Bus Law 1 - Contracts

Hal promises not to foreclose on a mortgage that he holds on an office complex that Christopher owns. In reliance on this promise, Christopher spends $200,000 to remodel the complex. Which of the following is correct with regard to Hal's promise?

All of these

The doctrine of promissory estoppel:

All of these

Garry asks Dino to vacuum his pool. Garry tells Dino that he will pay him $45 to do so. Dino agrees to vacuum Garry's pool. Which statement is most accurate?

Garry and Dino have formed a bilateral contract.

Jeff asked Sue to mow his lawn for $35.00. Sue agreed. Which is the most accurates statement?

Jeff and Sue have formed an express contract.

Mike ordered a diamond engagement ring for his girlfriend, Sue. The store accidentally delivered the diamond engagement ring to Maggie's house instead. Maggie was very excited when she got the ring and decided that she was going to keep it. Which of the following statements is most accurate?

Maggie will have to either return the ring to Mike or pay him for the cost of the ring based upon the doctrine of unjust enrichment.

Samantha said to Fred, "If you shovel the snow in my driveway, I will pay you $30." Fred then shoveled the snow in Samantha's driveway. Which statement is most accurate?

Samantha and Fred have formed a unilateral contract that was accepted by Fred when he shoveled the snow in Samantha's driveway.

El was hired by Fred to snowplow his driveway. Sadly El has a bad sense of direction and plowed Ted's driveway by mistake. Which is the most accurate statement?

Ted will be liable to El for the value of having his driveway plowed based upon the doctrine of unjust enrichment.

Sarah offers to pay Allison $150 if Allison will paint her apartment while she is out of town on vacation for two weeks. Allison makes no promise but tells Sarah that she will think about it. While Sarah is out of town, Allison paints the apartment. This is best described as:

a unilateral contract.

An obligation imposed by law where there has been no agreement or expression of assent by word or act on the part of either party involved is a(n)

quasi contract

Quasi contracts are used to provide a remedy when the parties enter into a(n):

void contract

James offers to sell his fishing boat to Brenda for $3,000. Brenda says she will apply for a loan and will buy the boat within a week. A contract is formed:

when Brenda tells James she will buy the boat.

A contract to sell five acres of land is governed by Article 2 of the UCC.

False

An implied in fact contract is not as enforceable as an express contract.

False

Charles says to Wes, "If you will mow my lawn, I will give you $15." Wes says nothing, but he mows the lawn. No contract exists under this fact situation, because Wes did not accept Charles's offer.

False

In order to be legally binding, a contract must be in writing.

False

The Uniform Commercial Code applies only to sales of goods by manufacturing firms who ship goods to buyers interstate.

False

A contract is a binding agreement that the courts will enforce.

True

A valid contract is one that meets all of the requirements of a binding contract.

True

Article 2 of the Uniform Commercial Code does not apply to the sale of services.

True

If a person who has been declared incompetent by the courts enters into an agreement, that agreement is void, because it does not meet all the requirements of a binding contract.

True

If it is unclear whether the parties formed a unilateral or bilateral contract, the courts presume the parties intended a bilateral contract.

True

Ron says to Mark, "If you design and landscape my front lawn by the time I return from Paris next month, I will pay you $5,000." Mark does not respond but has the landscaping done by the time Ron returns. This is an example of a unilateral contract.

True

Express contracts and implied in fact contracts:

Two of these are true.

The difference between an express contract and an implied in fact contract is the manner in which the parties manifest assent

True

Bob's obligation to return the money is quasi-contractual.

All of these

Mark told Pat that he would pay her $55 if she cleaned his office. Which statement is most accurate?

A contract is created when Pat cleans Mark's office.

Which of the following is NOT always necessary in order for a valid contract to be formed?

A writing

Contracts that are implied in law:

All of these

A(n) __________ contract is one in which the terms ha

Express

Which of the following is not generally required in order to have a valid contract?

Fairness of the bargain.

Morris interviewed for a job as plant manager at Northland Bearings and was offered a two-year contract if she could relocate and start the new job within three weeks. Morris agreed. Northland promised to follow up the oral agreement with a written contract setting forth all the agreed terms, but the contract had not arrived within several days. Morris wanted to give two-weeks' notice to her present employer, so she called Northland to check on the written contract and was told it was ready to be sent to her and assured her the job was hers. She gave notice of her intention to quit her present job and moved two states away to the Northland location. When Morris arrived for her first day of work, she was told someone else with better qualifications had been found and hired for the position. Morris:

may be entitled to good-faith reliance damages under the doctrine of promissory estoppel to avoid injustice.

Anna mistakenly delivered an envelope containing $50 to Bob. The envelope was meant to be delivered to Cora. Which of the following statements is most accurate?

Bob's obligation to return the money is quasi-contractual.

If Anna by mistake delivers to Bob a plain, unaddressed envelope containing $50 intended for Cora:

Bob's obligation to return the money is quasi-contractual.

Stan sends for a law school catalog from Ivory Towers University. According to the catalog, the law school applications are evaluated on the basis of undergraduate grades, standardized test scores, and references. Stan, who is a straight-A student, has high test scores and excellent references, applies and pays the $100 application fee. His application is rejected. Later he finds out that others with low grades and test scores were accepted based on their family connections and donations made to the University. If Stan followed all of the guidelines in the college catalog and paid the required application fee, then according to the court in Steinberg v. Chicago Medical School:

there is a valid contract; the school bound itself to honor the obligations set forth in the college catalog.