LGS 200 Chapter 12 Flashcards
Which of the following is a valid offer?
A) Eric offers to buy Arun’s house for $775,000 with no contingencies because Eric’s lease ends in two months. Arun wants to think about it and six days later has not yet responded.
B) Eric offers to buy Arun’s house for $290,000. Arun says, “No, but I will sell it to you for $300,000.” Eric seems to be upset, so Arun says he will sell it for $290,000.
C) Arun distributes flyers at work stating he wants to sell his house, listing the address and the asking price.
D)Arun tells Eric he will sell one of his houses for $250,000 by the end of the summer.
A) Eric offers to buy Arun’s house for $775,000 with no contingencies because Eric’s lease ends in two months. Arun wants to think about it and six days later has not yet responded.
Which act or statement is a valid offer?
A) A completed auction with a reserve
B) A detailed advertisement
C) A price quote
D) A typical advertisement
B) A detailed advertisement
What type of acceptance requires an affirmative action for the offeree to accept that offer?
A) Offeree’s silence in response to an offer
B) Browsewrap Agreements
C) Unilateral contracts
D) The typical type of acceptance to an offer
C) Unilateral Contracts
Lilly hired Harris Lawn Service to cut her grass one summer, and paid through automatic charges to her credit card. After taking three months off for winter weather, Harris staff cut Lilly’s grass for four weeks in a row before charging the fees on Lilly’s credit card. Lilly protested the charges, stating she did not hire the company to cut grass for the second summer. Harris sues Lilly. What law applies? Choose 2 answer choices.
A) Lilly’s silence is not acceptance and Harris’s service in the spring is considered a gift to her.
B) Lilly’s silence is acceptance because the offeree accepted the benefit offered.
C) Lilly’s silence is not acceptance in this case because the offeree must affirmatively accept the terms of the offer in full and communicate that acceptance to the offeror.
D) Lilly’s silence is acceptance because of the parties’ past dealings.
B and D
Which situation would be considered sufficient consideration for a contract to exist?
A) Bethany is remodeling a kitchen for Tonya. Bethany tells Tonya she will finish the work within a reasonable time if Tonya pays her a bonus.
B) Alice promises to give her granddaughter $10,000.
C) Alice’s grandson quit smoking, so Alice promises to give him $5,000.
D) Pam agrees to pay Derek $500 if he does not sit next to her in class anymore.
D
What are the elements of consideration? Choose 2 answer choices.
A) a preexisting duty
B) something of value from each party
C) past consideration
D) an exchange to which the parties agree
B and D
Which type of lack of capacity is easiest to prove?
Intoxication
Minor status
Contracting for necessities
Mental incompetence
Minor Status
Samuel has mental competency issues. Samuel entered into a contract with Beth, but now Samuel is petitioning the court to terminate the contract. What options does the court have in ruling in the case? Choose 2 answer choices.
A) The contract is void if Samuel was incompetent at the time the contract was formed.
B) The contract is voidable if Samuel was incompetent at the time the contract was formed.
C) The contract is void if Samuel has been previously determined to be mentally incompetent.
D) The contract is voidable if a court has previously determined Samuel to be mentally incompetent.
B and C
What is an exception to the statute of frauds?
Collateral Promises
Promissory Estoppel
Contracts under the UCC
Contracts dealing with land
Promissory Estoppel
What is the result if parties agree to a contract orally, but it is a contract that must be in writing under the statute of frauds? Choose 2 answer choices.
A) The contract is illegal.
B) The contract is void.
C) The parties can complete the contract.
D) The contract is voidable.
C and D
What is the term for the legal ability to enter into a binding contract?
emancipation
legal capability
contractual capacity
mental competence
contractual capacity
What factors may cause a person to lack contractual capacity? Choose 3 answers.
A) severe intoxication
B) being under the age of majority (usually 18)
C) being an emancipated minor
D) mental incompetence
A,B, and D
What elements are required for an offer to be effective under the common law? Choose 3 answers.
The offer must be irrevocable for a set period of time to allow acceptance.
The offer must be communicated to the offeree.
The terms of the offer must be reasonably definite so that all parties understand them.
The offeror must intend to be bound by the offer.
2,3 and 4
What factors are used to judge if consideration is adequate to ensure a fair bargain? Choose 2 answers.
A) Items or promises exchanged must be of nearly equal value.
B) Promises exchanged may not be a preexisting duty.
C) Consideration must be a promise to pay money.
D) Promises must be made with voluntary consent.
B and D
How may a revocable offer effectively be revoked? Choose 2 answers.
A) The offeror may withdraw the offer with a clear expression.
B) The offeree may reject the offer with a clear expression.
C) The offeror may convert the offer to an option contract.
D) The offeror may take an action that contradicts the offer and make that known to the offeree.
A and D
