Intro to Contracts Flashcards
True/False: One purpose of contract law is to make business matters more predictable
True
True/False: The elements of a contract are agreement, consideration, legality, and capacity.
True
True/False: Paid surrogacy contracts are viewed by the legislative majority in all states as immoral and illegal.
False
True/False: Robert offers to buy a car from Jane for $400. Jane must accept this offer in order to form an enforceable contract.
True
True/False: Strawly Corp. wants to sell land which has toxic waste underground. It may shift all the responsibility for environmental cleanup to the buyer by including such a provision in the sales contract.
False
True/False: Contracts for the sale of fabric, automobiles, computers, furniture, and paper clips would all be governed by Article 2 of the Uniform Commercial Code.
True
True/False: A valid contract can legally be voided by either party.
False
True/False: Lucy and Rick sign a contract in which Lucy agrees to deliver 10 boxes of chocolates in exchange for Rick’s promise to pay $5 per box. Lucy delivers the candy. Rick pays for the goods. This contract is fully executory.
False
True/False: A quasi-contract is the same as an oral contract.
False
True/False: Mary goes into Honest Harry’s Electronics and purchases a TV. Mary agrees to pay for the TV in 30 days on the store’s “30 days same as cash” plan. This is an executory contract.
True
True/False: Valerie promises Teresa that she will pay Teresa $75 if Teresa will clean Valerie’s house by noon on Saturday. If Teresa cleans the house by noon on Saturday and Valerie pays the $75, then this is an implied, bilateral, executory contract.
False
True/False: Upon the recommendation of a friend, Hope hires Joey to rewire her kitchen and he completes the work within the time agreed. Then Hope finds out that Joey is not a licensed electrician, and she refuses to pay him for the work. A court will enforce the agreement because otherwise Hope would be unjustly enriched.
False
True/False: When promissory estoppel is used by the courts, it is because there is NOT an enforceable contract present.
True
True/False: Under a contract, Danielle is required to make a set of draperies out of fabric chosen by the homeowners, the Flynns. After Danielle makes the draperies according to the contract requirements, her duties under the contract are discharged.
True
True/False: Alex promises to pay $100 to anyone who finds his lost watch. Kate finds and returns the watch to Alex after hearing of the reward money. Alex and Kate have an enforceable unilateral contract.
True
Jerry offers to shovel the snow from Ben’s driveway for $35. Ben replies “OK.” This is an example of:
AN EXPRESS, BILATERAL CONTRACT
The common law governs contracts for:
SERVICES, RealEstate,Employment
As English judges were developing the common law of contracts in the twelfth and thirteenth centuries:
PROMISES WERE FOUND NOT BINDING UNLESS WRITTEN AND SEALED
Miles purchased a lawnmower with an attached warning that said, “The manufacturer is not responsible in the case of an injury caused by the lawnmower.” If Miles is injured because of a defect in the mower and sues the lawnmower manufacturer, he will most likely:
WIN, AS THIS WARNING WOULD BE UNENFORCEABLE
Mike made the following offer to Mick: “I will pay you $500 if you agree to paint my house.” Mick replied that he would. At this point, the contract is an:
EXECUTORY, BILATERAL, EXPRESS CONTRACT
What is not required to establish promissory estoppel?
A PROMISE MADE BY THE PLAINTIFF IN RESPONSE TO THE DEFENDANT’S PROMISE
One of the factors leading courts away from a laissez-faire approach to contract law was:
A CHANGE IN RELATIVE BARGAINING POWER BTWN PARTIES TO CONTRACTS
Shelly offers to sell Jane goods both parties know are stolen. Jane accepts the offer, and agrees to pay for the goods. Later, Jane refuses to accept or pay for the goods. If Shelly sues Jane for breach of contract, what is the probable result?
THE LAW WOULD NOT ENFORCE JANE’S PROMISE AS IT DOES NOT HAVE A LAWFUL PURPOSE
Larry goes to his barber who has cut his hair for the past several years. The barber proceeds to cut his hair as they talk about the most recent snow storm to hit the area. This is an example of a:
UNILATERAL, IMPLIED CONTRACT
Robert, a minor, buys a stereo from Jane for $200. State law allows a minor to disaffirm contracts within a reasonable time after turning 18. Robert disaffirms the contract the day after turning 18 and returns the stereo.
THIS CONTRACT WAS A VOIDABLE CONTRACT, ROBERT CAN DISAFFIRM
Patty is a poor college student struggling to work and keep up with her studies. Fred, her uncle, promises to pay Patty support of $200 per month for the next six months. Although Fred didn’t ask her to, she quits her current job in order to devote full time to her studies for the next six months. Fred makes one payment and then stops with no explanation. If Patty sues, what is the likely result?
PATTY MAY WIN UNDER THE DOCTRINE OF PROMISSORY ESTOPPEL
Noncompetition agreements are:
MORE COMMON TODAY THAN THEY WERE IN THE PAST, ALTHOUGH POLICY ISSUES THEY RAISED IN THE 1700s HAVE NEVER GONE AWAY
The basic distinction between a bilateral contract and a unilateral contract is
ONLY ONE PROMISE IS INVOLVED IN A UNILATERAL CONTRACT
The courts will find an implied contract when:
CONDUCT OF THE PARTIES INDICATES THEY INTENDED AN AGREEMENT
Courts may award damages called “quantum meruit”:
ALL OF THE ABOVE
On January 16, Deb offers to sell her waterbed to Colleen for $600. Colleen accepts and agrees to pay Deb $600 on January 27. Which of the following is correct?
ON JANUARY 16, THE CONTRACT WAS EXECUTORY
An express contract:
HAS BOTH PARTIES SETTING FORTH THEIR INTENTIONS
Which of the following represents a unilateral offer?
“I WILL PAY YOU 50 IF YOU MOW MY LAWN”
Walter enters a dentist office and points to a damaged tooth. The dentist, Matt, treats the tooth. If Walter refused to pay and Matt sued:
MATT WOULD WIN; THIS IS AN IMPLIED CONTRACT
Jennifer has offered to sell her computer for $1750 to Jack. She tells Jack that the computer is only six months old but, in fact, the computer is three years old, and Jennifer wants to unload the lemon. Jack agrees to buy the computer based on Jennifer’s representations. This contract is:
A VOIDABLE CONTRACT, ONE THAT JACK CAN VOID
Which of the following types of property would be goods under the Uniform Commercial Code?
A COMPUTER
John enters into a contract to paint Chad’s house. When Chad decides on a color, John will buy the paint and paint the house for the price of $2,500. This contract is governed by:
THE COMMON LAW OF CONTRACTS GOVERNS BC THE PREDOMINANT FACTOR OF THE CONTRACT IS FOR THE SALE OF SERVICES AND NOT GOODS
Zena enters into a contract with Steeley Company to purchase a washer and dryer. She doesn’t understand the financing terms, but signs the agreement anyway because she needs the appliances. The financing terms are very unfavorable to Zena, and she is unable to make all of her payments when they are due. Steeley sues. The court would:
BE EXERCISING JUDICIAL RESTRAINT IF IT REQUEIRES ZENA TO PAY AS SHE PROMISED, EVIN IF THE AGREEMENT WAS UNFAIR AND UNWISE
Contracts that do not arise from mutual agreement but are created by courts to avoid unjust enrichment are:
QUASI-CONTRACTS
