Example problems for B Law 243 exam Flashcards | Quizlet

If Ironman Inc. advertises a prize of $\$50,000$ to the winner of a triathlon race and Bruce enters and wins, does Ironman breach a valid contract by only paying him $\$10,000$?

Yes, Ironman breached a valid contract with Bruce.

What contract forms when Oleg visits an accountant to ask her fee, returns the next day saying nothing, and drops a large stack of tax documents on her desk to complete his return?

An implied-in-fact contract (Oleg has entered into an implied contract to pay the accountant her usual fee if she completes the tax return).

If Ann sells a water heater to Bill, who installs it in Cindy's building, can Ann sue Cindy under quasi-contract for unjust enrichment if Bill fails to pay Ann?

No, Ann cannot sue Cindy; Ann must sue Bill, not Cindy.

When an unconscious patient, Janine, receives $10$ days of hospital-ordered nursing care and later refuses to pay the bill, what legal obligation does the court find exists?

A quasi-contract (implied in law).

Can Sally claim that she did not read the terms and conditions as a defense after clicking the agreement box when downloading music from iTunes?

No, failing to read the terms and conditions does not serve as a defense because she accepted them.

When Sally invites contractors to submit bids for the construction of a house, what legal role do the submitted bids play?

The bids each contractor submits are offers, and Sally can bind a contractor to a bid by accepting their offer.

Under contract law, how are most general commercial advertisements classified?

Most advertisements are treated as invitations to negotiate and are not considered offers.

Mary offers to babysit for Ron's children for $2$ hours at a rate of $\$10$ per hour, and Ron responds that he will pay $\$12$ an hour. What is Ron's statement?

A counteroffer.

If Spencer offers to paint Marianna's house for $\$5,000$, and Marianna sends an email stating, 'I accept, IF you send a written contract,' has Marianna accepted the contract?

No, conditioning the statement on 'IF' prevents valid acceptance.

Under the mailbox rule, if Max offers Jonas guitar lessons without specifying an acceptance method, and Jonas mails an acceptance letter on Oct. 17 which Max receives on Oct. 20, as of which date is the contract valid?

Oct. 17, when Jonas sends the acceptance.

When an individual pays for and downloads a software program or iTunes song, what are they legally purchasing?

Purchasing a license to use the product.

Does valid consideration exist to support a contract when a seller promises to ship $1,000$ plastic cups and a buyer promises to pay $\$200$?

Yes, mutual promises to perform constitute valid consideration.

If a father states to his son, 'In consideration of the fact that your 18th birthday is next week, I will buy you a car,' have they formed an enforceable contract?

No, there is no valid consideration or bargained-for exchange because it is a gratuitous gift.

If Kara accepts $\$3,000$ and signs a liability release after an accident with Raoul, can she later recover an additional $\$1,200$ from Raoul when her repair costs equal $\$4,200$?

No, she accepted the $\$3,000$ and signed the release.

If Reilly, an adult, leases band equipment to a group of $15$-year-old musicians, would a court permit Reilly to disaffirm the contract?

No, the privilege to disaffirm a contract belongs solely to the minor.

If Dru's construction bid is about $\$75,000$ lower than his actual costs due to mathematical calculation errors, can Dru rescind the contract after Candace accepts?

Yes, Dru can rescind because enforcing a bid with such a severe, non-negligent mathematical calculation error would cause unconscionable hardship.

Can Mitsy claim fraudulent misrepresentation by silence against Joe if the roof of a house has open and obvious rot and water stains that Mitsy never inquired about?

No, Joe's silence does not constitute fraudulent misrepresentation because the defect was open and obvious and Mitsy failed to exercise basic diligence.

Does a party commit duress by stating, 'If you do not sign this settlement agreement, I will sue you in court'?

No, threatening to pursue a legal right in court is not duress.

How is the one-year period measured to determine if a contract falls within the Statute of Frauds?

It is measured from the date the contract is formed (made) until the date performance is fully completed, not from the date performance begins.

Under the Statute of Frauds, what is the 'main purpose rule' exception for suretyship and guaranty promises?

If the primary purpose (leading object) of a guarantor in making a promise to answer for another's debt is to secure a direct personal economic benefit, the oral agreement falls outside the Statute of Frauds.

If Jimmy denies an oral contract for $\$10,000$ worth of hair spray but admits under oath in court to an oral agreement for $\$5,000$, what amount will the court enforce under the UCC?

The court will enforce the oral agreement for $\$5,000$, the amount admitted under oath.

Under the priority rule applicable in the majority of jurisdictions, who has priority when an obligee assigns the right to receive payments to two successive assignees?

The assignee who receives the assignment first in time, regardless of whether notice was given to the obligor.

If Susie delegates her contractual duty to pay Wes to Lauren, and Lauren fails to make the payment, whom may Wes sue to recover the unpaid debt?

Wes may sue Susie, Lauren, or both.

What immediate right does a buyer have when a seller commits an anticipatory repudiation before the scheduled delivery date?

The buyer may immediately treat the contract as breached and sue for damages without waiting for the performance date.

What type of agreement occurs when all parties to an existing contract agree to substitute a new party for an original party, discharging the original party's obligations?

A novation.