Quiz

Which of the following is covered by the statute of frauds?

A real estate mortgage

Ian Sanders offered to sell his car to Beth Jones for $5,000. Subsequently, Beth demanded that he provide new seat covers for the car as she was paying a rather heavy price for the car. Beth's response represents a(n) _____.

Additional term.

Which of the following describes a stipulation?

An offeror's right to determine the manner of acceptance

In the case in the text, Zelnick v. Adams, why did the court decide legal services were not necessary for the minor's "position and condition" under the circumstances?

Any interest the minor had in the trust would not be realized for many years.

Austen Construction, a general contractor, advertised for bids from subcontractors on the electrical work for the renovation of one of State University's parking structures. The advertisement announced that the contract would be awarded to the lowest responsible bidder. Bronte, a responsible electrical subcontractor, submitted the lowest bid to Austen for the electrical portion of the work. Austen informed Bronte that she should begin work immediately. Bronte then stated that she is "withdrawing" her bid from Austen. Which of the following statements is most accurate?

Bronte has accepted Austen's offer by submitting the lowest bid.

Which of the following is an exception to a consideration requirement? Bargained-for exchange

Charitable subscription

Article 2 of the UCC does NOT apply to a sale of:

Corporate stock.

Mr. Green contracts with Mr. Brown for $500 to landscape the home of Roy, who is Mr. Green's son. What is Roy's status in the contract with Mr. Green and Mr. Brown?

Donee beneficiary

E-Systems, Inc., a manufacturer of computer chips, offers to sell 1,000 chips to Swell Computers for $2,000 in a signed memo that states the offer is good for one year. Four months later, E-Systems revokes the offer, having never received an acceptance from Swell. After receiving the revocation, Swell wants to accept E-Systems's offer. What is the result?

E-Systems offer was a firm offer under Article 2 of the UCC because it is a merchant, and the offer was held open for a certain period of time in writing. A firm offer does not require consideration. However, a firm offer is irrevocable for three months at most. Therefore, although E-Systems offered to hold its offer open for a year, it is not obligated to do so beyond three months. Having not received an acceptance from Swell before that time, E-Systems was free to revoke its offer to Swell.

A contract is _____ when all of the parties have fully performed their contractual duties.

Executed.

T/F: A famous journalist predicted the result of an NBA match between the LA Groves and LA Phantoms in favor of the Phantoms, based on the present form of Groves. Accordingly, Mark placed a huge bet on the Phantoms and lost heavily. This is an example of misrepresentation of a material fact of a contract.

False

T/F: Public policy never changes and courts always apply it in the same way.

False

T/F: The only manner in which a request for prompt or current shipment of goods can be honored is by a prompt or current shipment of the goods to the buyer.

False

T/F: When an offer is unclear about the form of acceptance it requires, there cannot be a valid acceptance.

False

T/F: A noncompetition clause is also known as a "liability waiver."

False.

Gayle agrees to pay Pat $1,000 for painting her house "on condition that" Pat finish the job no later than October 1, 2016. Which of the following statements is false?

If Pat does not finish the job by October 1, 2016, he is not discharged from performing.

Which of the following is a doctrine under which a party to a contract is relieved of his duty to perform when that performance can no longer be completed because of the occurrence of an event unforeseen at the time of contracting?

Impossibility

Which of the following characterizes the Code's standards of definiteness?

It can create contractual liabilities.

On May 1, 1985, Mint, a 16-year-old, purchased a sailboat from Sly Boats. Mint used the boat for six months, at which time he advertised it for sale. Which of the following statements is correct?

Mint may disaffirm the May 1 contract at any time prior to or within a reasonable time after reaching majority.

For a proposal to be considered a contractual offer, the offeror must have what type of intent?

Present intent to contract

The text discusses that the drafters of the Uniform Commercial Code had several purposes in mind. Which of the following was not one of those purposes?

Protect the innocent consumer from fraudulent activity in the marketplace.

Rice contracted with Locke to build an oil refinery for Locke. The contract provided that Rice was to use United Pipe Fittings. Rice did not do so. United learned of the contract and, anticipating the order, manufactured additional fittings. United sued Locke and Rice. United is:

Rice contracted with Locke to build an oil refinery for Locke. The contract provided that Rice was to use United Pipe Fittings. Rice did not do so. United learned of the contract and, anticipating the order, manufactured additional fittings. United sued Locke and Rice. United is:

_____ means knowledge on the part of the person making the representations, at the time when they are made, that they are false.

Scienter

Courts may sometimes be sympathetic to an adult who has suffered losses due to a minor who misrepresented his age. How so?

State law today is fairly evenly divided among those states that take the position that the minor who misrepresents his age will be estopped from asserting his infancy as a defense and those that will allow a minor to disaffirm regardless of his misrepresentation of age. Among the states that allow disaffirmance despite the minor's misrepresentation, most hold the disaffirming minor responsible for the losses suffered by the adult, either by allowing the adult to counterclaim against the minor for the tort of deceit or by requiring the minor to reimburse the adult for use or depreciation of his property.

What is emancipation?

Termination of parental rights to control a child.

Why was the emergence of large corporations so important in shaping the 20th century contract law?

The emergence of truly large organizations created perceived inequalities in bargaining power. These large organizations found it more efficient to standardize their numerous transactions by employing standard form contracts, which also could be used to exploit their greater bargaining power by dictating the terms of their agreements. Contract law evolved to reflect these changes in social reality. This, in turn, created a perceived need for government intervention to protect the weaker party in such cases.

Which of the following statements about the vesting of a beneficiary's rights is false?

The exact time at which the beneficiary's rights vests is identical in every jurisdiction.

The fact that statutes requiring a license only requires payment of a fee indicates that the purpose of the law is to:

The fact that statutes requiring a license only requires payment of a fee indicates that the purpose of the law is to:

Which of the following is true of the materiality of breach?

The timing of the breach is generally taken into consideration.

Owen once owed Carl a $1,000 debt, but the statute of limitations ran on that obligation, discharging Owen. Later, Owen promises in writing to pay Carl the debt. Why is there no consideration for this promise? Why is it binding anyway? What additional requirement do some states impose to make the promise binding?

There is no consideration because Carl gave Owen no present legal value in exchange for Carl's promise. Most states, however, make such promises binding despite the absence of consideration-perhaps on something akin to "moral obligation" grounds. But many of these states require that the promise be written.

An accord and satisfaction prevents a creditor from maintaining an action to recover the remainder of the debt that he alleges is due.

True

T/F: For a noncompetition clause to be enforceable, the clause must serve a legitimate business purpose.

True

T/F: Promissory estoppel protects reliance on a promise from one party to another.

True

T/F: Ratification ends the right to rescind a contract.

True

T/F: The only person with the legal power to accept an offer and create a contract is the original offeree.

True

T/F: Under the Restatement (Second) of Contracts, intoxication will make a contract voidable if the other party has reason to know that the intoxicated person is so intoxicated that he/she cannot understand or act reasonable in relation to the transaction.

True

Ned and Bill complete an oral contract for the sale of land from Ned to Bill for $100,000. Bill pays Ned the $100,000, and then begins to build his house on the land. At this point, Ned says that the deal is off and refuses to convey the deed to Bill. In doing so, Ned relies on the statute of frauds. Is this agreement enforceable by Bill?

Yes. Although the statute of frauds provision regarding the sale of real estate interests applies here and there was no writing, Bill's actions put him within the part performance exception for this provision of the statute. Thus, the contract is enforceable.

The trend of modern contract law is to tolerate _____ degree of specificity in agreements in comparison to classical contract law.

a lower

In contract law, _______ refers to taking active steps to prevent another from learning the truth.

concealment

A promise to perform a preexisting duty is not consideration because the promise is essentially:

gratuitous

Big Bank is a major creditor of Bonwill Department Store. After a major loss in profits due to poor holiday sales, Big Bank decides to help keep Bonwill from bankruptcy. Big Bank orally promises Mary Tudor, a supplier of Bonwill's, that it will guarantee Bonwill's payment for goods that Mary sells to Bonwill. Most likely, Big Bank's oral agreement:

is enforceable under the "main purpose" or "leading object" exception to the statute.

Daniel owes Casey a debt, the amount of which is subject to a good faith dispute. The parties agree to settle the debt, with Daniel promising to pay Casey $15,000 and Casey promising to release Daniel on a $25,000 debt. The settlement agreement:

is supported by consideration.

A bilateral contract is "taken out of the statute of frauds" when:

it is fully performed by at least one party.

Sklar, an accountant, purchased two computers from Wiz Corp. Sklar discovered material defects in the computers 10 months after taking delivery. Three years after discovering the defects, Sklar commenced an action for breach of warranty against Wiz. Wiz raised the statute of limitations as a defense. The original contract between Wiz and Sklar contained a conspicuous clause providing that the statute of limitations for breach of warranty actions would be limited to 18 months. Under the circumstances, Sklar will:

lose because the clause providing that the statute of limitations would be limited to 18 months is enforceable.

Winston contracts to sell a plot of land called Blackacre to Paris for $500,000. Winston breaches the contract and Paris sues him. Blackacre's reasonable market value at the time of the breach was $525,000. Paris can recover:

only $25,000.

A memorandum for the sale of goods that does not indicate the _____ of goods to be sold will not satisfy the UCC's writing requirement.

quantity

In a novation:

the original obligor is completely discharged from his/her obligations under the contract.

Paul is hired by Soprano as a security guard. At the time of hiring, Paul signs an agreement that relieves Soprano from workers' compensation liability. This agreement is most likely:

unenforceable as a violation of public policy.

Contracts that are induced by misrepresentation are considered:

voidable

In ascertaining intent to benefit the third party, a court will look to all of the following, except:

whether the benefit to the third party had any value.