LAW CHP8 Flashcards
Y tells Z, “I’ll pay you $15 to mow my lawn on Saturday.” Z says, “Sure, I’ll do that.” What type of contract do they have?
a. executed unilateral contract
b. executory bilateral contract
c. express unilateral contract
d. implied bilateral contract
b. executory bilateral contract
An offer can be revoked at any time before it is accepted UNLESS
a. it is an offer to purchase real property.
b. the offer has a specific termination date.
C. the offer states that it is irrevocable.
d. the offeree gives the offeror consideration for keeping the offer open.
d. the offeree gives the offeror consideration for keeping the offer open.
On May 15, B mails an offer to buy S’s property. On May 18, S mails B a letter accepting the offer. On May 19 (before she receives S’s letter), B calls S and tells him the offer is revoked. Do they have a binding contract?
a. No, because B had not received the acceptance letter before she revoked her offer.
b. No, because S should have accepted over the telephone instead of by mail.
c. Yes, because B waited more than three days to revoke her offer.
d. Yes, because S’s acceptance became effective when he mailed it.
d. Yes, because S’s acceptance became effective when he mailed it.
B sends S a letter offering to buy his house. S calls B and rejects the offer, but a few hours later, S changes his mind. He mails B a letter accepting the offer. Do they have a binding contract?
a. No, because the offer was terminated when S rejected it.
b. No, because they have not had a lawyer draw up a formal agreement yet.
c. Yes, because an offer can be accepted by any reasonable method.
d. Yes, because an offer cannot be rejected over the telephone.
a. No, because the offer was terminated when S rejected it.
S offers to sell his house to B for $200,000, if B will pay $45,000 in cash and give S a 15-year mortgage for the balance at 11% interest. B responds, “I accept your offer, provided that I have to pay only $40,000 down.” This is a
a. counteroffer.
b. defeasible offer.
c. partial acceptance.
d. unilateral acceptance.
a. counteroffer.
B blackmails S into signing a contract to sell him her home for less than half its value. This contract is
a. severable due to unlawful purpose.
b. unenforceable because the consideration is inadequate.
C. void due to fraud.
d. voidable due to duress.
d. voidable due to duress.
Under Ohio’s Statute of Frauds, which contract does NOT have to be in writing to be enforceable?
a. an option to buy a single-family home
b. a real estate sales contract
C. a three-month listing agreement for vacant land
d. a 24-month residential lease
C. a three-month listing agreement for vacant land
When a new person takes the place of one of the parties to a contract, and the withdrawing party is relieved of all liability, it is called
a. accord and satisfaction.
b. assignment.
C. novation.
d. substantial performance.
C. novation.
X agrees to build Q a house for $250,000, but before construction begins, X breaches the contract in order to take on a more profitable job. Q has to hire another builder, who charges her $285,000. Q sues X for breach of contract and wins. The court will probably award Q
a. $35,000 in compensatory damages.
b. $250,000 in punitive damages.
C. rescission and $35,000 in punitive damages.
d. specific performance
a. $35,000 in compensatory damages.
When a contract is terminated and each party returns whatever consideration the other had provided, it is called
a. cancellation.
b. repudiation.
C. rescission.
d. a tender offer
C. rescission.
Unless the listing agreement says otherwise, a broker is entitled to a commission only if
a. a buyer with a good credit rating makes a reasonable offer.
b. a ready, willing, and able buyer offers to buy on the seller’s terms.
c. the sale actually closes.
d. the seller and buyer sign a binding contract.
b. a ready, willing, and able buyer offers to buy on the seller’s terms.
An option agreement
a. can always be revoked, until it has been exercised.
b. is not a contract.
c. is supported by consideration.
d. is terminated by the death of the optionor.
c. is supported by consideration.
