legal studies chapters 15 and 16
Technically, minors can disaffirm contracts for necessaries, but they will still be held liable for the reasonable value of the necessary. Which of the following is generally an example of a necessary?
All of these
Which of the following terms is not a condition required in promissory estoppel? I. One party makes a promise knowing the other party will rely on it. II. The other party does rely on the promise. III. The only way to avoid injustice is to enforce the promise.
All the terms are required.
For a court to enforce a promise, who must offer consideration?
Both sides
Suppose a 17-year-old, Kendall, enters into an agreement to purchase a Harley Davidson from an ad she saw in the paper. She will pay $1,000/month until the bike is paid off. After making the third payment, Kendall turns 18 and decides to move out of state. She e-mails the seller of the motorcycle and tells him not to worry because even though she is moving, she still intends to make her monthly payments to purchase the bike. The above scenario is an example of what legal concept?
Express ratification
_________ is the possession of a mental or physical defect that prevents a natural person from being able to enter into a legally binding contract.
Incapacity
Suppose Bekah agrees to do bodywork on Fatima's car. In exchange, Fatima agrees to be a poker dealer at Bekah's underground casino. In the state where Bekah and Fatima live, there is a gaming statute that says all games of chance other than slot machines and the state lottery are illegal. Would the agreement between Bekah and Fatima be enforceable?
No, because part of this agreement violates a law and therefore, the agreement calls for crime.
Frank works as a cellphone salesman. He has worked at the same company for the past two years, and one day his boss approaches him with good news. He says because Frank has sold so many phones lately, he is going to give Frank a $500 bonus. Three weeks later, Frank has still not received the bonus. Can Frank sue his boss to enforce the promise?
No, this is an example of past consideration.
A door-to-door hearing aid salesman specifically targets elderly clients. When the clients ask questions about the contract, the salesman is not truthful with them entirely. The answers to their questions are usually found on the tiny, hard-to-read print on the very back of the long contract the clients must sign. The salesman knows that his clients have poor vision and hearing, and uses this to his advantage in his sales techniques and with the small contractual terms. The scenario above is a possible example of which type of agreement?
Procedural unconscionability
Which of the following is an exception to the preexisting duty rule?
Unforeseen circumstances
Suppose your boss tells the people you work with, "If any worker shows up at my house on Saturday and helps me clean my pool for three hours, I will pay the worker $75." You show up and help with the pool cleaning. What type of contract did you and your boss create?
Unilateral contract.
Covenants not to compete in conjunction with the sale of a business are generally __________ if they are for a reasonable length of time and involve a reasonable location.
enforceable
A(n) __________ releases one of the contracting parties from all liability, regardless of who is at fault or what injury is suffered.
exculpatory clause
Suppose Markus offers to sell Zara his surfboard for $200. Zara responds, "I'll look at it on the weekend, and if I like it, I'll pay you." At this point, Zara has not committed to doing anything. The law considers this a(n) ________________.
illusory promise
A promise to do something that you are already obligated to do is ________________.
not valid consideration
In some states, courts consider the purpose of the licensing statute when determining the effect of the agreement. If a licensing statute is intended simply to generate revenue, then the contract of an unlicensed person is _________.
valid
