HW #7

T or F: A contract is a promise for the breach of which the law gives a remedy and the performance of which the law recognizes as a duty

True

T or F: A contract is not binding if a party to the contract can prove that he was drunk at the time the contract was signed.

True

T or F: In the context of contract law, consideration means something (money, or any object or thing) given in return for services performed or for products delivered.

True

An uncle promised his nephew $5,000 if the boy refrained from smoking until reaching the age of 21. The boy did this and upon turning 21 asked his uncle for the $5,000. When payment was refused, the nephew sued his uncle. Q: Was there consideration?

Yes

T or F: A contract has to be enforced regardless of whether the subject of the contract is legal or not.

False

T or F: The parties who sign the contract must be legally competent but do not have to be older than 18 years of age.

False

A city ordinance stated that no erection or repair work on buildings was to commence prior to obtaining a building permit. A contract in that city stated work should be carried out "without obtaining any building permit". The contractor defaulted on the contract. The owner sued the contractor. Q: Should the contractor pay damages?

No

When a local cement supplier ran out of stock, a contractor ordered 850 bags to be delivered by an upriver source at a higher price. Shortly after placing the order, the local supplier's cement shipment came in. The contractor decided to buy from the local supplier and pay damages for returning the cement upriver. Two days later a shipment of 1,000 bags from upriver arrived. Since 850 bags had been ordered, the contractor said he refused the entire shipment of 1,000 bags. Q: Must the contractor buy any up river cement?

No

Which of the following contract formation principles are needed to form a valid contract? Offer, Acceptance, Meeting of the Minds and Consideration Performance, Technical Specifications and Consideration General Conditions, Supplementary Conditions and a Proposal Plans, Technical Specifications, General and Supplementary Conditions

Offer, Acceptance, Meeting of the Minds and Consideration

The owner requests that you submit a proposal supplement titled "Statement of Contractors' Qualifications - All Contracts" and under the officers/principals section it requests the names and titles of the vice president and the president. A proposal is submitted to the Owner with a bid bond, signed addenda, and the proposal form is attached and signed by the chief estimator. Have all of the contract formation principles been satisfied and would the proposal be considered responsive? The principle of Consideration has been met, therefore, responsive bid The principle of Legal Capacity has been met, therefore, responsive bid The principle of the meeting of the minds has been met, therefore, responsive bid The principle of Legal Capacity has not been met, therefore, a non-responsive bid

The principle of Legal Capacity has not been met, therefore, a non-responsive bid