Business Law 3 - Review Questions & Business Law Test 3

If a promise is made without consideration, it can never be enforced. T/F

False

Settlement of Claims : Release

- A release is a contract in which one party forfeits the right to pursue a legal claim against the other party - Bars any further recovery beyond the terms stated in the release

Mode and Timeliness : Mailbox Rule

- Acceptance is effective when offeree uses authorized means of acceptance -- If US Mail, acceptance upon dispatch -- Does not apply to instantaneous communications (email, text)

Silence as Acceptance : Exceptions

- Both Parties agree - When Offeree has duty to speak -- He takes benefit of services with opportunity to reject -- Failure to reject goods upon delivery

Termination By Action of Parties

- By Revocation - By Rejection - OR by Counteroffer

Contractual Capacity : Minors - Disaffirmance

- Contract can be disaffirmed at any time during minority, or for a reasonable period after minor emancipated - Obligations on Disaffirmance : minor need only return the goods (or other consideration) subject to the contract, provided the goods are in the minor's possession or control

Fraudulent Misrepresentation

- Contract is voidable by Innocent Party - Consists of the following Elements: -- Misrepresentation of Material Fact -- Intent to Deceive -- Reliance of Misrepresentation -- Injury to the Innocent Party

Undue Influence

- Contract lacks voluntary consent is VOIDABLE -- Arises from relationships in which one party can greatly influence another party, thus overcoming that party's free will -Ex. Minors and Elderly people

Disaffirmance : Exceptions - Necessaries

- Contracts for food, clothing, shelter may be disaffirmed by minor, who remains liable for the reasonable value of goods or services

Contractual Capacity : Mental Incompetence

- Contracts made by mentally incompetent persons can be void, voidable, or valid

Settlement of Claims : Accord and Satisfaction

- Debtor offers to pay a lesser amount than the creditor purports to be owed

Termination By Operation of Law

- Destruction of the Subject Matter : if it occurs before acceptance of the offer, then the offer is canceled

Legal Sufficient Value

- Doesn't have to be cash - Can be a promise to do something one has NO PRIOR legal duty to do - Performance of an act one is not already OBLIGATED to take - Forbearance - refraining from an action one already has legal obligation/right to take

Mode and Timeliness : Substitute Method of Acceptance

- Effective if the substitute serves the same purpose (Fed-Ex vs. UPS) - Not effective on dispatch. • Effective when received by the Offeror.

Disaffirmance : Exceptions - Misrepresentation of Age

- Generally, minor can disaffirm the contract - But some states prohibit disaffirmance and hold the minor liable

Unilateral Mistakes : Contracts can be canceled:

- If other party to the contract knows or should have known that a mistake of fact was made OR - If mistake was due to an inadvertent mathematical error and without gross negligence

Writing Requirement : Statue of Frauds - Origins

- In 1677 England passed the law " An Act for the Prevention of Frauds and Abuses -- Required that, to be enforceable, certain types of contracts must be in writing and signed by the party against whom enforcement is sought

Mode and Timeliness : General Rule

- In Bilateral contracts, acceptance is timely if made before offer is terminated

Contractual Capacity : Intoxication

- Lack of capacity AT THE TIME the contract is being made. Contract is either voidable or valid, depending on circumstances - Disaffirmance (voidable) - Ratification : after "sobering up"

Termination By operation of Law

- Lapse of time - Destruction of the Specific subject matter of the offer OR - Death of the offeror or the offeree

Contractual Capacity

- Legal ability to enter into a contractual relationship - Capacity may exist, but contract is not legally binding

Generally, consideration must have

- Legally Sufficient value AND - Bargained - for - Exchange

Contractual Capacity : Minors - Disaffirmance : Exceptions

- Misrepresentation of Age - Contracts for Necessaries

Contract may be unenforceable if the parties have not genuinely assent to its terms by ...

- Mistake - Misrepresentation - Undue Influence - Duress

Contracts that Require a Writing - Contracts Involving Interest in Land

- Must be in writing, signed - SOF operates as a defense to enforcement of oral contract

Exceptions to the Consideration Requirement

- The following types of promises may be enforced despite the lack of consideration: -- Promises that induce detrimental reliance, under the doctrine of PROMISSORY ESTOPPEL -- Promises to pay debts that are barred by a statue of limitations -- Promises to make charitable contributions

The new world Cruise Company hires Christopher Columbus to perform a publicity stunt for them. Columbus promises to sail Due West to discover America, in return for which New World promises to pay $5,000 on completion, plus a lifetime supply of Dramamine. just before Columbus is set to sail, he decides that the payment isn't big enough and refuses to go unless New World UPS the ante. New World says, " OK, we'll also name the capital of Ohio after you if you're successful." Columbus agrees, sails, discovers America, and collects his $5,000 + Dramamine. New World refuses to name ht capital after him. Can Columbus enforce this capital-naming promise?

- No, didn't not form a new contract - Success is measured

Tim is walking through the woods when he steps on a thorn. He languishes in pain for hours, screaming. Fred walks by and sees Tim's predicament. Acting as a good Samaritan, without any expectation of payment, Fred removes the thorn. Tim, immensely relieved, says "Thank you. I'm going to send you $1,000 a month as long as I live." Is Tim's promise supported by consideration?

- Not bargain for exchange. Legal value exchanged after Past Consideration - Gift

Mode and Timeliness : Authorized Means of Acceptance

- Offer specifies how acceptance should be made -- No acceptance if authorized means is not used

Termination By operation of Law : Lapse of Time

- Offer terminates by law when the period of time specified in the offer has passed - If no time period for acceptance is specified, the offer terminates at the end of a reasonable period of time

Mistakes

- Only a mistake of FACT allows a contract to be canceled - Mistakes of fact occur in two forms -- Bilateral -- Unilateral

Termination By Action of Parties : Irrevocable Offers

- Option Contract : Promise to hold an offer open for a specified period of time in return of consideration - UCC " Firm Offer Rule" - Unilateral contracts

The Parol Evidence Rule

- Parol evidence rule = rule governing the admissibility of oral evidence - If a court finds that a written contract represents the complete and final statement of the parties' agreement, oral representations or promises made prior to the contract's formation or at the time the contract was created, may not be admitted in court

Exceptions to the Writing Requirement

- Partial Performance -- Court will grant specific performance if partially performed - Admissions - Promissory Estoppel

Duress

- Party who enter into a contract under fear or threat makes the contract VOIDABLE (Threat of civil suit is not unlawful)

Agreements that Lack Consideration : Illusory Promises

- Promisor has not definitely promised to do anything (no promise at all) - A person who makes an illusory promise can choose to perform or not perform his obligation

Termination By Action of Parties : Counteroffer by the Offeree

- Rejection of original offer and the simultaneous making of a new offer - Mirror Image Rule

Exceptions to the Consideration Requirement : Promissory Estoppel

- Requirements to State a Claim -- Must be definite promise -- THe promisor should have expected that the promisee would rely on the promise -- The promisee reasonably relied on the promise by acting or refraining from some act -- The promisee's reliance resulted in substantial detriment -- Justice will be served by enforcing promise

Sufficiency of the Writing

- Statue of Frauds requires a 'Written Memorandum' (written or electronic) signed by the party against whom enforcement is sought - What Constitutes a Writing?

Agreement : Acceptance

- The "Mirror Image" Rule - Silence as Acceptance -- Silence cannot constitute acceptance

Contracts that Require a Writing

- To be enforceable, the following types of contracts MUST BE IN WRITING AND SIGNED: 1. Contacts involving interest in Land 2. Contracts involving "One-Year Rule" 3. Collateral or Secondary Contracts 4. Promise Made in Consideration of Marriage 5. Contracts for the Sale of Goods priced at $500 or more

Writing Requirement : Statue of Frauds - State Legislation

- Today, virtually every state has, with minor variations, a Statute of Frauds provision - A contract that is oral when it is required to be in writing is normally voidable by a party who later does not wish to follow through with the agreement

Agreements that Lack Consideration : Preexisting Duty - Exceptions

- Unforeseen Difficulties - Recession and New Contract

Settlement of Claim : Claims are commonly settled ..

- through an accord and satisfaction OR - by the signing of a release

Contractual Capacity : Minors

-Generally, at 18 years, a person is emancipated, and has the legal capacity to enter into any contract that an adult can. -However, a contract entered into by a minor is VOIDABLE at the option of that minor, and can be DISAFFIRMED.

Termination By Action of Parties : Rejection

... of the Offer by the Offeree: -- ... by the Offeree (expressed or implied) terminates the offer -- Effective only when it is received by the Offeror

Termination By Action of Parties : Revocation

... of the Offer by the Offeror: -- Offer can be withdrawn anytime before offeree accepts the offer -- Effective when the Offeree receives it

The Parol Evidence Rule : Exceptions

1. Contracts subsequently modified 2. Voidable or Void contracts 3. Contracts containing ambiguous terms 4. Contracts with an obvious or gross clerical error

John enters into a contract to sell his laptop to Winnie. Winnie takes possession of the laptop as a minor and continues to use it well after reaching the age of majority. Winnie has a. Ratified the contract b. Canceled the contract c. Disaffirmed the contract d. None of the choices

A - Ratified

Lydia, a minor, charges the cost of a smartphone at a Mobile Devices & Minutes store. Two nights later, Lydia loses the phone at Natural Foods restaurant. She disaffirms the phone's purchase. Lydia owes Mobile Devices the reasonable value of the phone a. if it is deemed a necessity b. if it is deemed a luxury c. if it is deemed unique d. under no circumstance

A - if it is deemed a necessity

Mistakes - Bilateral

A bilateral mistake is made by both of the contracting parties

Offer

A promise or commitment to do or refrain from doing some specified action in the future - Offeror - makes the offer - Offeree - one to whom the offer or proposal is made

Mistakes - Unilateral

A unilateral mistake is made by only one of the parties

Sonya and Taylor enter into an oral contract that is required to be in writing to be enforceable. Such a contract is normally a. Voidable by a party who does not wish to follow through with it b. Void c. Valid d. Voidable but only by consent of both parties

A. Voidable by a party who does not wish to follow through with it

Termination of Offer

An offer may be terminated prior to acceptance by either: - Actions of the Parties OR - Operation of Law

Termination By Action of Parties : Counteroffer by the Offeree - Mirror Image Rule

At common law, any change in terms automatically terminates the offer and acts as a counteroffer

Termination By Operation of Law : Death of the Offeror or Offeree

Automatically terminates unless it is an irrevocable offer

Geri is a minor. Without her parents' knowledge, she signs a contract to buy an airline ticket to Hawaii for spring break. Geri's parents are liable for a. The entire price of the ticket b. No part of the price of the ticket c. Up to half of the price of the ticket d. Up to two-thirds of the price of the ticket

B - No part of the price of the ticket

Mobile Minutes Company offers Nate an unlimited number of monthly phone minutes for $4.50 per month. Nate accepts. If a dispute arises, a court would likely a. enforce the deal after questioning the adequacy of the consideration. b. not question the adequacy of the consideration. c. rewrite the deal after questioning the adequacy of the consideration. d. set aside the deal after questioning the adequacy of the consideration.

B - Not question the adequacy of the consideration

Lou and Mike negotiate a deal to counterfeit currency This contract is a. Enforeable b. Void c. Voidable at the option of Lou or Mike d. Valid

B - Void

A court adjudicates Jimi mentally incompetent and appoints Krispin to be his guardian. Later, without Krispin's knowledge, Jimi signs a contract to sell his lake cabin to Lazar for its real market value. The contract is a. enforceable if Jimi comprehended the consequences. b. enforceable if Jimi knew the market value of the farm. c. enforceable if Lazar has been recorded to be the owner of the cabin. d. void.

D - Void

Organic Farms Company contracts to buy two tracts of land from Prime Bottomland, Inc. Both parties believe that the two tracts are adjacent, but in fact they are not. Prime Bottomland is still willing to sell the land, but under these circumstances the deal would adversely affect Organic Farms. Because of the parties' belief about the adjacency of the property, their contract is: a. unavoidable. b. unconscionable. c. unenforceable. d. voidable

D. Voidable

Generally, a unilateral mistake affords the mistaken party a right to relief from the contract. True or False

False

Wicked Witch corners Dorothy and her little dog, Toto, behind the stacks in the public library. Witch snatches Toto an says o Dorothy, "Sign this contract promising to sell me the ruby slippers for $100, or you'll never see Toto alive again." Witch's fingers close around Toto's throat as she says his. Toto whimpers. Dorothy signs. Dorothy reneges, and Witch sues to enforce the contract. What results?

Duress, not enforced

A contract entered into by a minor is voidable at the option of either of the contracting parties. True or False

False

A contract entered into by an intoxicated person is never valid. True or False

False

A promise to do what one already has a legal duty to do constitutes legally sufficient consideration. True or False

False

A unilateral mistake affords the mistaken party a right to relief from the contract. True or False

False

The party who committed fraud can rescind a fraudulent contract and be restored to his or her original position. True or False

False

The writing requirement under the Statute or Frauds means that an agreement must be in a formal written contract. True or False

False

Contractual Capacity : Mental Incompetence - VOID

If a person has been adjudge mentally incompetent by a court of law and a guardian has been appointed

Contractual Capacity : Mental Incompetence - VOIDABLE

If the person does not know he or she is entering into the contract or lacks the mental capacity to comprehend its nature, purpose, and consequences

Dave's uncle tells Dave that if "he feels that Dave deserves it," he will give Dave $10,000 when Dave graduates from college. Dave's uncle's promise is a. illusory. b. a contract. c. a forbearance. d. a preexisting duty.

Illusory

Princess promised to sell her golden ring for Frog for $200, "unless I change my mind." Can Frog enforce Princess's Promise?

No, Illusory

If I signed a contract to teach a class at Campbell and don't show up. Can the Dean come to my house and pay me $200 to teach the class that day?

No, I already had an obligation to do it. Couldn't sue him for the $200

Jack agrees to sell Giant a goose for $20. Both parties think the goose is a regular goose, which Giant wants for breeding. Before the goose is transferred or the $20 paid, the goose begins laying golden eggs, which makes her priceless. Jack refuses to uphold the agreement, and Giant sues to enforce the contract. Will a court force Jack to sell for $20?

No, bilateral mistake. Either can rescind

Zeus, an adult, sells his chariot to Apollo, aged 17, for $50 down and $50 a month until the purchase price is paid off. Apollo, while still 17, rides the chariot much too fast one day, and crashed it into a wall. It bursts into flames and is destroyed; Apollo jumps free, unhurt. He then disaffirms the contract with Zeus, and returns the remnants of the chariot in a shoebox.Now assume that, after the agreement for an all-cash sale is signed, but before Apollo has received possession or title to the car, Zeus realizes he can get more for it by selling it to someone else and tries to get out of the contract. Assume that Zeus realized, at the time of the agreement, that Apollo was a minor. Can Zeus escape the contract?

No, he's the adult Apollo can thou

Alexander the Great throws a birthday party for his mom, Mrs. the Great. in between mouthfuls of cake and ice cream, washed down with cheap champagne, Alexander writes on the sheet of his stationery, in consideration of today being mom's birthday, I'm a promise to give her Italy. Mrs the Great eyes light up. Is Alex's promise enforceable?

No, it is a gift which lacks party for exchange

A sends B an offer in the mail on November 1. In the contract, A specifies that the contract can only be accepted by mailing a letter via US mail. B receives the offer on November 3 and promptly sends an acceptance email on the same date. Is there a valid agreement?

No, needs to follow contract guidelines not authorized means of acceptance (mail (FedEx/UPS) vs. email)

Tim is walking through the woods when he stepped on a thorn. He languishes in pain for hours, screaming. Fred walks by and see Tim's predicament. acting as a good samaritan, without any expectation of payment, Fred removes the thorn. Tim immensely relieved says thank you, I'm going to send you $1,000 a month as long as I live. Is Tim's promise supported by consideration?

No, there is no bargain for exchange. The legal value was exchanged after past consideration. It is also known as a gift

Can you pay a parent $10,000 to take care of their child?

No, they should already be doing this - No consideration present

Zeus, an adult, sells his chariot to Apollo, aged 17, for $50 down and $50 a month until the purchase price is paid off. Apollo, while still 17, rides the chariot much too fast one day, and crashed it into a wall. It bursts into flames and is destroyed; Apollo jumps free, unhurt. He then disaffirms the contract with Zeus, and returns the remnants of the chariot in a shoebox. Can Zeus recover the remainder of the purchase price?

No, underage. Contract with a minor, Zeus might also need to give Apollo a refund

John is building himself a monument and needs a rock-cutting machine. He sees Michael's ad in the Bargain Trader Newpaper for a rock-cutting machine for $10,000. John goes to Michael's house and inspect the machine. Michael accurately answers all questions John asks. John offer Michael $10,000 for the machine, which he accepts. Before the transaction takes place, John finds out the rock cutter will not cut marble, which, unbeknownst to Michael, is the type of stone John uses. Can John avoid the contract due to his mistake?

No, unilateral didn't misrepresent

Lizzie Borden axe murders her parents when she is sixteen years old. She is acquitted of the crime on a technicality. While still a minor, she contracts with Shyster & Shyster Publishers to write her memoirs for $500,000. When she turns eighteen, she writes to Shyster & Shyster, reaffirming her acceptance of the contract terms. Shortly thereafter, Lizzie gets religious and decides she doesn't want to relive the horror of her past. An she avoid the contract on the grounds that she was a minor when she made it?

No, was already accepted and reaffirmed when she wasn't a minor anymore

Contractual Capacity : Minors - Ratification

Occurs when a minor, on or after reaching majority, indicates (expressly or impliedly) an intention to become bound by a contract made as a minor

Agreement =

Offer and Acceptance - Parties must show mutual assent to terms of contract - Once an agreement is reached, if the other elements of a contract are present, a valid contract is formed

Contractual Capacity : Minors - Parents' Liability

Parents generally not liable, unless they co-sign with minor

Agreements that Lack Consideration : Preexisting Duty

Promise to do what one ALREADY has a legal duty to do does not constitute legally sufficient consideration

Bilateral (Mutual) Mistakes can be ...

Rescinded by either party

Sufficiency of the Writing : What Must Be Contained in the Writing?

The essential terms: -quantity - signed by party to be charged, - names of parties - subject matter - consideration. (Sales of land must state the price and description with sufficient clarity)

Betsey is an elderly woman who lives with her niece Lisa. Betsy is dependent on Lisa for support. Lisa advises Betsy to "invest" in Lisa's "professional gambling" venture, or Lisa will no longer support her. Betsey liquidates her other investments and signs a contract with Lisa, to whom Betsey gives the funds. Can Betsey set aside this contract?

This is an example of Undue the Influence, the court will set aside the contract

A contract for a sale of goods priced at $501 must be writing to be enforceable. True or False

True

Every state has statue that stipulated what types of contracts must be in writing. True or False

True

In most states, misrepresentation of age is enough to prevent disaffirmance. True or False

True

The Krullen Heartless Appliance Store is located in a poor neighbourhood. Sam Shyster is the sales manager. He puts a sign in the window reading, " New Dishwashers - only $19." Fred Farkus, fourth-grade dropout, sees the sign and asks, " Is it really $19?" Sam says, "Yeah - take a look at this contract. See? $19!" What Same doesn't point out is that it's $19 a month for ten years, chargeable to a credit card. This is in small print buried toward the bottom of a 10-page contract. Sam tells Fred to sign, and he does, although he doesn't really understand the contact since it's all words and no pictures. The actual cost of the dishwasher under the contract since is $1,900; the same model is on sale nearby at an all-cash price of $600. Fred soon goes into default, and Same not only seeks to repossess the dishwasher but also to collect the balance owed. If you represent Fred, what defense should you assert on his behalf?

Uncongitable Procedural - Small Print

Industrial Engineering, Inc., promises to give stock options to Jasmine for processes she has already designed for the firm. This promise is enforceable a. because it is a new contract. b. because it is an illusory promise. c. because it is supported by past consideration. d. under no circumstances.

Under no circumstances

• Mike Angelo, newly arrived in the United States from Italy, develops an immediate fascination with baseball. He visits "Leo's Locker," a baseball memorabilia store, to check out some baseball cards. The owner, Leo di Vinci, has a slogan, "I love to dicker" - so he doesn't put a price tag on anything. Mike spots an old card with a famous name on it and offers Leo $5,000 for it. Leo realizes that Mike has mistaken the player on the card - Babe Root, of the 1929 New York Spankies (an amateur team) - for Babe Ruth, whose card would be worth $5,000. Leo quickly accepts Mike's offer, knowing the card is worth about fifty cents. Leo writes up a contract that they both sign, and Mike goes to the bank to get the $5,000. When he tells the bank teller about his find, the teller laughs hysterically, telling him of his mistake Mike reneges on the deal. Leo sues. Mike defends on grounds of mistake. Who wins?

Unilateral

Acceptance is the:

Voluntary act (expressed or implied), by the Offeree that, shows assent (agreement), to the terms of an offer.

Contractual Capacity : Mental Incompetence - VALID

When person is able to understand the nature and effect of entering into a contract but may lack capacity to engage in other activities (known as "lucid" internals)

When sending a contact by mail, when have you officially accepted it?

When you put it in the mailbox / upon dispatch

If your mom owes someone money and you want to help your mom out. You go to that person who she owes money to and says "Hey, I am going to pay her debt on her behalf." Does this agreement have to be in writing?

Yes because its guaranteed / assumed

A sends B an offer in the mail on November 1. On November 2, A changes his mind and sends a revocation letter. B receives the offer on November 3 and promptly mails an acceptance letter on the same date. B receives the revocation letter on November 4. Is there a valid agreement?

Yes, B received acceptance first. (Revocation upon receival)

A sends B an offer in the mail on November 1. B receives the offer on November 3 and promptly mails an acceptance letter on the same date. On November 4, B changes her min and sends a rejection letter. Due to a mix-up in the mail, A receives the rejection letter before he receives the acceptance letter. Is there a valid agreement?

Yes, because acceptance is on the day put in mail Nov 3, when rejection letter was sent Nov 4

A sends B an offer in the mail on November 1. In the contract, A specifies that the contract can only be accepted by mailing a letter via US mail. B receives the offer on November 3 and promptly sends an acceptance letter via FEDEX express overnight. FEDEX delivers the letter on November 4. Is there a valid agreement? If so, when is the acceptance effective?

Yes, but not until it arrives (reciept)

In May, Zach agrees to work for the Affordable Plumbing Supplies Company at $800 per week for a year beginning June 1. The following January, Budget Pips & Fittings, Inc. offers Zach the same work at $900 per week. Zach tells Affordable Plumbing about the offer, Affordable Plumbing offers to enter into a new contract with Zach at $875 per week. If Zach agrees, is the new Affordable Plumbing contract enforceable? Why or Why not?

Yes, they disregarded and tossed the old contract and made a new one

Wicked Witch corners Dorothy and her little dog, Toto, behind the stacks in the public library. Witch snatches Toto an says to Dorothy, "Sign this contract promising to sell me the ruby slippers for $100, or you'll never see Toto alive again." Witch's fingers close around Toto's throat as she says his. Toto whimpers. Before Dorothy hands over the slippers, Witch changes her mind, says, "Forget it," and hands Toto back to Dorothy. Dorothy would actually rather have the $100 than the slippers. Will a court enforce the contract on her behalf?

Yes. A contract entered into under duress is voidable only at the option of the wronged party, not at the option of the wrongdoer

Nora enters into a contract with Oceanic Transport, Inc., to insure and ship a painting from France to the United States for a certain price. But Oceanic makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would a. allow the parties to rescind the contract. b. award damages to Nora for the mistake. c. award damages to Oceanic for the mistake. d. enforce the contract as is.

a. allow the parties to rescind the contract.

Gene sells a trail bike to Hollis without disclosing that the odometer, which reads 10,000 miles, was disconnected 90,000 miles ago. Gene is most likely liable for a. unconscionability. b. fraud. c. mistake. d. nothing.

b. Fraud

Seth offers to buy a house from Tia for less than Tia paid for it, stating that he would "hate to see anything bad happen to Tia or her house." Tia agrees to sell. Regarding this agreement, a court would likely a. enforce it. b. not enforce it. c. reform it to reflect the true market value of the property. d. order the parties to renegotiate the price.

b. not enforce it

Lucas orally agrees to sell his Mountain Spring Beverage Company to Natural Soft Drinks, Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against a. No one b. Lucas ad Natural Soft Drinks c. Lucas d. Natural Soft Drinks

c. Lucas

Digital Storage, Inc., offers to sell provide cloud-computing services to Entrepreneur Enterprises, Inc., but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Entrepreneur Enterprises accepts the written offer. Refer to Fact Pattern 15-B1. Entrepreneur Enterprises' best argument in favor of enforcement of the contract is that a. a bilateral mistake does not afford relief from a contract. b. a mistake of value does not afford relief from a contract. c. a unilateral mistake does not afford relief from a contract. d. the price was below the prices of comparable devices.

c. a unilateral mistake does not afford relief from a contract.

Forbearance

can constitute adequate consideration sufficient to form a valid and enforceable contract

Anna tells a representative of Brass and Woodwind Musical Instruments Inc that she will pay for Claudia's trumpet if she does not. Anna's oral promise is enforceable as a contract by: a. Brass and Woodwind Musical Instruments Inc b. Claudia c. Anna d. None of the choices

d. None of the choices

Agreements that Lack Consideration : Past Consideration

is no consideration because the bargained - for - exchange element is missing