BLAW Exam 2

The essence of a contract is that it is a legally enforceable promise or set of promises.

Courts look at parties outward manifestations of intent as a requirement to enforce a contract. This is called the subjective standard of intent.

Where an offer stipulates a certain means of acceptance, the offeree’s acceptance is effective upon dispatch even if it uses means other than those specified in the offer.

John promises to pay Robert $100 per week, in exchange for Robert’s promise not to beat John up. There is no consideration for John’s promise.

In order for a unilateral mistake to make a contract voidable, either the nonmistaken party must have caused or had reason to know of the mistake, or enforcement of the contract must be unconscionable.

Generally, the age of majority for contracting purposes is 21 years.

An exculpatory clause is a provision in a contract that purports to relieve one of the parties from tort liability.

In order to satisfy the writing requirement of the statute of frauds, both parties must sign the writing.

Antiassignment clauses in contracts are not enforceable.

When the surrounding facts and circumstances indicate that an agreement has in fact been reached, a(n) _____ has been created.

Calvin tells Sara that he will sell her his car for $5,000. Sara agrees. The exchange is to take place in 10 days. The contract between Calvin and Sara is now:

When can the offeror effectively revoke his/her offer?

A(n) _____ is a separate contract in which an offeror agrees not to revoke her
offer for a stated time in exchange for some valuable consideration.

When is the revocation of an offer effective?

Offers that fail to provide a specific time for acceptance :

In general, the mailbox rule is beneficial to:

On Thursday, Trista Dylan receives a letter from Charlie Holmes offering to sell her a diamond ring and stating that: “if you choose to accept, you must do so prior to 2:00 p.m. tomorrow.” Trista had a telegram of acceptance dispatched well before 2:00 p.m. on Friday but it is delivered to Charlie’s home only at 2:15 p.m. Do Trista and Charlie have a binding contract?

According to the mailbox rule, properly addressed and dispatched acceptances can become effective when they are dispatched, even if they are lost and never received by the offeror.
In order for the consideration requirement in contracts to be met:

The requirement of consideration means that a promisee must pay the price that the promisor asked to gain the right to enforce the promisor’s promise. So, if the promisor did not ask for anything in exchange for making him/her promise or if what the promisor asked for did not have legal value, his/her promise is not enforceable against him/her because it is not supported by consideration.
Which of the following would indicate a rejection under the mirror image rule?

Under the mirror image rule, only significant material changes between an offer and an acceptance would indicate an implied rejection of the offer.

Daniel is a senior at State University. Brian, Daniel’s father, is concerned about Daniel’s study habits, given that Daniel spends most of his evenings at the campus pub instead of the library. Brian promises Daniel that he will send him on an expense-paid trip to Europe after his graduation if Daniel spends at least five evenings a week studying in the campus library for the remainder of his senior year. After returning home from his graduation, Daniel asks Brian about the European trip. Brian replies, “Your education was your reward. I don’t owe you a trip to Europe.” Brian is:

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:

Consideration can be a(n) _____ in the case of a bilateral contract.

James has entered into a contract to sell his house to Mikhael. James knows that the house has a bad termite infestation that significantly reduces the value of the house. However, the topic of termites never came up and James did not volunteer any information about the termites. Mikhael is not aware of the termite problem. Under the law of most states, has legal misrepresentation occurred here?

Sue wanted to purchase a car. She went to “Honest Bob’s” used car sales. She was interested in a classic 1956 Jaguar XK 140 Roadster. Bob told her “this is a great car-it runs like a dream, it is a sweet ride.” Bob’s statements are legally considered to be:

_____ is a wrongful coercion that induces a person to enter or modify a contract.

Which of the following is most likely to constitute undue influence?

The right of minors to avoid a contract as a means of protecting themselves against their own improvidence and against overreaching by adults is called:

Betty, age 16, buys a car and wrecks it one week later. She takes it back to the seller and demands all her money back. According to the traditional rule, is she entitled to get all her money back?

Which of the following characterizes the traditional rule regarding a minor who misrepresents his/her age?

When a court says that an agreement is illegal, it most likely means that the agreement:

If a statute is considered to be _____, the purpose of the legislation is to protect the public against dishonest or incompetent practitioners.

Helga owns an insurance business in Idaho. Her clients are all Idaho residents. She later sells her business to Carlos. As part of the deal, the contract contains a non-compete clause that prevents Helga from operating an insurance business anywhere in Idaho, Washington or Oregon for a period of five years. Six months after this sale, Helga opens an insurance business in Oregon. If Carlos seeks to enforce the non-compete agreement against Helga, will he probably be successful?

Which of the following was NOT taken into account by classical law in assessing contracts?

On Tursday, Trista Dylan receives a letter from Charlie Holmes offering to sell her a diamond ring and stating that: “if you choose to accept, you must do so prior to 2:00 p.m. tomorrow.” Trista had a telegram of acceptance dispatched well before 2:00 p.m. on Friday but it is delivered to Charlie’s home only at 2:15 p.m. Do Trista and Charlie have a binding contract?

Sam, a plumber, entered into a contract for $75,000 with Orr, Inc., to perform certain plumbing services in a building owned by Orr. After Sam had satisfactorily performed the work, Orr discovered that Sam had violated the state licensing statute by failing to obtain a plumbing license. As a result, Orr denied paying any money to Sam. The licensing statute was enacted merely to raise revenue for the state. An independent appraisal of Sam’s work indicated that the building’s fair market value increased by $70,000 as a result of Sam’s work. The cost of the materials which Sam supplied was $35,000. If Sam sues Orr, Sam will be entitled to recover:

The statute of frauds requires that:

On May 1, Dix and Wilk entered into an oral agreement by which Dix agreed to purchase a small parcel of land from Wilk for $450. Dix paid Wilk $100 as a deposit. The following day, Wilk received another offer to purchase the land for $650, the fair market value. Wilk immediately notified Dix that Wilk would not sell the land for $450. If Dix sues Wilk for specific performance, Dix will:

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

A written agreement was signed by two parties and it was intended to be their entire agreement. The parol evidence rule will prevent the admission of evidence that is offered to:

The appointment of another person to perform a duty under a contract is called a(n):

Melanie owes $250 to Jessica. Jessica gifts the right to receive the money from Melanie to her daughter Kelly in writing. This assignment is:

An uncertain future event, the occurrence of which is necessary for the existence of a contractual obligation is called:

Which of the following is a condition subsequent?

Which form of damages is intended to give the victim of the breach of contract the “benefit of the bargain”?

Damages that are agreed upon at the time the contract is entered into are called _____.

Someone who attempts to recover for breach of contract:

Which of the following is most likely to constitute undue influence?

The transfer of a right under a contract is called a(n):

In determining whether an offeree accepted an offer, the court is looking for the same _____ on the part of the offeree that it found on the part of the offeror.

In determining whether an offeree accepted an offer, the court is looking for the same __________ on the part of the offeree that it found on the part of the offeror.