BLAW Exam 3 Study Guide
Which act or statement is a valid offer? A price quote A completed auction with a reserve A detailed advertisement A typical advertisement
A detailed advertisement
In general, which of these contract terms is NOT required to meet the requirement of definiteness? Acceptance The parties invovled The time of payment The subject matter of the contract
Acceptance
Which mistake is likely to be voidable? Unilateral mistake A prediction mistake Mistakes of Value Bilateral mistake
Bilateral mistake
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? Substantive Unconscionability Exculpatory Clause Restraint of Trade Procedural Unconscionability
Exculpatory Clause
Quon decides to sell his antique roadster, so he places an ad on Craigslist. He lists the roadster as a 1957 Mercedes Benz 300SL Roadster, describes it as in good working condition, and states that no reasonable price will be refused. Fern responds to the ad and offers to pay 25000 to Quon for the car, which Quon agrees to. In this scenario, who is the offeror? Neither party is the offeror because there is no agreement to specific terms Quon was the original offeror, but Fern becomes the offeror when she offers 25000 Quon is the offeror Fern is the offeror
Fern is the offeror
In what situations would a court be likely to award a quasi-contract? Choose 2 answers If the defendant was unustly enriched and played a part in deceiving the plaintiff If the defendant did not know the plaintiff would expect to be paid for the services When the party provided the services for unwilling recipients When the unjust enrichment is a relatively insignificant amount of money
If the defendant was unjust enriched and played a part in deceiving the plaintiff When the unjust enrichment is a relatively insignificant amount of money
Which of the following distinguishes promissory estoppel cases from quasi-contract cases? In a quasi contract case, the plaintiff did not expect to be paid, but in a promissory estoppel case they did In promissory estoppel cases there is a promise; in a quasi contract cases there is not In promissory estoppel cases there is never a promise, but in quasi contract cases there are In promissory estoppel cases, there is a valid contract but not in a quasi contract case
In promissory estoppel cases there is a promise; in quasi contract cases there is not
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 let gym staff know she is terminating the contract Isabel must wait until she turns 18 to disaffirm the contract Isabel can choose to disaffirm the gym membership portion of the contract and retain the employment terms Isabel must disaffirm both eh gym membership obligations and the employment terms in the contract
Isabel must let gym staff know she is terminating the contract Isabel must disaffirm both the gym membership obligations and the employment terms in the contract
Lilly hired Harris Lawn Service to cut her grass one summer, and paid through automatic charges to her credit card. After taking three months off for winter weather, Harris staff cut Lilly's grass for four weeks in a row before charging the fees on Lilly's credit card. Lilly protested the charges, stating she did not hire the company to cut grass for the second summer. Harris sues Lilly. What law applies? Lilly's silence is acceptance because the offeree accepted the benefit offered Lilly's silence is not acceptance in this case because the offeree must affirmately accept the terms of the offer in full and communicate that acceptance to the offeror Lilly's silence is acceptance because of the parties' past dealings Lilly's silence is not acceptance and Harris's service in the spring is considered a gift to her
Lilly's silence is acceptance because the offeree accepted the benefit offered Lilly's silence is acceptance because of the parties' past dealings
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 can raise the issue of undue influence, because Faith took advantage of Lupita while she was drinking 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 cannot get out of the contract if both parties signed it
Lupita can raise the defense of lack of contractual capacity due to intoxication
Which type of lack of capacity is easiest to prove? Contracting for necessities Mental incompentence Intoxication Minor status
Minor status
Geraldo is the owner/manager of Geraldo's Cleaning Service, a firm that cleans office building. Geraldo has a team of seven employees who do a fantastic job. To encourage them to keep up the good work, Geraldo tells his employees that if they continue to work hard until the end of the quarter and if he is pleased with his profits at the end of the quarter, the company's will give them each a 100 bonus. At the end of the quarter, the company's profits were extremely high. Will Geraldo have to make goo don his promise of 100 bonus for each employee? No, Geraldo will not have to award the bonuses because his offer of a 100 bonus if he is pleased with his profits was an illusory promise Yes, Geraldo will have to award the bonuses because profits were extremely high No, Geraldo will not have to award the bonuses because the work of the employees is not valid consideration Yes, Geraldo will have to award the bonuses because the work of the employees is valid consideration
No, Geraldo will not have to award the bonuses because his offer of a 100 bonus if he is pleased with his profits was an illusory promise
Anna purchases a wedding dress and takes the dress to Jessica for alteration. Anna and Jessica agree that Anna will pay Jessica 75 for the alternations. After Jessica begins working on the dress, she has second thoughts. Jessica contacts Anna and advises her that the alternation will cost 150 instead of 75. Because Anna's wedding is in just two weeks, Anna reluctantly agrees. Once the alterations are completed, Anna pays Jessica the 75 originally agreed on. Is Jessica entitled to the additional 75? Yes, Jessica is entitled to the additional 75 because Anna agreed to it, forming a valid contract No, Jessica is not entitled to the additional 75 because contracts cannot be altered once the terms are agreed on Yes, Jessica is entitle to the additional 75 because the original contract contained insufficient consideration No, Jessica is not entitled to the additional 75 because there is no additional consideration for the revision to the contract
No, Jessica is not entitled to the additional consideration for the revision to the contract
Which situation would be considered sufficient consideration for a contract to exist? Bethany is remodeling a kitchen for Tonya. Bethany tells Tonya she will finish the work within a reasonable time if Tonya pays her a bonus Alice's grandson quit smoking so Alice promises to give him 5000 Pam agrees to pay Derek 500 if he does not sit next to her in class anymore Alice promises to give her granddaughter 10000
Pam agrees to pay Derek 500 if he does not sit next to her in class anymore
What are the possible remedies for a contract formed under duress? Choose 3 answer choices: Rescind the contract Make the contract voidable Allow duress as a defense for breach of contract Enforce the contract
Rescind the contract Make the contract voidable Allow duress as a defense for breach of contract
In a unilateral contract: The parties exchange a promise for a promise The offeror may revoke the offer at any time before performance has been completed acceptance may occur through a promise or an act Substantially undertaking performance prevents the offeror from revoking the offer
Substantially undertaking performance prevents the offeror from revoking the offer
If the terms of an agreement seem to be very one-sided, which public policy could it be violating? Choose 2 answer choices: Duress Substantive Unconscionability Restraint of Trade Mutual mistake
Substantive Unconscionability Restraint of Trade
What must a plaintiff prove to show duress in the formation of a contract? Choose 2 answer choices: The plaintiff was injured or feared he or she would be injured The defendant intended to harm the plaintiff The defendant committed a wrongful or illegal act The plaintiff was incapable of voluntarily agreeing to the contract
The defendant committed a wrongful or illegal act The plaintiff was incapable of voluntarily agreeing to the contract
How can the legal concepts of accord and satisfaction apply to negotiable instruments? Choose 2 answer choices: Similar to bankruptcy, the debt is forgiven with accord and satisfaction Accord and satisfaction offers guidelines regarding how the parties should discharge the debt The parties can agree to discharge the instrument for less than the stated amount The UCC provides debtors a way to prove accord and satisfaction
The parties can agree to discharge the instrument for less than the stated amount The UCC provides debtors a way to prove accord and satisfaction
Why would parties use accord and satisfaction regarding a negotiable instrument? Choose 2 answer choices: Accord and satisfaction is a legal method to force both parties to perform the terms of the original instrument The parties could use it as a first step to filing a lawsuit The parties ight wish to avoid a lawsuit The parties could wish to end the obligation without further conflict
The parties might wish to avoid a lawsuit The parties could wish to end the obligation without further conflict
What type of acceptance requires an affirmative action for the offeree to accept that offer? Offeree's silence in response to an offer Unilateral contracts Browsewrap Agreements The typical type of acceptance to an offer
Unilateral contracts
In what situation is a minor most likely to be able to terminate a contract? When the minor purchases food When a minor lied about his or her age when making the contract A minor entering into a marriage contract When a minor orders books for school
When a minor orders books for school
Robert inherited lots of antique tools when his father died. Because Robert is not interested in woodworking, he decides to sell several of the tools. Robert agrees to sell an antique hand held wood planer to Geoffrey for 50. After agreeing to the deal, Robert discovers that the planer is a pre WWII Norris Jointer Planer worth over 5000, and refuses to sell the planer to Geoffrey enforce the deal? No, Geoffrey cannot enforce the deal because Robert was unaware of the true value of the planer Yes, Geoffrey can enforce the deal because the contract contained valid consideration No, Geoffrey cannot enforce the deal because the amount of consideration is insufficient Yes, Geoffrey can enforce the deal but only if Geoffrey was not aware of the true value of the planer
Yes, Geoffrey can enforce the deal because the contract contained valid consideration
Which of the following creates a bilateral contract? reward posters a sale of goods with payment at delivery lottery tickets a competition with prizes
a sale of goods with payment at delivery
Maryanne offers to sell her 2015 Mustang convertible to April for 15000, and April agrees to those terms. April brings the 15000 to Maryanne, and Maryanne promises to deliver the Mustang to April the next day after she has it detailed. At this point, Maryanne and April have: an executed contract an executory contract no contract a unilateral contract
an executory contract
Jonas Construction Company is building a series of new subdivisions in Newtown over the next two years. Jones enters into a verbal agreement with Harley Concrete Inc. to construct all the driveways and sidewalks in the subdivisions that Jones will be building. Jones and Harley agree on a price of 130 per cubic yard and that Jones will pay Harley at the end of each project. Harley completes the first project, which is four sidewalks and driveways, and bills Jones for the project. Jones decides that the price is too high and refuses to pay, claiming that they have no obligation to pay because the parties did no have a valid contract. If Harley sues Jones for payment the court would probably: apply quasi contract theory and award the fair market value of the work that Harley completed apply quasi contract theory and award 130 per cubic feet, the contract price to Harley hold that Harley is entitled to nothing because parties are free to terminate contracts if they so choose hold that Harley is entitled to nothing because the contract violates the Statute of Frauds
apply quasi contract theory and award the fair market value of the work that Harley completed
Owen offers to sell motorcycle to Julian for 5000. After he makes the offer, Own has second thoughts. Owen can revoke the offer to sell his motorcycle to Julian: anytime, whether or not Julian has accepted the offer at no time, because offers to sell merchandise are irrevocable as long as Julian has not yet accepted the offer even after Julian has accepted but before Julian has delivered the money to Owen
as long as Julian has not yet accepted the offer
Carol and Al enter into a contract for the sale of a painting. Carol pays Al the asking price and Al delivers to Carol the painting. This contract is an: executed contract implied contract illusory contract executory contract
executed contract
Don and Kim have entered into a contract for the purchase of a car. Don has paid money for the car, but Kim has not yet delivered it. This is an: illusory contract executed contract executory contract implied contract
executory contract
Zayn boards the Big Rock Metro to ride downtown to his job. Zayn gives his money to the driver and takes his seat. Neither the driver nor Zayn says anything. Zayn and the bus driver: have an implied contract have a formal contract have no contract have an express contract
have an implied contract
What are the elements of consideration? Choose 2 answer choices: past consideration something of value from each party a preexisting duty an exchange to which the parties agree
something of value from each party an exchange to which the parties agree
To succeed on a promissory estoppel claim, and plaintiff must show: the plaintiff relied on the defendant's promise the plaintiff expected payment from the defendant the plaintiff received a benefit from the defendant the defendant knew the plaintiff would rely on the promise the defendant made a promise to the plaintiff
the plaintiff relied on the defendant's promise the defendant knew the plaintiff would rely on the promise the defendant made a promise to the plaintiff
Brindley has an old shed on her property that needs to be removed. She posts the following ad on Facebook:" Shed needs to be gone. You take down and haul away, much of the wood is reusable, 100 to the first person to show up and haul this away". This is an example of an: bilateral contract unconscionable contract illegal contract unilateral contract
unilateral contract
Which of the following is a valid offer? Arun tells Eric he will sell one of his houses for 250000 by the end of the summer Eric offers to buy Arun's house for 290000. Arun says, No but i will sell it to you for 300000. Eric seems to be upset, so Arun says he will sell it for 290000. Arun distributes flyers at work stating he wants to sell his house, listing the address and the asking price Eric offers to buy Arun's house for 775000 with no contingencies because Eric's lease ends in two months. Arun wants to think about it and six days later has not yet responded
Eric offers to buy Arun's house for 775000 with no contingencies because Eric's lease ends in two months. Arun wants to think about it and six days later has not yet responded
Ruby a 17 year old, purchases a car from Smitz Used Auto Sales and agrees to pay for it over a period of 24 months. Ruby makes the payments for 4 months but 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, and Ruby may keep the car Smitz, because Ruby is a minor, but Smitz must allow Ruby to keep the car Smitz or Ruby, because Ruby is a minor, and Ruby may keep the car Ruby, because she is a minor, but Ruby must return the car
Ruby, because she is a minor, but Ruby must return the car
In general, certain terms must be included in contracts to satisfy the requirement of definiteness. What are the exceptions to this rule? Choose 2 answer choices: Courts can rewrite contracts even in the intent is vague Sales contracts under the UCC Courts can complete a contract to supply some missing items If the contract is in writing, not all terms are required to be included
Sales contracts under the UCC Courts can complete a contract to supply some missing items
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 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 void if Samuel was incompetent at the time the contract was formed 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
Sarah is shopping at Sylvia's thrift store, and notices that the inside of the store needs repainting. Sarah offers to paint the store for 400. Sylvia does not respond to Sarah's offer. Later that day, Sarah returns to the store with painting supplies in hand and begins painting the store. When Sarah is finished, she demands payment of 400 from Sylvia. Will Sylvia have to pay Sarah for painting the store? No, Sylvia will not have to pay Sarah for painting the store because Sarah did not verbally agree to the contract No, Sylvia will not have to pay Sarah for painting the store because silence can never be an acceptance of an offer. Yes, Sylvia will not have to pay Sarah for painting the store because silence is always an acceptance of an offer Yes, Sylvia will have to pay Sarah for painting the store, even though she did not verbally agree to the contract
Yes, Sylvia will have to pay Sarah for painting the store, even though she did not verbally agree to the contract
Christiana is 17 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 12 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 do nothing. Because Christiana signed the contract as an emancipated minor, she has no grounds to rescind the contract ask Best Stereo Place to rescind the contract based on Christiana's minority status 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
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. 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 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.
What must a plaintiff show to be awarded a quasi-contract in a lawsuit? The plaintiff received some benefit The defendant was unjustly enriched The defendant expected to be paid The defendant agreed to compensate the plaintiff for the benefit received
The defendant was unjustly enriched
Mia contracted with Greencare Lawn Service for a pest treatment on Mia's lawn for 1000. Pat lives next door to Mia. Greencare mistakenly treats Pat's lawn instead of Mia's. Pat watched them perform the treatment while looking through the window for his living room, but did not go outside and stop them. When Greencare seeks payment from Pat, Greencare can probably receive: 1000 from Mia, because there was a contract from Pat an amount less than the contract amount that will reimburse Greencare for expenses incurred, in order to avoid unjust enrichment 1000 from Pat, because Pat received the full value of the service Nothing, because Greencare's contract was with Mia, not Pat
from Pat an amount less than the contract amount that will reimburse Greencare for expenses incurred, in order to avoid unjust enrichment
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 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: 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 by either Marie or Molly under no circumstance, 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
Ellen offers to sell her 1997 Mustang convertible to Fred for 2000. Fred agrees to pay 2000 for Ellen's Mustang. Before Fred picks up the Mustang, Ellen discovers that the Mustang is considered a classic car and is worth much more than 2000. Ellen refuses to sell the Mustang to Fred, stating that the consideration is insufficient. If Fred tries to enforce the deal by taking Ellen to court: the court would no enforce the deal because 2000 is too low to be valid consideration the court would probably enforce the deal because there was a valid consideration on both sides the court would probably not enforce the deal because there is no consideration flowing from Ellen to Fred the court would probably enforce the deal because the amount of consideration is never an issue
the court would probably enforce the deal because there was a valid consideration on both sides
Alfred is having trouble with his car so he visits his friend Glen, who is a mechanic, for some free advice. Alfred asks Glen just to look at the car and determine what is wrong, but no to fix it. Glen looks at the car, determines the problem, and repairs the car using parts and materials he already had in his garage. Alfred takes the car out for a test drive, and it performs better than it ever has. Alfred tells Glen that because Glen fixed his car, when Alfred gets paid again he will buy Glen the new torque wrench that Glen has been wanting. A week later, Glen asks Alfred about the torque wrench, and Alfred tells Glen that he has change his mind. If Glen sues Alfred to enforce his promise to buy Glen the torque wrench: Glen will win because consideration flowed from each party, and therefore a valid contract was formed Alfred will win because the contract between Glen and Alfred was not in writing and therefore not valid Glen will win because all the elements required for a valid contract are present Alfred will win because the act of repairing Alfred's car is past consideration, and therefore no valid contract was formed
Alfred will win because the act of repairing Alfred's car is past consideration and therefore no valid contract was formed
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 of 5000. Allison jumps at the deal, because she knows the car is worth more than 5000. They even write the deal down on a napkin, and both Gavin and Allison sign the napkin. The next morning, when Allison brings 5000 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 of 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 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
Gavin can either rescind the contract based on incapacity or ratify the contract
The weekly Kroger advertisement states that five-pound chubs of ground chuck are available for eighty-nine cents per pound. Arlene sees the advertisement; she realizes that ground chuck has not been priced this low in quite some time, so she hurries to the store to purchase some. Arlene loads seven chubs of ground chuck in her shopping cart. When she goes to the checkout to pay, however, the cashier informs Arlene that the price in the advertisement is a typo and that the correct price is 1.89 per pound. Arlene insists that the store must honor the price listed in the advertisement, because it is an offer that she has just accepted. The cashier calls the store manager for a decision. The store manager will likely explain to Arlene: that the advertisement is a valid offer, and the store must honor the price in the advertisement that advertisement are not offers, but merely a request for offers that the advertisement is a valid offer because its terms are definite that the advertisement is a valid offer because it is in writing
that advertisements are not offers, but merely a request for offers
Milo is the owner of a sporting goods store that has only been open for three months. The holiday season is coming up, and Milo realizes that he will need extra help. Milo asks his friend Jess to help him out at the store. Milo and Jess agree that Jess will work during the months of Novermber and December. However, because Milo is unsure how much help he will need and how much he will be able to pay, they agree to decide each week on the hours that Jess will work for the following week, and to decide the hourly rate after Jess has worked two weeks before she receiveds her first paycheck . Just before Novermber 1, Jess takes a job at another store. If Milo tries to sue Jess for breach of contract, the court will probably decide: that the parties had no contract because the terms of the offer were no definite that the parties had a contract and Jess breached the contract that the parties had a contract, but the damages could not be ascertained because the hourly rate and number of hours had not been determined that the parties had no contract because the terms were not in writing
that the parties had no contract because the terms of the offer were not definite
