legal test part two
For which of the following contracts would a court be likely to grant a remedy of specific performance? Select 2 answers. A contract for the sale of 100 plain white shirts A contract for the sale of a Picasso painting A contract for the sale of land A contract for the painting of a portrait
A contract for the sale of a Picasso painting A contract for the sale of land
In which of the following scenarios is a court likely to order reformation of a contract? Select 3 answers. Clerical error in the contract Fraud by one of the parties Non-performance by one party Mutual mistake by the parties
Clerical error in the contract Fraud by one of the parties Mutual mistake by the parties
Will a valid delegation relieve the delegator from the contract? No, but the delegator will only be liable in the event of a gross-breach. Yes, unless the delegator fails to notify the obligee of the delegation. No, an obligee can sue either the delegatee or the delegator for non-performance. Yes, a delegator will never be liable after a valid delegation.
No, an obligee can sue either the delegatee or the delegator for non-performance.
Fred and Wilma enter into a contract for horse riding lessons. Fred accidentally types the price for lessons to be $4.00 each instead of $44.00 each. Wilma wishes to enforce the contract at $4.00 per lesson. Which remedy would be most effective? Specific performance Reformation Rescission Injunction
Reformation
If the terms of an agreement seem to be very one-sided, which public policy could it be violating? Choose 2 answer choices Restraint of Trade Mutual mistake Duress Substantive Unconscionability
Restraint of Trade Substantive Unconscionability
How is substantial performance involved with the classification of material breaches versus immaterial breaches? Substantial performance involves a material breach. Substantial performance involves an immaterial breach. Anticipatory repudiation determines the status of substantial performance. Substantial performance can occur with either a material or an immaterial breach.
Substantial performance involves an immaterial breach.
What must a party show to win a substantial performance lawsuit? Choose 2 answer choices. The breach was not intentional. The breach caused no monetary damages. There were no deviations from the contractual requirements. He or she acted in good faith.
The breach was not intentional. He or she acted in good faith.
What is true about contracts with an illegal purpose or subject matter? Choose 3 answers. The contract is void. An illegal contract that is not fully performed cannot be enforced. An illegal contract that has already been performed cannot be reversed. An illegal contract may be enforced if both parties agree to the terms.
The contract is void. An illegal contract that is not fully performed cannot be enforced. An illegal contract that has already been performed cannot be reversed.
What is the result of a contract in which both parties are wrong about a material fact of the contract? The contract must be nullified and renegotiated. The contract is voidable. The contract is void. The contract is enforceable by both parties as both parties assumed the risk in making the contract.
The contract is voidable.
Which of the following elements are required of ALL intended beneficiaries? One of the contracting parties is a donee. The contracting parties were aware of the third-parties existence and position at the time of making the contract One of the contracting parties was making a gift to the third-party. One of the contracting parties owed a duty to the third-party.
The contracting parties were aware of the third-parties existence and position at the time of making the contract
When might a contract made by a mentally incompetent person be enforceable? The incompetent person has not been declared incompetent by a court. The incompetent person has a court-appointed guardian, and that guardian is aware of the contract. The incompetent person was lucid at the time the contract was made. The incompetent person signs a second contract affirming that he understands the nature of the contract.
The incompetent person was lucid at the time the contract was made.
What factors must be present to prove fraudulent misrepresentation in a contract? Choose 3 answers. There has been an intent to deceive. The defrauding party must have exerted undue influence on the innocent party. A misrepresentation of a material fact has occurred. The innocent party has justifiably relied on the misrepresentation.
There has been an intent to deceive. A misrepresentation of a material fact has occurred. The innocent party has justifiably relied on the misrepresentation.
May a writing consistent of multiple separate documents? No, all elements of an agreement must be memorialized in one document. No, except for signature pages for which there may be multiple copies. Yes, even if the documents are not attached or connected in any way. Yes, if they are attached together in some manner.
Yes, if they are attached together in some manner.
What type of condition specifies an event that must happen before a person is obligated to perform the duties specified in the contract? a condition concurrent a condition precedent a condition subsequent a condition specific
a condition precedent
A donee beneficiary is: a third-party intended beneficiary of a contract who is also a creditor. a third-party intended beneficiary of a contract who is not a creditor. a third-party incidental beneficiary of a contract who is not a creditor. a third-party incidental beneficiary of a contract who is also a creditor.
a third-party intended beneficiary of a contract who is not a creditor.
Reformation of a contract is considered: a legal remedy. a legal and an equitable remedy. an equitable remedy. a quasi-remedy.
an equitable remedy.
Which of the following is an equitable remedy for breach of contract? punitive damages when a seller has repeatedly shipped unsafe goods compensatory damages for having to hire extra help to correct nonconforming goods payment of the cost of cover for items not delivered on time an order for specific performance
an order for specific performance
What factors may cause a person to lack contractual capacity? Choose 3 answers. being an emancipated minor being under the age of majority (usually 18) severe intoxication mental incompetence
being under the age of majority (usually 18) severe intoxication mental incompetence
Reginald hires Sophia to deliver pizzas for his restaurant. All goes well at first. But one night, Sophia decides to go to a concert instead of delivering pizzas. She delegates her delivery tasks to Rosemary, who accepts the delegation and agrees to deliver the pizzas. However, instead of delivering the pizzas, Rosemary takes the pizzas home to her family. At the end of the evening, Reginald has many unhappy customers, and wants to sue for breach of contract to recover the income he lost for the evening. Reginald should be able to sue: both Sophia and Rosemary. Rosemary only. Sophia only. neither Sophia nor Rosemary.
both Sophia and Rosemary.
In a contract where there was a bilateral mistake of fact: both parties misunderstood the value of the subject of the contract. both parties misunderstood a word or term in the contract. one party misunderstood the value of the subject of the contract. one party misunderstood a word or term in the contract.
both parties misunderstood a word or term in the contract.
What is the most common way that duties under a contract are discharged? breach by proving undue influence frustration of purpose by performance
by performance
What is the term for when a person legally declares that he or she does not wish to be bound by a contract that he or she has made? emancipation ratification disaffirmance restitution
disaffirmance
A misrepresentation of fact may occur in a contract, by silence, when: (Choose 2 answers) when the seller knows there is an obvious defect in a product when the buyer is unsophisticated the seller knows of a serious problem that the buyer in unlikely able to discover a party is under a duty to speak (such as a professional from whom the other party is seeking an opinion)
the seller knows of a serious problem that the buyer in unlikely able to discover a party is under a duty to speak (such as a professional from whom the other party is seeking an opinion)
Which of the following may constitute duress? Choose 2 answers. threatening to financially harm someone threatening to sue someone threating to boycott a company threatening to physical harm someone
threatening to financially harm someone threatening to physical harm someone
What is the difference between a material breach and an immaterial breach? A material breach is one for which remedies are not spelled out in the contract, while remedies for an immaterial breach are specified. A material breach results in damages to the non-breaching party, while an immaterial breach is minor. A material breach is one that affects more than 50% of the product of the contract. A material breach is one that makes the contract commercially impracticable for the non-breaching party.
A material breach results in damages to the non-breaching party, while an immaterial breach is minor.
What are the types of situations that may qualify as grounds for discharge due to impossibility? Choose 3 answers. A party to a personal contract dies or becomes incapacitated. The price of the subject matter of the contract more than doubles. The specific subject matter of the contract is destroyed. The subject matter of the contract becomes illegal.
A party to a personal contract dies or becomes incapacitated. The specific subject matter of the contract is destroyed. The subject matter of the contract becomes illegal.
Which of the following third-party beneficiaries have the right to enforce a contract? Choose 2 answers. Creditor beneficiary Donee beneficiary Incidental beneficiary Unintended beneficiary
Creditor beneficiary Donee beneficiary
Danny hires Evelyn to install a swimming pool at Danny's home for $40,000, to be completed by June 1. Evelyn completes the job on time. When Danny inspects the pool, he discovers that Evelyn used a vinyl lining, and the contract called for a fiberglass lining. Danny refuses to pay Evelyn, stating that Evelyn breached the contract because the contract was not completed according to the specifications stated in the contract. If Evelyn sues Danny for the contract price: Evelyn will probably receive the contract price less the cost to replace the pool liner with a fiberglass liner. Evelyn will receive nothing because performance under the contract was not complete. Evelyn will probably receive restitution for any expenses she has incurred. Evelyn will probably receive the full contract price.
Evelyn will probably receive the contract price less the cost to replace the pool liner with a fiberglass liner.
Would one party's mistaken belief about the law governing a contract be enough to rescind the contract? No, because a mistake about the law is not factual. No, because it is unilateral and concerns the law. Yes, even if the other party had no knowledge about the mistake. Yes, because it is a mistake about the law.
No, because it is unilateral and concerns the law.
What is required for a writing to be legally sufficient to form a contract? Choose 2 answer choices. The UCC requires that the quantity be included The writing must provide evidence of agreement The writing must be signed by both parties at the end of the document The UCC requires that the price be included
The UCC requires that the quantity be included The writing must provide evidence of agreement
Your partner wants to make sure you are well taken care of financially in the event they die, and so takes out a life insurance policy on themselves with Liberty Life, Co., naming you as beneficiary on the policy. Unfortunately, tragedy strikes and your partner dies. However, the life insurance company refuses to pay you on the policy. Do you have the right to sue them since you were not a party to the contract? Yes, because your partner owed you a legal duty. Yes, because you are an intended beneficiary of the contract. No, because you were not a party to the contract. No, because you do not have standing to bring a claim.
Yes, because you are an intended beneficiary of the contract.
You own a lawn care service. A new customer calls and asks that you mow and weed eat her lawn. You tell her the price will be $150 and she agrees. You show up while she is at work and get the lawn mowed and the weed eating done by the time she gets home. Unfortunately, when she gets home, you discover that you have serviced the lawn of your customer's next-door neighbor instead of hers! Do you think you have any chance of getting any money from the neighbor for the services you have provided? Yes, the neighbor will have to pay you a reasonable price (not necessarily the contract price) for the work. No, but you can collect the money from your new customer. No, because you did not have a contract with the neighbor. Yes, the neighbor will have to pay you the contract price because you performed the work.
Yes, the neighbor will have to pay you a reasonable price (not necessarily the contract price) for the work.
Third-party beneficiaries are those who: are a party to a contract but do not benefit from it. are in privity of contract and benefit from it. are not party to a contract but benefit from it. are not a party to a contract and do not benefit from it.
are not party to a contract but benefit from it.
Jayden is restoring a house for Jane when Hurricane Emma hits and washes out the foundations of the house. The cost for restoration has just increased by 400%. Under what principle may Jayden's obligations be excused? statute of limitations insurable interest commercial impracticality impossibility
commercial impracticality
What is the term for when a party to a contract performs his duties exactly according to the terms of the contract? strict performance perfect performance substantial performance specific performance
strict performance
A grossly unethical or unfair provision in a contract is called: fraud. negligence. unconscionable. duress.
unconscionable.
If Ramona changes her will at age 88 to leave the bulk of her fortune to her home health care nurse instead of her children, what factor will the courts consider in judging whether or not her will is valid? undue influence duress mistake fraudulent misrepresentation
undue influence
You collect antiques and regularly travel the country looking for good deals. In your wanderings, you find an old fiddle and offer the owner $5. The owner accepts, and you take your treasure home. After you get the fiddle home and do your research on it, you discover the fiddle is actually worth $5,000. What a find! What do you think would happen if the owner tried to cancel the contract and get the fiddle back? Mutual mistake is a valid defense to a contract, so the owner could get his fiddle back. Mutual mistake is not a valid defense to a contract, so the owner could not get his fiddle back. Mistake of value is a valid defense to a contract, so the owner could get his fiddle back. Mistake of value is not a valid defense to a contract, so the owner could not get his fiddle back.
Mistake of value is not a valid defense to a contract, so the owner could not get his fiddle back.
What is the standard to which most personal satisfaction contracts must adhere? Choose 2 answers. satisfaction of the receiving party (buyer) satisfaction of an expert third party satisfaction of a reasonable person satisfaction of the performing party (seller)
satisfaction of the receiving party (buyer) satisfaction of a reasonable person
In determining whether a third-party is an intended or incidental beneficiary, a court may consider: (Choose 2 answers) whether the party is directly named in any part of the contract whether the third party received any benefit from the contract. the length of the contract performance before a benefit would be reached by the party. whether the party is able to control any details of the performance.
whether the party is directly named in any part of the contract whether the party is able to control any details of the performance.
In what situation could a party enforce strict performance? The plaintiff received sufficient benefit and the difference can be compensated with monetary damages When the parties specifically agree to it in the contract When one of the parties did not act in good faith When the requirement is reasonable
When the requirement is reasonable
Forcing a party to agree to the terms of a contract through the use of threats or blackmail is called: adhesion. duress. usury. undue influence.
duress.
What is the term for the process by which a person under the age of majority is legally declared to be an adult? ratification coming of age emancipation disaffirmance
emancipation
Depending on the circumstances at the time of contracting, a contract made by a mentally incompetent person may be: (Choose 3 answers.) valid. usury. voidable. void.
valid. voidable. void.
A contract to do something prohibited by law is: illusory. voidable. void. quasi.
void
Bryan owns Snow Country, a business that leases out snow cone stands. Kaylee agrees to lease one of the snow cone stands for $500 per month. Kaylee and Bryan sign a written contract that states the monthly lease amount is $5,000. When Kaylee refuses to pay the $5000 for the first month's rent, Bryan sues for breach of contract. If Kaylee tries to introduce evidence in court that shows that the amount stated in the written contract is incorrect: Kaylee will not be allowed to introduce the evidence because oral testimony can never be introduced in court to dispute a written contract. Kaylee will not be allowed to introduce the evidence under the parol evidence rule. Kaylee will only be allowed to introduce evidence under the parol evidence rule if Bryan agrees to allow it. Kaylee will be allowed to introduce the evidence under the parol evidence rule.
Kaylee will be allowed to introduce the evidence under the parol evidence rule.
What is the result if parties agree to a contract orally, but it is a contract that must be in writing under the statute of frauds? Choose 2 answer choices. The parties can complete the contract. The contract is illegal. The contract is voidable. The contract is void.
The parties can complete the contract. The contract is voidable.
What must a plaintiff prove to show duress in the formation of a contract? Choose 2 answer choices. The plaintiff was incapable of voluntarily agreeing to the contract. The defendant committed a wrongful or illegal act. The plaintiff was injured or feared he or she would be injured. The defendant intended to harm the plaintiff.
The plaintiff was incapable of voluntarily agreeing to the contract. The defendant committed a wrongful or illegal act.
In what situation is a minor most likely to be able to terminate a contract? A minor entering into a marriage contract When a minor lied about his or her age when making the contract When the minor purchases food When a minor orders books for school
When a minor orders books for school
Which of the following is a void contract? a contract for the sale of a car to someone who is intoxicated a contract in which one party induced the other to enter by undue influence a contract for prostitution a contract for the sale of a house to a minor
a contract for prostitution
An unfair contract that comes about because the parties have vastly different bargaining power is called an: estoppel contract. uneven contract. adhesion contract. unbalanced contract.
adhesion contract.
Why is a court unlikely to grant a remedy for specific performance when a contract for personal services is breached? Because people to perform personal services are easily found in the market place. Because monetary damages will always be fair and equitable. Because no personal service is unique. Because it is tantamount to court ordered involuntary servitude.
Because it is tantamount to court ordered involuntary servitude.
Logan agrees to deliver fifty pounds of crab claws to Dominique by May 15. Dominique needs the crab claws for a wedding party that Dominique is catering on May 16, so time is of the essence of the contract. Logan contacts Dominique on May 15 and tells Dominique that the earliest Logan can deliver the crab claws is on May 17. Dominique cancels the order and quickly makes other arrangements for the wedding party she is catering. Logan then demands payment from Dominique for the full contract price, and Dominique refuses. If Logan sues Dominique for damages under the contract: Dominique will not have to pay because Logan breached the contract. Dominique will have to pay or be in breach of contract. Dominique will have to pay, but Logan must deliver the crab claws. Dominique will have to pay Logan the difference between what Logan was charging for the crab claws and what Dominique eventually paid.
Dominique will not have to pay because Logan breached the contract.
Evan offers to sell his 2016 John Deere Tractor to Jorge for $30,000. Jorge accepts and promises to meet Evan on Saturday to make the exchange. On Thursday, a fire on Evan's farm totally destroys the tractor. Jorge is upset, because the price of the tractor was really good, and he knows he cannot get another one for that price. If Jorge sues Evan for breach of contract, the likely result will be that: Evan's performance under the contract will be excused due to impossibility of performance. Evan will have to pay Jorge the difference between the sales price of the tractor and the price Jorge must pay to find a replacement. Evan must find a replacement tractor for Jorge, because the court is likely to award specific performance as a remedy. Evan's performance under the contract will be excused due to material alteration.
Evan's performance under the contract will be excused due to impossibility of performance.
What are the differences between legal and equitable remedies? Choose 2 answer choices. One attempts to assist one party and penalize or restrict the other party. Both attempt to reform the contract. One requires actions instead of damages. One is monetary.
One requires actions instead of damages. One is monetary.
What are the legal differences between a material breach and an immaterial breach of contract? Choose 2 answer choices. The dollar amount of damages The level of the performance of the contractual obligations Whether the court will discharge the contract Whether a party has announced repudiation of the contract
The level of the performance of the contractual obligations Whether the court will discharge the contract
Frank purchases a $100,000 life insurance policy from Mutual of Omaha Insurance Co. The insured party is Frank's wife Cheryl. Frank lists Cheryl's daughter Katy as the beneficiary on the policy. Two years later, Cheryl dies, and Katy tries to collect on the insurance policy. Mutual of Omaha refuses to pay. Can Katy sue Mutual of Omaha to enforce the contract? Yes, Katy can sue Mutual of Omaha because Katy is an incidental beneficiary. No, Katy cannot sue Mutual of Omaha because Katy is an intended beneficiary. Yes, Katy can sue Mutual of Omaha because Katy is a donee beneficiary. No, only Frank can sue Mutual of Omaha because he is the promisee in the contract.
Yes, Katy can sue Mutual of Omaha because Katy is a donee beneficiary.
Ralph and Lydia plan to be married soon, so Ralph drafts a prenuptial agreement for them. Lydia reviews the prenuptial agreement and decides that everything looks fine. Lydia signs the prenuptial agreement electronically using Adobe E-Signature. After Ralph and Lydia have been married for two years, Ralph sues Lydia for divorce. Ralph wants to enforce the terms of the prenuptial agreement, but Lydia objects. Lydia's best argument for invalidating the prenuptial agreement is that: nothing; Lydia has no defense to the prenuptial agreement. e-signatures can only be used in shrinkwrap agreements. e-signatures cannot be used on prenuptial agreements. e-signatures cannot be used on legally enforceable contracts.
e-signatures cannot be used on prenuptial agreements.
In January, Victor contracted with Delrita to cater a Cinco de Mayo (May 5th raised to the th power) party for 500 of his closest friends. Neither of them anticipated that their entire state would be under stay-at-home orders on May 5 due to a global pandemic. Under what principle may Victor cancel his contract with Delrita? time is of the essence frustration of purpose statute of limitations commercial impossibility
frustration of purpose
Landscape Supply agrees to provide Delta Lawn Service eight pallets of sod for the price of $260 per pallet. The agreement contains the following provision: "This Agreement may not be amended or modified except by an instrument in writing signed by the party to be charged with such amendment or modification." Delta decides it now needs 160 pallets of sod, and Landscape is willing to reduce the price to $255 per pallet because of the increased amount. Delta and Landscape can accomplish this change to the contract by: crossing out the incorrect language and replacing it by hand with the correct terms or rewriting the entire contract to include the changed provisions. signing an amendment or rewriting the entire contract to include the changed provisions only. crossing out the incorrect language and replacing it by hand with the correct terms only. signing an amendment, crossing out the incorrect language and replacing it by hand with the correct terms, or rewriting the entire contract to include the changed provisions.
signing an amendment, crossing out the incorrect language and replacing it by hand with the correct terms, or rewriting the entire contract to include the changed provisions.
A quantum meruit remedy is equivalent to: a reliance interest. an equitable remedy. the reasonable value of the agreement. an expectation interest.
the reasonable value of the agreement.
Elvis agrees to provide guitar lessons to Angela's niece for three months for $600. Angela decides her niece really is not interested in guitar lessons, and assigns her rights under the contract to Jose, so Jose can use the lessons for his daughter. When Jose contacts Elvis to set up the first guitar lesson for his daughter: Elvis will be obligated to provide guitar lessons to both Jose's daughter and Angela's daughter. Jose cannot enforce the contract against Elvis, because contracts are not assignable unless they contain a clause making them assignable. Jose cannot enforce the contract against Elvis because the contract is for personal services. Elvis will be obligated to provide guitar lessons to Jose's daughter because this is a valid assignment.
Jose cannot enforce the contract against Elvis because the contract is for personal services.
Otto orally agrees to install three wells for Green Space Energy over the next eighteen months. When the three wells are completed, Green Space Energy will pay Otto $10,000. After the first well is completed, Green Space Energy tells Otto that it does not want any more wells. Green Space Energy refuses to pay Otto for the first well, claiming that the contract was not in writing and, therefore, not enforceable. If Otto sues Green Space Energy to enforce the contract: Green Space Energy will not have to pay Otto anything because the contract was for real estate. Green Space Energy will have to pay Otto a reasonable price for the one well that was installed. Green Space Energy will not have to pay Otto anything, because the contract could not be completed within one year. Green Space Energy will have to pay Otto the full contract price because Green Space Energy breached the contract.
Green Space Energy will have to pay Otto a reasonable price for the one well that was installed.
Midwest Life Insurance sells a life insurance policy to Thiago. Under the terms of the contract between Thiago and Midwest Life, Thiago will pay $75 per month for the policy, and, upon Thiago's death, Midwest Life will pay $100,000 to Laurelei. Four years later, Thiago dies, and Midwest refuses to pay under the terms of the policy. The party entitled to sue Midwest for its failure to honor the terms of the contract is: Thiago's executor, because the only party to the contract with Midwest is Thiago, and Thiago is deceased. Laurelei, because she is a creditor beneficiary. Laurelei, because she is a donee beneficiary. Laurelei, because she is an incidental beneficiary.
Laurelei, because she is a donee beneficiary.
Daphne contracts with Speedy Builders Inc. to construct a six-foot fence around her yard. Daphne's neighbor Rando is delighted because Daphne's fence will border the north side of his property. This means he can enclose the rest of his property for a much lower price. Before construction begins, however, Speedy Builders receives an offer for another, more lucrative project, and refuses to perform the contract with Daphne. Who can sue Speedy Builders for breach of contract? Both Daphne and Rando must join in a suit against Speedy Builders. Either Daphne or Rando can sue. Only Rando can sue. Only Daphne can sue.
Only Daphne can sue.
What factors may overturn a minor's right to disaffirm a contract? Choose 3 answers. The minor misrepresented the minor's age while engaging in business as an adult. The object of the contract has been destroyed. The minor ratifies the contract after reaching the age of majority. The contract is for necessaries.
The minor misrepresented the minor's age while engaging in business as an adult. The minor ratifies the contract after reaching the age of majority. The contract is for necessaries.
Which of the following contracts violate public policy? A contract for a loan which charges an interest rate of 4% A contract for the sale of a business which limits the previous owner's right to operate a similar business for 1 year within a 100 mile radius A contract to insure your own life A contract for the sale of a kidney
A contract for the sale of a kidney
Which of the following contracts would be enforceable? A contract with an unlicensed lawyer A contract with an unlicensed retail clothing store A contract with an unlicensed contractor A contract with an unlicensed cosmetologist
A contract with an unlicensed retail clothing store
Which statement is true about the ability of minors to enter into contracts? A minor cannot legally enter into contracts. A minor may enter into any contract an adult can, except for contracts that are expressly prohibited for minors. A minor may enter into a contract but must ratify it within one year of the date of the contract. A minor may enter into a contract only if the minor has an adult co-signer.
A minor may enter into any contract an adult can, except for contracts that are expressly prohibited for minors.
What must be included in a contract to satisfy the requirement that it be in writing? Choose 3 answers. All of the parties to the contract must be named in the writing. Both parties to the contract must have signed the writing. The subject matter of the contract must be identified. Consideration to be paid must be defined in the contract.
All of the parties to the contract must be named in the writing. The subject matter of the contract must be identified. Consideration to be paid must be defined in the contract.
What are the possible remedies for a contract formed under duress? Choose 3 answer choices. Allow duress as a defense for breach of contract. Enforce the contract. Make the contract voidable. Rescind the contract.
Allow duress as a defense for breach of contract. Make the contract voidable. Rescind the contract.
Tyler entered into a contract with Leah to provide supplies for her business. What form can the writing of the contract take? Choose 3 answer choices. An email Several separate documents written over time An invoice A check
An email An invoice A check
Huseyin and Ashish are negotiating the details of a new garage that Ashish plans to build on Huseyin's property. They agree on the building specs, the delivery date, and a price of $25,000. Ashish draws up the contract and sends it to Huseyin to sign. Huseyin reviews the contract and notices the price is listed as $2,500 instead of $25,000. Elated at the unbelievably low price, Huseyin quickly signs the contract and sends it back to Ashish, who signs it as well. If Ashish later tries to rescind the contract due to the mistaken price: Ashish will be successful, because it is a mathematical mistake that Huseyin was aware of. Ashish will be successful, because the parties made a mutual mistake. Ashish will not be successful, because parol evidence is not admissible to disprove the terms of a written contract. Ashish will not be successful, because a unilateral mistake is not a basis to rescind a contract.
Ashish will be successful, because it is a mathematical mistake that Huseyin was aware of.
Which mistake is likely to be voidable? Bilateral mistake Unilateral mistake A prediction mistake Mistakes of Value
Bilateral mistake
Freda purchases a living room set from Furniture Barn for $3,000 and agrees to pay for the furniture in installments. The usury rate in Freda's state is 10%. This means that: Furniture Barn can charge no more than 10% over the federal prime interest rate. Furniture Barn can charge no more than 10% interest unless Freda agrees in writing to a higher interest rate. Furniture Barn can charge no more than 10% interest without violating the law. Furniture Barn can charge no more than 3% over the federal prime interest rate.
Furniture Barn can charge no more than 10% interest without violating the law.
Which of these contracts would be enforceable, despite the existence of a mistake? Choose 2 answer choices. Christopher agrees to sell his washer and dryer to Ella. He bought them at a yard sale and the sellers told him they were new. Ella believes they are new as well and, as a result, pays a higher price. When Ella encounters problems, a friend shows her parts that are worn. Christopher agrees to sell his washer and dryer to Ella in "as is" condition. Ella thinks the set is in excellent condition and is willing to take a chance on buying it. Neither works after a few weeks of use. Christopher agrees to sell his washer and dryer to Ella. Ella thinks the dryer uses gas instead of electricity, but she is incorrect. Christopher agrees to sell his washer and dryer to Ella. Christopher overhears Ella telling her friend that she is happy she is getting such a great deal on a new washer and dryer, although Christopher knows he has used them for a year, but he does not correct her.
Christopher agrees to sell his washer and dryer to Ella in "as is" condition. Ella thinks the set is in excellent condition and is willing to take a chance on buying it. Neither works after a few weeks of use. Christopher agrees to sell his washer and dryer to Ella. Ella thinks the dryer uses gas instead of electricity, but she is incorrect.
What legal limitations are imposed on parties to assignments and delegations? Choose 3 answers. Contracts that are for a service that depends on a particular skill or talent may not be delegated. The assignee obtains only the rights that the assignor had under the contract. A contract cannot prevent an assignment of the right to receive funds. A valid delegation of duties relieves the delegator from the obligation to perform.
Contracts that are for a service that depends on a particular skill or talent may not be delegated. The assignee obtains only the rights that the assignor had under the contract. A contract cannot prevent an assignment of the right to receive funds.
What evidence outside of the written contract is a party allowed to present? Choose 2 answer choices. Evidence showing an agreement that is different from the contract that the parties agreed to before the contract was signed Evidence to prove agreement on an essential element of the contract Verbal negotiations leading to the signing of the contract Evidence showing a change to the contract after it is signed
Evidence to prove agreement on an essential element of the contract Evidence showing a change to the contract after it is signed
Melissa felt pressured into signing a contract that released her employer from any liability if she is injured on the job. What prohibited behavior under public policy could this be? Restraint of Trade Procedural Unconscionability Exculpatory Clause Substantive Unconscionability
Exculpatory Clause
Gavin and Allison are having drinks after work. After several rounds, the topic of Gavin's sports car comes up. Gavin is extremely proud of his sports car and brags about it all the time. To impress Allison, Gavin offers to sell Allison his expensive sports car for $5,000. Allison jumps at the deal, because she knows the car is worth much more than $5,000. They even write the "deal" down on a napkin, and both Gavin and Allison sign the napkin. The next morning, when Allison brings $5,000 to purchase the sports car, Gavin explodes. Gavin tells Allison that he was just kidding and that he would never sell his expensive sports car for such a low price. When Allison tries to enforce the deal: Either Gavin or Allison can rescind the contract based on incapacity or ratify the contract. Gavin can either rescind the contract based on incapacity or ratify the contract. Neither Gavin nor Allison can rescind the contract because it is in writing. Allison can either rescind the contract based on incapacity or ratify the contract.
Gavin can either rescind the contract based on incapacity or ratify the contract.
Hailey visits Rent-it-Your-Way Electronics and selects a big screen television to buy that costs $1,199. Hailey cannot afford to purchase the television outright, so she asks about financing. Ruby, the salesperson, assures Hailey that financing is available; Hailey can take the television home today and simply pay forty dollars each month until it is completely paid. Ruby shows Hailey their standard financing contract, which has three pages of tiny print. Hailey signs the contract and takes the television home. Hailey pays the monthly payment for ten months and then realizes that the balance has only gone down a small amount. Hailey looks closely at the monthly statement and realizes that the interest rate is thirty-five percent. At this rate, she will never get the television paid off. If Hailey tries to rescind the contract: Hailey will win because the contract has unconscionable terms. Rent-it-Your-Way will win because the contract has unconscionable terms. Hailey will win because Ruby coerced her into signing the contract. Rent-it-Your-Way will win because Hailey had an opportunity to read the fine print if she so chose.
Hailey will win because the contract has unconscionable terms.
What rights does a third-party beneficiary to a contract hold in regard to that contract? If the third party is an incidental beneficiary, the third party has the right to become an intended beneficiary. The third party has no rights because the third party does not have privity of contract. If the third party is an intended beneficiary of the contract, the third party has the right to sue either the promisor or the promisee. The third party has all the rights of the primary parties to the contract.
If the third party is an intended beneficiary of the contract, the third party has the right to sue either the promisor or the promisee.
Which of the following may sue on a contract, to which they are not a party? Both incidental and intended beneficiaries Intended beneficiaries Incidental beneficiaries Neither intended or incidental beneficiaries
Intended beneficiaries
Isabel is 17 years old and wants to stop paying for the use of the local gym, but wishes to continue teaching classes. Her contract with the company includes terms regarding her employment and use of the facility. What must she do to properly disaffirm the contract? Choose 2 answer choices. Isabel must disaffirm both the gym membership obligations and the employment terms in the contract. Isabel can choose to disaffirm the gym membership portion of the contract and retain the employment terms. Isabel must let gym staff know she is terminating the contract. Isabel must wait until she turns 18 to disaffirm the contract.
Isabel must disaffirm both the gym membership obligations and the employment terms in the contract. Isabel must let gym staff know she is terminating the contract.
What function does a severability clause serve? Choose 2 answers. It specifies how the contract will be terminated. It preserves the rest of the contract if one part is unenforceable. It specifies what will happen with a potentially unenforceable part of a contract. It sets the amount of damages to be paid if one party breaches the agreement.
It preserves the rest of the contract if one part is unenforceable. It specifies what will happen with a potentially unenforceable part of a contract.
Which is NOT an exception to the parol evidence rule? Jayden wants to present evidence that Jignesh verbally promised he would include the trailer with the boat he sold to Jayden. Jayden has evidence that he and Jayden agreed to move back the boat delivery date from the original date in the contract when Jayden discovered a hole and Jignesh agreed to repair it before delivery. Jayden has evidence that Jignesh misrepresented portions of the deal they made and would like to present this evidence to terminate the contract. Jayden wants to present evidence that Jignesh agreed to deliver the boat to Jayden before Memorial Day of next year, but the contract incorrectly states the delivery will take place before Memorial Day 2098.
Jayden wants to present evidence that Jignesh verbally promised he would include the trailer with the boat he sold to Jayden.
Which of the following elements are required to show fraudulent misrepresentation in a contract? (Select all that apply) Misrepresentation of a material fact Justifiable reliance on the fact by the innocent party Latent defect Scienter Misrepresentation of any fact Damages
Misrepresentation of a material fact Justifiable reliance on the fact by the innocent party Scienter Damages
Anwah runs an antique store that specializes in paintings and other types of artwork. Lionel visits Anwah's antique store and discovers a beautiful old painting in a gilded frame. Lionel is excited because it looks like a painting by Gomez that he saw in his art review class that is worth $5,000. Lionel asks Anwah to confirm that the painting is indeed a Gomez original. Anwah smiles and winks at him. Lionel purchases the painting from Anway for $1,500. When Lionel takes the painting to an art dealer, he discovers that the painting is not a Gomez original and is only worth $20. If Lionel tries to rescind the contract with Anwah: Lionel will not be able to rescind the contract because a mistake of value is a not a defense to a contract. Lionel will not be able to rescind the contract because Anwah did not state that the painting was indeed a Gomez original. Lionel will be able to successfully rescind the contract because Anwah committed fraud. Lionel will be able to successfully rescind the contract because the painting was not worth as much as Lionel believed it was worth.
Lionel will be able to successfully rescind the contract because Anwah committed fraud.
Lupita enters into a contract with Faith to purchase a used car. At the time they sign the contract, Lupita appears to be very intoxicated. Faith notices this but signs the contract anyway. If Lupita later decides she wants to get out of the contract: Lupita cannot get out of the contract if both parties signed it. Lupita cannot get out of the contract even though she had been drinking excessively. Lupita can raise the defense of lack of contractual capacity due to intoxication. Lupita can raise the issue of undue influence, because Faith took advantage of Lupita while she was drinking.
Lupita can raise the defense of lack of contractual capacity due to intoxication.
Marco hires Franco to burn down a clothing store that belongs to one of Marco's competitors. Marco pays Franco $1,000 upfront and promises another $3,000 when the job is done. Franco burns down the clothing store and then asks Marco for the rest of the payment. Marco just laughs at Franco and walks away. If Franco sues Marco for payment under the contract: Marco will not have to pay because of the lack of competent parties. Marco will not have to pay because the subject matter of the contract is illegal. Marco will have to pay because all the elements of a contract have been met. Marco will not have to pay because the agreement lacks consideration.
Marco will not have to pay because the subject matter of the contract is illegal.
Selma wants to buy Matilda's house. Selma has been admiring the house for a long time and has asked Matilda repeatedly to sell the house to her, but Matilda has always refused. Finally, Selma tells Matilda that if Matilda does not sell Selma the house, Selma will kill Matilda's daughter. Afraid for her daughter's life, Matilda signs the contract to sell the house to Selma. If Matilda later tries to rescind the contract: Matilda may rescind the contract on the grounds that she signed the contract under duress. Matilda may rescind the contract on the grounds of undue influence. Matilda may not rescind the contract because it has all the elements of a valid contract. Matilda may rescind the contract on the grounds of unconscionability.
Matilda may rescind the contract on the grounds that she signed the contract under duress.
Which type of lack of capacity is easiest to prove? Minor status Contracting for necessities Intoxication Mental incompetence
Minor status
Will a mistake in value of the subject of the contract allow a contract to be rescinded? Yes, but only if the contract is for less than $250. Yes, if both parties were mistaken. No, even if both parties were mistaken. No, if only one party was mistaken.
No, even if both parties were mistaken.
You go out drinking and playing cards with your buddies. After you have consumed a huge amount of alcohol, you agree to sell your motorcycle to your buddy. The next morning, after you sober up, your buddy tells you what you did. Do you think your buddy can legally hold you to the deal to sell him your motorcycle? Yes, he can, even though you were so intoxicated that you could not form the mental capacity to enter into a contract, and your buddy knew you were intoxicated. No, he can't, if you were so intoxicated that you could not form the mental capacity to enter into a contract, whether or not your buddy knew that you were intoxicated. Yes, he can, even though you were so intoxicated that you could not form the mental capacity to enter into a contract, whether or not your buddy knew you were intoxicated. No, he can't, if you were so intoxicated that you could not form the mental capacity to enter into a contract, and your buddy knew you were intoxicated.
No, he can't, if you were so intoxicated that you could not form the mental capacity to enter into a contract, and your buddy knew you were intoxicated.
Kellen is selling a vehicle which has been previously been in an accident and which shows obvious damage. If he does not tell the buyer about the accident, has he committed fraudulent misrepresentation? No, if the buyer does not ask about the vehicle history. No, because it would be inappropriate and not justifiable for a buyer to rely on any of his representations. Yes, because the vehicle history is a material fact. Yes, even though the damage is obvious.
No, if the buyer does not ask about the vehicle history.
Samuel has mental competency issues. Samuel entered into a contract with Beth, but now Samuel is petitioning the court to terminate the contract. What options does the court have in ruling in the case? Choose 2 answer choices. The contract is void if Samuel was incompetent at the time the contract was formed. The contract is voidable if Samuel was incompetent at the time the contract was formed. The contract is void if Samuel has been previously determined to be mentally incompetent. The contract is voidable if a court has previously determined Samuel to be mentally incompetent.
The contract is voidable if Samuel was incompetent at the time the contract was formed. The contract is void if Samuel has been previously determined to be mentally incompetent.
You are surfing the internet and find a new computer game that looks pretty cool. The website asks you to read through the conditions associated with the use of the game and then click to agree to the terms. You click on the "I agree" button without reading any of the terms and then download and start using the game. The game turns out to be a lot of fun, so you make copies of it and share it with your friends. What do you think might happen if the game company accuses you of violating the terms of the agreement, because one of those terms says you cannot make copies of the game? The company wouldn't be happy about it, but there is nothing they can do. The company couldn't do anything, because you don't have a written contract with the company. The company couldn't do anything, because you didn't know that sharing the game was against the rules, because you didn't actually read the terms of the agreement. The company could probably sue you for violating the agreement.
The company could probably sue you for violating the agreement.
Which of the following are contract rights may be assigned? The right to receive future worker's compensation benefits The right to insure a property The right to receive house cleaning services Payment of $500
Payment of $500
What is an exception to the statute of frauds? Collateral Promises Contracts dealing with land Promissory Estoppel Contracts under the UCC
Promissory Estoppel
Ruby, a seventeen-year-old, purchases a car from Smitz Used Auto Sales and agrees to pay for it over a period of twenty-four months. Ruby makes the payments for four months but then decides the car payment is too much for her limited budget. Ruby tells Smitz that she wants to stop making payments and that she wants out of the contract completely. The contract between Ruby and Smitz can be canceled by: Ruby, because she is a minor, but Ruby must return the car. Smitz or Ruby, because Ruby is a minor, and Ruby may keep the car. Smitz, because Ruby is a minor, but Smitz must allow Ruby to keep the car. Ruby, because she is a minor, and Ruby may keep the car.
Ruby, because she is a minor, but Ruby must return the car.
After graduating from college you are offered what you believe is your dream job. You are working in the field in which you earned your degree and get a fantastic salary. As part of the job offer, you have been asked to sign a non-compete agreement in which you agree to not work for any other competing company for five years after you leave this company (whether voluntarily or involuntarily). You happily sign the agreement and begin work. However, within the first year, you are miserable and begin to look for another job. If you find another position at a competing company, may this company prevent you from taking it under the non-compete agreement you signed? The agreement is probably invalid due to being overly broad. The agreement is valid because there was offer, acceptance, and consideration. The agreement is invalid because non-compete agreements are illegal. The agreement is valid because you signed it of your own free will.
The agreement is probably invalid due to being overly broad.
What is the test for whether a contract is governed by the Statute of Frauds because of the one-year rule? The contract start date must be more than one year from the date of signing. The contract must be objectively impossible to perform within one year. The contract must be unlikely to be performable in less than one year. The contract must be able to be performed in less than one year.
The contract must be objectively impossible to perform within one year.
A parent will be liable on their child's contract in the following situations: The child disaffirmed the contract. The contract is one for necessaries. The child, of their own accord, misrepresented their age in order to make the contract. The parent has co-signed on the contract.
The parent has co-signed on the contract.
What must happen after a contract made while intoxicated is declared void? The party who sought to void the contract must make restitution. The party who sought to void the contract must prove his or her competence. The party who contracted with an intoxicated person must make restitution. The party who contracted with an intoxicated person must rescind the contract.
The party who sought to void the contract must make restitution.
Willow has worked for Cloud Computing Inc. in Boulder, Colorado, for five years. When Willow joined Cloud Computing, she signed an employment contract that contained a covenant not to compete. The covenant states that if Willow leaves Cloud Computing, she will not work for any competitor for two years. Willow is approached by Centers for Computing Inc. with a job offer that she simply cannot refuse. Centers for Computing is located in Atlanta, Georgia. Willow accepts the job with Centers for Computing, and Cloud Computing sues Willow for violating the covenant not to compete. The result of this lawsuit will probably be that: Willow will win, and Cloud Computing will have to provide Willow a severance package. Cloud Computing will win, but the court will reform the length of the covenant not to compete. Cloud Computing will win, and the court will enforce the covenant not to compete. Willow will win, and the court will reform the contract to add a reasonable geographical restriction.
Willow will win, and the court will reform the contract to add a reasonable geographical restriction.
When a contract duty is legally delegated, must the obligee accept performance from the delegatee? Yes but the delgatee is not obligated to perform as the delgator would have. No but the delegatee must still perform fully. No but the delgatee should offer performance in the same manner as the delegator would have. Yes and the delegatee is obligated to perform as the delegator would have.
Yes and the delegatee is obligated to perform as the delegator would have.
Rafael tells his friends that he wants to sell his party barge for $30,000. Rafael has some flyers made up with a picture of the party barge, a description of the features, and the price. Andre obtains one of the flyers and contacts Rafael about purchasing the party barge. Rafael draws up a contract and mistakenly lists the price of the party barge at $20,000 instead of $30,000. Rafael and Andre both sign the contract. When Andre brings $20,000 to purchase the party barge, Rafael discovers his mistake. Will Rafael be able to rescind the contract? Yes, Rafael can rescind the contract even though it was a unilateral mistake. No, Rafael cannot rescind the contract because it was a unilateral mistake. Yes, Rafael can rescind the contract even though it was a mutual mistake. No, Rafael cannot rescind the contract because it was a mutual mistake.
Yes, Rafael can rescind the contract even though it was a unilateral mistake.
Which of the following is a voidable contract? a contract made with someone declared mentally incompetent by a court a contract hiring someone to commit arson a contract in which the parties made a mutual mistake about the terms a contract hiring someone to blackmail a public official
a contract in which the parties made a mutual mistake about the terms
Which of the following is an intended beneficiary to a contract? the owner of a pizzeria who sells more pizza due to a convention being held nearby a spouse of a beneficiary of an insurance contract a beneficiary of an insurance contract a person whose residential property value goes up as the result of a city's agreement with a commercial land developer
a beneficiary of an insurance contract
A partially integrated contract means: a contract contains only some terms, to which the parties agree but not others. the parties agree to allow evidence of contradictory side agreements as evidence in litigation. the parties agree to allow evidence of inconsistency as evidence in litigation. the parties have failed to memorialize any of the terms of their agreement in writing.
a contract contains only some terms, to which the parties agree but not others.
What types of contracts violate public policy? Choose 3 answers. conducting trade with a country that is an enemy to the United States a contract to allow a political candidate exclusive use of billboards you own a candidate for public office paying his competitor to retire employment contracts that forbid membership in a union
conducting trade with a country that is an enemy to the United States a candidate for public office paying his competitor to retire employment contracts that forbid membership in a union
What is the term for the legal ability to enter into a binding contract? mental competence emancipation contractual capacity legal capability
contractual capacity
Christiana is seventeen years old and has been emancipated. Christiana shares an apartment with a roommate and totally supports herself. Christiana purchases a stereo from Best Stereo Place, Inc. and signs an installment agreement to pay for the stereo over the next twelve months. After paying on the stereo for three months, Christiana decides she no longer wants the stereo. To avoid the rest of the payments on the stereo, Christiana can: give notice to Best Stereo Place that she wishes to rescind the contract based on her minority status. ask Best Stereo Place to rescind the contract based on Christiana's minority status. do nothing. Because Christiana signed the contract as an emancipated minor, she has no grounds to rescind the contract. just stop paying. Because Christiana is a minor, she is not required to give notice to Best Stereo.
do nothing. Because Christiana signed the contract as an emancipated minor, she has no grounds to rescind the contract.
A clause that releases a party from liability in the event of monetary or physical injury, no matter who is at fault, is called: exculpatory. estoppel. usury. negligent.
exculpatory.
Marie and Molly enter into a written contract to sell Marie's home to Molly. At the time the contract is executed, Marie tells Molly that for the last six months she has been sharing the home with a family of extraterrestrial beings. Marie states that she has asked the extraterrestrials to move out, but they won't; therefore, she is selling the family home to get rid of them and is willing to sell the home to Molly for well below market price. After the sale of the home is complete, Marie's children challenge the sales contract on the grounds that Marie did not have the mental capacity necessary to enter into a contract, even though Marie has not been declared incompetent by the courts. The contract between Marie and Molly can be rescinded: by either Marie or Molly. under no circumstances, because Marie was not adjudicated insane before she signed the contract. if Marie's children can prove that Marie lacked the mental capacity to comprehend the nature, purpose, and consequences of the contract. only if Marie's children have Marie committed.
if Marie's children can prove that Marie lacked the mental capacity to comprehend the nature, purpose, and consequences of the contract.
A contract for a purpose that causes the parties to violate a law is: illegal and voidable. illegal and void. illegal and dischargeable. enforceable as a quasi-contract.
illegal and void.
Harold offers to sell Emma his farmland in Bryson County. After discussing the sale at length in front of their friends Nicole and Jackson, Harold and Emma orally agree on a price of $120,000 for the land. The next day, Emma goes to the bank and withdraws $120,000 to pay Harold for the land. When Emma presents the $120,000 to Harold, Harold tells Emma he was just joking and does not wish to sell the land. Emma tries to enforce the deal, and Harold continues to refuse by saying that the deal was not in writing, and, therefore, it is unenforceable. The contract between Harold and Emma for the sale of the land: is enforceable, because there are witnesses to the deal. is not enforceable because it violates the statute of frauds. is enforceable because it complies with the statute of frauds. is not enforceable because of the theory of promissory estoppel.
is not enforceable because it violates the statute of frauds.
If a minor misrepresents their age, they: my be liable for the return of consideration. can force their parents to be liable on the contract. will never have liability on the contract. will always have liability on the contract.
my be liable for the return of consideration.
A party normally cannot present any evidence of which of the following if that evidence contradicts or varies the terms of the written contract? Choose 3 answers. conditions that must be fulfilled before the contract becomes enforceable negotiations prior to contract formation oral agreements that happened at the same time as contract formation agreements prior to contract formation
negotiations prior to contract formation oral agreements that happened at the same time as contract formation agreements prior to contract formation
When a contract has been assigned, what rights does the original contract holder (assignor) still have? The right to indemnification none All the rights the assignor originally held The right to reimbursement
none
What is the term for evidence of communication between parties to a contract that is not included in the contract? incomplete contracts parol evidence prior dealing promissory estoppel
parol evidence
Which of these types of contracts must be in writing under the requirements of the Statute of Frauds? Choose 3 answers. contracts for the sale of goods priced at $1,000 or more promises made in consideration of marriage collateral promises to pay the debt of another person contracts for the sales of land
promises made in consideration of marriage collateral promises to pay the debt of another person contracts for the sales of land
Under the Uniform Commercial Code (UCC), which term in a written contract for the sale of goods is essential? quantity of items being purchased the place of delivery or assumption of possession the price per item or the total price the date of delivery
quantity of items being purchased
What is the term for when a person legally accepts the terms of a contract that could have been avoided due to incapacity? restitution renunciation emancipation ratification
ratification
Covenants not to compete in employment contracts may be enforceable if they are: (Choose 2 answers) only applied to upper-level managers. reasonable in geographic restriction. reasonable in time duration. in writing.
reasonable in geographic restriction. reasonable in time duration.
What is the primary purpose of the Statute of Frauds? ensuring that all details of a contract are well defined defining who may testify in a dispute over a contract preventing fraudulent behavior in the formation of contracts requiring written evidence of agreements concerning important transactions
requiring written evidence of agreements concerning important transactions
What remedies are available in the case of a unilateral mistake in making a contract? Choose 2 answers. enforcement punitive damages rescission reformation
rescission reformation
An assignment is the transfer of: rights and duties. personal obligations. duties. rights.
rights
Anna, Sylvia, and Bonnie decide to purchase honey illegally from Canada and sell it in the United States. Each party contributes $500 to the venture, which has an expected return of $3,000 each. The morning they are to pick up the honey, Anna changes her mind; she does not want to be a part of any illegal deal. Sylvia and Bonnie proceed to purchase the honey and give the seller the agreed-upon $1,500. Because Anna withdrew from the deal before the illegal contract had been performed: she is not entitled to any funds. Anna is entitled to her share of the profits, $3,000, less any expenses incurred by Sylvia and Bonnie in obtaining and transporting the honey. she is entitled to have her initial investment, $500, returned. Anna is entitled to her share of the profits, $3,000.
she is entitled to have her initial investment, $500, returned.
Dora has been in a nursing home for three years and rarely has visitors. Vanita works at the nursing home and regularly takes care of Dora. Vanita and Dora have become very close, and Dora depends on Vanita to help her with decisions about her finances. Just before Dora dies, Vanita and Dora enter into a contract to sell Dora's family home to Vanita for $20,000. The home is worth $100,000. If Dora's children try to void the contract between Vanita and Dora: the children will not be successful in voiding the contract, because there is valid consideration and the contract is in writing. the children may be able to void the contract based on fraud. the children may be able to void the contract based on undue influence. the children may be able to void the contract based on illegality.
the children may be able to void the contract based on undue influence.
Assuming there is no contract language prohibiting delegations, which of the following acts could likely be delegated? (Select 2 answers) the building of a new courthouse for the city to another contractor the mowing of grass in a residential neighborhood to another landscaper painting a portrait to a lesser experienced artist painting the exterior of a house to another house painter
the mowing of grass in a residential neighborhood to another landscaper painting the exterior of a house to another house painter
Alvin's Department Store agrees over the telephone to purchase $1,000 worth of blankets from Blanket Emporium. Blanket Emporium sends an invoice for the blankets before shipping them, and Alvin's Department Store refuses to go forward with the deal, saying their deal is not a valid contract. The oral agreement between Blanket Emporium and Alvin's Department Store for the purchase of $1,000 worth of blankets: does not violate the statute of frauds because it can be completed within one year. does not violate the statute of frauds, and is, therefore, enforceable. violates the statute of frauds, and is, therefore, unenforceable. does not violate the statute of frauds because it is not for the sale of real estate.
violates the statute of frauds, and is, therefore, unenforceable.
What type of contract is created by an agreement that is oral when it is required by the Statute of Frauds to be in writing? void fraudulent voidable quasi
voidable
When are covenants not to compete in employment contracts considered to be against public policy? Choose 2 answers. when the specified time of restraint is excessive when the business is mostly online when the business is mostly a service business when the geographical restriction is too broad
when the specified time of restraint is excessive when the geographical restriction is too broad
Marla offers to sell Kennedy her property on Lake of the Ozarks for $90,000. Marla drafts a written agreement that contains the property description and price, and has places for both Kennedy and Marla to sign. Marla sends the agreement to Kennedy to review. Kennedy signs the agreement and sends it back to Marla, who never signs it. Marla then has second thoughts about the deal and refuses to complete the transaction. If Kennedy tries to enforce the contract against Marla, Kennedy: will be successful, even though Marla never signed the agreement. will be unsuccessful, because Kennedy signed the agreement. will be unsuccessful, because Marla never signed the agreement. will be successful, because Kennedy signed the agreement.
will be unsuccessful, because Marla never signed the agreement.
