Contracts

Question 1

Noncarrier Case (risk of loss)

Answer 1

if the seller is a merchant, risk of loss passes to the buyer only when they take physical possession of the goods.

If the seller is not a merchant, risk of loss passes to the buyer upon tender of delivery (where the item is and how to get it).

Question 2

Shipment Contract

Answer 2

F.O.B Sellers city = Shipping contract

(risk of loss passes to the buyer when the goods are delivered to the carrier)

Article 2 presumes a contract is a shipment contract.

Question 3

Destination Contracts

Answer 3

F.o.b any other city = destination

the risk of loss passes to the buyer at the named location.

Question 4

quasi-contract action if

Answer 4

(i) the plaintiff has conferred a benefit on the defendant by rendering services or expending property,
(ii) the plaintiff conferred the benefit with the reasonable expectation of being compensated,
(iii) the defendant knew or had reason to know of the plaintiff’s expectation, and
(iv) the defendant would be unjustly enriched if he were allowed to keep the benefits without compensating the plaintiff.

Question 5

Promissory estoppel

Answer 5

a promise that the promisor should reasonably expect to induce action or forbearance on the part of the promisee, and which does induce such action or forbearance, is binding if injustice can be avoided only by enforcement of the promise.

Question 6

A contract is divisible if:

Answer 6

(i) the performance of each party is divided into two or more parts under the contract,
(ii) the number of parts due from each party is the same, and
(iii) the performance of each part by one party is the agreed-upon equivalent of the corresponding part from the other party.

Question 7

prohibiting the assignment of “the contract”

Answer 7

will be construed as barring only the delegation of the assignor’s duties.

Question 8

in a case where someone is to be the exclusive distributor

Answer 8

the court will imply a promise to use best efforts to sell the product