BLAW exam 2

Which of the following is a condition subsequent?

"I promise to do X unless Hillary Clinton is elected President in 2016."

Sam, a plumber, entered into a contract for $75,000 with Orr, Inc., to perform certain plumbing services in a building owned by Orr. After Sam had satisfactorily performed the work, Orr discovered that Sam had violated the state licensing statute by failing to obtain a plumbing license. As a result, Orr denied paying any money to Sam. The licensing statute was enacted merely to raise revenue for the state. An independent appraisal of Sam's work indicated that the building's fair market value increased by $70,000 as a result of Sam's work. The cost of the materials which Sam supplied was $35,000. If Sam sues Orr, Sam will be entitled to recover:

$75,000

Which of the following is most likely to constitute undue influence?

A clergyman using a parishioner's EMOTIONAL susceptibility to get the parishioner to contract with the clergyman.

Which of the following characterizes the traditional rule regarding a minor who misrepresents his/her age?

A minor's right to disaffirm is valid in such a case.

Which of the following is covered by the statute of frauds?

A real estate mortgage.

Calvin tells Sara that he will sell her his car for $5,000. Sara agrees. The exchange is to take place in 10 days. The contract between Calvin and Sara is now:

Bilateral,Executory, and Express

Which form of damages is intended to give the victim of the breach of contract the "benefit of the bargain"?

Compensatory

The appointment of another person to perform a duty under a contract is called a(n):

Delegation

Antiassignment clauses in contracts are not enforceable.

False

Courts look at parties outward manifestations of intent as a requirement to enforce a contract. This is called the subjective standard of intent.

False

Generally, the age of majority for contracting purposes is 21 year

False

In order to satisfy the writing requirement of the statute of frauds, both parties must sign the writing.

False

Where an offer stipulates a certain means of acceptance, the offeree's acceptance is effective upon dispatch even if it uses means other than those specified in the offer

False

______ is a wrongful coercion that induces a person to enter or modify a contract.

Fraud

When the surrounding facts and circumstances indicate that an agreement has in fact been reached, a(n) _______ has been created.

Implied Contract

Helga owns an insurance business in Idaho. Her clients are all Idaho residents. She later sells her business to Carlos. As part of the deal, the contract contains a non-compete clause that prevents Helga from operating an insurance business anywhere in Idaho, Washington or Oregon for a period of five years. Six months after this sale, Helga opens an insurance business in Oregon. If Carlos seeks to enforce the non-compete agreement against Helga, will he probably be successful?

No, because this agreement is not reasonable.

When can the offeror effectively revoke his/her offer?

Only before and effective acceptance

Sue wanted to purchase a car. She went to "Honest Bob's" used car sales. She was interested in a classic 1956 Jaguar XK 140 Roadster. Bob told her "this is a great car-it runs like a dream, it is a sweet ride." Bob's statements are legally considered to be

Opinion Statements

Consideration can be a(n) ______ in the case of a bilateral contract.

Promise

An exculpatory clause is a provision in a contract that purports to relieve one of the parties from tort liability.

True

In order for a unilateral mistake to make a contract voidable, either the nonmistaken party must have caused or had reason to know of the mistake, or enforcement of the contract must be unconscionable.

True

John promises to pay Robert $100 per week, in exchange for Robert's promise not to beat John up. There is no consideration for John's promise.

True

The essence of a contract is that it is a legally enforceable promise or set of promises

True

On Thursday, Trista Dylan receives a letter from Charlie Holmes offering to sell her a diamond ring and stating that: "if you choose to accept, you must do so prior to 2:00 p.m. tomorrow." Trista had a telegram of acceptance dispatched well before 2:00 p.m. on Friday but it is delivered to Charlie's home only at 2:15 p.m. Do Trista and Charlie have a binding contract?

Yes, because Trista dispatched the telegram prior to 2:00 pm.

James has entered into a contract to sell his house to Mikhael. James knows that the house has a bad termite infestation that significantly reduces the value of the house. However, the topic of termites never came up and James did not volunteer any information about the termites. Mikhael is not aware of the termite problem. Under the law of most states, has legal misrepresentation occurred here?

Yes, because a seller must always inform a buyer about defects that are not obvious.

Betty, age 17 and married, buys a car and wrecks it one week later. She takes it back to the seller and demands all her money back. According to the traditional rule, is she entitled to get all her money back?

Yes, regardless of the condition of the car, because this was a voidable contract

An uncertain future event, the occurrence of which is necessary for the existence of a contractual obligation is called:

a condition precent

The transfer of a right under a contract is called a(n):

assignment

Melanie owes $250 to Jessica. Jessica gifts the right to receive the money from Melanie to her daughter Kelly in writing. This assignment is:

enforceable despite the lack of consideration

Under the mirror image rule, only significant material changes between an offer and an acceptance would indicate an implied rejection of the offer. Daniel is a senior at State University. Brian, Daniel's father, is concerned about Daniel's study habits, given that Daniel spends most of his evenings at the campus pub instead of the library. Brian promises Daniel that he will send him on an expense-paid trip to Europe after his graduation if Daniel spends at least five evenings a week studying in the campus library for the remainder of his senior year. After returning home from his graduation, Daniel asks Brian about the European trip. Brian replies, "Your education was your reward. I don't owe you a trip to Europe." Brian is:

incorrect; Brian owes Daniel a trip to Europe because Daniel's acts are consideration.

Daniel owes Casey a debt, the amount of which is subject to a good faith dispute. The parties agree to settle the debt, with Daniel promising to pay Casey $15,000 and Casey promising to release Daniel on a $25,000 debt. The settlement agreement:

is supported by consideration

Damages that are agreed upon at the time the contract is entered into are called

liquidated damages

A written agreement was signed by two parties and it was intended to be their entire agreement. The parol evidence rule will prevent the admission of evidence that is offered to:

prove the existence of a contemporaneous oral agreement that modifies the contract.

The statute of frauds requires that:

some contracts be evidenced by a writing

In general, the mailbox rule is beneficial to:

the Offeree

When a court says that an agreement is illegal, it most likely means that the agreement:

violates public policy