Chapter 9

Express contracts and implied in fact contracts:

Are both genuine contracts are equally enforceable (both a&b)

Contracts that are implied in law:

Are obligations imposed by law on grounds of justice and equity are intended to prevent unjust enrichment do no rest upon ther assent of contracting parties (all of the above)

Morris interviewed for a job as plant manager at Northland Bearings and was offered a two-year contract if she could relocate and start the new job within three weeks. Morris agreed. Northland promised to follow up the oral agreement with a written contract setting forth all the agreed terms, but the contract had not arrived within several days. Morris wanted to give two-weeks' notice to her present employer, so she called Northland to check on the written contract and was told it was ready to be sent to her and assured her the job was hers. She gave notice of her intention to quit her present job and moved two states away to the Northland location. When Morris arrived for her first day of work, she was told someone else with better qualifications had been found and hired for the position. Morris:

Cannot enforce the contract since she had not actually started working at northland

A __________ is an obligation imposed by law to avoid injustice.

Contract implied in law & Quasi contract

Hal promises not to foreclose on a mortgage that he holds on an office complex that Christopher owns. In reliance on this promise, Christopher spends $200,000 to remodel the complex. Which of the following is correct with regard to Hal's promise?

Hals promise not to foreclose is unsupported by consideration Hals promise is noncontractual Hals promise may be enforced against him based upon the doctrine of promissory estoppel (all of the above)

Remedies for breach of contract include all but which of the following?

Punitive damages

Brian makes a material misrepresentation of fact regarding his horse to Rosalind while out riding one day. Later that day, Rosalind makes an offer to buy the horse which Brian accepts, without correcting his earlier misrepresentation of fact.

Rosalind may avoid the contract

According to the UCC, an enforceable agreement involving the transfer of title of goods from a seller to a buyer for a price is called a(n):

Sales

Contract law is significant in that it is basic to other fields of law such as:

Sales of personal property Commerical paper Secured Transaction (all of the above)

Promissory estoppel is a contractual doctrine that includes which of the following considerations

The courts use the doctrine of promissory estoppel to enforce noncontractual promises

James offers to sell his fishing boat to Brenda for $3,000. Brenda says she will apply for a loan and will buy the boat within a week. A contract is formed:

When Brenda tells james she will buy the boat

Vi offers to pay Allison $150 if Allison will paint her apartment while she is out of town on vacation for two weeks. Allison makes no promise but tells Vi that she will think about it. While Vi is out of town, Allison paints the apartment. This is best described as:

a unilateral contract

George has been declared incompetent by the court and is under the care of his sister. Unknown to his sister, George rents the 30,000-seat civic center for his birthday party. George's contract to rent the civic center is best described as

a void contract

Which of the following is not an element necessary for recovery in quasi contract?

an implied or express promise

The concept of consideration in contract law includes:

an inducement to each party to make a return exchange

A contract in which both parties exchange promises is a:

bilateral contract

The requirement that each party to a contract must intentionally exchange something of value as an inducement to the other party to make a return exchange is known as:

consideration

The Uniform Commercial Code does not apply to:

employment contracts service contracts insurance contracts Contracts involving real property (all of the above)

A(n) __________ contract is one in which the terms have been definitely and specifically stated and agreed upon.

express

Anna by mistake delivers to Bob a plain, unaddressed envelope containing $50 intended for Cora. Bob:

has a quasi-contractual obligation to return the money

The doctrine promissory estoppel

is a doctrine enforcing non contractual promises includes as a requirment within the doctrine that there has been justifiable reeliance on the promise a doctrine relying o justice and not contractual rights

__________ is/are any property other than an interest in real property.

personal property

A person who makes a promise is a(n):

promise

The court in the Weichert Co. Realtors v. Ryan case held that the performing party was entitled to recoup the reasonable value of the services rendered under:

quantum meruit

An obligation imposed by law where there has been no agreement or expression of assent by word or act on the part of either party involved is a(n):

quasi contract

Caroline signs a contract to work as a sales rep for Incellmed Corporation for a period of two years. This contract is governed by:

state common laws

Quasi contracts are used to provide a remedy when the parties enter into a(n):

void contract

Steven makes a material misrepresentation of fact regarding his motorcycle to Thelma who agrees to buy the motorcycle based upon the misrepresentation. This contract is:

voidable

Able is involved in an automobile accident and is injured. While he is unconscious, the police call an ambulance which takes him to a hospital. Able is treated at the hospital and released a day later. The hospital sends him a bill for $6,500, which Able refuses to pay, claiming it is too high and he never consented to the treatment because he was unconscious. Able:

will have to pay the bill, because this a a quasi-contractual agreement

Which of the following is NOT always necessary in order for a valid contract to be formed?

A writing

Samuel Tate enters into a contract with Bill Smith under the terms of which Smith is to pay Tate $7,000 and Tate is to build a garage, repair a boat, and build a doghouse. If the doghouse has not yet been built, which term describes the type of contract in existence?

Executory Contract

Which of the following is not generally required in order to have a valid contract?

Fairness of bargain

Which of the following contracts is covered by Article 2 of the Uniform Commercial Code?

The sale of a new car

Stan sends for a law school catalog from Ivory Towers University. According to the catalog, the law school applications are evaluated on the basis of undergraduate grades, standardized test scores, and references. Stan, who is a straight-A student, has high test scores and excellent references, applies and pays the $100 application fee. His application is rejected. Later he finds out that others with low grades and test scores were accepted based on their family connections and donations made to the University. If Stan followed all of the guidelines in the college catalog and paid the required application fee, then according to the court in Steinberg v. Chicago Medical School:

There is a valid contract; the school bound itself to honor the obligations set forth in college trainning

In addition to the four basic requirements of a contract , which of the following must also occur in order to have a valid contract?

There must be an absence of invalidating conduct , such as duress