Q&A Hero

Q: Briefly discuss substantial performance.

Q: Briefly explain divisibility of performance.

Q: Briefly explain impossibility of performance.

Q: Briefly explain commercial impracticability with an example.

Q: Briefly explain the concepts of waiver and release.

Q: Distinguish between conditions precedent and conditions subsequent.

Q: What is a condition subsequent? Briefly explain with examples.

Q: What is delivery? When must a buyers payment be satisfied before the seller has the duty to deliver?

Q: What does tender of performance mean? Briefly explain with an example.

Q: Briefly discuss concurrent condition of performance with an example.

Q: What is the parol evidence rule?

Q: Rosa signs a health club membership contract based on a salespersons statements that the contract can be cancelled at any time. Later, when Rosa applies for a cancellation of the membership, she is informed that the contract cannot be cancelled. Briefly discuss whether Rosa can give oral evidence in the court for a written contract in this case.

Q: Provide an example that explains the application of the parol evidence rule. What are UCC gap-filling provisions? Give an example and explain how and why they are applied.

Q: What is duty of performance? When is a party to a contract discharged?

Q: What is a condition precedent? Briefly explain with examples.

Q: Manuel and Janice enter into an oral contract which states that Janice will sell her house to Manuel. Manuel makes a partial payment to Janice as per the contract. When Janice vacates the house, Manuel 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 Manuel was not in written form. Manuel, who has spent $5,000 on the fencing, decides to sue Janice. Analyze the case.

Q: How are sales of interests in land covered by the statute of frauds?

Q: Mark enters into an oral contract to sell Clara his music collection for $10,000. Later, Mark sues Clara for not making the payment of $10,000. Clara refuses to pay the amount and instead claims to the court that the music collection was hers all along and that Mark is lying. In this case, what can aid Mark in getting his payment of $10,000?

Q: Ivan places an oral order for 30 computers with a local manufacturer. He specifies the unique combination of hardware and software that is to be part of the computers. He also informs the manufacturer that he will not require such computers again in the future. The manufacturer informs Ivan that the total cost of these unique computers would amount to $66,000 and begins production of the computers. Analyze whether this oral contract is enforceable in a court of law.

Q: What is a collateral promise?

Q: Anita contracts ValleyHeat Landscaping Corp. to landscape her hotel. Midway through the project, ValleyHeat informs Anita that due to internal issues the company is shutting down. To avoid this from delaying the opening of her hotel and causing her loss in hotel revenue, she contracts another landscaping company to finish the project on time. This scenario is an example of ______. A. mitigation B. release of performance C. liquidation D. restitution E. mediation

Q: What is fraud and what are the specific elements required to establish fraud?

Q: Discuss how undue influence creates voidable contracts.

Q: What are the remedies available to parties in the event of a mistake?

Q: Pomona hires Tom to renovate her farm house and repair some minor damages for $1,000. Tom informs her that it will take him at least six 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: How is prior consideration viewed when legally enforcing a contract?

Q: Cecilia and Ellen meet with an accident as a result of Ellens speeding. Cecilia suffers injuries and cannot remember what caused the accident due to aftershock and trauma. Ellen, who suffers injuries herself, takes advantage of the situation and convinces Cecilia that the accident was no ones 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 is it valid?

Q: What is the capacity of an intoxicated and a mentally incompetent person in a contract?

Q: Kaylie and Kumar visit Scarlet Jewels to buy a diamond engagement ring. The jeweler presents them a zircon ring and intentionally calls it a diamond ring. Kaylie loves the ring, so Kumar buys it. Kaylie and Kumar later discover that the ring is a zircon ring. Analyze on what grounds Kumar can sue the jeweler.

Q: Wright Corp., a footwear manufacturer, sends an offer by fax to Dilsur Retailers Inc. to sell 100,000 pairs of shoes at $150 each and mentions that it will hold the offer open for Dilsur for two months. Four months after receiving Wrights offer, Dilsur faxes an acceptance. However, by this time, Wright has already entered a contract with another retailer. Discuss the situation.

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

Q: Explain the doctrine of promissory estoppel.

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

Q: Explain the mailbox rule.

Q: Jamael 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 Jamael doesnt call to cancel the next mornings delivery by 6:00 p.m. the previous evening. This delivery routine continues for about ten days when Jamael 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: Prestige Contractors has agreed to build Yens house for $25,000 in two years. However, six months after the work begins, Prestige Contractors demands an additional $5,000 from Yen to complete the work. Yen agrees, but when the work is completed, Yen pays Prestige Contractors only $20,000. Prestige decides to sue Yen. Analyze the case.

Q: Zainab wants to sell her house to Tiffany for $300,000. Tiffany responds stating that she will be glad to buy the house at $300,000 and asks if the price includes the furniture. Zainab says that the furniture is not included. Tiffany agrees to pay $300,000, but Zainab demands $350,000, stating that Tiffanys counteroffer terminates the earlier offer. Discuss the case.

Q: What is the mirror image rule?

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

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

Q: List the five elements required to form a valid contract.

Q: Inkirios Inc. offers Kevin the position of vice president at their head office in Washington, D.C. Inkirios also offers to provide Kevin and his family a house and an annual salary of $100,000. Kevin responds by stating that he would accept the offer if the company would pay him an annual salary of $150,000 and other relocation expenses. Analyze the agreements between the parties.

Q: Odelia offers in writing to sell her ranch to Erik for $150,000. A week later, when Erik is about to mail his acceptance, Odelia dies in a motor vehicle accident. Odelias 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 his acceptance. Analyze the case and discuss what the court is likely to rule.

Q: Harry regularly shipped 100 cartons of electronic goods to Keith on the 15th of every month as per the original agreement. He had been continuing this shipment routine for over a year. On the 20th day of one of the months, Keith refused the goods as he did not want Harry to ship those goods to him and had never accepted any such offer of goods. Harry had not received any prior notification to cancel the shipment of goods. Which of the following statements is true of this situation? A. Keith can sue Harry based on the doctrine of promissory estoppel. B. Keiths prior act of dealing and conduct with Harry confirms acceptance of the offer. C. Harry used duress in controlling the terms of the offer. D. Keith can sue Harry based on the misstatement of the facts of the offer. E. Harry should have ensured only partial delivery of goods as he received no oral confirmation from Keith about the shipment of goods.

Q: In the context of legal capacity of parties to a contract, who among the following are also called infants in a contract? A. intoxicated persons B. physically impaired persons C. mentally impaired persons D. minors E. non-merchants

Q: Which of the following statements is true about the laws under the Uniform Commercial Code (UCC)? A. The laws of the UCC exclude individuals but include firms and charitable trusts in their scope. B. The laws of the UCC permit sales of goods to have open nonquantity terms to be decided at a future time. C. Section 2-207 of the UCC applies the mirror image rule for contracts involving the sale of goods. D. The laws of the UCC allow the rules of consideration to apply to firm offers. E. The statute of frauds under the UCC covers the sale of goods of $400 or less.

Q: Which of the following is an exception to the statute-of-frauds requirement that sale-of-goods contracts be in writing? A. a contract involving goods that are worth at least $500 B. a contract 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 anothers debt

Q: Which of the following types of contracts are beyond the scope of application of the statute of frauds? A. contracts for sale of goods worth $500 or more B. contracts for mortgages, mining rights, and easements C. oral contracts for services that last more than 20 months D. collateral contracts to pay the debt of another person E. contracts involving interest in land

Q: Fiola hires Tring Painters to paint her living room. She selects deluxe paints that will cost her $200. When the painters begin their work, Fiola notices that they are mistakenly using washable finesse paints, which will cost her $500. When the work is done, Fiola 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: Which of the following statements is true about intoxicated and mentally incompetent persons in a contract? A. A court of law legally terms mentally incompetent persons as infants to a contract. B. A court prevents intoxicated persons from making a contract voidable in any circumstance. C. The capacity to contract is simply lost due to intoxication and mental incompetency even before a court can adjudge a person of such mental incompetency. D. A court measures capacity to contract by whether an adult is capable of understanding the nature and purpose of the contract. E. The complexity of a contractual transaction and the mental capacity of an adult are irrelevant in controlling the right to disaffirm a contract.

Q: Vincent agrees to sell 10 cartons of footwear to a local retail outlet at $150 for each carton. Each carton is to contain 30 pairs of footwear, but the local retail outlet finds that most of the cartons have only 25 pairs of footwear. The retail outlet decides to sue Vincent, but they decide to settle the matter outside the court in order to reduce the expenses involved in a lawsuit. Both parties finally agree to revise the rate of each carton to $135 with each carton containing 25 pairs of footwear. This settlement is an example of ______. A. accord and satisfaction B. duress C. mutual mistake D. undue influence E. promissory estoppel

Q: Miguel offers to sell Nisha 100 laptops at $50 each. Nisha ponders over the offer but mails her acceptance that evening to Miguel. Before her acceptance reaches Miguel, Miguel finds another buyer who is willing to pay $70 each for the laptops. Miguel sends a revocation mail the next day to cancel his initial offer to Nisha, but a storm has hit the city causing the mail services to halt temporarily. Which of the following statements is true about this situation? A. As per the mirror image rule, Nisha cannot sue Miguel for revoking his initial offer. B. Miguel can use the doctrine of the promissory estoppel to defend his right to find and sell his laptops to another buyer. C. As per the mailbox rule, Miguel cannot revoke his initial offer to Nisha as she had accepted his offer. D. Nisha cannot sue Miguel as the deposited acceptance does not create a binding contract despite Miguels revocation. E. Nisha cannot sue Miguel as the storm prevents Miguel from mailing his revocation.

Q: Which of the following statements is true about a promise to make a gift? A. Upon delivery of the item, a true gift can be enforceable as a property transfer. B. Promissory estoppel prevents a gift from being enforceable. C. A promise to make a gift is binding as a contract as it usually supports the bargain. D. A promise to make a gift becomes an option when it has a clause in the agreement that revokes the gift. E. Insignificant consideration in return for a great one raises concerns that the exchange is actually not a gift.

Q: Which of the following statements is true about minors as parties to a contract? A. A contract into which a minor has entered is voidable at the election of the minor. B. A minor can be legally bound to contractual promises involving necessaries of life such as shelter and medical care. C. In a number of states, courts do not hold a minor who has misrepresented his or her age. D. A minor can explicitly ratify a contract and forego disaffirmance even before reaching the age of majority. E. Upon ratification, a minor gains the right to disaffirm.

Q: Which of the following statements is true about adhesion contracts? A. They are a common type of unconscionability. B. They exclude any standard form contracts. C. They are generally unenforceable in a court of law. D. They provide substantial opportunity for revision for all parties involved in a contract. E. They are usually drafted by multiple parties in a contract.

Q: Tristam, an insurance agent, wants Philomena to purchase the insurance policy of his choice. Despite Philomenas resistance to accept his offer, Tristam compels her to purchase the policy by exerting his physical force on her and forces her to sign the insurance documents. Which of the following has been most likely used by Tristam to complete the contract arrangements? A. duress B. misrepresentation C. undue influence D. misstatement E. fraud

Q: Tonys Carpets Inc. 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 Tonys Carpets bid. Tonys Carpets made a ______. A. bilateral mistake B. unilateral mistake C. mutual mistake D. rescission mistake E. contractual mistake

Q: Which of the following terms refers to force or threat of force? A. rescission B. misrepresentation C. undue influence D. duress E. revocation

Q: Which of the following statements is true about the acceptance of an offer? A. Bilateral contracts are predominantly accepted by the offeree performing the act. B. Unilateral contracts are accepted by making a promise. C. The language of an offer is optional in determining the nature of contract and its acceptance. D. Counteroffer usually means an acceptance of an offer. E. Acceptance must follow the mirror image rule to create a binding contract.

Q: Which of the following statements is true about the consideration in a contract? A. Courts usually enforce contractual promises in the absence of consideration. B. The amount of the consideration is the most important and relevant part of a contract for a legal action. C. The consideration must be contemporaneous and a part of both parties understanding of the contract terms. D. The consideration in any unilateral contract is usually absent. E. Performance made before parties discuss their agreement counts as a consideration.

Q: Systek 22 Inc. made a promise to Garrett offering him a job with an annual salary of $150,000 and at least two years of employment. Since Garrett had to move to New York for the new job, Systek 22 also offered to reimburse all of his moving expenses. Based on this promise, Garrett resigned from his job at another firm that offered him an annual salary of $100,000. When Garrett moved to New York, his employment with Systek 22 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 Systek 22 since the promise was oral. B. Garrett can sue Systek 22 under the doctrine of promissory estoppel. C. Garrett cannot file a lawsuit since a promise of employment is always subject to market conditions. D. Garrett can sue Systek 22 only for the moving expenses that Garrett can prove he incurred. E. Garrett cannot sue Systek 22 since the reasons for termination will be accepted in court as a legal detriment.

Q: Which of the following terms refers to a persons 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. terminate C. rescind D. ratify E. breach

Q: Dustin, who is 17 years old, purchased a car from Speed Auto Sales Inc. for $1,000. The following year, Dustins father gifted him a brand new car on his 18th birthday. Dustin returned the car that he had purchased to Speed Auto Sales the next day, and he demanded his money back. At the time of disaffirmance, Dustin was 18the age at which he was considered an adult in his jurisdiction. Will this disaffirmance be enforceable in the court of law? A. The disaffirmance will not be enforceable since Dustin did not give Speed Auto Sales a signed revocation. B. The disaffirmance will be enforceable since Dustin disaffirmed during the year he attained adulthood. C. The disaffirmance will not be enforceable since the disaffirmance must be written when the price exceeds $500. D. The disaffirmance will be enforceable since courts and laws always rule in the favor of minors. E. The disaffirmance will not be enforceable since Dustin attained adulthood, and disaffirmance can be expressed only by a minor.

Q: In which of the following cases does the legal power of the offeree to bind the offeror end? A. When the offeree accepts the offer B. When the offeror is declared insane before acceptance of the offer by the offeree C. When the subject matter of the contract is destroyed after the acceptance of the offer D. When the offeror accepts the counteroffer E. When the offeror attempts to retract the offer after its acceptance by the offeree

Q: Smith Inc. sends a letter dated August 1 to Cervaille Stores, offering to sell 20 table lamps to Cervaille Stores at $80 each. Cervaille Stores provides a consideration of $160 to Smith Inc. to keep the offer open for at least two weeks. In the second week of August, Smith Inc. receives an offer from Shine Retailers Inc. to purchase the table lamps at a price of $85 each. Can Smith withdraw its offer made to Cervaille Stores? A. Smith cannot withdraw its offer as the agreement is in the form of an option. B. Smith cannot withdraw its offer since the doctrine of promissory estoppel is applicable. C. Smith can withdraw its offer as the offer was simply an invitation to negotiate. D. Smith cannot withdraw its offer as this is a firm offer. E. Smith can withdraw its offer as the consideration makes it enforceable as a property transfer.

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 offerees consideration. Such agreement to not revoke an offer is called a(n) ______. A. firm offer B. option C. promissory estoppel D. novation E. accord

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 promisors promise to his or her economic injury. A. firm offer B. consideration C. termination D. promissory estoppel E. accord and satisfaction

Q: The legal mechanism for evaluating the existence of an incentive for a persons promise to establish a binding contract and acts as a receipt of a legal benefit or the suffering of a legal detriment is ______. A. collusion B. accord and satisfaction C. consideration D. reversion E. novation

Q: Which of the following statements is true of silence as a method of acceptance? A. An offerees silence implies that the offeree will make a counter offer. B. Silence may well imply acceptance if the parties previously dealt with each other. C. When an offer specifies that silence indicates acceptance, the offeree has to respond. D. Silence alone can be acceptance and the basis of a binding contract. E. Silence leads to acceptance of an offer due to the mirror image rule.

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

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

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

Q: Robert is about to graduate from his university. His parents tell him that as 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 receive his gift. On graduation day, his parents tell him that they have decided to use the car money for a vacation and that there will be no car. In this situation, can Robert sue his parents? 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 did not follow the mailbox rule. 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 it is an implied-in-fact contract.

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 known as a(n) ______. A. exculpation B. legal detriment C. release D. negotiation E. promissory estoppel

Q: Aria asks Jessica if she can borrow an outfit for an office party and Jessica agrees. When Aria picks an outfit, 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 the outfit to Aria. C. Jessica has promised Aria something of value, so she must loan her the outfit. D. The contract between Aria and Jessica is terminated as Aria makes a counteroffer. E. Jessica has given a valid consideration, thereby making the agreement between her and Aria a binding contract.

Q: Mayra offers to sell her home to Hanna for about $100,000 plus closing costs. Hanna accepts Mayras offer. Later, a dispute arises over the precise dollar amount of the purchase price. How will a court most likely 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 Mayras price. E. The court will declare the purchase price and terms too indefinite to create a binding contract.

Q: In the context of termination of an offer, ______ occurs when an offeror retracts the offer before the acceptance. A. rejection B. reversion C. novation D. revocation E. rescission

Q: Brett offers to sell his old but functioning 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 exculpatory rule. D. entered into an option contract. E. entered into an executory contract.