Q&A Hero

Q: If something must take place in future, before a party has a duty to perform, it is a condition subsequent.

Q: A contracting party has no duty to perform prior to a condition precedent being satisfied.

Q: Paying for the items purchased at a store, as the store delivers the items is an example of implied concurrent conditions of performance.

Q: Hume hired a security services agency to guard his warehouse. The arrangement of the security was such that Jim's house, located next to Hume's warehouse, was also protected. On one day, the security personnel don't show up, and Jim's house is burglarized. Jim files a lawsuit against the security services agency. Discuss the case.

Q: Mark entered into a written contract to sell Dobby his music collection for $10,000 payable in five installments. Mark then sells Cathy the right to collect the proceeds of his sale. Discuss Cathy's legal rights.

Q: Vanessa has assigned Leslie her rights to collect payments from Laura. Later, Vanessa assigned the same rights to collect her payments from Laura to Danielle. Discuss the legality of the case, and which assignee can claim rights to payments from Laura.

Q: What is a novation?

Q: Discuss how undue influence creates voidable contracts.

Q: Stephanie hires Tommy to renovate her farm house and repair some minor damages for $1,000. Tommy informs her that it will take him at least 6 months to complete the work. Discuss whether the parties in question have to enter into a written agreement for such a contract to be enforceable.

Q: Jacob and Janice enter into an oral contract, stating that Janice will sell her house to Jacob. Jacob makes the part payment to Janice as per the contract. During the time that Janice is vacating the house, Jacob hires a contractor to build a fence around the backyard to ensure security. However, Janice revokes her offer saying that a third party is paying a higher price for the house, and her offer to Jacob was not in written form. Jacob, who has spent $5,000 on the fencing, decides to sue Janice. Analyze the case.

Q: Steve, 17, intentionally misrepresents his age while buying a TV set from Rainbow Electronics. His father discovers this and forces Steve to return the television set and get back the money. Steve visits Rainbow Electronics and disaffirms the contract to buy the television set. Analyze the case.

Q: Hailey and Ellen met with an auto accident, as a result of Ellen's over speeding. Hailey has suffered injuries, and due to an aftershock and trauma, cannot remember' what caused the accident. Ellen, who has suffered injuries herself, takes advantage of the situation and convinces Hailey that the accident was no one's fault. They sign a contract agreeing that neither will sue the other for damages. Analyze the case if the contract is challenged in court.

Q: What is a covenant not to compete and under what conditions are they valid?

Q: Kaylie and Josh visit Alice Jewels to buy a diamond engagement ring. The jeweler presents them a zircon ring and intentionally calls it a diamond. Kaylie loves the ring and Josh buys it, happy about gifting Kaylie a diamond ring. However, they later discover it is a zircon. Analyze on what grounds Josh can sue the jeweler.

Q: Explain the doctrine of promissory estoppel.

Q: Explain the mailbox rule.

Q: Ptomaine is a chef who has opened a new restaurant. He agrees with Bob, a baker, that Bob will deliver 10 dozen hamburger and hotdog buns each morning at 6:00 a.m. as long as he doesn't call to cancel the next morning's delivery by 6:00 p.m. the evening before. This goes on for about ten days when Ptomaine realizes at 10:00 p.m. one evening that he has a surplus of buns. At 6:00 a.m. the next morning he refuses to accept the morning delivery. Discuss, with reference to common law, whether a contract exists.

Q: Ray Contractors have agreed to build Yen's house for $25,000 in two years. However, six months after the work began, Ray Contractors demand an additional $5,000 from Yen to complete the work. Yen agrees, but when the work was completed, Yen pays Ray Contractors only $20,000. Ray decides to sue Yen. Analyze the case.

Q: Sherry Shoe Company sends an offer by fax to Hulk Retailers to sell 100,000 pairs of shoes at $150 each, and mentions that it will hold the offer open for Hulk for two months. Four months after receiving Sherry's offer, Hulk faxes an acceptance. However, at this time Sherry has already entered a contract with another retailer. Discuss the situation.

Q: Adam applied for a loan of $80,000, to purchase land from Chad. Chad makes an oral promise to Adam that he will allow Adam a period two months to accept his offer. Chad refuses to give this promise in writing. Discuss how Adam can ensure that the owner does not sell the land to another buyer in two months.

Q: Sam goes to a supermarket and fills his cart with food items, pushing it up to a checkout line. Discuss the type of contract Sam and the supermarket have.

Q: What are the five essential elements of a valid contract?

Q: Kevin has been offered the position of vice-president by the Earnest Group Pvt. Ltd. at their head office in Washington D.C. Earnest Group has also offered to provide Kevin and his family with a house, and an annual salary of $100,000. Kevin replied stating that he would accept the offer if the company would pay him an annual salary of $150,000, and relocation expenses. Analyze the agreements between the parties.

Q: Canary offers in writing to sell her ranch to Erik for $150,000. A week later, when Erik is about to mail his acceptance, Canary dies in an auto accident. Canary's heir informs Erik that she is no longer interested in selling the ranch. Erik decides to move to court, stating that the offer cannot be revoked since he had already accepted the offer and was about to mail it. Analyze the case and discuss what the court is likely to rule?

Q: Sarrah agrees to sell her house to Tiffany for $300,000. Tiffany replies that she will be glad to buy the house at $300,000, and asked if the price included the furniture. Sarrah replied that the furniture was not included. Tiffany agreed to pay $300,000, but Sarrah demanded $350,000, stating that Tiffany's counteroffer terminated the earlier offer. Discuss the case.

Q: If an assignor assigns the same rights to two different assignees: A. the assignee who first received the assignment has priority in receiving payment from the obligor. B. the assignee who first notifies the obligor of the assignment has priority in receiving payment from the obligor. C. the obligor must pay both assignees equal amounts but no more than what would have been paid had there only been one assignment. D. the assignment becomes void and the original contract remains in force. E. the original contract and the assignments, thereafter, will be declared void since assigning the same rights to two assignees is illegal.

Q: Hans is notified that her mortgage with Omer Bank has been transferred to Grate Loan Co. However, Hans made his mortgage payments in full one day before receiving the notice. Omer Bank, however, argues that at the time of the assignment, Hans had not made the mortgage payment, and hence has to make payments to Grate Loan Co. Which of the following is true of this situation? A. Hans is not liable to Grate Loan Co. since he has already paid to Omer Bank. B. Hans is liable to Grate Loan Co. since his mortgage has been transferred. C. Hans is not liable to Grate Loan Co. due to the rule of mirror image. D. Hans is liable to Grate Loan Co. since they sent him the notification of the assignment. E. Hans is liable to Grate Loan Co. since he was an obligor to Omer Bank at the time of the assignment.

Q: Daniel purchases a house through Adelaide Loan Co. However, he moves to another city for work and sells the house to Christopher. Daniel wants to be released from his payment obligations to Adelaide Loan Co. Which of the following would release Daniel from this liability? A. An oral delegation of the payment obligation by Daniel to Christopher will release Daniel from liability. B. The sale of the house by Daniel to Christopher involuntarily releases his payment obligation. C. A delegation of the payment obligation to Christopher along with a written notice to Adelaide Loan Co. can release Daniel from liability. D. A novation in which Adelaide Loan Co. agrees to substitute Christopher for Daniel will release Daniel. E. An assignment where Daniel transfers his rights to Christopher will release Daniel from all his liabilities.

Q: Appy hires Tring Painters to paint her living room. She selects deluxe paints that cost her $200 in total. However, as the painters begin their work, Appy notices that they are mistakenly using washable finesse paints, which would cost her $500 in total. When the work is done, Appy refuses to pay Tring Painters the $500, saying she wanted paints that would cost $200. Analyze the rights of the parties in this case.

Q: Allan promises to pay $400 to Waker if he can steal the next day's test paper from their professor. That night, Waker steals the paper and brings it to Allan. Allan, who is now worried about being caught, tells Waker he does not want the test paper and refuses to pay him the $400. Has Allan breached the contract between him and Waker?

Q: Barney takes his wife Betty to a Porsche dealership and tells her to pick out whichever car she wants as a birthday present. She chooses a red Boxter. Barney negotiates a price with the dealership and signs a contract paying cash for the car. Barney repeatedly tells the dealer that the car is a gift for his wife. The car is to be serviced and picked up at 10:00 a.m. the next morning. Barney dies that night. When Betty arrives at the dealership to get the car, they refuse to give it to her because only Barney signed the contract. A. Betty is entitled to the car as a creditor beneficiary. B. Betty is entitled to the car as a donee beneficiary. C. Betty is entitled to the car as an incidental beneficiary. D. Betty is not entitled to the car but can get the money back. E. Betty is not entitled to the car as it was a gift without any consideration.

Q: A(n) _____ beneficiary is a third party who unintentionally benefits from a contract. A. donee B. creditor C. intended D. accidental E. incidental

Q: Electronics, Inc., sells 250 radios on credit at $20 apiece to Radio Land Retail. Electronics then sells its rights under the contract to Manufacturers' Credit Co. When the payment becomes due, Manufacturers' Credit collects the $5,000 owed to Electronics by Radio Land. This transaction is controlled by the law of _____. A. negotiation B. agreement C. assignment D. novation E. representation

Q: Stanley offers Rachel $60 to take care of his dog when he is traveling. Rachel accepts Stanley's offer, but delegates the duty to her neighbor, Ashley. In this assignment, Rachel is the _____. A. assignee B. obligee C. obligor D. beneficiary E. assignor

Q: Which of the following involves an intentional misstatement of a material fact that induces one to rely justifiably to his or her injury? A. Duress B. Misrepresentation C. Undue influence D. Mutual mistake E. Fraud

Q: Tony's Carpets wants to charge $9.80 a yard for installing a carpet for Serenity Bookstore, but accidentally states $8.90 a yard in the bid. Serenity Bookstore accepts Tony's bid. Tony's Carpets made a _______ mistake. A. bilateral B. unilateral C. mutual D. rescission E. contractual

Q: Which of the following terms refers to force or threat of force? A. Unilateral mistake B. Misrepresentation C. Undue influence D. Duress E. Mutual mistake

Q: Which of the following oral contracts can be enforceable in court? A. Contracts involving goods worth $500, or more B. Contracts involving the sale of land C. A contract for goods for which payment has been made D. A contract for a service that lasts for 5 years E. A collateral promise to pay another's debt

Q: In contracts that are not between merchants selling goods, a promise to keep an offer open for a certain time period must be supported by the offeree's consideration. Such an agreement to not revoke an offer is called a(n) _____. A. firm offer B. option C. promissory estoppel D. novation E. assignment

Q: An important exception to the rule requiring consideration to support a promise is the doctrine of _____. This doctrine arises when a promisee justifiably relies on a promisor's promise to his or her economic injury. A. firm offer B. consideration C. termination D. promissory estoppel E. accord and satisfaction

Q: Ajax Pvt. Ltd. made a promise to Garrett offering a job with an annual salary of $150,000, and at least two years employment. Since Garrett would have to move to New York for the new job, Ajax Pvt. Ltd. also offered to reimburse all moving expenses. Based on this promise, Garrett resigned from his $100,000 annual salary job at Dab Pvt. Ltd., San Francisco. However, once Garrett moved to New York, his employment with Ajax was terminated because the company found a candidate who was willing to work for a lesser salary. Which of the following is true of this situation? A. Garrett cannot sue Ajax since the promise was oral. B. Garrett can sue Ajax under promissory estoppel. C. Garrett cannot file a lawsuit since a promise of employment is always subject to market conditions. D. Garrett can sue Ajax, but only for the moving expenses that Garrett can prove he incurred. E. Garrett cannot sue Ajax since the reasons for termination will be accepted in court as legal detriment.

Q: Which of the following terms refers to a person's ability to be bound by a contract? A. Legality B. Capacity C. Usability D. Negotiability E. Measurability

Q: If a minor fails to disaffirm a contract within a reasonable time after reaching majority, the minor is said to _____ the contract. A. transcend B. confirm C. void D. ratify E. breach

Q: Dustin, aged 17, purchased a car from Speed Auto Sales for $1,000. The following year, his father gifted him a brand new car on Dustin's 18th birthday. Dustin returned the car to Speed Auto Sales the next day, and demanded his money back. At the time of disaffirmance, Dustin was 18, the age at which he was considered an adult in his jurisdiction. Will this disaffirmance be enforceable in the court of law? A. No, since Dustin did not give Speed a signed revocation. B. Yes, since Dustin disaffirmed during the year he reached his adulthood. C. No, since the disaffirmance must be written when the price exceeds $500. D. Yes, since the courts and laws always rule in the favor of minors. E. No, since Dustin has reached adulthood and disaffirmance can be expressed only by a minor.

Q: Under the UCC, the rules of consideration also do not apply to _____. A. real estate sales B. service contracts C. firm offers D. employment contracts E. an option

Q: Victor Enterprise Inc. writes a letter dated August 1 to Hallway Stores, offering to sell table lamps to Hallway Stores at $80 each for the next one month. In mid August, Victor Enterprises receives an offer from Shine Retailers to purchase the table lamps at a price of $85 each. Can Victor withdraw its offer to Hallway Stores? A. Yes, as this is only an option. B. No, since the doctrine of promissory estoppel is applicable. C. Yes, the offer was simply an invitation to negotiate. D. No, as this is a firm offer. E. Yes, the offer may be withdrawn since it lacks consideration.

Q: Valid consideration can include any promise to do something one has no obligation to do, refrain from doing something one has the right to do, or in the case of a unilateral contract, a performance when there is no obligation to do so. This is called as a(n) _____. A. accord B. legal detriment C. release D. negotiation E. promissory estoppel

Q: Aria phones Jessica and asks if she can borrow one of her dresses for an office party that weekend. Jessica agrees to this. However, when Aria goes to pick up the dress, Jessica refuses to give it to her. Which of the following statements is true of this situation? A. Jessica has committed a breach of contract. B. A bargained-for exchange has not occurred, so Jessica does not have to loan Aria the dress. C. Jessica has promised Aria something of value, so she must loan her the dress. D. A bargained-for exchange has occurred, so Jessica must loan Aria the dress. E. Jessica has given a valid consideration, making the agreement between her and Aria a binding contract.

Q: There must be some incentive or inducement for a person's promise or it is not binding. The legal mechanism for evaluating the existence of this incentive is "_____" which refers to the receipt of a legal benefit or the suffering of a legal detriment. A. collusion B. promissory estoppel C. consideration D. reversion E. novation

Q: The deposited acceptance rule is also known as the _____ rule. A. mirror image B. mailbox C. unilateral D. bilateral E. negotiation

Q: According to the mailbox rule: A. a contract is formed when the offer is mailed. B. a contract is formed when the offer is received. C. a contract is formed when the acceptance is received. D. a contract is formed when the acceptance is mailed. E. a contract is formed when the offer is converted in a written document.

Q: Brandie is facing financial difficulties. Warren wants to help Brandie and tells her that he will pay her $1,000. But afterwards Warren refuses to pay the promised money to Brandie. Which of the following statements is correct? A. Brandie is entitled to the payment because a promise is made and consideration has nothing to do with the agreement. B. Warren need not pay Brandie because Brandie did not promise anything in return. C. Warren must pay the money to Brandie because by promising her the money he has entered into an implied-in-fact contract. D. Warren does not have to pay because of the mirror image rule. E. Warren must pay the money to Brandie because by promising her the money he has entered into an executory contract.

Q: Robert is about to graduate from his university and his parents tell him that because he is the first member of the family to graduate college, they want to buy him a new but inexpensive car. They have the money to buy the car and Robert is excited to get his gift. On graduation day, his parents tell him that they have decided to use the car money for a vacation and there will be no car. A. Robert can successfully sue based on promissory estoppel. B. Robert can successfully sue based on the promise of a gift. C. Robert cannot sue because the promise was not reasonable and would not support promissory estoppel. D. Robert cannot sue because he did not suffer any legal detriment in the receipt of the promise. E. Robert can sue since the promise is his legal benefit and he suffered legal detriments.

Q: Brett offers to sell his old, but working, cell phone to James for $65. James says he will accept the offer if Brett lowers the price to $60. James has: A. made an unequivocal acceptance. B. made a counteroffer. C. demonstrated the mirror image rule. D. entered into an option contract. E. entered into an executory contract.

Q: Josh's dog, Ginger, has run away so Josh places reward posters throughout the neighborhood offering $500 for anyone who brings Ginger home safely. Amanda, Josh's colleague sees Ginger and brings her back to Josh without ever seeing a poster. After returning the dog, Amanda then sees one of the reward posters and returns to claim the money. Which of the following is true of this situation? A. Amanda is not entitled to the money because the offer was not communicated to her. B. Amanda is not entitled to the money because she is Josh's colleague and acted in good faith. C. Amanda is entitled to the money because the poster constituted an offer and is effective for the entire neighborhood. D. Amanda is entitled to the money since performance of the requested act in the poster indicates acceptance. E. Amanda is not entitled to the money since she did not communicate the acceptance of offer in writing.

Q: According to the mirror image rule, _____. A. the acceptance must exactly match the offer B. to be enforceable, a contract must be accepted in writing by both the parties involved C. the acceptance of an offer involves changing the terms of offer or adding new terms D. terms of contract must be definite to be clear and enforceable E. the contract becomes enforceable by performing a requested act, not by making a promise

Q: Which statement is true concerning silence as a method of acceptance? A. An offeree's silence implies that the offree will make a counter offer. B. Parties' prior course of dealing may allow silence as a valid acceptance. C. If the offer states that silence means acceptance, then the offeree must respond or there will be a valid contract. D. Silence alone can be acceptance and basis of a binding contract. E. Silence leads to acceptance of an offer due to the mirror image rule.

Q: An _____ contract is one that is partially or completely unperformed. A. executed B. executory C. express D. exculpatory E. unenforceable

Q: A(n) _____ contract is an agreement when one party has the right to withdraw from the promise made without incurring any legal liability. A. executory B. voidable C. void D. implied-in-fact E. reciprocal

Q: A(n) _____ contains a specific promise and a specific demand. A. consideration B. revocation C. offer D. capacity E. novation

Q: Mayra offers to sell her home to Hanna for "about $100,000 plus closing costs." Hanna accepts Mayra's offer but later, a dispute arises concerning the precise dollar amount of the purchase price. How will a court resolve this dispute? A. The court will determine a reasonable price to be paid by Hanna. B. The court will determine that Hanna pay only the figures mentioned in the contract. C. The court will appoint a licensed real estate appraiser to determine the price to be paid by Hanna. D. The court will require Hanna to pay the average of her price and Mayra's price. E. The court will declare the purchase price and terms too indefinite to create a binding contract.

Q: In case an offeror withdraws his/her offer, it is called _____. A. rejection B. reversion C. novation D. revocation E. triangulation

Q: A(n) _____ contract is the one in which the promised terms of the contract have been discussed by the parties. A. express B. reciprocal C. implied D. bilateral E. unilateral

Q: Implied-in-law contracts are also known as _____. A. reciprocal contracts B. quasi-contracts C. express contracts D. bilateral contracts E. unilateral contracts

Q: The courts enforce the concept of _____ to remedy situations of unjust enrichment. A. quasi-contracts B. implied-in-law C. divisible contracts D. bilateral contracts E. unilateral contracts

Q: The ultimate purpose of a contract is the creation of an agreement that courts will order parties to perform or to pay consequences for the failure of performance. When courts uphold the validity of such promises, the resulting agreement is a(n) "_____ contract." A. absolute B. differentiated C. void D. relative E. enforceable

Q: A(n) _____ contract is one that appears to be an agreement but lacks an essential requirement for validity and enforceability. A. voidable B. unenforceable C. void D. valid E. unapplied

Q: Contract law applies to: A. only formally written documents. B. documents that use the word contract'. C. private agreements, making them legally enforceable. D. all business dealing, covering those that are against public policy. E. only oral agreements and contracts.

Q: A(n) _____ is an agreement containing mutual promises. A. unilateral contract B. quasi-contract C. express-in-fact contract D. bilateral contract E. implied-in-fact contract

Q: Madison promises Grace $10 if Grace will pick-up her dry cleaning for her. This is an example of a _____ contract. A. bilateral B. unilateral C. voidable D. void E. unenforceable

Q: Fred takes Betty to dinner at a very expensive and exclusive restaurant. The menu does not mention the prices. The server takes their order and both Fred and Betty enjoyed the meal immensely. When the bill comes, Fred refuses to pay because the menu had no prices and because he and the server never engaged in language indicating an offer and acceptance. The server said, "Are you ready to order" and when Fred said "yes", the server merely asked, "What may I get you tonight"? A. Fred must pay based on an implied-in-fact contract theory. B. Fred must pay based on a promissory estoppel theory. C. Fred must pay based on an express contract theory. D. Fred is correct because no contract was formed. E. Fred and the server are a part of an express contract; hence Fred will have to pay.

Q: When there is a mutual mistake as to a material fact inducing a contract, rescission is inappropriate.

Q: A collateral promise is a secondary or conditional promise.

Q: The doctrine of part performance creates an exception to the requirement that sales of interests in land must be in writing.

Q: Contracts are: A. legally enforceable promises. B. always required to be written. C. a form of a circular. D. enforceable only in the supreme court. E. informal agreements.

Q: A minor can disaffirm the contract and legally recover any consideration that has been given to an adult, even if the minor cannot return the adult's consideration disaffirm

Q: A party who makes a unilateral mistake can void the contract.

Q: Misrepresentation is simply a misstatement without intent to mislead.

Q: An option offer is open for a certain time period, and is supported by the offeree's consideration.

Q: Promissory estoppels often is used to prevent a party who has made a unilateral offer from withdrawing the offer after the requested work has begun.