Legal studies exam 2

Which type of misrepresentation exists when the party making the statement would have known the truth about the fact had it used reasonable care to discover it?

Negligent misrepresentation

First element of a valid contract is the agreement

TRUE

In which of the following instances can injustice be avoided by carrying out the promise?

Promissory estoppel.

Quasi

not a contract

Voidable Contract

1 or both parties are able to get out

What is the age of majority in most states?

18

Which Article of the UCC governs contracts for the sale of goods?

2

Which of the following is true of a mutual mistake?

A contract entered into based on mutual mistake can be rescinded by either party.

Void Contract

A contract having no legal force or binding effect.

Promising to stop smoking for a week is an example of what type of consideration?

A promise to refrain from doing something.

adhesion contract

A standard-form contract in which the stronger party dictates the terms.

Which of the following is an exception to the preexisting duty rule?

Additional work.

What are the two primary sources of contract law?

Case law and the UCC.

Which of the following is not a condition of promissory estoppel?

Consideration must clearly exist.

Hamer v Sidway

Court: State, New York Plaintiff: Louisa Hammer Defendant: Sidway facts: money between uncle and nephew

On the streets of New York, a man sells you a pocket watch for $20. He says all the watch needs is a new battery and it will be just like new and work perfectly. You buy a new battery for the watch, but the watch still does not work. The man selling the watch knew that the watch would not work, even with a new battery, but he told you it would anyway. The above scenario is an example of what?

Fraudulent misrepresentation

Which of the following elements is not necessarily required for a legally binding contract?

Money is exchanged

Frank works as a cellphone salesman. He has worked at the same company for the past two years, and one day his boss approaches him with good news. He says because Frank has sold so many phones lately, he is going to give Frank a $500 bonus. Three weeks later, Frank has still not received the bonus. Can Frank sue his boss to enforce the promise?

No, this is an example of past consideration.

Discharge of Contract

Performance, material breach, mutual agreement, operation of law

Exceptions to SOF

Portion of sales price Improvements or possesion Contract between merchants customized goods

A door-to-door hearing aid salesman specifically targets elderly clients. When the clients ask questions about the contract, the salesman is not truthful with them entirely. The answers to their questions are usually found on the tiny, hard-to-read print on the very back of the long contract the clients must sign. The salesman knows that his clients have poor vision and hearing, and uses this to his advantage in his sales techniques and with the small contractual terms. The scenario above is a possible example of which type of agreement?

Procedural unconscionability

Hillary and Dillon enter into a contract whereby Hillary, seventeen (17) years old, purchases a computer and printer from Dillon. Dillon agrees to finance the contract and allows Hillary to pay $100 per month. When Hillary turns eighteen (18) years old, what must she do to ratify the contract?

She can ratify the contract by continuing to pay $100 per month with no other requirement.

A unilateral contract may be rescinded if:

The mistake was caused by a clerical error that did not result from gross negligence.

Which one of the following conditions does not generally exist for a mutual mistake to interfere with legal consent?

The mutual mistake is a mistake of value.

Which of the following in not generally an obstacle to genuine assent in a contract?

Unilateral mistake

This type of contract is not a contract because either its object is illegal or it has a serious defect.

Void contract

4 elements of a contract

agreement, consideration, capacity, legality

Bob's promise to paint Mary's house if he has time is an illustration of:

an illusory promise

A substantive unconscionable contract contains conditions that:

are one-sided.

For a court to enforce a promise, who must offer consideration?

both sides

Unilateral Contract with one mistake

contract is still binding

Quasi Contract

court imposted obligation, implied in law, not actually contracts

Once all the terms of the contract have been fully performed, the contract has been _________. As long as some of the terms have not yet been performed, the contract is ________.

executed; executory

What type of ratification occurs when a person states that they intend to be bound by a contract entered into as a minor?

express

1.Bill wants to sell his old stereo. To sweeten the deal, he tells the buyer "it's practically new." But, he knows its 5 years old with problems.

fradulent

The mirror-image rule says that the terms of the acceptance must mirror _________.

he terms of the offer

Suppose Markus offers to sell Zara his surfboard for $200. Zara responds, "I'll look at it on the weekend, and if I like it, I'll pay you." At this point, Zara has not committed to doing anything. The law considers this a(n) ________________.

illusory promise

1.Nick buys a car from Greg. Nick does not know that Greg turned back the odometer. Nick sells the car to Jake who learns about the actual mileage. Nick's representation was what type?

innocent

An offer immediately terminates in all of the following situations, except:

manifestation of intent to be bound.

A misrepresentation is an untruthful assertion by one of the parties about a __________.

material fact

Technically, minors can disaffirm contracts for necessaries, but they will still be held liable for the reasonable value of the necessary. Which of the following is generally an example of a necessary?

medical services, shelter, clothing, food

limited capacity

minors, incapaciated, intoxicated

Sufficiency of the Writing

name of parties subject matter consideration essential terms signature of parties

The effect of both _____________ and ____________ is that the victim can either rescind the contract or keep the contract and sue for damages.

negligent misrepresentation; fraudulent misrepresentation

If a contract is deemed unenforceable, what remedy is available to the parties?

none

Under an adhesion contract, negotiations are:

nonexistent.

Unilateral Contract

promise for performance, binding, upon completiton of performance

Which of the following is not an element of a contract?

proper form

How often to courts weigh whether or not you made a good bargain?

seldom

Promissory Estoppel

the legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract

Consideration must be __________.

the product of a bargained for exchange

unenforceable

think legal

A voidable contract may be rescinded.

true

If the subject matter of the offer is destroyed or becomes illegal, the offer immediately terminates.

true

Jane is Harriet's caregiver. If Jane convinces Harriet to change her will and leave Jane all of her possessions, the will may be voidable due to __________.

undue influence

promise to pay $50 act for something

unilateral

After a football game, Tyler and Austin want to enter into a contract together. Tyler is completely sober, but he knows Austin is very intoxicated and is so impaired that he is unable to understand the terms of the contract. If they enter into a contract, the contract would be ________.

voidable

If one or both parties have the ability to either withdraw from the contract or enforce it, the contract is said to be:

voidable

Because their contracts are _____, minors have the right, until a reasonable time after reaching the age of majority, to _____, or avoid, their contracts.

voidable; disaffirm