Law and Legal Exam 3

Which act or statement is a valid offer?

A detailed advertisement

Which statement is true about the ability of minors to enter into contracts?

A minor may enter into any contract an adult can, except for contracts that are expressly prohibited for minors.

Which of the following statements correctly reflects the role of a federal administrative law judge (ALJ)?

An ALJ presides over an administrative hearing and issues an order that, when final, may be reviewed by a court.

Why is a court unlikely to grant a remedy for specific performance when a contract for personal services is breached?

Because it is tantamount to court ordered involuntary servitude.

The process of examining public records to determine if there are any claims on a piece of real property before its ownership is transferred is equivalent to an examination for:

Defects on the title

Which of the following is a valid offer?

Eric offers to buy Arun's house for $775,000 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.

The legislation that requires an administrative agency to respond to requests from citizens for agency records is called the:

Freedom of Information Act (FOIA)

Which of the following statements is an offer?

I will sell you my house for $400,000.

Which of the following distinguishes promissory estoppel cases from quasi-contract cases?

In promissory estoppel cases there is a promise; in quasi-contract cases there is not.

What is the difference between legal remedies and equitable remedies for breach of contract?

Legal remedies are monetary while equitable remedies are non-monetary.

Which type of lack of capacity is easiest to prove?

Minor status

LaVon contracts with Nathan for Nathan to sing at her comedy club every Friday night in July. The first Friday, the crowd loved Nathan. The second Friday, they booed him. The next week, Nathan got a better offer, so he hired his twin brother Ethan to fill in for him at LaVon's club. Can LaVon compel Nathan to perform?

No, because you cannot compel performance of personal services under specific performance.

Must all terms of a deal be included in an offer

No, but the terms required will depend on the type of contract.

In an auction, the bidder is:

Offeror

Which situation would be considered sufficient consideration for a contract to exist?

Pam agrees to pay Derek $500 if he does not sit next to her in class anymore.

Specific performance is a remedy which is always available in:

Real estate contracts

Fred and Wilma enter into a contract for horse riding lessons. Fred accidentally types the price for lessons to be $4.00 each instead of $44.00 each. Wilma wishes to enforce the contract at $4.00 per lesson. Which remedy would be most effective?

Reformation

The Administrative Procedure Act (APA) is the federal law that does which of the following?

The APA sets out the rule-making process for administrative agencies.

Which statement is true about bailments?

The bailee must assume physical control of the property in order to create a bailment.

What was the original decision in the Ultramares case?

The defendant was ruled liable for negligence even though there was no privity of contract.

Under the UETA, if a party does not follow the security procedures and then fails to detect an error, what happens?

The party who followed the procedures can avoid the effect of the error.

Which of the following is true about easements appurtenant?

They "run with the land."

In what situation is a minor most likely to be able to terminate a contract?

When a minor orders books for school

Reformation of a contract is considered:

an equitable remedy

Which of the following is an equitable remedy for breach of contract?

an order for specific performance

What is the term given to an administrative decision that is unreasonable or implausible in light of the facts and evidence?

arbitrary and capricious

What is the term for the legal right to keep confidential communications between an attorney and a client secret?

attorney-client privilege

When a person rightfully possesses personal property that belongs to someone else without the owner giving up title, it is called:

bailment

When a professional acts in self-interest, rather than the best interest of a client, the professional has:

breached his or her fiduciary duty.

Methods for transferring title to real estate include:

by sale, by gift, through a will, through adverse possession, and through eminent domain.

Which of the following is an example of a fixture?

cabinets attached to the wall of a garage

What is the term for the legal ability to enter into a binding contract?

contractual capacity

In order to form a bailment, the bailor must:

deliver actual possession of personal property to the bailee.

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?

exculpatory clause

When party A and B form a contract and both parties fully perform, the contract is considered:

executed

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

Quon and Bert have signed a contract for Bert to mow Quon's grass every week in June, July, and August for a price of $40 per week. They have agreed to all the necessary terms, but Bert has not yet mowed because it is still May. What type of contract do they have?

executory

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:

executory contract

Signing an 18-month lease on a two-bedroom townhouse with a monthly rent of $900 creates a:

fixed-term tenancy

A person in her last days with a terminal illness tells her friend that he can have her car when she dies. This type of gift is called a:

gift causa mortis

A contract for a purpose that causes the parties to violate a law is:

illegal and void

Sal has ordered 100 pounds of shrimp for his restaurant from Sam every Friday for 5 years and has always paid that week's market price. One Friday, Sal decides to take a vacation but doesn't tell Sam. Sam claims they have a contract, even though it was never written down. What kind of contract do they have?

implied-in-fact

What is the term for professional negligence that arises when a professional fails to exercise reasonable care and professional judgment?

malpractice

A finder of lost property:

may claim title to the property against all others except the true owner.

When an agreement fails to qualify as an enforceable contract, but one of the parties breaches the agreement, the non-breaching party:

may sue for unjust enrichment.

Property that has been voluntarily placed somewhere by the owner and then inadvertently forgotten is:

mislaid

Third party beneficiaries of a contract are:

not in privity.

When a tenant is allowed to remain in possession of the residence after the expiration of a fixed-term tenancy by continuing to pay monthly rent, the tenancy has become a:

periodic tenancy

What is the term for a legal contact, connection, or mutual interest between parties, such as the parties to a contract?

privity

In a bilateral contract, the consideration which supports the forming of the contract is:

promise to perform

If two parties have an on-going oral agreement that that one will ship and the other will accept 50 pounds of produce each week unless the buyer informs the seller one week before not to ship the next order, then the buyer's failure to speak up and tell the shipper not to send the produce:

qualifies as acceptance of that week's delivery offer.

What is the principle that is applied to determine how much compensation a party receives in a quasi-contract settlement?

quantum meruit

The duties of a bailee include:

return of property on time and in good condition.

The rights of a bailor include:

return of the property in good condition.

Rescission of a contract will:

return the parties to the position they were in before the contract was formed.

A landlord's right in property that he has leased to a tenant is called a:

reversionary interest.

In a unilateral contract:

substantially undertaking performance prevents the offeror from revoking the offer.

A quantum meruit remedy is equivalent to:

the reasonable value of the agreement.

Courts may reform a contract:

to reflect the parties' true intentions.

What is the term for a contract agreement in which an offeror promises to pay after the occurrence of a specified act, and the offeree is not required to respond in words?

unilateral contract

Contests, lotteries, and competitions with prizes are common examples of:

unilateral contracts

What type of acceptance requires an affirmative action for the offeree to accept that offer?

unilateral contracts

In order for an accord and satisfaction to be valid, the debt must be:

unliquidated

What must a plaintiff show to be awarded a quasi-contract in a lawsuit?

The defendant was unjustly enriched.

Which of the following creates a bilateral contract?

a sale of goods with payment at delivery

A police officer who finds a missing child as part of his duties may not collect any reward for finding the child. Why?

Because the officer already had a pre-existing duty to do so.

Which is the correct definition of "marketable title"?

The grantor (seller) of the property has ownership of the property free from undisclosed encumbrances and free from defects.

When might a contract made by a mentally incompetent person be enforceable?

The incompetent person was lucid at the time the contract was made.

The attribute that distinguishes personal property from real property is:

ability to be moved

What is the term for a court's determination that an administrative agency decision is the result of plain error or mistake?

abuse of discretion

In general, which of these contract terms is NOT required to meet the requirement of definiteness?

acceptance

What duty of care does a bailee owe a bailor when the bailment is for the sole benefit of the bailee

utmost care

A contract for an illegal purpose is ______.

void

What type of contract exists when at least one party has the option of canceling it?

voidable

The process of dividing land in a municipality into geographical areas in which certain land uses are permitted or prohibited is called:

zoning.

If a buyer agrees to purchase "all the widgets I require" and the seller agrees to sell him "all the widgets you require" is there sufficient consideration?

Yes, because this is a requirements contract.

If unforeseen difficulties arise during the performance of a contract, may the parties change the terms of the contract without giving additional consideration?

Yes, if the modification is fair and equitable.

Manuel contracts to sell a painting that was painted by his deceased grandmother, then has a change of heart and decides to hang it in his own bedroom. He notifies Nadine, the person who had planned to buy it. Can Nadine have the contract enforced?

Yes, it can be enforced under the equitable remedy of specific performance.

An agreement will lack consideration if:

a person makes a promise in return for an act which has already taken place.

Title to personal property may be transferred through:

sale, gift, possession, or production.

If an individual shopping for groceries opens a bottle of water from their cart and drinks it before they have paid for their items:

a quasi-contract has been created.