BLAW Test 3
Under which of the following is a new party brought into an existing contract
Novation
Where a contract calls for action that violates a [not readable]:
Order the parties to change the terms of the contract such that it becomes legal
In general who can effectively accept an offer for a unilateral contract?
Any person who performs the action requested in the offer, so long as the offer had been communicated to that person prior to the performance of the act.
The one-year period for determining whether a contract is required to be
The contract is formed until its stated completed date.
The one-year period for determining whether a contract is required to be in writing under the writing under the Statute for Frauds is measured from the date that:
The contract is formed until its stated completion date. If it will take longer than one year, it must be in writing.
Anita offered to sell her condo to Bill. Before Bill could accept, one of the parties was killed in a car accident. The remaining party wishes to go through with the contract. Which of the following best describes the situation?
The death of either party terminated the offer.
Pat Painter contracts to paint Harry Homer's home for $6000. Pat would supply all materials at a cost of $1000. Harry breaches his contact to paint the house, which Pat found out before spending any money on the materials. Pat's able to find another job that nets a profit of $4, 200 during that same time that Harry's home was to be painted. How much can Pat recover from Harry in damages?
$5,000.
Specific performance is generally awarded:
Where the contract involves the sale of any land
Specific performance is generally awarded:
Where the contract involves the sale of property that is unique.
The objective theory of contracts is based on the premise that:
Whether the intent is present is based on how a reasonable person would view the parties' actions and is not based on the actual intentions of the parties.
A offers to install carpeting for B for $2500 and orally tells B that his offer is good for 10 days. After 5 days A tells B that he made a mistake and is revoking his offer. Under these circumstances:
A can revoke
Otto approaches Edie and says, "If you pick up my new suit for me at the mall tomorrow, I'll pay you $20." Edit replies, "I don't know if I'll have time to get it, but I'll see if I get a chance." As a result of this conversation:
A contract will be formed only if Edie picks up the suit.
Which of the following is not true?
A minor must pay the agreed-upon price on a contract for necessaries.
Where two parties contract for the purchase and sale of an ordinary item, such as a desk, that unknown to both parties is a rare and valuable example of that item, this is:
A mistake of value, but not a mistake of fact.
The release of one party to a contract and the substitution of another party for the released party is called:
A novation
The release of one party to a contract and the substitution of another party for the released party is called:
A novation.
Undue influence is characterized by one party being put at a disadvantage in a contract due to:
A party taking advantage of a fiduciary or confidential relationship
Which statement is false concerning contracts lacking consideration?
A present promise to pay a friend who helped you move last week is sufficient consideration to form a contract
Which of the following is true about the Uniform Commercial Code and the common law of contracts?
A primary purpose of the Uniform Commercial Code is to eliminate, in contracts for the sale of goods, the differences from state to state that exist under the common law of contracts.
Which of the following best describes duress?
A situation where a party has unfairly coerced the other party into entering into a contract.
Assuming that there are legitimate grounds for any of the following lawsuit/actions, the threat to bring which lawsuit(s)/action would constitute possible grounds for duress?
A threat to have someone arrested and prosecuted if they don't accept the offer
Which of the following is true concerning the writing required by the Statute of Frauds?
A) Any writing including sales receipts and handwritten agreements on scraps of paper are sufficient. B) A written contracts may be enforceable against one party but not the other. C) The written contract does not have to be drafted by a lawyer or typed. (A, B, and C)
According to the text which of the following are necessary to meet the requirements of a definite offer?
A) Consideration to be paid. B) Identification of the parties, subject matter, and quantity. C) Time of performance. A, B, AND C
Which of the following would terminate an offer?
A) Rejection by the offeree. B) Counteroffer by the offeree. C) Revocation by the offeror. A, B, and C
2. Assume that one party substantially, but not completely, performs a contract. Creating a minor breach. Which of the following remedies may the aggrieved party choose?
A) Sue the breaching party for the cost to complete performance. B) Deduct the cost necessary to complete performance from the payment due to the breaching party. (Both A and B)
1. Lori just purchased a brand new lawnmower for $500. When she got home and tried to use it, it would not work. She became angry and stated; "I'd sell this thing for $50." Her neighbor heard her and said, "I'll take it," and offered Lori the $50. Which of the following best describes this situation?
A) There is no contract because there was no offer.
Under a mutual rescission, the parties to a contract
Agree to undo and cancel a contract.
Under a mutual rescission, the parties to a contract:
Agree to undo and cancel a contract.
To create a valid enforceable contract, which of the following is (are) needed?
Agreement, consideration, capacity, lawful purpose and observation of any formalities required by law
Alice has a contract with a surgeon to have a medical procedure performed on July 17. The surgeon notifies Alice on July 5 that he is in the Bahamas and will be there until the end of August and will not be able to do the surgery. Which of the following is true at this point?
Alice is free to contract with another surgeon
In order to be enforceable, a covenant not to compete must be reasonable in each of the following aspects except:
Amount paid to the one who gives up the right to compete
Jana and Annie enter into a written agreement whereby Jana promises to sell and Annie promises to buy a certain parcel of land for $5,000. There is adequate consideration, the contract is legal and both parties have contractual capacity. The contract is fully performed by both parties on Jan. 1. Which of the following best describes this contract?
Bilateral, express, executed, valid.
To meet the contractual requirement, consideration must be:
Bargained-for and involve a legal benefit or detriment to each party.
Sid is a 15-year-old sophomore at East High School. He purchases a computer at a local store for a computer class, but wants to return it after using it for a couple of weeks because his classmates have nice computers than he wants to get one of the better models. Sid can:
Be required to return the computer whether he wants to or not because minor cannot enter into contracts.
For Statute of Frauds purposes, which of the following does not fall under the statute of frauds?
C. Life insurance premiums D. A sale of a washing machine for $499 Both C and D
Bonnette pulls her car into a line for a car wash. She says nothing and her car is washed by the employees there. She then refuses to pay for the car wash, stating that there is no contract. What results in a lawsuit over this situation?
Car wash wins; this is an implied in fact, unilateral contract that has been accepted
Liquidated damages are those that is/are
Certain or fixed because the parties agreed to them in advance
Generally, which of the following will not automatically terminate an open offer?
Changed economic circumstances
Which of the following types of damages could generally be simultaneously recovered in the same breach of contract action?
Compensatory and consequential.
"Benefit of the bargain" is another way to refer to which type of damages?
Compensatory damages
Damages that arise, "outside of the contract" and that are foreseeable such as a loss of future profit are known as:
Consequential damages
Which of the following damages must be foreseeable in order to be collected?
Consequential.
Which of the following is correct about contracts entered into by an insane person?
Contracts entered into by persons adjudicated insane are void, and those entered into by nonadjudicated insane persons are voidable.
An unconditional promise to perform is known as a:
Covenant
An unconditional promise to perform is known as an:
Covenant.
A force majeure clause:
Excuses performance in the event of a natural disaster
A force majeure clause:
Excuses performance in the event of a natural disaster.
Over time, most contracts are:
Executory at one time and executed at another time
Mike and Ike agreed orally that Mike would tutor Ike in geology for $10 per hour for three hours. After Mike has done three hours of tutoring but before Ike pays him next week, this contact is:
Executory.
You and Gary enter an agreement whereby you will receive $5,000 if you tamper with a slot machine in the El Dorado Casino in Bossier City so that Gary can make it pay out a jackpot whenever he wants it to. You perform your part of the deal, but Gary doesn't pay. In your breach of contract suit against Gary, the court will:
Find you guilty of tampering with a gaming device (assuming it is illegal to do so).
Which of the following levels of intoxication would be most likely to permit the intoxicated person to rescind the contract upon regaining sobriety?
Frat druuuunk!
Villareal goes to the Cosmic Runners Supply Store in Funroe. The sales person shows him some funky shows and says, "Dude, in a race these shoes pick up the cosmic energy from the runners around you and channel it into your own legs. This causes anyone wearing these shoes to run twice as fast as in normal shoes and makes those around you run more slowly." In the next race, he does no better than usual, in fact finishing dead last, and those around him run as fast as usual. If he sues for FRAUD:
He would lose because the statement did not contain factual assertion
Kristin offers to sell land to Ian for $5,000. Ian says that $5,000 is too much but he will pay $4,000. Kristin says no. Two days later, Ian says that Kristin's original offer is acceptable. Which of the following best describes this situation at this precise time?
Ian's counteroffer of $4,000 terminated Kristin's original offer
Which of the following is true
If a contract can be performed, but doing so has become illegal, performance will be discharged on the basis of impossibility.
When a contract for the sale of goods is modified such that the total price due under the contract increases, under what circumstances must the agreement to modify be in writing?
If the new contract prices is $500 or more.
The term "lucid interval" applies to what area of contract law
Insanity
An agreement that is lacking consideration:
Is an unenforceable contract and thus cannot be performed.
When the other party commits an anticipatory breach, the nonbreaching party:
Is immediately discharged from her own duties and may immediately sue
Jack and Jill were discussing business over lunch when they agreed on the sale of some goods. Because neither of them had any paper with them, Jack wrote the following on a napkin: "Jill agrees to purchase from Jack, 1,000 widgets to be delivered on July 1, at a cost of $10,000, payable on delivery." Jill signed the napkin, although Jack did not sign it. Jack delivered the widgets per the contract, but Jill refuses to pay for them. If Jack sues Jill for the price of the goods, the most likely result is:
Jack will win because the writing is sufficient under the Statute of Frauds.
In general, the Statute of Frauds sets requirements for:
Kinds of contracts that must be in writing to be enforceable.
Damages that are fixed in the amount to be awarded in the event of a breach are known as:
Liquidated damages.
Mark was shopping for a car in February. He went to AutoMegaWorld in Miami and test-drove a new 2018 Tiger XL. Mark, a resident of Miami, had always wanted to have an air-conditioned car. So he specifically asked for air conditioning with the salesperson and Mark contracted to buy the car. When Marl was showing off his new car to his friends, one of them pointed out to him that the car was not air-conditioned. In this circumstance:
Mark can rescind the contract on the basis of the unilateral mistake made by the dealer if the court finds the mistake to be material.
Mark was shopping for a used car in February. He went to AutoMegaWorld and test-drove a used 2004 Tiger XL. While driving the car, he looked at the climate control center and noticed that the temperature level was marked "cold" at one end in blue and "hot" at the other end in red. Mark assumed that the "cold" marking meant that the car had air conditioning. Mark had always wanted to have an air-conditioned care. He did not discuss air conditioning in any way with the salesperson. Mark bought the car. When Mark was showing his new car off to friends, one of them pointed out to him that the car was not air-conditioned. In this circumstance:
Mark cannot avoid the contract on the basis of his unilateral mistake.
The requirement that the terms of the acceptance be the exact same as those of the offer is there:
Mirror image rule
Which is the most basic or common remedy available for the breach of a contract?
Monetary damages.
Which of the following is not an equitable remedy?
Monetary damages.
. Robert is a pastor at United Flock Church. One of the member of his congregation, Mrs. Smith, is a very devout believer. Robert convinces Mrs. Smith to sell him her farm for $5,000. The actual value of the farm is $500,000. Mrs. Smith dies and her estate sues to get her farm back. Which of the following best describes this situation?
Mrs. Smith is a competent adult and may dispose of her property in any way, and for any price she sees fit.
Jill asks Jack to her an estimate of the price of building a fence around her orchard, Jack inspects and measures Jill's apple orchard and gives Jill an estimate of $1,000. Jill agrees to the price and they sign a contract. Jill, however, had wanted a fence around her peach orchard, which is much larger than the apple orchard on which Jack based his estimate. Jack says he cannot build a fence around the peach orchard for $1,000, but Jill wants to hold Jack to the $1,000 for a fence around the peach orchard. If there is no way to determine which orchard was intended to be fenced, this is a likely case of:
Mutual mistake.
Usury laws are concerned with:
Mutual mistake.
What is the effect of one party being mistaken about the subject matter of a contract?
Neither party can rescind the contract or recover damages
The Louisiana legal term, "contra bonos mores" is the legal equivalent of what common law concept?
None of the above
John has opened a flower shop across the street from the site of a large shopping mall that is under construction. Most of John's business will come from shoppers at this mall. The contractor, however, breached its contract and the mall was 15 months late in opening. As a result, John incurred significant losses. John sued the contractor to recover the losses caused by the construction delay. IN these circumstances, John can:
Not recover because he is an incidental beneficiary.
Two friends, Ann and Mary, are having Margaritas at happy hour. There has been no discussion of who would pay for the drinks. After the third round of drinks, Ann said, "I will pay for everything tonight including your drinks." A couple of minutes later, Ann says, "I've changed my mind. I just remembered that they might be having layoffs at my job tomorrow." Mary wants to force Ann to perform on her promise and threatens to sue. In this circumstance a court would:
Not require Ann to follow through on the promise because it was a gratuitous promise.
In a guaranty arrangement, the guarantor:
Promises to pay the debt of another if that other person does not pay.
The doctrine that applies when one person confers a benefit on another who retains the benefit in a situation where it would be unjust to allow the recipient to retain the benefit without paying for it, is known as:
Quasi-contract
What does an offeree use to simply indicate that she is not interested in an offer?
Rejection.
Which of the following is true about rescission and restitution?
Rescission and restitution are designed to give the nonbreaching party the benefit of the bargain.
If a minor buys an item and then disaffirms the contract, and a court orders the minor to merely return the item in its present condition in order to get a refund, this minor has the duty of:
Restoration
What does the offeror use to terminate his offer that he has promised to hold open for a specified period of time (without receiving consideration):
Revocation
Article 2 of the UCC applies to what subject?
Sale of goods contracts
In order for someone to avoid a contract it must have been:
So great that he didn't comprehend the nature of the agreement he was entering into.
If a contract is not enforced on the basis of the Statute of Frauds, the court has based its decision on the presence of which type of fraud?
The decision could have been based on the presence of any of these three types of fraud. (Fraud in Inception, Fraud by Concealment, Fraud in the inducement)
If a judge rules that a party has lost its case because of the Statute of Frauds, the judge has essentially stated that:
The losing party cannot enforce an oral contract that should have been in writing.
If a judge rules that a party has lost its case because of the statute of Frauds, the judge has essentially stated that:
The losing party cannot enforce an oral contract that should have been in writing.
Under which of the following circumstances can the mistaken party rescind a contract when there is a unilateral mistake?
The nonmistaken party was aware of the mistaken party's belief.
Supervening illegality of the object of a contract occurs in which of the following circumstances?
The object of the contract was legal when the offer was made, but has subsequently become illegal.
If an offeree gives a rejection to the offeror, which of the following is true at that point?
The offeree has presently lost the ability to accept the original offer
The communication of an offer can be made by:
The offeror or an agent of the offeror
In a unilateral contract:
The offeror wants an act as acceptance of his offer
Which of the following does not need to be proven by a plaintiff who is claiming that an implied-in-fact contract exists?
The plaintiff and defendant communicated with each other about the property or services.
The following statements are true concerning the objective theory of contracts except:
The reasonable person standard is based on the subjective intent of the offeror when making the offer.
Which of the following is true?
The terms of a valid contract become private law between the parties.
There is an existing contract calling for Seller to deliver 1,000 widgets to Buyer. Buyer says to Seller, "I would like to buy 100 additional units at the same price." Seller responds, "We promise to sell you the 100 extra units if we decide not to sell them to other customers." Regarding only the sale of the extra 100 units:
There is no consideration due to an illusory promise.
Which of the following is generally true about exculpatory clauses?
They are not valid with respect to intentional acts.
Joanne goes to a garage sale where she finds jewelry for sale. She buys a [not readable] be costume jewelry for her daughter to play with. She pays $5 for it. Later, a friend of Joanne happens to see the jewlry and discovers that one piece consists of diamonds and is worth about $2,000. If the seller of the jewelry sought to rescind the contract, which of the following is true?
This is a case of mutual mistake in value; the contract cannot be rescinded.
Assume that a car owner contracts with a mechanic to have his engine overhauled. The mechanic mistakenly used original equipment quality piston rings in doing the overhaul, whereas the contract had called for the use of premium quality rings that are slightly better than original equipment quality.
This is a substantial performance, and the owner must still pay something to the mechanic.
Sarah agrees to paint John's house for $5,000. After Sarah finished the job, John complains that it was not done correctly. After much discussion, they agree that the contract will be satisfied if John gives Sarah $4,000 and a certain diamond necklace. Which of the following statements is true concerning this situation?
This is an accord; if John fails to perform, Sarah can sue to enforce either the original $5,000 or the $4,000 and the necklace.
One of the main reasons that contracts involving minors are voidable at the minor's option is:
To protect the minor from unscrupulous adults.
Robert is a lawyer at the Ruston law firm Dewey, Cheatham & Howe. One of his clients, Mrs. Smith, is a very trusting soul. Robert convinces Mrs. Smith to sell him her farm for $5,000. The actual value of the farm is $500,000. Mrs. Smith dies and her estate sues to get her farm back. Which of the following best describes this situation.
Unless Robert can prove that there was no undue influence, the contract can be rescinded.
An accord and satisfaction:
Usually arises in settlement of a dispute under the original contract.
An interdict in Louisiana enters into a contract. That contract is
Void
