Sue and Ellen?

executed

An accord and satisfaction can be used to settle both liquidated and non-liquidated debts.

false

Contracts in which both sides have completely performed their duties are executory.

false

During a violent storm, Nelson saved Reggie's boat from being destroyed. Reggie was so grateful that he promised to give Nelson $100. Reggie's promise is unenforceable because it is based on moral obligation.

false

Giving up a legal right is adequate consideration for a contract governed by the Uniform Commercial Code, but not for contracts under common law.

false

In a bilateral contract, each party must gain a legal benefit, but only one party need incur a legal detriment.

false

Legal detriments always entail economic losses.

false

Lost profits cannot be used in calculating damages because profits are always uncertain and speculative.

false

Nominal consideration is another term for sham consideration.

false

Promissory estoppel is the contract doctrine that requires that accords be in writing.

false

Quantum meruit refers to the compensation owed a party under an express contract.

false

Sham consideration is sufficient for a unilateral contract, but not for a bilateral contract.

false

Since it is up to the parties to determine the dollar amount in a liquidated damages clause, courts will enforce any amount called for in the contract.

false

The Uniform Commercial Code governs the sale of all commercial services and goods.

false

The Uniform Commercial Code requires that any modification to a contract for the sale of goods must be supported by new consideration.

false

The purpose of compensatory damages is to punish the breaching party.

false

The winning party in a breach of contract case is normally entitled to attorney's fees, witness fees and filing costs.

false

Under modern contract law, a contract must be executed under seal to be enforceable.

false

Plaintiff sued a National Football League team, alleging that she had been sexually assaulted by several team members in a hotel room after a game. Team offered the plaintiff a cash settlement in exchange for two promises: (1) plaintiff would never discuss publically the suit or the terms of the settlement; and (2) plaintiff would never again sue the team or the individual players on any claim connected with the incident. Agreeing not to exercise these legal rights constitutes ___________________.

forbearance

Customer ordered fried chicken strips at the drive-in window of Famous Burger. One of the "strips" turned out to be an entire chicken head, battered and deep fried. Famous Burger tested the head and found that it was, indeed, cooked in their batter and in their oil. Pictures of Customer with the fried head showed up in newspapers and on the Internet. Famous Burger offered Customer a cash settlement in exchange for Customer's promises not divulge the amount of the settlement, sue Famous Burger over the incident, or ever speak of it in public again. Agreeing not to exercise these three rights in exchange for the settlement is an example of ____________________.

forebearance

Betty Buyer discovers that the pin she bought from Sally Seller is not a ruby as Sally had claimed. She believes that Sally's misrepresentation was innocent, but she wants to get her money back. In order to get her money back, Betty will have to return the pin to Sally. This is the duty of

restitution

If the seller of a parcel of real property breaches and refuses to sell, the best legal remedy for the buyer who wants this particular piece of property is

specific performance

June was hired to be the store manager of Big Kahuna Surf Shop in Ocean City. The law governing this employment contract is

state common law

The Garcia family hired Home Improvements, Inc., a local construction company, to put an addition on their home. What type of law governs the contract between the Garcia's and Home Improvement?

state common law

A party who seeks to rescind a contract must notify the other party in a timely fashion.

true

A renunciation is a written waiver of a right arising out of a contract.

true

Cal Contractor did extensive work renovating Hailey Homeowner's kitchen. The construction work has been completely finished, but Hailey has not yet paid Cal. This is an example of a partially executed contract.

true

Courts generally cannot order specific performance when the contract is for personal services because of the Thirteenth Amendment.

true

Courts may look into the adequacy of consideration if there is evidence of fraud or undue influence by one of the parties.

true

Failure to rescind a contract within a reasonable time amounts to an affirmation of the contract.

true

For promissory estoppel to be granted as a remedy, the promisor must have known or expected that the promisee would rely on the promise.

true

General damages are also called compensatory damages.

true

Giving up the right to do something that one is legally entitled to do can serve as consideration in a contract.

true

Grace has a valid contract with Al to buy a desk once owned by James Madison. Al now refuses to go through with the sale. Because the item is unique, Grace can seek a decree of specific performance to enforce the contract.

true

In bilateral contracts, both parties must be bound to the contract or neither party is bound.

true

One method for proving that a contract has been rescinded is to tear up the contract

true

Parties to a contract may not offer as consideration promises to do what they are already legally required to do.

true

The Uniform Commercial Code governs contracts for the sale of goods.

true

The amount of damages sustained in a breach of contract case is a question of fact to be presented to the jury.

true

Under the Code, parties may agree to modify the terms of an existing contract without providing new consideration.

true

Under the Uniform Commercial Code, provisions in a contract will not be enforced if they are so one-sided and unfair that the provisions are unconscionable.

true

Under the common law, modifications to existing contracts required new consideration from each party.

true

Mary left her iPad at a local restaurant and offered a reward for its return. Mary made an offer to form a (n) _________________contract.

unilateral

Typically in construction contracts there will be a provision awarding damages to the buyer at "X" amount of dollars per day for each day the builder is late in completing the work. The parties to the contract agree upon this amount in advance because they know the buyer will incur added costs, or will lose profits, because of the delay. What type of damages are these contractually fixed payments?

liquidated

Plaintiff's duty to take steps to lessen the damages that result from a defendant's breach of contract is the duty to ______________.

mitigate

Under common law, modifications to existing contracts require ___________to be enforceable.

new consideration

The award of a very small amount of money, such as 1, acknowledges that a wrong has been done, even though there were no monetary losses. This award represents what type of damages?

nominal **haven't checked yet but it is not PUNITIVE*

The person to whom an offer to form a contract is made is called the___________.

offeree

Under which of the following is a contract voidable?

one of the parties has the option to set aside the contract

Bay Crab Processor has a contract with Jim, a local crabber, to buy all the crabs Jim catches during the season for 35 per bushel. This is an example of a(n) ___________contract.

output

National Chip Company has contracts with numerous farmers in which it agrees to buy all the potatoes the farmers harvest and the farmers agree to sell their potatoes only to National Chip Company. The contracts between the farmers and National Chip Company are ________________contracts.

output

Detrimental reliance is another term for

promissory estoppel

Exemplary damages are also known as _________________ damages.

punitive

Big Oil Company has a contract with homeowner to deliver however much heating oil homeowner needs for the fall and winter seasons. This is an example of an __________________contract.

requirements

Betty Buyer discovers that the pin she bought from Sally Seller is not a ruby as Sally had claimed. She believes that Sally's misrepresentation was innocent, but she wants to get her money back. The contract remedy Betty should seek is

rescission

Which of the following is not a legal detriment?

A 20 year old who lives in a state where the drinking age is 21 promises not to drink alcohol.

Which of the following is an unliquidated debt?

A bill from a divorce lawyer for $8,000 that is past due, interest to run at 5%. Client is actively disputing the number of hours billed and other charges.

Which of the following is an example of an unliquidated debt?

A bill sent to homeowner by contractor for an additional 500 for cost overruns: owner claims he will pay only 250.

The purposes of nominal damages is to

Acknowledge that a right has been violated even though no monetary loss resulted

Cashing a check marked "paid in full" will create an accord and satisfaction only if

B & C - The debt is unliquidated - Both parties know that the amount of the debt is in dispute.

Nellie Neighbor made the following offer to two students who lived next door: "I will give you each 50 if you come to my house and move some furniture for me on Saturday." To accept this offer, what should the students do?

Go to Nellie's house on Saturday and move the furniture

Which of the following statements about quantum meruit is correct?

It is an equitable remedy to prevent unjust enrichment when there is no contract.

Which of the following statements about the Uniform Commercial Code is false?

The Code is only concerned that a contract reflect a freely bargained for exchange; it does not look to see if the contract provisions are one-sided or unconscionable.

Local Delivery Service had a one year contract with Supply Co. to make four deliveries a month to Supply's customers who live across the Bay. There is only one bridge spanning the Bay for 200 miles in each direction. Without warning, the state closed the bridge to all traffic for 10 months after an inspection revealed dangerous structural problems. Local now has to travel an extra 400 miles for each of the scheduled deliveries. Local asked Supply Co. for an additional 60 per trip above the contract price and Supply Co. agreed. Under common law, is this an enforceable contract?

Yes, the request is made in good faith for an unforeseen difficulty

Bay Crab Processor has a contract with Jim, a local crabber, to buy all the crabs Jim catches during the season for 35 per bushel. Which of the following actions would constitute a breach of the contract between Bay Crab and Jim? - Jim sells crabs to another buyer. - Jim buys crabs from other crabbers at 25 per bushel so that he can sell them to Bay Crab at the contract price of 35 per bushel. - Bay Crab buys crabs from another crabber. - a and b are both breaches

a and b are both breaches

Which of the following statements about nominal consideration is correct? - Giving your siblings a quitclaim deed for your 18 share in your family home for 1 is an example of nominal consideration. - Nominal consideration will support an enforceable contract. - Nominal consideration is another term for sham consideration. - a and b are true

a and b are true - Giving your siblings a quitclaim deed for your 18 share in your family home for 1 is an example of nominal consideration. - Nominal consideration will support an enforceable contract.

Another term for special damages is _______________ damages.

consequential

Bill Builder entered into a contract with Carl's Carpets to supply him with the carpeting he needed to complete the renovation of Famous Restaurant. When Carl did not deliver the carpeting on the contract date, Bill had to find similar carpeting from a different vendor for 5 a yard more than he would have paid to Carl. There was a time is of the essence clause in Bill's contract with Famous Restaurant. Bill was to lose 300day for each day after the contract date that he was late in finishing the renovation. The 300 day represented the profit Famous Restaurant would lose each day it was not in operation. Bill told Carl about this clause, impressing on Carl the need for him to deliver the carpet on time. Bill finished the renovation three days after the contract date. The delay was due solely to Carl's failure to deliver the carpet on time. Bill can recover the 900 he lost from Carl as ___________ damages.

consequential

Another term for promissory estoppel is

detrimental reliance