BULL3310 UNIT 5

Which of the following statements expresses an illusory promise? "I will buy your boat and trailer for $5,000 if the engine runs okay." "I will go to your violin recital on Saturday if there is nothing good on television." "I will buy you a new car if you make Dean's List three semesters in a row." "I will drive you to school in the morning if it is raining."

"I will go to your violin recital on Saturday if there is nothing good on television."

Promissory estoppel is best described as A contract remedy for breach of bilateral contracts An equitable remedy when an accord and satisfaction fails. An equitable remedy when one party suffers an un-bargained-for detriment. A contract remedy for breach of unilateral contracts.

An equitable remedy when one party suffers an un-bargained-for detriment.

Which of the following promises would be legally adequate consideration in a bilateral contract? A promise to do what one is already obligated by contract to do. A promise not to sue someone on a claim that the promisor believes in good faith is valid. A promise not to sue someone on a claim that the promisor knows is not valid. A promise not to break the law

A promise not to sue someone on a claim that the promisor believes in good faith is valid.

What is another term for punitive damages? Nominal Criminal Exemplary Liquidated

Exemplary

Contracts in which both sides have completely performed their duties are executory.

False

Courts do not enforce output contracts as a matter of public policy.

False

Damages that involve only a very small monetary award are called liquidated damages.

False

During a violent storm, Nelson saved Reggie's boat from being destroyed. Reggie was so grateful that he promised to give Nelson $100. Reggie's promise is unenforceable because it is based on moral obligation.

False

Legal detriments always entail economic losses.

False

Which of the following is the kind of contract in which each party offers as consideration a promise to do something? Bi-lateral Quasi Unilateral Implied in law

Bi-lateral

Only liquidated debts can be discharged in an accord and satisfaction

False

Sham consideration is sufficient for a unilateral contract, but not for a bilateral contract.

False

The Uniform Commercial Code governs the sale of all commercial services and goods.

False

The Uniform Commercial Code requires that any modification to a contract for the sale of goods must be supported by new consideration.

False

Under modern contract law, a contract must be executed under seal to be enforceable.

False

Customer ordered fried chicken strips at the drive-in window of Famous Burger. One of the "strips" turned out to be an entire chicken head, battered and deep fried. Famous Burger tested the head and found that it was, indeed, cooked in their batter and in their oil. Pictures of Customer with the fried head showed up in newspapers and on the Internet. Famous Burger offered Customer a cash settlement in exchange for Customer's promises not divulge the amount of the settlement, sue Famous Burger over the incident, or ever speak of it in public again. Agreeing not to exercise these three rights in exchange for the settlement is an example of ____________________. An accord and satisfaction Renunciation Forbearance Restitution

Forbearance

When there is a time is of the essence clause in a contract, the parties will normally also include in the contract a dollar amount that will be paid the innocent party each day it takes to complete the work after the contract date. This is an example of a __________________damages clause. Liquidated Nominal Consequential Compensatory

Liquidated

The person to whom an offer to form a contract is made is called the___________. Offeree Obligor Donee Offeror

Offeree

Typically in construction contracts there will be a provision awarding damages to the buyer at "X" amount of dollars per day for each day the builder is late in completing the work. The parties to the contract agree upon this amount in advance because they know the buyer will incur added costs, or will lose profits, because of the delay. If the amount fixed for the damages is unreasonably high, the court will consider it a ________________and will not enforce it. Penalty Tort Crime Act of extortion

Penalty

In an accord and satisfaction, the satisfaction is The performance of the action called for in the original agreement. The liquidated portion of a debt. The payment of accrued interest. The performance of the action called for in the substitute agreement.

The performance of the action called for in the substitute agreement.

A court will order the remedy of specific performance only if: (select all answer options that are correct) One of the parties to the contract is a minor. Money is not involved The subject matter of the contract is unique and the innocent party cannot be made whole with money damages. The terms of the contract are unclear.

The subject matter of the contract is unique and the innocent party cannot be made whole with money damages.

An accord and satisfaction can take place only if Promissory estoppel is not available as an equitable remedy. The liquidated debts do not exceed $250,000. There are unliquidated debts based on contract or tort claims. Court annexed arbitration fails.

There are unliquidated debts based on contract or tort claims

Courts generally cannot order specific performance when the contract is for personal services because of the Thirteenth Amendment.

True

Courts may look into the adequacy of consideration if there is evidence of fraud or undue influence by one of the parties.

True

Failure to rescind a contract within a reasonable time amounts to an affirmation of the contract.

True

Giving up the right to do something that one is legally entitled to do can serve as consideration in a contract.

True

Grace has a valid contract with Al to buy a desk once owned by James Madison. Al now refuses to go through with the sale. Because the item is unique, Grace can seek a decree of specific performance to enforce the contract.

True

In bilateral contracts, both parties must be bound to the contract or neither party is bound.

True

One method for proving that a contract has been rescinded is to tear up the contract

True

Rescission is the remedy that cancels the contract and returns each party to his pre-contract position.

True

Tamara left her car in a line of other cars waiting to be washed. Tamara expects to pay for the service and the car wash expects to be paid. The contract that exists between Tamara and the car wash is an implied in fact contract.

True

The Uniform Commercial Code governs contracts for the sale of goods.

True

The amount of damages sustained in a breach of contract case is a question of fact to be presented to the jury.

True

The statute that requires that certain contracts be in writing is the Statute of Frauds.

True

Liz read the following announcement in the newspaper: "100 reward for the return of my lost dog, Duffy." This announcement is an offer to form what type of contract? Implied in law Bi-lateral Unilateral Quasi

Unilateral

Which of the following statements about nominal consideration is correct? (select all answer options that are correct) Nominal consideration is any small amount paid over and above the contract price for document preparation Nominal consideration will support an enforceable contract. Nominal consideration is another term for sham consideration. Giving your siblings a quitclaim deed for your 18 share in your family home for 1 is an example of nominal consideration.

-Nominal consideration will support an enforceable contract. -Giving your siblings a quitclaim deed for your 18 share in your family home for 1 is an example of nominal consideration.

Which of the following is an unliquidated debt? A mortgage for 20 years at 5.02% interest An interest-free loan of $10,000 from Grandfather to Tim. A payment of $2,500 is to be made every June 1st for 4 years. A car loan for 6 years at 2.50% interest A bill from a divorce lawyer for $8,000 that is past due, interest to run at 5%. Client is actively disputing the number of hours billed and other charges

A bill from a divorce lawyer for $8,000 that is past due, interest to run at 5%. Client is actively disputing the number of hours billed and other charges

Another term for promissory estoppel is Forbearance Good faith Detrimental reliance Restitution

Detrimental reliance

Nellie Neighbor made the following offer to two students who lived next door: "I will give you each 50 if you come to my house and move some furniture for me on Saturday." To accept this offer, what should the students do? Wait a statutory three days after the offer, then give Nellie a written promise to move the furniture on Saturday. Go to Nellie's house on Saturday and move the furniture. Give Nellie a written promise to move the furniture on Saturday. Make an oral promise to move the furniture on Saturday.

Go to Nellie's house on Saturday and move the furniture.

Which of the following statements about quantum meruit is correct? It is an equitable remedy to prevent unjust enrichment when there is no contract. It is a contract remedy used for breaches involving fraud. It is an equitable remedy for wrongful interference with a contractual relationship. It is a contract remedy used when the breaching party is insolvent.

It is an equitable remedy to prevent unjust enrichment when there is no contract.

Which of the following is false about a renunciation? A written renunciation does not require consideration. Renunciations are valid in common law but not under the Code An oral renunciation does require consideration. The right that is waived in a renunciation is a contract right.

Renunciations are valid in common law but not under the Code

June was hired to be the store manager of Big Kahuna Surf Shop in Ocean City. The law governing this employment contract is Equitable principles and maxims. The Convention on the International Sale of Goods State common law The Uniform Commercial Code

State common law

he Garcia family hired Home Improvements, Inc., a local construction company, to put an addition on their home. What type of law governs the contract between the Garcia's and Home Improvement? The Sarbanes-Oxley Act Federal common law The Uniform Commercial Code State common law

State common law

Todd bought a lawn tractor from LawnToysRus. The law that governs this sales contract is Federal common law State common law The Uniform Commercial Code The Convention on the International Sale of Goods

The Uniform Commercial Code

A firm offer that is in writing and signed by a merchant cannot be revoked even though the other party gave no consideration.

True

A renunciation is a written waiver of a right arising out of a contract.

True

Local Delivery Service had a one year contract with Supply Co. to make four deliveries a month to Supply's customers who live across the Bay. There is only one bridge spanning the Bay for 200 miles in each direction. Without warning, the state closed the bridge to all traffic for 10 months after an inspection revealed dangerous structural problems. Local now has to travel an extra 400 miles for each of the scheduled deliveries. Local asked Supply Co. for an additional 60 per trip above the contract price and Supply Co. agreed. Under common law, is this an enforceable contract? Yes, the request is made in good faith for an unforeseen difficulty No, Local has a pre-existing duty under the contract to make the deliveries No, Supply Co. will receive no new benefit. No, Local will incur no new duty

Yes, the request is made in good faith for an unforeseen difficulty