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BUSI 301 Quiz 3 Contracts solutions complete answers
BUSI 301 Quiz 3 Contracts solutions complete answers
Which of the following describes a contract as “a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty”?
Which of the following is not a required element for contract formation?
Laticia offers to sell her law books to Darren for $500. Darren agrees. This is known as a(n) _____.
Thomas offers to sell his water skis to Lynord. Thomas is the _____.
Margaret offers to sell Keyanna her laptop computer. Keyanna would be the _____.
Bargained-for exchange is the definition of _____.
The legal ability to enter into a binding agreement is known as _____.
Which of the following are examples of people who do not have the capacity to enter into legally binding contracts?
Which of the following means that a contract cannot be illegal or against public policy?
Which of the following represents a lack of genuine assent?
Which of the following are the two primary sources of contract law?
There are two primary sources of contract law: case law and the Uniform Commercial Code. Which of the following is a third type of law that has increased with globalization?
What is the primary source of contract law?
Prominent legal scholars recruited by the American Law Institute have organized the principles of the common law of contracts into the Restatement of the Law, Contracts. This compilation has been revised and published as the_____.
Different states had different laws governing contracts that did not allow interstate commerce to flow smoothly. This resulted in the drafting of the _____.
If a firm enters into a contract governed by the Uniform Commercial Code in Ohio, it would be operating under _____.
Article 2 of the Uniform Commercial Code (UCC) governs contracts _____.
All contracts can be categorized as either _____ or _____ contracts.
Barb promises to pay Tina for her new car on Friday. Tina agrees to sell her car to Barb. This is a(n) _____.
Jacquelyn accepts Monique’s offer to sell her a used car for $2,000. At what point is there a binding contract between the two parties?
Darla posts notices in her neighborhood promising to pay $1,000 for the return of her missing Snowshoe Siamese cat. Two days later, Noelle finds the missing cat and returns it to Darla. What type of contract is this?
Etienne and Darrin have agreed to purchase and sell a certain parcel of land. They have entered into a written agreement specifying all the essential terms of the contract, including a description of the property, the purchase price, and the date of the transfer of title. This is a(n) _____ contract.
What type of contracts arise not from words, but instead from the conduct of the parties?
Which of the following is true regarding quasi-contracts?
Which of the following is recognized by a court to prevent one party from being unjustly enriched at the expense of another party?
A(n) _____ contract is one that contains all the legal elements of a contract.
Expiration of the statute of limitations period for a breach of contract action may make a contract _____.
A(n) _____ contract is, in effect, not a contract at all.
Which type of contract allows one or both of the parties the ability to either withdraw from the contract or to enforce the contract?
Which of the following contracts are usually voidable?
Ike and Jeff agree that Ike will tutor Jeff in math for $25.00 an hour. Ike tutors Jeff for an hour and Jeff pays Ike $25.00. This is a(n) _____ contract.
As long as some of the duties under a contract have not yet been performed, the contract is considered _____.
Of the following, which is not a formal contract according to the Restatement (Second) of Contracts?
The term _____ comes from the days when a contract was literally sealed by a piece of soft wax into which an impression was made.
As of the publication of the textbook, how many states still allow a contract without consideration to be enforced if it is under seal?
An example of a(n) _____ is a bond used as bail in a criminal case.
A _____ is an agreement by the person who issues the letter to pay a sum of money on receipt of an invoice and other documents.
Which of the following is a written document signed by a party that makes an unconditional promise to pay a specific sum of money on demand or at a certain time to the holder of the instrument?
Which of the following is the first element of a contract?
Under common law, when does formation of an agreement begin?
If Maria says to Peter "I bet you a million dollars that it is going to rain tomorrow" and Peter knows that Maria is joking, Maria's statement would not be a valid offer due to the lack of _____.
What was the result in theLucy v. Zehmer case (referenced in the textbook) involving whether allegations of joking regarding the sale of land prevented the formation of a contract?
Constance asks Kathy if Kathy will sell her used business law book for $50. What is the status of the negotiations?
What was the result in the Lefkowitz v. Great Minneapolis Surplus Store Inc. case (referenced in the textbook) involving an advertisement for the sale of fur coats?
Georgia decides to sell her engagement ring after Anthony breaks off the engagement and puts the ring up for auction. If she states nothing to the contrary in the terms of the auction, the auction is presumed to be _____.
In an auction _____, the seller is treated as making an offer to accept the highest bid.
The _____ terms of an offer and a resulting contract are those terms that would allow a court to determine what the damages would be in the event that one of the parties breaches the contract.
Which of the following is not a way that an offer can be terminated?
Which of the following refers to the right of an offeror to revoke his offer, even if the offeror says he will hold the offer open for a stated period of time?
Helen finds a piece of land that she is interested in purchasing. She asks Robert, the landowner, to hold the land for her while she makes a decision. Robert says that for $1,000, he will hold the land for her while she decides, and Helen agrees. This is an example of a(n) _____.
As a general rule, when is revocation of an offer effective?
Which of the following is true regarding when an offeree may reject an offer?
If a(n) _____ contract exists, the administrator of an offeror's estate must hold the offer open until it expires in accordance with the contract.
If the subject matter of an offer is destroyed, the offer _____.
If the subject matter of an offer becomes illegal, what is the result?
Without a time condition in an offer, the offer will expire after _____.
Which of the following is presumed to be a reasonable amount of time when considering whether an offer has expired?
Which of the following is the source to consult in order to understand how the various member states of the European Union regulate contracts?
In which of the following ways may an offeree accept a unilateral contract?
Gretchen offers $250 to anyone who returns her lost cell phone. Haley returns the cell phone and requests the money. Gretchen says that there is no binding contract. Which of the following is true regarding Gretchen's statement?
When acceptance is examined under the common law, how do the basic requirements for a valid acceptance compare to those for a valid offer?
Which of the following is incorrect regarding how the Japanese tend to view contracts?
Wishing to sell her used business law book, Inez calls Janice and tells her that if she does not hear from her within twenty-four hours, she will assume that Janice wishes to purchase the book for $50. After the expiration of twenty-four hours, which of the following is correct regarding the status of the proposed book sale?
Which rule says that the terms of the acceptance must be identical to the terms of the offer?
Which of the following references a contract problem occurring when a buyer and a seller purport to make an agreement, but their preprinted forms do not match?
Which of the following modifies the mirror-image rule?
Which of the following is true if no means of communicating an acceptance is specified in an offer?
Which of the following provides that an acceptance is valid when it is placed in the mailbox?
Which of the following provides that a revocation is effective only when received by the offeree?
Which of the following is true regarding the validity of various means of acceptance (assuming no means of communicating the acceptance is specified)?
Refusal to Pay. Business law professor Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Brenda to trim some shrubbery for $40. Max went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max on the basis that the agreement was not in writing and that Max ended up being more trouble than he was worth. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Brenda refused to trim the shrubbery because she got a better offer and claimed that she was not bound by the contract until she started to perform. Which of the following is correct regarding Brenda's statement that she was not bound on any contract?
Refusal to Pay. Business law professor Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Brenda to trim some shrubbery for $40. Max went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max on the basis that the agreement was not in writing and that Max ended up being more trouble than he was worth. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Brenda refused to trim the shrubbery because she got a better offer and claimed that she was not bound by the contract until she started to perform. Which of the following is an appropriate characterization of the agreement between Debby and Max?
Refusal to Pay. Business law professor Debby needed some yard work done. She told her class that she would give $50 to the first person who mowed her yard. She also entered into an agreement with Brenda to trim some shrubbery for $40. Max went to mow Debby's yard. Unfortunately, just as he finished mowing, a neighborhood dog bit him and he had to go to the emergency room for a couple of stitches. Debby refused to pay Max on the basis that the agreement was not in writing and that Max ended up being more trouble than he was worth. Max refused to pay the emergency room because he said that they did not have a binding, bilateral contract. Brenda refused to trim the shrubbery because she got a better offer and claimed that she was not bound by the contract until she started to perform. Which of the following is true regarding Max's statement that he did not have to pay the emergency room charges (assuming that prior to and during treatment, Max had no discussions with emergency room personnel regarding payment for services rendered)?
Wrong Deck. Penny hires Jackson to paint the back deck on her house. She agrees to pay him $200 for the job and he accepts, sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then realized that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, he expects all of his funds from Penny. What was the status of the agreement between Jackson and Penny as of Tuesday when they agreed upon the price for the job?
Wrong Deck. Penny hires Jackson to paint the back deck on her house. She agrees to pay him $200 for the job and he accepts, sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then realized that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, he expects all of his funds from Penny. Which of the following is correct regarding Penny's assertion that the neighbor will be required to pay Jackson?
Wrong Deck. Penny hires Jackson to paint the back deck on her house. She agrees to pay him $200 for the job and he accepts, sight unseen. They enter into the agreement on Tuesday, and he is to paint the deck on Saturday. When Jackson arrives, neither Penny nor her neighbor is at home. He mistakenly paints the neighbor's deck. Penny calls him the next day and asks him why he did not paint her deck. He informs her that he did paint the deck. It is then realized that he mistakenly painted the neighbor's deck. Penny tells him not to worry because the neighbor will be required to pay him. Jackson says that if the neighbor does not pay, he expects all of his funds from Penny. Which of the following is true regarding Jackson's assertion that Penny must pay him?
Used Car Sales. Walter sells used cars. He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands. The first thing that Walter does is say that during the first week of December, he will give a $500 rebate on used cars under two years old. To spice things up, he also offers to sell any car on the lot that is under five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th. (Hula hooping was a practice popular some years ago in which a large hoop would be swung around by a person, usually around the waist.) Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hula hoop for ten hours straight. Walter put an advertisement pertaining to the rebate and hula hoop opportunity in the local newspaper. The promotion went over very well. Although he had several on hand, Walter ran out of cars under two years old within one day. During the rest of the week, shoppers were told that no cars of that description were available. A customer named Sam was very unhappy when he discovered the next day that no cars under two years old were available. On December 7th, while Walter was watching the hula hoopers, Sally was shopping for a car. She was in college and did not have much money. She saw one, an older car, that she liked but she really did not know if it would run or not. She was going to talk to her parents. Walter eventually approached her and Sally asked him if he would take $3,000 for the car. Walter said, "Yes, sold." Sally tried to explain that she needed to talk to her parents first, but Walter would not hear of it. While Walter was still fuming from his encounter with Sally, Zack walked up and started to criticize the nature of Walter's inventory. Walter told him that he had great cars. Zack pointed at an old jalopy that was banged up, had 200,000 miles on it, and a cracked windshield. Zack said, "Sure, I'll pay $10,000 for that car." Walter said, "Sold." Zack said, "Wait a minute. I was only kidding." Walter said, "No way." Meanwhile all the hula hoopers dropped out prior to ten hours of hula hooping except for Barbara. One minute before the ten hours were up, Walter yelled out "I revoke!" Barbara completed the hula hooping anyway and asked for her car for $1,000. Walter refused saying that the offer was revoked. Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate. Additionally, Barbara sued Walter, and Walter sued Zack and Sally. Which of the following is the likely result in the lawsuit brought by Sam complaining that Walter ran out of cars available for a rebate?
Used Car Sales. Walter sells used cars. He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands. The first thing that Walter does is say that during the first week of December, he will give a $500 rebate on used cars under two years old. To spice things up, he also offers to sell any car on the lot that is under five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th. (Hula hooping was a practice popular some years ago in which a person, usually around the waist, would swing around a large hoop.) Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hulahoop for ten hours straight. Walter put an advertisement pertaining to the rebate and hula-hoop opportunity in the local newspaper. The promotion went over very well. Although he had several on hand, Walter ran out of cars under two years old within one day. During the rest of the week, shoppers were told that no cars of that description were available. A customer named Sam was very unhappy when he discovered the next day that no cars under two years old were available. On December 7th, while Walter was watching the hula hoopers, Sally was shopping for a car. She was in college and did not have much money. She saw one, an older car, that she liked but she really did not know if it would run or not. She was going to talk to her parents. Walter eventually approached her and Sally asked him if he would take $3,000 for the car. Walter said, "Yes, sold." Sally tried to explain that she needed to talk to her parents first, but Walter would not hear of it. While Walter was still fuming from his encounter with Sally, Zack walked up and started to criticize the nature of Walter's inventory. Walter told him that he had great cars. Zack pointed at an old jalopy that was banged up, had 200,000 miles on it, and a cracked windshield. Zack said, "Sure, I'll pay $10,000 for that car." Walter said, "Sold." Zack said, "Wait a minute. I was only kidding." Walter said, "No way." Meanwhile all the hula hoopers dropped out prior to ten hours of hula hooping except for Barbara. One minute before the ten hours were up, Walter yelled out "I revoke!" Barbara completed the hula hooping anyway and asked for her car for $1,000. Walter refused saying that the offer was revoked. Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate. Additionally, Barbara sued Walter, and Walter sued Zack and Sally. What is the likely result in Walter's lawsuit against Sally in which he claims that she must pay $3,000 for the car at issue?
Used Car Sales. Walter sells used cars. He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands. The first thing that Walter does is say that during the first week of December, he will give a $500 rebate on used cars under two years old. To spice things up, he also offers to sell any car on the lot that is under five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th. (Hula hooping was a practice popular some years ago in which a person, usually around the waist, would swing around a large hoop.) Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hulahoop for ten hours straight. Walter put an advertisement pertaining to the rebate and hula-hoop opportunity in the local newspaper. The promotion went over very well. Although he had several on hand, Walter ran out of cars under two years old within one day. During the rest of the week, shoppers were told that no cars of that description were available. A customer named Sam was very unhappy when he discovered the next day that no cars under two years old were available. On December 7th, while Walter was watching the hula hoopers, Sally was shopping for a car. She was in college and did not have much money. She saw one, an older car, that she liked but she really did not know if it would run or not. She was going to talk to her parents. Walter eventually approached her and Sally asked him if he would take $3,000 for the car. Walter said, "Yes, sold." Sally tried to explain that she needed to talk to her parents first, but Walter would not hear of it. While Walter was still fuming from his encounter with Sally, Zack walked up and started to criticize the nature of Walter's inventory. Walter told him that he had great cars. Zack pointed at an old jalopy that was banged up, had 200,000 miles on it, and a cracked windshield. Zack said, "Sure, I'll pay $10,000 for that car." Walter said, "Sold." Zack said, "Wait a minute. I was only kidding." Walter said, "No way." Meanwhile all the hula hoopers dropped out prior to ten hours of hula hooping except for Barbara. One minute before the ten hours were up, Walter yelled out "I revoke!" Barbara completed the hula hooping anyway and asked for her car for $1,000. Walter refused saying that the offer was revoked. Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate. Additionally, Barbara sued Walter, and Walter sued Zack and Sally. What is the likely result in the lawsuit brought by Walter against Zack?
Used Car Sales. Walter sells used cars. He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands. The first thing that Walter does is say that during the first week of December, he will give a $500 rebate on used cars under two years old. To spice things up, he also offers to sell any car on the lot that is under five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th. (Hula hooping was a practice popular some years ago in which a person, usually around the waist, would swing around a large hoop.) Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hulahoop for ten hours straight. Walter put an advertisement pertaining to the rebate and hula-hoop opportunity in the local newspaper. The promotion went over very well. Although he had several on hand, Walter ran out of cars under two years old within one day. During the rest of the week, shoppers were told that no cars of that description were available. A customer named Sam was very unhappy when he discovered the next day that no cars under two years old were available. On December 7th, while Walter was watching the hula hoopers, Sally was shopping for a car. She was in college and did not have much money. She saw one, an older car, that she liked but she really did not know if it would run or not. She was going to talk to her parents. Walter eventually approached her and Sally asked him if he would take $3,000 for the car. Walter said, "Yes, sold." Sally tried to explain that she needed to talk to her parents first, but Walter would not hear of it. While Walter was still fuming from his encounter with Sally, Zack walked up and started to criticize the nature of Walter's inventory. Walter told him that he had great cars. Zack pointed at an old jalopy that was banged up, had 200,000 miles on it, and a cracked windshield. Zack said, "Sure, I'll pay $10,000 for that car." Walter said, "Sold." Zack said, "Wait a minute. I was only kidding." Walter said, "No way." Meanwhile all the hula hoopers dropped out prior to ten hours of hula hooping except for Barbara. One minute before the ten hours were up, Walter yelled out "I revoke!" Barbara completed the hula hooping anyway and asked for her car for $1,000. Walter refused saying that the offer was revoked. Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate. Additionally, Barbara sued Walter, and Walter sued Zack and Sally. What is the most likely result in the lawsuit brought by Barbara against Walter?
Saturday Auction. Barry, an auctioneer, was holding an auction on a Saturday morning. At the beginning of the auction, Barry announced that the auction was being held without reserve. Helen, Mary, and Chris were all in attendance. Helen saw an old cash register with a stuck drawer that she thought would look great in her den. The auctioneer put the cash register up for sale, noting that the drawer was stuck and that no one really knew what was inside. Helen bought it for $20. At the same auction, Mary saw a great deal on a used table. She bid $20 on it. No one else bid anything. Barry announced that $20 was clearly insufficient for the table, that it was worth much more than that, and that he was taking it out of the auction. Chris started bidding on a diamond ring for his girlfriend. He bid $2,000. Just as Barry was getting ready to say "Sold," Chris looked over at his girlfriend, decided that he was not sure about marriage, and leaped up yelling, "I revoke." Barry, however, immediately yelled "Sold." When she got it home and broke into it, Helen discovered that the cash register actually contained $5,000. Unfortunately, Helen had a teenage son named Tad who started bragging to his friends about the family's good fortune. Barry heard about what had happened and sued Helen for return of the $5,000. Mary sues Barry attempting to obtain possession of the table. Barry sues Chris attempting to enforce a contract for the sale of the engagement ring. In the lawsuit in which Barry sues Helen for return of the $5,000, which of the following is the most likely result?
Saturday Auction. Barry, an auctioneer, was holding an auction on a Saturday morning. At the beginning of the auction, Barry announced that the auction was being held without reserve. Helen, Mary, and Chris were all in attendance. Helen saw an old cash register with a stuck drawer that she thought would look great in her den. The auctioneer put the cash register up for sale, noting that the drawer was stuck and that no one really knew what was inside. Helen bought it for $20. At the same auction, Mary saw a great deal on a used table. She bid $20 on it. No one else bid anything. Barry announced that $20 was clearly insufficient for the table, that it was worth much more than that, and that he was taking it out of the auction. Chris started bidding on a diamond ring for his girlfriend. He bid $2,000. Just as Barry was getting ready to say "Sold," Chris looked over at his girlfriend, decided that he was not sure about marriage, and leaped up yelling, "I revoke." Barry, however, immediately yelled "Sold." When she got it home and broke into it, Helen discovered that the cash register actually contained $5,000. Unfortunately, Helen had a teenage son named Tad who started bragging to his friends about the family's good fortune. Barry heard about what had happened and sued Helen for return of the $5,000. Mary sues Barry attempting to obtain possession of the table. Barry sues Chris attempting to enforce a contract for the sale of the engagement ring. What is the likely result in the lawsuit brought by Mary against Barry for the table?
Saturday Auction. Barry, an auctioneer, was holding an auction on a Saturday morning. At the beginning of the auction, Barry announced that the auction was being held without reserve. Helen, Mary, and Chris were all in attendance. Helen saw an old cash register with a stuck drawer that she thought would look great in her den. The auctioneer put the cash register up for sale, noting that the drawer was stuck and that no one really knew what was inside. Helen bought it for $20. At the same auction, Mary saw a great deal on a used table. She bid $20 on it. No one else bid anything. Barry announced that $20 was clearly insufficient for the table, that it was worth much more than that, and that he was taking it out of the auction. Chris started bidding on a diamond ring for his girlfriend. He bid $2,000. Just as Barry was getting ready to say "Sold," Chris looked over at his girlfriend, decided that he was not sure about marriage, and leaped up yelling, "I revoke." Barry, however, immediately yelled "Sold." When she got it home and broke into it, Helen discovered that the cash register actually contained $5,000. Unfortunately, Helen had a teenage son named Tad who started bragging to his friends about the family's good fortune. Barry heard about what had happened and sued Helen for return of the $5,000. Mary sues Barry attempting to obtain possession of the table. Barry sues Chris attempting to enforce a contract for the sale of the engagement ring. What is the likely result in the lawsuit Barry brought against Chris?
There are generally two defenses to the enforcement of a contract. What are they?
Today’s law of contracts actually originated in judicial decisions from _____.
Oliver and Nellie have agreed that Oliver will buy Nellie’s house and horse barn for $250,000. This contract is _____ and _____.
Which of the following types of contracts has a special form or must be created in a specific manner?
The first element of an offer is _____.
Pamela offers Veronica the right to buy her entire collection of compact discs. Veronica tells Pamela no. Veronica’s response is considered _____.
What does a person receive in return for performing a contract obligation?
Suppose that Eduardo agrees to purchase Caleah’s car for $10,000. Eduardo’s payment of $10,000 is the _____ Caleah will receive for her car.
Which of the following does not constitute valid consideration?
In the Hamer v. Sidway case cited in the textbook, the New York Court of Appeals concluded that _____.
Which of the following is a promise to refrain from doing something you are legally entitled to do?
Tiffany promised to sell Lillian her diamond necklace and Lillian promised to pay $2,000. What type of contract is this?
A general rule in contract law is that for a promise to be enforce by a court, there must be _____.
If Greg promises Carlos that he will stop smoking for two (2) years if Carlos promises to pay him $5,000, Greg’s promise is considered _____.
Suppose that Dakiyah promises to pay Fernando $450 for his television. Fernando promises to sell Dakiyah his television for $450. The parties have not documented the transaction in writing. Which of the following is true regarding this arrangement?
In a(n) _____ contract, one party’s consideration is a promise and the other party’s consideration is an act.
Most contracts require that both parties give consideration in a contract. Which of the following is an exception to that rule?
Promissory estoppel is the legal enforcement of an otherwise unenforceable contract _____
Courts seldom consider _____, meaning that courts usually do no determine whether a contracting party made a good bargain.
Caterer and Bride agree that Caterer will cater Bride’s wedding for $20 per plate. On the day of the wedding, Caterer determines that she needs more money and informs Bride that the price is now $25 per plate. Desperate, Bride agrees. Is the $25-per-plate contract modification enforceable?
In order to avoid paying his creditors, Isaac sold his 100-acre farm to his best friend Zach for substantially less than its fair market value. Upon the creditors’ request, will a court set aside this transaction?
In the Smith v. Riley case referenced in the textbook, how did the Tennessee Court of Appeals rule regarding whether a purchase for "the sum of One Dollar ($1.00) and other good and valuable consideration" was sufficient consideration to support an agreement?
Tom’s Stop-N-Shop Grocery, Inc. tells Kelly that if she would supply five shipments of oranges by Friday, the company will consider making Kelly its sole orange supplier. This is an example of _____.
Mike promises Leighann that if she will come to the high school prom with him, he will consider paying for her dress and shoes. This is an example of _____.
For a court to enforce a promise, _____.
Joy is a customer service representative. Joy’s supervisor Tom tells Joy that because she was so good at “diffusing” a customer relations issue last month, he will pay her a $500 bonus. Is Tom’s promise enforceable?
A promise to do something that you are already obligated to do is _____.
Courtney, who does not keep up with the price of current technology, agrees to buy a used computer from Jake for $2,500. Later, Courtney’s friend Brice tells Courtney that she made a terrible deal and that she could get a better, new computer for no more than $1,000. Courtney tells Jake that she is not giving him any money because he has not been fair to her in terms of the computer price. Which of the following is the most likely result if Jake sues Courtney alleging breach of contract?
Yolanda agrees to bathe and groom Wendy's dog Fluffy for $20. Yolanda agreed to the price before seeing Fluffy, a very plump, grouchy Pembroke Welsh Corgi dog with lots of hair. Yolanda tells Wendy that if she is going to groom Fluffy, the price will be $30. Wendy agrees but exclaims in exasperation that the dog is, after all, named "Fluffy!" Yolanda bathes and grooms Fluffy, but Wendy will only pay $20. Which of the following is correct regarding Yolanda's entitlement to the extra $10?
Felipe contracts with Minnetonka Dozers, LLC (Minnetonka) to raze his old building for $12,000. Once Minnetonka begins the work, its employees discover asbestos in the building. Asbestos is hazardous and difficult to remove for environmental and safety reasons, and this will result in an additional $15,000 labor expense. Minnetonka refuses to complete the job until Felipe agrees to pay the additional $15,000. Felipe agrees. Is the contract modification enforceable?
Sally goes to have her hair trimmed and agrees to pay $40 to the stylist. While there, Sally decides that she would also like highlights. The stylist informs her that highlights will cost an additional $30. Sally agrees to the price, gets the highlights, but refuses to pay the extra amount. What is the likely result in a dispute between Sally and the stylist, and why?
A dispute over a(n) _____ debt may be settled for less than the full amount if the parties enter into a(n) _____.
Carl contracts with Lemon Cars to buy a car and pay monthly installment payments of $375. This is an example of _____.
Barbara and Julie’s Catering are in a dispute about a catering bill. Barbara believes the amount should only be $750 but Julie’s Catering charged her $900. This is an example of _____.
How can parties who are in a dispute over an unliquidated debt settle for less than the full amount?
A new agreement to pay less than the creditor claims is owed is called a(n) _____.
When an accord and satisfaction is at issue, the _____ is the debtor’s payment of the reduced amount.
Which of the following is true regarding a valid accord and satisfaction?
Which of the following is a valid Uniform Commercial Code (UCC) rule regarding checks marked "paid-in-full"?
Garage sale. Richard, who is cleaning out his garage, offers to sell Dawn a used computer for $200. Dawn replies that "I'll think about it and buy it if I decide to do so." Richard also calls Denise and offers to give Denise a used business law book. She is excited to receive the book and tells him that she will pick it up the next day. Richard also agrees to sell a communications book for $50 to Jill who promises to pick it up the next day. Meanwhile, Sam comes to visit, offers Richard $20 for the business law book and Richard sells it to him. Sam also offers Richard $50 for the used computer. Richard sells it to Sam because he does not expect to hear from Dawn. Sam sees the communications book and offers Richard $60 for it. Richard decides to forget about Jill and proceeds to sell the book to Sam for $60. Denise is very angry because Richard did not save the book for her and claims that he breached a contract because she had accepted his offer. Jill is also angry because Richard sold the communications book and informs him that he breached the contract he had with her. Exactly 31 days later, Dawn tells Richard that she would like the computer. She tells him that her response constituted consideration in that it bound him to an option contract and that he should have awaited her final decision. Richard tells Sam that he needs to return everything for a full refund. Sam refuses. Which of the following best describes Dawn's statement that she would think about it and buy the computer if she decided to do so?
Garage sale. Richard, who is cleaning out his garage, offers to sell Dawn a used computer for $200. Dawn replies that "I'll think about it and buy it if I decide to do so." Richard also calls Denise and offers to give Denise a used business law book. She is excited to receive the book and tells him that she will pick it up the next day. Richard also agrees to sell a communications book for $50 to Jill who promises to pick it up the next day. Meanwhile, Sam comes to visit, offers Richard $20 for the business law book and Richard sells it to him. Sam also offers Richard $50 for the used computer. Richard sells it to Sam because he does not expect to hear from Dawn. Sam sees the communications book and offers Richard $60 for it. Richard decides to forget about Jill and proceeds to sell the book to Sam for $60. Denise is very angry because Richard did not save the book for her and claims that he breached a contract because she had accepted his offer. Jill is also angry because Richard sold the communications book and informs him that he breached the contract he had with her. Exactly 31 days later, Dawn tells Richard that she would like the computer. She tells him that her response constituted consideration in that it bound him to an option contract and that he should have awaited her final decision. Richard tells Sam that he needs to return everything for a full refund. Sam refuses. Which of the following is true regarding Dawn's statement that her response was sufficient consideration to bind Richard to an option contract and that he should have awaited her final decision?
Garage sale. Richard, who is cleaning out his garage, offers to sell Dawn a used computer for $200. Dawn replies that "I'll think about it and buy it if I decide to do so." Richard also calls Denise and offers to give Denise a used business law book. She is excited to receive the book and tells him that she will pick it up the next day. Richard also agrees to sell a communications book for $50 to Jill who promises to pick it up the next day. Meanwhile, Sam comes to visit, offers Richard $20 for the business law book and Richard sells it to him. Sam also offers Richard $50 for the used computer. Richard sells it to Sam because he does not expect to hear from Dawn. Sam sees the communications book and offers Richard $60 for it. Richard decides to forget about Jill and proceeds to sell the book to Sam for $60. Denise is very angry because Richard did not save the book for her and claims that he breached a contract because she had accepted his offer. Jill is also angry because Richard sold the communications book and informs him that he breached the contract he had with her. Exactly 31 days later, Dawn tells Richard that she would like the computer. She tells him that her response constituted consideration in that it bound him to an option contract and that he should have awaited her final decision. Richard tells Sam that he needs to return everything for a full refund. Sam refuses. Which of the following is true regarding Denise's claim that Richard breached a contract with her because Richard did not save the book for her after she had accepted his offer?
Garage sale. Richard, who is cleaning out his garage, offers to sell Dawn a used computer for $200. Dawn replies that "I'll think about it and buy it if I decide to do so." Richard also calls Denise and offers to give Denise a used business law book. She is excited to receive the book and tells him that she will pick it up the next day. Richard also agrees to sell a communications book for $50 to Jill who promises to pick it up the next day. Meanwhile, Sam comes to visit, offers Richard $20 for the business law book and Richard sells it to him. Sam also offers Richard $50 for the used computer. Richard sells it to Sam because he does not expect to hear from Dawn. Sam sees the communications book and offers Richard $60 for it. Richard decides to forget about Jill and proceeds to sell the book to Sam for $60. Denise is very angry because Richard did not save the book for her and claims that he breached a contract because she had accepted his offer. Jill is also angry because Richard sold the communications book and informs him that he breached the contract he had with her. Exactly 31 days later, Dawn tells Richard that she would like the computer. She tells him that her response constituted consideration in that it bound him to an option contract and that he should have awaited her final decision. Richard tells Sam that he needs to return everything for a full refund. Sam refuses. Which of the following is true regarding Jill's claim that by selling the communications book for a higher price, Richard breached the contract he had with her?
Garage sale. Richard, who is cleaning out his garage, offers to sell Dawn a used computer for $200. Dawn replies that "I'll think about it and buy it if I decide to do so." Richard also calls Denise and offers to give Denise a used business law book. She is excited to receive the book and tells him that she will pick it up the next day. Richard also agrees to sell a communications book for $50 to Jill who promises to pick it up the next day. Meanwhile, Sam comes to visit, offers Richard $20 for the business law book and Richard sells it to him. Sam also offers Richard $50 for the used computer. Richard sells it to Sam because he does not expect to hear from Dawn. Sam sees the communications book and offers Richard $60 for it. Richard decides to forget about Jill and proceeds to sell the book to Sam for $60. Denise is very angry because Richard did not save the book for her and claims that he breached a contract because she had accepted his offer. Jill is also angry because Richard sold the communications book and informs him that he breached the contract he had with her. Exactly 31 days later, Dawn tells Richard that she would like the computer. She tells him that her response constituted consideration in that it bound him to an option contract and that he should have awaited her final decision. Richard tells Sam that he needs to return everything for a full refund. Sam refuses. Which of the following is true regarding the dispute between Richard and Sam regarding whether Sam must return anything?
Bank Robbery. Victor robbed Safe Bank of a significant sum of cash. Safe Bank offered a reward of $10,000 for anyone who captured or provided information leading to the capture of Victor. Ted, a police officer in town, promised Safe Bank officials that he would apprehend Victor. While on duty, Ted arrested Victor at a hamburger joint in town. He found Victor based upon a hunch he had after Ursula, who dated Victor, told him about various places Victor enjoyed eating. The bank refuses to pay either Ursula or Ted any of the reward money. Which of the following is true regarding the offer of the reward?
Bank Robbery. Victor robbed Safe Bank of a significant sum of cash. Safe Bank offered a reward of $10,000 for anyone who captured or provided information leading to the capture of Victor. Ted, a police officer in town, promised Safe Bank officials that he would apprehend Victor. While on duty, Ted arrested Victor at a hamburger joint in town. He found Victor based upon a hunch he had after Ursula, who dated Victor, told him about various places Victor enjoyed eating. The bank refuses to pay either Ursula or Ted any of the reward money. In a lawsuit between the bank and Ted regarding the reward funds, who is likely to prevail and why?
Bank Robbery. Victor robbed Safe Bank of a significant sum of cash. Safe Bank offered a reward of $10,000 for anyone who captured or provided information leading to the capture of Victor. Ted, a police officer in town, promised Safe Bank officials that he would apprehend Victor. While on duty, Ted arrested Victor at a hamburger joint in town. He found Victor based upon a hunch he had after Ursula, who dated Victor, told him about various places Victor enjoyed eating. The bank refuses to pay either Ursula or Ted any of the reward money. In a lawsuit between the bank and Ursula regarding the reward funds, who is likely to prevail and why?
Marcy's Mom. Marcy's mother, Sue, did not want her to date until she was older. She also wanted Marcy to attend law school. Just before Marcy started her freshman year in college, Sue told Marcy that if Marcy would refrain from dating until she received her law degree, then Sue would pay off all of Marcy's school loans and throw in an extra $50,000. Marcy agrees and states, "Thanks, Mom, and by the way, when I graduate I'm throwing you a big party for all you've done for me!" Sue smiles and hugs Marcy. Marcy finished law school and asked for payment of her loans, the $50,000 in cash, and for a car. Sue said, "No way - I know you went out on some dates during law school, and I never agreed on the car." Marcy said those were just study nights and that her mother had never objected to Marcy's frequent statements that she wanted a car upon graduation. Sue asks about the party. Marcy tells her that she is nuts because there is no way Marcy can afford a party since Sue has backed out of the deal. After some serious negotiation Marcy and Sue settled their dispute with Sue agreeing to pay for half of Marcy's school loans and for all the expenses of Marcy's upcoming wedding, and to forget about Marcy’s throwing a party for her. Was the agreement between Marcy and Sue that Sue would pay Marcy's school loans and throw in an extra $50,000 if Marcy refrained from dating until she received a law degree sufficiently supported by consideration?
Marcy's Mom. Marcy's mother, Sue, did not want her to date until she was older. She also wanted Marcy to attend law school. Just before Marcy started her freshman year in college, Sue told Marcy that if Marcy would refrain from dating until she received her law degree, then Sue would pay off all Marcy's school loans and throw in an extra $50,000. Marcy agrees and states, "Thanks, Mom, and by the way, when I graduate I'm throwing you a big party for all you've done for me!" Sue smiles and hugs Marcy. Marcy finished law school and asked for payment of her loans, the $50,000 in cash, and for a car. Sue said, "No way - I know you went out on some dates during law school, and I never agreed on the car." Marcy said those were just study nights and that her mother had never objected to Marcy's frequent statements that she wanted a car upon graduation. Sue asks about the party. Marcy tells her that she is nuts because there is no way Marcy can afford a party since Sue has backed out of the deal. After some serious negotiation Marcy and Sue settled their dispute with Sue agreeing to pay for half of Marcy's school loans and for all the expenses of Marcy's upcoming wedding, and to forget about Marcy’s throwing a party for her. Was there sufficient consideration to support Marcy's agreement to throw a party for Sue?
Marcy's Mom. Marcy's mother, Sue, did not want her to date until she was older. She also wanted Marcy to attend law school. Just before Marcy started her freshman year in college, Sue told Marcy that if Marcy would refrain from dating until she received her law degree, then Sue would pay off all Marcy's school loans and throw in an extra $50,000. Marcy agrees and states, "Thanks, Mom, and by the way, when I graduate I'm throwing you a big party for all you've done for me!" Sue smiles and hugs Marcy. Marcy finished law school and asked for payment of her loans, the $50,000 in cash, and for a car. Sue said, "No way - I know you went out on some dates during law school, and I never agreed on the car." Marcy said those were just study nights and that her mother had never objected to Marcy's frequent statements that she wanted a car upon graduation. Sue asks about the party. Marcy tells her that she is nuts because there is no way Marcy can afford a party since Sue has backed out of the deal. After some serious negotiation Marcy and Sue settled their dispute with Sue agreeing to pay for half of Marcy's school loans and for all the expenses of Marcy's upcoming wedding, and to forget about Marcy’s throwing a party for her. What type of alleged debt was involved in the dispute between Marcy and Sue involving the school loans, additional funds, car, and party?
Marcy's Mom. Marcy's mother, Sue, did not want her to date until she was older. She also wanted Marcy to attend law school. Just before Marcy started her freshman year in college, Sue told Marcy that if Marcy would refrain from dating until she received her law degree, then Sue would pay off all Marcy's school loans and throw in an extra $50,000. Marcy agrees and states, "Thanks, Mom, and by the way, when I graduate I'm throwing you a big party for all you've done for me!" Sue smiles and hugs Marcy. Marcy finished law school and asked for payment of her loans, the $50,000 in cash, and for a car. Sue said, "No way - I know you went out on some dates during law school, and I never agreed on the car." Marcy said those were just study nights and that her mother had never objected to Marcy's frequent statements that she wanted a car upon graduation. Sue asks about the party. Marcy tells her that she is nuts because there is no way Marcy can afford a party since Sue has backed out of the deal. After some serious negotiation Marcy and Sue settled their dispute with Sue agreeing to pay for half of Marcy's school loans and for all the expenses of Marcy's upcoming wedding, and to forget about Marcy's throwing a party for her. In reaching a settlement, Marcy and Sue entered into a(n) _____.
What are the elements of promissory estoppel?
Fredrick sold his car to Thomas for $4,000. The car’s actual value is approximately $10,000. In retrospect, Fredrick is upset with the deal. Can Fredrick either get his car back from Thomas or recover from him the monetary difference ($6,000) accounting for the car’s actual value?
Peter indicates to Paul that if he will write a number-one hit song, Peter will think about making Paul his sole writing contributor. This is an example of _____.
Elizabeth, David’s grandmother, was in ill health. David promised Elizabeth that she could come to his house and stay in a spare bedroom for as long as she needed, and that he would provide basic care for her. Elizabeth agreed. Later, David changed his mind, maintaining that his grandmother’s presence at his house would interfere with his “active lifestyle.” Assuming that Elizabeth took care of David when he was a child, can she successfully sue David for breach of contract?
The exception to the preexisting duty rule is _____.
Julian has a lease agreement with Starwood Apartments, LLC. According to the terms of the lease, he is obligated to pay $650 in rent by the fifth day of every month. The amount Julian pays is _____.
John offers Shaun his new mountain bike for $500. In this situation, _____.
In a _____ contract, the consideration for each promise is a return promise.
A person who has legal _____ to contract is one who has the mental ability to understand his or her rights and obligations under a contract.
If a potential contracting party is concerned with another person’s mental ability to contract, she is concerned with the person's _____.
Belinda has been adjudicated insane by a court. If she makes a contract, the contract would be _____.
A contract with a person who has some sort of mental defect that prevents that person from being able to legally contract means that he lacks _____.
Before modern day common law changed, which people besides minors and insane persons historically were unable to contract?
The age at which most states consider someone a minor is _____ years old.
Tulum is a sixteen-year-old who has sought and received full legal capacity to contract from the court. This means that Tulum is _____.
Which of the following occurs when a minor's parents or legal guardians give up their right to exercise legal control over the minor?
Georgia and Mitchell are seventeen (17) years old. Their parents gave them the right to marry. In most states, this means that Georgia and Mitchell can contract because they became _____.
Oliver is a sixteen-year-old who would like to disaffirm his automobile purchase contract with Henry’s Used Cars, LLC (Henry’s). What must Oliver do to disaffirm?
Because their contracts are _____, minors have the right, until a reasonable time after reaching the age of majority, to _____, or avoid, their contracts.
Which of the following is true regarding how Chinese law treats contracts entered into by minors?
If a minor chooses to disaffirm a contract, what is the obligation placed on the minor?
Since a minor’s disaffirmance of a contract must occur before or within a reasonable time after the minor reaches the age of majority, what constitutes a “reasonable time?”
As a general rule, most states will not allow a minor to disaffirm a contract for which of the following?
What is the purpose of the minor’s right to disaffirm contracts?
What is the legal significance in most states when a minor misrepresents his age?
A contract that supplies the minor with basic needs such as food, clothing, and shelter is called a(n) _____.
Which of the following is incorrect regarding contracts for necessaries entered into by minors?
Which of the following occurs when a person reaches the age of majority and states, either orally or in writing, that he or she intends to be bound by the contact entered into as a minor?
Hillary and Dillon enter into a contract whereby Hillary, seventeen (17) years old, purchases a computer and printer from Dillon. Dillon agrees to finance the contract and allows Hillary to pay $100 per month. When Hillary turns eighteen (18) years old, what must she do to ratify the contract?
Which of the following is true regarding the ability of persons suffering from a mental illness to enter into a binding contract?
Guardians may be appointed for which of the following individuals?
Which of the following is true if a contract is disaffirmed on the basis of intoxication?
If a contract is deemed unenforceable, what remedy is available to the parties?
If a contract is _____, it is unenforceable.
Which of the following is true regarding an agreement to commit a crime or a tort?
If a legal contract is formed and the subject of the contract then becomes illegal under a new statute, the contract is _____.
In every state, people who work for certain professions must obtain a(n) _____ to practice their craft.
Which of the following are the two main purposes of professional licensing statutes?
Johnathan’s Plumbing, LLC (Johnathan’s) uses only unlicensed plumbers in its business operations. If a contract is entered into with Johnathan’s, the agreement would likely be deemed _____.
Badger Bank and Trust (Badger) is a community bank in Oshkosh, Wisconsin. Badger loaned $5,000 to Plessy and charged him an interest rate that was five (5) percent higher than the statutorily-allowed maximum. This loan would be considered _____.
Which of the following occurs when a party makes a loan at an interest rate exceeding the legal maximum?
How many states engage in at least some regulation of gambling?
Selina moved to a state that limits the types of business activities in which parties can legally engage on Sundays. This type of law is known as a _____ law.
Bob is hired to do computer sales for an electronics store. He agrees that if he leaves his employment, he will not work for another computer store within twenty-five miles for a period of two years. This type of agreement is called a(n) _____.
If a contract is largely one-sided in nature, heavily favoring only one party, the contract is considered to be _____.
A party who claims that he or she could not understand contractual terms because of tiny, hard-to-read print on the back of an agreement and the excessive use of legalese is referring to which of the following?
Which of the following involves overly harsh or lopsided substance in an agreement?
Tow the Line Towing Company, Inc. creates contracts with its clients that are presented on a “take-it-or-leave-it” basis. Courts typically find these types of agreements to be _____.
A statement releasing one of the parties to an agreement from all liability, regardless of who is at fault or what the injury suffered is, would be referred to as a(n) _____.
What was the result in Riley v. Iron Gate Self Storage, the case in which Larry Riley rented a self-storage unit from Iron Gate with an agreement limiting the value of stored contents to $5,000 and a corresponding liability limit of $5,000?
A(n) _____ contract contains multiple parts that can each be performed separately.
A(n) _____ contract is one requiring complete performance by both parties, even if it appears as if the contract contains multiple parts.
Irresponsible Teen. At age 17, in a state in which the age of majority is 18, Sally urchased a prom dress from Formal Stuff. She wore it to the prom and then attempted to return it to the store claiming that she was a minor and that she was entitled to a refund. The dress had clearly been worn and had a purple stain that Sally claimed was from grape juice. Additionally, a few days before she turned 18, Sally purchased a used car from Dings and Dents used cars. She had a deal whereby she paid $100 per month on the car. She drove the car and made payments for fourteen months after she turned 18. Then, she returned the car to Dings and Dents and told them that she wanted all her money back. Dings and Dents claimed the car was a necessity. Sally and her parents claimed that the parents were ready and willing to provide a car to Sally and that she only purchased the car from Dings and Dents because she liked that particular style and color. When purchases of the dress and car were made, the sellers knew that Sally was under the age of 18. Which of the following is true regarding Sally's attempt to return the damaged dress?
Irresponsible Teen. At age 17, in a state in which the age of majority is 18, Sally purchased a prom dress from Formal Stuff. She wore it to the prom and then attempted to return it to the store claiming that she was a minor and that she was entitled to a refund. The dress had clearly been worn and had a purple stain that Sally claimed was from grape juice. Additionally, a few days before she turned 18, Sally purchased a used car from Dings and Dents used cars. She had a deal whereby she paid $100 per month on the car. She drove the car and made payments for fourteen months after she turned 18. Then, she returned the car to Dings and Dents and told them that she wanted all her money back. Dings and Dents claimed the car was a necessity. Sally and her parents claimed that the parents were ready and willing to provide a car to Sally and that she only purchased the car from Dings and Dents because she liked that particular style and color. When purchases of the dress and car were made, the sellers knew that Sally was under the age of 18. In the dispute between Sally and the owner of Dings and Dents, which of the following is true regarding the defense of Sally and her parents that the car was a necessary?
Irresponsible Teen. At age 17, in a state in which the age of majority is 18, Sally purchased a prom dress from Formal Stuff. She wore it to the prom and then attempted to return it to the store claiming that she was a minor and that she was entitled to a refund. The dress had clearly been worn and had a purple stain that Sally claimed was from grape juice. Additionally, a few days before she turned 18, Sally purchased a used car from Dings and Dents used cars. She had a deal whereby she paid $100 per month on the car. She drove the car and made payments for fourteen months after she turned 18. Then, she returned the car to Dings and Dents and told them that she wanted all her money back. Dings and Dents claimed the car was a necessity. Sally and her parents claimed that the parents were ready and willing to provide a car to Sally and that she only purchased the car from Dings and Dents because she liked that particular style and color. When purchases of the dress and car were made, the sellers knew that Sally was under the age of 18. In the dispute between Sally and the owner of Dings and Dents, which of the following is true regarding any claim that Sally affirmed the contract?
Useless Friend. Charles, who is very gullible, is friends with Bobby. Bobby, who cannot be trusted, decides to try to bind Charles to a contract in Bobby's favor. Bobby has Charles sign a contract promising to wash Bobby's car once a week for a month for $80. The contract incorporated by reference terms on the back. The terms on the back were in very small print and required Charles for one year to cook dinner for Bobby, do his laundry, and clean his apartment. Bobby is also very angry with his former girlfriend, Tessa, and decides to start rumors, that would constitute the tort of defamation, such as that she has a vile disease, cheated on tests, and stole from friends. Bobby wants to enlist the help of Charles but knows that Charles would be hesitant to assist in his endeavors. One evening, however, Charles drank too much beer and was clearly intoxicated - a fact apparent to Bobby. Bobby had him sign a contract agreeing to defame Tessa for $50. When he sobers up, Charles tells Bobby that he was drunk and that he has no intention of defaming Tessa, who also happens to be Charles's new girlfriend. He also finally takes a look at the contract involving work for Bobby and tells Bobby that the contract is outrageous and that he has no intentions of going through with any of it. Which of the following is true under the Restatement of Contracts, Section 16, regarding Charles's claim that he should be able to avoid the contract involving Tessa because he was intoxicated?
Useless Friend. Charles, who is very gullible, is friends with Bobby. Bobby, who cannot be trusted, decides to try to bind Charles to a contract in Bobby's favor. Bobby has Charles sign a contract promising to wash Bobby's car once a week for a month for $80. The contract incorporated by reference terms on the back. The terms on the back were in very small print and required Charles for one year to cook dinner for Bobby, do his laundry, and clean his apartment. Bobby is also very angry with his former girlfriend, Tessa, and decides to start rumors that would constitute the tort of defamation, such as that she has a vile disease, cheated on tests, and stole from friends. Bobby wants to enlist the help of Charles but knows that Charles would be hesitant to assist in his endeavors. One evening, however, Charles drank too much beer and was clearly intoxicated - a fact apparent to Bobby. Bobby had him sign a contract agreeing to defame Tessa for $50. When he sobers up, Charles tells Bobby that he was drunk and that he has no intention of defaming Tessa, who also happens to be Charles's new girlfriend. He also finally takes a look at the contract involving work for Bobby and tells Bobby that the contract is outrageous and that he has no intentions of going through with any of it. Which of the following is true regarding Charles's claim that he had no obligation to defame Tessa?
Useless Friend. Charles, who is very gullible, is friends with Bobby. Bobby, who cannot be trusted, decides to try to bind Charles to a contract in Bobby's favor. Bobby has Charles sign a contract promising to wash Bobby's car once a week for a month for $80. The contract incorporated by reference terms on the back. The terms on the back were in very small print and required Charles for one year to cook dinner for Bobby, do his laundry, and clean his apartment. Bobby is also very angry with his former girlfriend, Tessa, and decides to start rumors that would constitute the tort of defamation, such as that she has a vile disease, cheated on tests, and stole from friends. Bobby wants to enlist the help of Charles but knows that Charles would be hesitant to assist in his endeavors. One evening, however, Charles drank too much beer and was clearly intoxicated - a fact apparent to Bobby. Bobby had him sign a contract agreeing to defame Tessa for $50. When he sobers up, Charles tells Bobby that he was drunk and that he has no intention of defaming Tessa, who also happens to be Charles's new girlfriend. He also finally takes a look at the contract involving work for Bobby and tells Bobby that the contract is outrageous and that he has no intentions of going through with any of it. Which of the following would be a possible defense to Bobby's contract involving chores based upon the small print on the back of the contract?
Useless Friend. Charles, who is very gullible, is friends with Bobby. Bobby, who cannot be trusted, decides to try to bind Charles to a contract in Bobby's favor. Bobby has Charles sign a contract promising to wash Bobby's car once a week for a month for $80. The contract incorporated by reference terms on the back. The terms on the back were in very small print and required Charles for one year to cook dinner for Bobby, do his laundry, and clean his apartment. Bobby is also very angry with his former girlfriend, Tessa, and decides to start rumors that would constitute the tort of defamation, such as that she has a vile disease, cheated on tests, and stole from friends. Bobby wants to enlist the help of Charles but knows that Charles would be hesitant to assist in his endeavors. One evening, however, Charles drank too much beer and was clearly intoxicated - a fact apparent to Bobby. Bobby had him sign a contract agreeing to defame Tessa for $50. When he sobers up, Charles tells Bobby that he was drunk and that he has no intention of defaming Tessa, who also happens to be Charles' new girlfriend. He also finally takes a look at the contract involving work for Bobby and tells Bobby that the contract is outrageous and that he has no intentions of going through with any of it. Which of the following would be a possible defense to the contract as far as the harsh and lopsided requirements involving chores is concerned?
Beauty Shop Woes. When Janice went to work as a hair stylist in Rick's beauty shop, she entered into an agreement with Rick whereby if she left, she would not work for another beauty shop within 50 miles for 2 years. Rick trained Janice in several new techniques. After nine months, Janice was offered a great job down the street at a new beauty shop, quit Rick, and had a number of customers follow her down the street to her new job. Rick claimed that she had signed a contract and had no right to go to work at the new shop. Janice disagreed and told Rick that no judge in the country would enforce such an agreement. Janice told Rick that she was more worried about a customer, Treena, who was threatening to sue her because her hair turned green after Janice worked on it. Janice agreed that Treena's hair was damaged. Janice pointed out, however, that she told Treena that odd results could result from a dye attempt, and she required that Treena sign a contract releasing Janice from all liability before she did anything with Treena's hair. Treena, however, sued anyway. The agreement Rick and Janice entered into is referred to as which of the following?
Beauty Shop Woes. When Janice went to work as a hair stylist in Rick's beauty shop, she entered into an agreement with Rick whereby if she left, she would not work for another beauty shop within 50 miles for 2 years. Rick trained Janice in several new techniques. After nine months, Janice was offered a great job down the street at a new beauty shop, quit Rick, and had a number of customers follow her down the street to her new job. Rick claimed that she had signed a contract and had no right to go to work at the new shop. Janice disagreed and told Rick that no judge in the country would enforce such an agreement. Janice told Rick that she was more worried about a customer, Treena, who was threatening to sue her because her hair turned green after Janice worked on it. Janice agreed that Treena's hair was damaged. Janice pointed out, however, that she told Treena that odd results could result from a dye attempt, and she required that Treena sign a contract releasing Janice from all liability before she did anything with Treena's hair. Treena, however, sued anyway. Which of the following is true regarding Janice's claim that no judge in the country would enforce such an agreement?
Beauty Shop Woes. When Janice went to work as a hair stylist in Rick's beauty shop, she entered into an agreement with Rick whereby if she left, she would not work for another beauty shop within 50 miles for 2 years. Rick trained Janice in several new techniques. After nine months, Janice was offered a great job down the street at a new beauty shop, quit Rick, and had a number of customers follow her down the street to her new job. Rick claimed that she had signed a contract and had no right to go to work at the new shop. Janice disagreed and told Rick that no judge in the country would enforce such an agreement. Janice told Rick that she was more worried about a customer, Treena, who was threatening to sue her because her hair turned green after Janice worked on it. Janice agreed that Treena's hair was damaged. Janice pointed out, however, that she told Treena that odd results could result from a dye attempt, and she required that Treena sign a contract releasing Janice from all liability before she did anything with Treena's hair. Treena, however, sued anyway. What type of clause did Janice have Treena sign to the effect that she would not hold Janice liable for any bad results?
Beauty Shop Woes. When Janice went to work as a hair stylist in Rick's beauty shop, she entered into an agreement with Rick whereby if she left, she would not work for another beauty shop within 50 miles for 2 years. Rick trained Janice in several new techniques. After nine months, Janice was offered a great job down the street at a new beauty shop, quit Rick, and had a number of customers follow her down the street to her new job. Rick claimed that she had signed a contract and had no right to go to work at the new shop. Janice disagreed and told Rick that no judge in the country would enforce such an agreement. Janice told Rick that she was more worried about a customer, Treena, who was threatening to sue her because her hair turned green after Janice worked on it. Janice agreed that Treena's hair was damaged. Janice pointed out, however, that she told Treena that odd results could result from a dye attempt, and she required that Treena sign a contract releasing Janice from all liability before she did anything with Treena's hair. Treena, however, sued anyway. Which of the following is true regarding the enforceability of the clause providing that Treena not hold Janice liable for any bad results?
Cheap Motorcycle. Tony, a hateful, disgruntled business law professor, notices that Peter, a student who is past the age of majority, has bought a new motorcycle. Peter has struggled through school, is in his last semester, and needs to pass business law in order to graduate. Tony tells Peter that he would like to see Peter pass, and in the next sentence, Tony says that he wants to buy the motorcycle for $100, a price far below the value of the motorcycle. Peter asks if Tony is serious about the price, and Tony replies, "I have the power here!" Tony proceeds to draw up a contract for the sale of the motorcycle for $100 with lots of fine print by which he can sue Peter and recover any maintenance costs for the next five years. Seeing that he is at an advantage, Tony also throws into the deal that Peter will mow Tony's one-acre yard for $5 all summer long. After Tony tells Peter to either take the contract or leave it, Tony reluctantly signs. Which of the following is true if Peter seeks to rescind the contractual agreement to sell the motorcycle?
Cheap Motorcycle. Tony, a hateful, disgruntled business law professor, notices that Peter, a student who is past the age of majority, has bought a new motorcycle. Peter has struggled through school, is in his last semester, and needs to pass business law in order to graduate. Tony tells Peter that he would like to see Peter pass, and in the next sentence, Tony says that he wants to buy the motorcycle for $100, a price far below the value of the motorcycle. Peter asks if Tony is serious about the price, and Tony replies, "I have the power here!" Tony proceeds to draw up a contract for the sale of the motorcycle for $100 with lots of fine print by which he can sue Peter and recover any maintenance costs for the next five years. Seeing that he is at an advantage, Tony also throws into the deal that Peter will mow Tony's one-acre yard for $5 all summer long. After Tony tells Peter to either take the contract or leave it, Tony reluctantly signs. Which of the following is an appropriate term for the contract drawn up by Tony?
Cheap Motorcycle. Tony, a hateful, disgruntled business law professor, notices that Peter, a student who is past the age of majority, has bought a new motorcycle. Peter has struggled through school, is in his last semester, and needs to pass business law in order to graduate. Tony tells Peter that he would like to see Peter pass, and in the next sentence, Tony says that he wants to buy the motorcycle for $100, a price far below the value of the motorcycle. Peter asks if Tony is serious about the price, and Tony replies, "I have the power here!" Tony proceeds to draw up a contract for the sale of the motorcycle for $100 with lots of fine print by which he can sue Peter and recover any maintenance costs for the next five years. Seeing that he is at an advantage, Tony also throws into the deal that Peter will mow Tony's one-acre yard for $5 all summer long. After Tony tells Peter to either take the contract or leave it, Tony reluctantly signs. Which of the following is true regarding the yard mowing agreement?
If a minor wants to be emancipated, what must she do?
Once a minor reaches the age of majority, he or she may _____ contracts made as a minor.
Cantina contracts with Marlo to kill her unfaithful husband. The agreement between the parties is _____.
A(n) _____ is a statement releasing one of the parties to an agreement from all liability, regardless of who is at fault or the injury sustained.
A(n) _____ contract requires complete performance by both parties, even if it appears that the contract contains multiple parts like a severable contract.
In pari delicto means _____.
