L201 Final Connect Quizzes

A promise not to sue another party is not consideration because the promise does not convey any legal value to the other party. True or False

False

Which of the following would not be used to determine whether an acceptance was communicated by reasonable means? -Subjective beliefs -Speed and reliability -Nature of the transaction -Trade usage

Subjective beliefs

Promissory estoppel is a doctrine used to prevent injustice by not allowing one to enforce a promise, even if a contract may not have been formed. True or False?

True

As demonstrated in Dynegy, Inc. v. Yates, the case in the text, when a contract is determined to be collateral: -the guarantor must pay, even if the principal debtor is able to do so. -the principal debtor must pay the guarantor directly. -proof of an oral agreement is sufficient to prove a contract existed. -it will be unenforceable unless it is evidenced by a writing.

it will be unenforceable unless it is evidenced by a writing.

If an adult has given something of VALUE to a minor under a contract, the minor must disaffirm within _______ after reaching majority, otherwise the minor runs the risk of ratifying the contract. -48 hours -a reasonable time -a year -a month

A reasonable time. If the adult has relied on the contract or has given something of value to the minor, the minor must disaffirm within a reasonable time after reaching majority. If she delays longer than a period of time that is considered to be reasonable under the circumstances, she will run the risk of ratifying (affirming) the contract.

Ian, a lawyer, sent an offer to Raymond on October 1 offering to sell Ian's car for $5,000. The offer did not contain a provision stating when it would terminate. Under these circumstances, when will that offer terminate? -after a reasonable time -after 5 days -when either Ian or Ryan terminates it -after 10 days

After a reasonable time. Offers that fail to provide a specific time for acceptance are valid for a reasonable time.

A party not equally in the wrong of an illegal agreement will generally be: -without any recourse under contract law -forced to make restitution -charged criminally -allowed to recover what he has parted with

Allowed to recover what he has parted with.

Which of the following is the first step in the contract formation process? -Signing the agreement -Drafting the agreement -An offer in definite terms -Correct

An offer in definite terms

Which of the following describes a stipulation? -The court's right to provide gap-fillers in a contract -An offeree's right to determine who to contract with -Additional terms in a contract in order to make it binding -An offeror's right to determine the manner of acceptance

An offeror's right to determine the manner of acceptance. Stipulation: The offeror, as the master of the offer, has the power to specify the precise time, place, and manner in which acceptance must be communicated.

Like a false statement of fact, _____ can be the basis for a claim of misrepresentation or fraud. -duress -concealment -basic assumption -reformation

Concealment

Which of the following terms refers to legal value that is bargained for and given in exchange for an act or promise? - Consideration - Capacity -Promissory estoppel - Legality

Consideration

Article 2 of the UCC does NOT apply to a sale of: -baseball bats -harvest wheat -corporate stock -new car

Corporate Stock. The UCC does not apply to contracts for the sale of real estate or intangibles such as stocks and bonds, because those kinds of property do not constitute goods

The statute of frauds covers all contracts that are for an indefinite period of time. True or False

False If the contract is for an indefinite period of time, it is not within the statute of frauds.

A mortgage does not have to be writing. True or False

False. A mortgage is a contract that involves the transfer of an interest in real estate and, as such, it must be in writing.

A voidable contract is one that meets the basic legal requirements for a contract but may not be enforceable because of some other legal rule. True or False?

False. Voidable contracts are those in which one or more of the parties have the legal right to cancel their obligations under the contract.

Emancipation is a formal agreement in writing to terminate a parent's right to control a child and receive services from him. True or False

False. Emancipation does not have any formal requirements and can be implied by parent's actions/events.

In order to accept a bilateral contract, the offeree must: -provide proposals for addition to the contract. -perform the act requested in the bilateral contract. -follow the receipt rule of acceptance -make a promise requested in the offer.

Make a promise requested in the offer. A bilateral contract involves the exchange of a promise for a promise. As a general rule, to accept an offer to enter such a contract, an offeree must make the promise requested by the offe

Marlene, a self-employed 16-year-old whose parents are deceased, buys a dress on credit for $50. After receiving the dress and discovering that its reasonable value is only $25, Marlene tries to disaffirm the deal before paying the $50. In this case: -Marlene can disaffirm, and she can keep the dress without paying for it. -Marlene can disaffirm, but she is only bound to pay $25. -Marlene can disaffirm, and she can return the dress without paying for it. -Marlene can disaffirm, and she is bound to pay the full $50.

Marlene can disaffirm, but she is only bound to pay $25. Minors who disaffirm a contract are liable to pay the reasonable value of the good/services received.

Contracts in which one party to the agreement agrees to buy all of the other party's production of a particular commodity is called a(n): -requirements contract -nominal consideration -output contract. -composition agreement

Output contract

An ambiguous offer may be accepted in any manner that is _____ in light of the circumstances. -authorized -stipulated -reasonable -recognizable

Reasonable.

In Timothy v. Keetch, the case in the text, the court held that -he Keetches justifiably represented that they owned the horse without any encumbrances. -Paul's visit to the ranch should have "served as a warning" that the Timothys were being deceived. -The Timothys had no reason to know that they were being deceived. -Utah law requires one to inspect the public record to verify the truthfulness of statements made to him or her.

The Timothys had no reason to know that they were being deceived.

Which of the following statements about consideration is correct? -The gross inadequacy of consideration can give rise to an inference of fraud for setting aside a contract. -The legal value of consideration must be equal to the actual value in consideration. -A promise cannot be deemed consideration in a bilateral contract. -It is a preexisting moral obligation.

The gross inadequacy of consideration can give rise to an inference of fraud for setting aside a contract.

Kyle sent Tara a letter offering to sell Tara his car. Tara left the letter on her desk, where her roommate, Maggie, saw it. After reading the letter, Maggie wrote to Kyle and stated that she (Maggie) wanted to accept Kyle's offer. Which of the following is true? -There is no contract between Kyle and Maggie because Kyle did not communicate the offer to Maggie. -Kyle and Tara have a contract for the purchase of Kyle's car. -Maggie's letter is a valid acceptance of Kyle's offer. -Kyle must sell Maggie his car unless Kyle is a merchant under the UCC.

There is no contract between Kyle and Maggie because Kyle did not communicate the offer to Maggie.

Concealment involves the active hiding of a fact, whereas nondisclosure is the failure to volunteer information. True or False?

True

For a noncompetition clause to be enforceable, the clause must serve a legitimate business purpose. True or False

True

Contract law provides those without the capacity to contract with the right to escape the legal consequences of contracts they enter during incapacity. True or False?

True Contract law gives those without the capacity to contract the right to avoid (escape the legal consequences of) contracts that they enter during incapacity. This rule provides a means of protecting people who, because of mental impairment, intoxication, or youth and inexperience, are disadvantaged in the normal give-and-take of the bargaining process.

Mr. Blue orally agrees to sell his home to Mr. Green. The court will refuse to recognize and enforce this agreement. True or False

True. Contracts that create or transfer an ownership in real property are covered by the statute of frauds and therefore must be in writing.

An advertisement offering a reward for the return of lost property is usually treated as an offer for a unilateral contract. True or False?

True. Unilateral contract: only will be enforced if the OFFEREE performs the requested act.

Jerry owns a parcel of land. Nate, one of Jerry's closest friends and an attorney, persuaded Jerry to sell the land to Nate at a price substantially below fair market value. At the time Jerry sold the land, he was resting in a nursing home recovering from a serious illness. If Jerry desires to set aside the sale, which of the following causes of action is most likely to be successful? -Undue influence -Misrepresentation -Fraud -Duress

Undue Influence Since Nate is a close friend of Jerry he is in the position to place influence on Jerry.

Kevin offers to sell Howard his vintage piano for $1,000. Howard tells Kevin, "If you don't hear from me in seven days, I accept." Kevin did not hear from Howard in those seven days. Does Howard's silence amount to acceptance? -No, because Kevin and Howard did not have a prior course of dealings. -No, because an offeree's silence can never operate as an acceptance. -No, because Howard did not have the present intent to accept the offer. -Yes, because an offeree's silence can operate as an acceptance if he has indicated that it will.

Yes, because an offeree's silence can operate as an acceptance if he has indicated that it will.

Ron was employed by Mass Co. in 1970. At that time, he was given an employee handbook that described the particular steps that had to be taken before an employee could be fired. Later, in 2000, Mass published a new handbook by which all workers' statuses were changed to at-will employees. Mass then fired Ron. Ron claimed he was terminated without cause and was not afforded procedures described in the 1970 handbook, such as an appeal or review of the decision. He sued Mass under breach of contract based upon the 1970 employee handbook. Will he succeed? -No, because Ron had acquiesced to the modification by not raising any objection. -Yes, because the modifications in 2000 were not by mutual consent and for consideration. -Yes, because Mass Co. has arbitrarily terminated Ron. -No, because the employee handbook contains terms and conditions of the employment contract

Yes, because the modifications in 2000 were not by mutual consent and for consideration. Modifications to contracts need to be mutual in order to be valid and enforceable.

Bob's threat to breach an existing contract unless Lauren makes another contract with Bob is considered: -an act of duress, because breach of an existing contract violates a criminal statute. -an act of duress, depending mainly on the coerciveness of the threat. -not an act of duress, because it does not involve physical force. -not an act of duress, because breaking a contract normally does not violate a criminal statute.

an act of duress, depending mainly on the coerciveness of the threat.

Standardized online contracts that come along with downloaded software from the Internet are often called -executory contracts -clickwrap contracts -unenforceable contracts -quasi contracts

clickwrap contracts

One of the differences between fraud and misrepresentation is that: -fraud cases require materiality. -a false statement of opinion cannot be the basis for a claim of misrepresentation. -in fraud cases, the injured party has the option of suing for monetary damages. -misrepresentation requires scienter.

in fraud cases, the injured party has the option of suing for monetary damages.

When is the revocation of an offer effective? -When sent by the offeree -When received by the offeror -When sent by the offeror -When received by the offeree

when received by the offeree