Contracts Flashcards
A woman was pregnant with her first child. Her friend approached her and said: “If you name your child after my grandmother, I will pay you $50.” After the baby was born, the woman named her child after the friend’s grandmother. The woman demanded the $50 from the man, but he refused to pay. The woman then brought a breach of contract action against the man. The woman will
Prevail because there was adequate consideration.
Jack and Diane were friends. Jack approached Diane and said: “If you go to the dance with me on Saturday, I will pay you $50.” Diane went to the dance with Jack, and on Sunday demanded the $50. Jack refused to pay. Diane brought suit against Jack. Diane will
Prevail because there was adequate consideration.
A man stole a car and sped out of the parking lot. At the next intersection, he raced through a red light and collided with an elderly driver’s sedan. The owner of the car, mistakenly believing that he was legally responsible, visited the injured elderly driver in the hospital and told the elderly driver: “I promise to be responsible for all damages that the car thief caused you.” If the elderly driver brings an action to recover for costs expended in medical treatment for a broken arm sustained during the accident, the owner’s best defense is
lack of consideration.
Builder and homeowner enter into a contract for the Builder to construct a deck on Homeowner’s house for $5000. The contract required that Builder use grade “A” lumber. When the deck is completed, Homeowner discovers that the Builder used grade “B” lumber. Homeowner refuses to pay. Thereafter the parties agree that Homeowner will pay $4000 for the deck. Is the new agreement enforceable?
Modification; Accord and Satisfaction
A man makes the following statement to a woman: “I hereby offer to sell you Blackacre for $10,000. This offer expires in 30 days.” Which of the following is most accurate regarding the man’s offer?
It is neither a firm offer nor an option contract, and is revocable at any time before acceptance has been made.
A homeowner wrote a letter to a contractor on April 30th that said: “If you build a 3 bedroom home for me, I will pay you $100,000.” The contractor responded on May 1st: “I’m not sure I can do it for that price, does your offer include a paved driveway?” The homeowner responded on May 3rd: “My price includes a driveway and a swimming pool.” The contractor responded on May 5th: “That sounds good, I can do it for $110,000. The homeowner did not respond. The contractor then wrote a letter to the homeowner on May 8th that said: “I have reworked the numbers, and I can build the house as you specify for $100,000.” The contractor signed the letter and mailed it to the homeowner on May 10th. Does a contract exist between the parties?
No, because the contractor made a counteroffer.
A well-known rodeo performer lived in the southwest. One day a rancher approached the performer and said, “If you will ride my bucking bronco for one minute, I will pay you $500.” The rodeo performer then purchased a special saddle for the bronco ride. After saddling the rancher’s bronco, the rodeo performer started riding when the rancher suddenly yelled, “I hereby revoke my offer.” If the rodeo performer thereafter goes ahead and rides the bronco for one minute, will he recover the $500?
Yes, because there was an offer for a unilateral contract that became irrevocable prior to the rancher’s attempted revocation.
A motorcycle manufacturer decided to build a new model. The manufacturer ordered 1000 2-cylinder engines from a supplier. The supplier shipped 1000 3-cylinder engines. The manufacturer had no choice but to accept the engines and installed them in its new model motorcycles. As a result of the larger engines, the manufacturer had to lower the price of each new motorcycle by $500.00, and lost $500,000 in profits. The manufacturer sued the supplier for breach of contract. Who will prevail?
The manufacturer, because the supplier was in material breach.
A dentist was opening up a new practice. The dentist sent an email to a manufacturer stating “I will purchase four model A dental chairs for $500 per chair.” The Model A chairs were out of stock, but the manufacturer had Model B chairs in stock. The Model B chairs were a nicer, more expensive version of the Model A chairs. The manufacturer shipped to the dentist four Model B chairs and an invoice for $2,000 ($500 per chair). The manufacturer noted that the chairs were shipped for accommodation only Did a contract form?
No, because the manufacturer’s shipment of Model B chairs was a counteroffer, which the dentist was free to accept or reject.
At a widget convention, a manufacturer of widgets and a distributor of widgets had a discussion. The distributor offered to purchase 1,000 widgets per month from the manufacturer for $10,000 per month for the next 12 months. The manufacturer agreed to the terms.
When the parties returned to their respective offices following the convention, the manufacturer emailed the distributor a written confirmation of their agreement, including the manufacturer’s standard form agreement. The distributor then emailed the manufacturer a written confirmation, including the distributor’s standard form agreement. The parties agreed on the essential terms, but the manufacturer’s standard form agreement contained a forum selection clause that any dispute under the agreement would be litigated in State A, and the distributor’s standard form agreement contained a forum selection clause that any dispute under the agreement would be litigated in State B. What forum selection clause will apply to the agreement?
Neither, because the forum selection clauses are in conflict.
A sixteen-year-old high school student went to a local car dealership and negotiated the purchase of a car. The dealer agreed to sell the student a car and the parties entered into a contract for the sale of a 2015 Chevrolet. Over the course of the next six months, the student drove the car eight thousand miles, wearing the tires thin, denting the left front fender, and wearing a hole in the carpeting. The student then returned to the car dealership, handed the keys to the dealer, and demanded the return of his down payment. The dealer chuckled and said: “Son, I don’t owe you anything. You’ve just learned a lesson in the ‘School of Hard Knocks.’ The car is still yours, and the money is still mine!”
The student brings suit against the dealer seeking the return of the down payment, and the dealer counterclaims for breach of contract and the cost of returning the car to new condition. Who will prevail?
The student, because he disaffirmed the contract.
A 14-year-old boy and his father enjoyed watching football on television. To increase the number of games they could watch on TV, the father purchased a satellite dish. The dad declined to purchase the professional installation package, intending to install the dish himself so he could save money. After weeks of procrastination, the satellite dish was still boxed and unopened on the living room floor. If the dish was not installed by Friday, the father and son would miss the big game that upcoming weekend.On Thursday, while his father was at work, the son called the store that sold his father the satellite dish and spoke with the lead technician about installation. The technician could tell from the boy’s voice that he was a teenager and verified that he was 14. The technician promised to install the dish only if the boy promised not to disaffirm the installation package contract. The student promised not to disaffirm, and the technician installed the satellite dish later that afternoon. When the father learned what happened, he refused to pay the installation bill. The student contacted the technician and told him he would have to get out of the installation package contract. Is the student liable for the cost of installing the satellite dish?
No, because he effectively disaffirmed the contract.
A man, who had just received an out-of-state job offer, was talking to his neighbor about selling his house. The neighbor offered to buy the man’s house for $300,000. Impulsively, the man orally accepted the neighbor’s offer. After assessing the real estate market and learning that his house was valued at almost $400,000, the man refused to execute the sale to the neighbor. Can the neighbor force the sale of the house?
No, because the agreement was not in writing.
A man decides to sell his car that he has owned for three years. The man places an advertisement in a local newspaper and soon receives a call from a potential buyer. During the call the buyer offers $6,000 for the car and the man agrees. The buyer gives his address to the man so the man can drive the car to the buyer. The man calls his friend and tells him about the details of the transaction. However, after thinking about the sale for a couple of hours, the man decides not to sell the car and sends a signed letter to the buyer stating that he will not be accepting the $6,000 for the car. The buyer seeks to enforce the contract. Which of the following is correct regarding this transaction?
The contract satisfies the Statute of Frauds because the man notified his friend about the details of the transaction.
Michelangelo was contracted to paint a homeowner’s ceiling, for an agreed price of $5000. On the day when painting was to begin, a student of Michelangelo arrived at the homeowner’s house and began to paint. The homeowner refused to allow the student to continue. The homeowner brought suit against Michelangelo for breach of contract. Who should prevail?
The homeowner because the delegation was invalid.
