Contracts 1 Module Quizzes

All of the module quizzes

G, a general contractor, solicited bids for a project from subcontractors, including S. S replied, "I can't give you a bid, because I don't trust your specifications. But it should be about $2.00 per cubic foot. It's fine with me if you want to use my quote or if you don't." G used the quote from S in preparing her bid and was awarded the contract. Because of this, G claims that S has a duty to perform at a rate of $2.00 per cubic foot. Is the quote from S an offer?

C) Because S's response included the words "I can't give you a bid," S's response is not an offer.

What jurisdiction's law is used to determine the outcome in Texaco, Inc. v. Pennzoil, Co.?

B) New York law because the court found New York law to be controlling.

Which of the following statements best describes the Restatement of Contracts?

A) It does not have the force of law but is highly persuasive authority.

Which of the following correctly states the Restatement (Second) definition of offer?

A) A promise to do or refrain from doing some specified thing in the future conditioned on the other party's acceptance

Which of the following is not an important factor in determining whether a communication is or is not an offer?

A) The manner used to communicate the potential offer

Which of the following statements regarding estimates is most accurate?

D) An estimate can be an offer if it is sent in response to an invitation to bid

What is meant by the "objective theory of contracts?"

A) Communications by one party are to be interpreted from the vantage point of a reasonable person in the other party's position.

In Hawkins v. McGee, the court found that Dr. McGee's statement about making the injured hand a "100% good hand" was a:

C) Guarantee

In an auction with reserve, generally, the auctioneer:
            I. makes an offer, which the bidder can accept or reject.
            II. makes an invitation to bid, and then the bidder makes the offer.
            III. can accept the offer.
            IV. can seek another offer.

D) II.,III., & IV

Alice cannot find her $800 china table settings. Some months later, while at a party for connoisseurs of fine china, and after consuming an adult beverage, Alice proclaims in front of the entire group that she will gladly pay $2,000 to anyone who locates and returns the china to her. Percy locates and returns the china to Alice and demands $2,000. Alice refuses to pay. Percy files suit to recover the $2,000. It is most likely that Percy will:

C) Prevail, if a reasonable person would conclude form the statement Alice made that she intended to enter into a contract

Anne and Bob were co-owners of a small, very successful restaurant. Anne was interested in opening a second location in a nearby town. She asked Sam (a regular restaurant customer) if he would be willing to sell Anne and Bob a parcel of land Sam owned in the nearby town of Greenville for $100,000. Sam said, "Sounds great…let's do it." However, unknown to Anne and Bob, Sam had serious doubts about selling the land and was considering developing the land himself to build and operate a restaurant. When Anne attempted to hand Sam the $100,000, Sam refused to take the money and told Anne he would not sell Anne and Bob the land. Anne and Bob sued Sam for breach of contract. Sam alleged he never intended to sell the land to Anne and Bob.
At trial, the following three statements were offered:
(1) Bob testified that he and Anne had "no definite plan to ever open a second restaurant and that Sam was aware of this."
(2) Sam testified that he "never really intended to sell the property to Anne and Bob."
(3) Anne testified that she was very surprised when Sam so quickly agreed to sell because Sam was always joking about "how you should buy my land in Greenville and open a second restaurant there so I wouldn't have to drive so far for breakfast."
 
Which of the statements will the court consider important to determine if a valid contract was formed?

D) Statements 1 and 3 only

Harry and Sandra have been happily married since 1866. Harry needs to go to England to write a play, and before he leaves, to maintain domestic tranquility, he agrees to pay Sandra $5,000 per week for her support. They both agree that Sandra has financial needs and has always worked hard to maintain the house.
Has an enforceable contract been formed?

A) No. There is a presumption that the parties did not intend to create a contract

Pat agrees to buy Dana’s car for $10,000. The contract between Pat and Dana will be:

C) Governed by the UCC

Retailer placed a notice in a trade journal stating that it had men's shoes in various sizes available for sale at a price of $75 per pair. When Customer went to Retailer's store to purchase a pair of men's shoes at the advertised price, Retailer refused to sell Customer the shoes for $75. If Customer brings an action in court, which of the factors listed below will the court LEAST LIKELY consider as important when determining whether Retailer's notice in the trade journal constitutes a valid offer?

C) Whether Retailer intended the notice to be an offer to sell shoes to Customer.

Widget Company manufactures widgets and has several clients who sold products to consumers. Widget wanted to compete with some of its clients but believed that its clients would be displeased and might cease doing business with Widget. Widget set up a subsidiary company to distribute its products to keep this new business activity secret. It formalized its agreement with Paul in writing, stating that Paul agreed to purchase all subsidiary shares for $10,000, and Widget agreed to sell the shares at that price. Widget and Paul had an oral side agreement that the stock purchase agreement would not be carried out. The parties carried on business for many years without a transfer of the shares or payment of the money. For all appearances, Paul was the sole owner of the distribution business. However, Paul always acted as a loyal employee of Widget. Widget decided to end its arrangement with Paul and to let it be known to the trade that it was operating the distribution business.
Paul tendered $10,000 to Widget and demanded that Widget transfer the shares of stock pursuant to the written agreement. Widget refused and sued Paul for a declaratory judgment to the effect that the written agreement is not binding.
Will Widget succeed?

C) Yes, because Widget and Paul never intended to enter into an agreement.

City posted this announcement on its website: "The City will pay $2,000 to anyone with information leading to the arrest and conviction of the person or persons responsible for vandalizing City Park last weekend." Anne saw it all happen and knows the names of the people who did it. If she wants to receive the reward:

B) Anne can accept the offer by providing the information to City.

Marie read the following statement in a Stargell's catalog: "Lots available for $20,000. First come, first served. Appear in person, complete application, and tender funds." The catalog also stated the physical location of the real estate. Marie went to the physical location, completed the application, and tendered $20,000 in cash that Stargell accepted. Subsequently, Stargell mailed Marie a cashier's check for $20,000 with a note stating that Marie's application was "rejected."
At trial, Marie proved that Stargell's had lots available but only sold to prominent people who endorsed Stargell's company. Does Marie prevail on a claim for breach of contract?

A) Yes, because Stargell accepted Marie's offer to purchase the lot according to the terms expressed in Stargell's catalog.

John had read many newspaper and Internet news articles suggesting that the fillings commonly used by dentists to fill teeth contained dangerously high levels of mercury. John decided that he would have all his fillings removed and replaced with another safer alternative. He consulted with Dr. Decay, his dentist, and requested removal of all his fillings. Dr. Decay stated that he was not comfortable performing the oral procedure but that he would make sure that Dr. Abcess would perform the oral procedure. In Dr. Decay's informed medical opinion, removal of John's fillings is not medically required. If Dr. Decay fails to retain Dr. Abcess to perform the oral procedure, will John have an action for breach of contract against Dr. Decay?

C) No, unless John reasonably concluded that Dr. Decay expressly promised him that Dr. Abcess would perform the procedure

A large daily newspaper publishes and distributes two booklets, one regarding general advertising rates and the other regarding advertisements that will not be accepted. These booklets state that the newspaper will refuse advertising that is "dishonest, indecent or illegal." A labor union presented an advertisement to the newspaper that urged readers not to patronize certain businesses because those businesses featured imported clothing that was manufactured by low-wage, foreign labor. The union also paid the appropriate advertising rate in accordance with general advertising rates, but the newspaper refused to print the advertising. Assume that the advertisement was not dishonest, indecent, or illegal. Will the union prevail against the newspaper for breach of contract?

C) No, the Defendant's booklet containing its "General Advertising Rates" is only a statement of intention to sell or invitation for offers.

Pearl has lost her prize-winning cat, Mr. Whiskers. On the website where she chronicles the competitions in which she enters Mr. Whiskers, Pearl offers a $2,000 reward for the return of her beloved cat, which (elsewhere on the website) she claims is worth at least $10,000. When Diego returns the cat, Pearl refuses to pay. When Diego sues to recover the $2,000, it is most likely that Diego will:

B) prevail, if a reasonable person would conclude from the statement on Pearl's website that she intended to enter into a contract.

Max and Sam have been business partners for years, with Max as the managing partner and Sam as a passive investor. Max needs to go to Canada to settle his uncle's estate, and before he leaves, to keep the business open, Max agrees to pay Sam $20,000 per month for his services managing the business while Max is away. They both agree that the business cannot run itself, and Sam needs to protect both of their investments. Has an enforceable contract been formed?

B) No, if there is a presumption that the parties did not intend to create a contract

Marta read this statement on Developer's website: "Condominiums available for $120,000. First come, first served. Appear in person at our office, complete our application, and tender 10% down payment." The website included the physical location of the condominium and the unit numbers of the condominiums that were available. Marta went to Developer's office, completed the application and tendered $12,000 in cash that Developer accepted. A few days later, Developer mailed Marta a letter informing her that her application had been rejected. Enclosed with the letter was a cashier's check for $12,000. At trial, Marta proved that Developer had units available for sale but only sold to prominent people who would endorse Developer's projects. Can Marta prevail on a claim for breach of contract?

B)Yes, because Developer accepted Marta's offer to purchase the condominium according to the terms stated on Developer's website

Sir Henry Magazine derives a great deal of income from the sale of advertising. It publishes a "rate sheet" as well as an "Advertising Guidelines" brochure. The Advertising Guidelines brochure states, "Sir Henry reserves the right to refuse to print advertising for untruthful copy." A nonprofit political action group presented an advertisement stating that a local political figure had used political contributions for personal use. The group paid the advertising rate in accordance with the rate sheet, but the magazine refused to print the advertising even though it admitted the advertisement was truthful. Will the political action group prevail against the magazine?

C) No, the magazine’s rate sheet is only a statement of intention to sell or an invitation of offers

Buyer and Seller want to do business together but would like a relatively informal arrangement. They prepare a written "Gentlemen's Agreement," but state in the agreement that it is not binding. It also states, "This writing is only an expression of our intention to work honorably together. We have always worked well together, therefore, we do not wish to be bound by this document." When the business relationship ends there are $100,000 worth of orders pending, but not delivered by Seller. Seller refuses to ship the orders, and Buyer sues. Does Buyer prevail?

C) No, because this was just a "gentlemen's agreement" and was not intended to have legal effect.

Arthur calls Betty and says: "I am in a real fix, and I must sell my house. I am so motivated that I would consider $100,000 for it." Immediately, Betty says, "I'm sorry about your predicament. I will buy your house for $100,000." Is there a contract?

C) No, because Arthur never accepted Betty’s offer

Review the following conversation:
Kathy: "Jerry, will you consider buying my cabin in Aspen? If you will make me an offer, I will consider it."
Jerry: "Okay, $5.00."
Kathy: "No, that is not enough."
Jerry: "Will you accept $85,000?"
Kathy: "I won't sell it for less than $95,000."
Jerry: "I accept."
Was there a contract?

B) No, because Kathy never offered to sell the property for $95,000.

Benson owned a golf course. Benson was approached by the Magson Railroad Company, which asked for a right of way across Benson's land that was adjacent to his golf course. Benson agreed to the right of way in exchange for the railroad's promise to build "a really cool railway station" at a specified spot near the golf course. The railroad was built on the right of way, but Magson did not build the station. Benson sues Magson for the station. Will Benson prevail in this lawsuit?

D) Yes, because the parties agreed that Magson would build a station near the golf course in exchange for the right of way.

A agrees to remodel B's home pursuant to specific plans and specifications. The price for the job is $8,500. The plans do not specify the materials that A must use. Is the contract void?

A) Yes, if the omission of the terms describing the materials to be used cannot be implied due to lack of objective standards

The power of acceptance

B) can be exercised only with knowledge of the offer

The offeree accepts the offer

D) Both b and c

In determining whether an advertisement is an offer

C) courts look to whether the text contains the requirements for a valid offer.

For public offers and rewards, the offer:

A) can be accepted by the means specified in the offer

A Dead Man’s Statutue

C) prevents testimony about acts or conversations of the decedent

Unsolicited merchandise

D) Both b and c

You have lunch to go from the same place every day, and you always order the same thing, your "usual." You go to the counter and the cashier hands you your usual, neither of you speak a word. Which of the following is correct?

D) By conduct, you have made an offer and the cashier has accepted it

When you begin performance to accept a unilateral contract, under Petterson v. Pattberg the offeror

C) can revoke the offer at any time prior to the completion of performance

When you begin performance to accept a unilateral contract, under Brackenbury v. Hodgkin the offeror

B) must hold the offer open for a reasonable period of time to allow you to complete performance.

When you begin performance to accept a unilateral contract, under Motel Services, Inc. v. Central Maine Power Co. the offeror:

D) cannot alter the terms of the offer

Buyer telephoned seller and made the seller a valid offer to buy goods from the seller. Assume that the seller did not accept the offer during the telephone call. Absent any manifestation of contrary intent by either party, at what time will most courts find that the buyer's offer lapsed?

A) After the phone call came to an end

Offeror mailed a valid offer to an intended offeree and then died of a heart attack the next morning. The offeree received the offer at noon and, not knowing of the offeror's death, mailed an acceptance of the offer that same afternoon. Is there a valid contract under the majority view?

D) No, the offeror’s death terminated the offeree’s power of acceptance

Offeror posts on a Web page an offer that can be accepted by any viewer. If the offeror wants to revoke the offer, the offeror must do which of the following?

D) Must post a revocation of the offer on the Web page

Which one of the following statements best describes the earliest time an offeror's written revocation of an offer will take effect under the majority rule?

C) When the revocation is recieived by the offeree

Assume that an offeree learns from a reliable source that land that has been offered to her by a seller, has also been offered by the seller to another interested party who had not yet accepted. Which one of the following statements most accurately describes the offeree's rights?

A) The offeree may accept the offer

An offeree respons to an offer with a proposal for a similar but different contract, but also notes that hte offeree will keep the original offer under sdivsement. Offeree’s proposal is best understood as:

B) A counter offer

Ang submits an offer in writing to provide Beto with a service. Beto quickly responds in writing stating that Beto accepts the offer, but includes somewhat different terms. Most likely Beto's response is

C) A counteroffer and rejection of the offer

Cari submitted an offer in writing to provide Delia with a service. Delia responded in writing stating that she accepts the offer, but Delia included somewhat different material terms. If Cari begins to provide the agreed services for Delia, a court will most likely rule that there is

B) A contract including the terms in Delia's written response

A submitted an offer in writing to provide B with goods. B quickly responded in writing stating that she accepted A's offer, but B's written response includes some additional terms. A court will most likely find that B's response is

A) An acceptance

Lei who is not a merchant submits an offer in writing to provide Kye with goods and Kye responds in writing stating that she accepts the offer, but Kye's response includes additional material terms. If Lei provides the goods and Kye accepts them, which of the following best describes the contractual relationship between Lei and Kye?

A) A contract including only Lei terms

Assume that Aya and Bian are both merchants and they have an oral agreement for the sale of goods. Assume also that Bian quickly sent a written confirmation of the oral agreement but the confirmation contained additional non-material terms. If, after several weeks, Aya has not objected, how would a court most likely rule?

B) A contract exists between Aya and Bian including Bian's terms

Sandy says to Dave, "I promise to buy you lunch if you pay me the $100 you owe me." Which of the following statements is most accurate regarding Sandy's promise?

B) Sandy's promise is not consideration because Dave's performance would merely be the performance of something Dave was already legally obligated to do.

If Bob and Sally are friends and Sally promised to sell her television to Bob for $50 where the actual value of the television is $1,000, is there proper consideration to support Sally's promise?

D) Yes, if there is a bargained-for exchange in their agreement

Dick entered into an employment agreement with Ajax Company that provides for a set salary and also for a performance-based bonus. Ajax paid Dick his salary for the first year, but refused to pay the performance-based bonus stating that the consideration for Dick's work was the salary and there was no consideration for the bonus – there must be a separate consideration for the bonus. Dick brought suit against Ajax for the bonus. Who will prevail in this lawsuit?

C) Dick, because one consideration will support many promises

Barry signed an agreement without reading it, but checked off a box in the agreement that stated:
"By checking this box, you agree that you have read and understood the entire agreement and that all terms contained therein are bargained for."
Which of the following statements most accurately states the legal effect of Barry's conduct?

B) Even though Barry did not read the agreement, if the terms objectively contain the appearance of a bargained for exchange, consideration is present.

Assume that Bill has a valid claim against Jan for $10,000 due in one year for a loan Bill made to Jan. Later Jan and Bill become good friends and Bill tells Jan she does not have to pay the full $10,000 if she will instead pay him $8,000 within one week. Five days later, Jan pays Bill $8,000. If Bill one year later asserts the breach of contract claim against Jan seeking $2,000 he claims is still owed under the original loan, a court will most likely find that

C) Bill's surrender of the $10,000 claim is supported by new consideration--the right to receive payment within one week.

Paul owes Big $10,000. Since Paul has lost his job and cannot afford to pay Big the entire $10,000 owed, Paul wrote a check to Big for $1,000 – all the money that Paul has – and wrote on the back of the check, "Accept only as payment in full of my $10,000 debt." Big endorsed and cashed the check. Which of the following is the most accurate statement of Paul's obligation to Big?

D) Paul still owes the $9,000 balance of the debt to Big if there is no good faith dispute between Paul and Big regarding the amount owed or if Big was not aware of the basis of the dispute.

B agrees to loan A $20,000, and A agrees to repay the money "unless my union orders me to walk off the job. Later, A's union goes on strike and orders A to walk off the job. Does A have an obligation to pay B the $20,000 owed?

A) No, A does not have to pay B because A's promise to pay so long as A is not ordered by his union to walk off the job is outside the control of A

Cari makes an offer by mail to Delia. Delia sends an acceptance by first class mail, but then sends a rejection by overnight express mail. Cari receives the rejection first. Which of the following best states the rights of Cari and Delia under the Restatement view?

C) There is a contract between Cari and Delia, but Delia has offered to rescind it.

Lei pays B $100 in exchange for Kye's promise to keep his offer to provide childcare open for six months. Can Lei enforce Kye's promise to keep the childcare offer open for six months?

A) Yes, because there is consideration to support Kye's promise

A, a merchant, makes an offer by mail to B in a signed writing. The offer provides assurances that it will be held open for two weeks. The following week, A changes her mind and calls B to revoke the offer. Is the offer revocable?

D) No

A says to B, "If you promise to paint my house, I promise to pay you $1,500." B starts to paint in A's presence. Is there a contract?

A) Yes, because B's conduct constitutes an implied promise to paint A's house.

O was the owner of vacant land in another state. When he visited the land, he found that S had built a house on the empty lot. When O tried to enter the house, S told O that if O stayed there, O would be contractually obligated to pay for the house. Is S correct?

B) No, because O had no opportunity to reject the house

Davis, a supplier of religious items, needs to obtain an inventory of metal crosses. He contracts with Petterman to make and deliver 10,000 crosses at $1.00 per cross. Petterman manufactures and delivers half of the crosses and Davis pays $5,000. Petterman then tells Davis that the price has gone up to $1.50 per cross. Davis agrees because he needs the crosses. When Petterman delivers the crosses, what price is she entitled to be paid?

B)

At a rate of $1.50 each, if the modification was requested in good faith

Dexter and Posley enter into an agreement whereby Dexter is to grow and deliver corn to Posley at a specified time, price, quantity and quality. The agreement states that "either party may terminate this agreement at any time." After more than 10 years of performance under the contract, Dexter terminates the agreement. Is Dexter justified?

D) No, unless Dexter gave Posley reasonable notice

Sarah manufactures and sells novelty dolls. Bernhardt is a retail novelty store owner who specializes in dolls. Sarah and Bernhardt enter into a written agreement wherein Bernhardt agrees to buy from Sarah 600 of Sarah's novelty dolls at a specific price. One particular clause in the agreement states that Bernhardt has the right to purchase an additional 400 dolls at any time during the time period covered by the agreement. Bernhardt orders an additional 400 dolls, but Sarah does not deliver them. What are the rights of the parties?

A) Bernhardt has the right to purchase 400 additional dolls from Sarah under the terms of the contract.

When Darlene bought some mountain property, she constructed a road on her property, but next to the border of adjacent land owned by Ms. Painter. Darlene asked Ms. Painter if she would be interested in sharing the cost of construction and maintenance in exchange for use of the road. They agreed. By the terms of their written agreement, Ms. Painter was allowed to terminate the agreement at will. Everything went fine for a number of years and both Darlene and Ms. Painter paid one-half of the road maintenance expense until Darlene refused to allow Ms. Painter to use the road. Ms. Painter sues Darlene for breach of contract and Darlene claims, as her defense, mutuality of agreement. What result?

Ms. Painter will prevail, because the court would imply that reasonable notice be given prior to termination.

Devlon owned a house that he rented to Paula. Paula was a rowdy sort and continually hosted loud parties, disrupting the neighborhood, all in violation of the lease. Rather than fight Paula in court to get him to leave, Devlon offered to pay Paula's moving expenses if Paula would vacate the premises peacefully and relocate outside of his neighborhood. Paula agreed. Was Devlon's promise to pay Paula's moving expenses supported by consideration?

C) Yes, if either of the two promises made by Paula is valid and enforceable.

Where consideration is inadequate, promissory estoppel

D) Both a and c

Promissory estoppel is:

B) An exception to the requirements of the Statute of Frauds

Under Section 90 of the first Restatement of Contracts, detrimental reliance requires

D) Both A and B

Grandpa promised granddaughter that if granddaughter would take a trip to Africa, he would reimburse her travel expenses. Grandpa fell sick and died while granddaughter was in Africa, now grandpa's estate

B) Must pay the expenses, because grandpa’s promise is support by consideration

Where a party has promised to obtain a policy of insurance to protect the property of another:

D) Modernly, courts have done away with the distinction between misfeasance and nonfeasance in this context, and have found liability where reliance on the promise to obtain insurance is justified.

In which of the following situations is a writing most likely to be considered a total integration?

C) If the writing was final, exclusive and complete

Which of the following statements about the parol evidence rule is false?

B) Does not apply to contemporaneous agreements

Which of the following is most accurate regarding whether a writing will be considered a final embodiment of an agreement?

C) To determine if a writing is a final embodiment, a court looks to the intent of the parties

Under the traditional approach (also known as the Williston or four corners test), parol evidence will be excluded:

A) If the document appears complete

Which of the following is true regarding merger clauses?

C) The presence of a merger clause creates a rebuttable presumption that an integration is total

Which of the following states the best definition of the parol evidence rule?

B) A final agreement supersedes tentative terms discussed in earlier negotiations

Which of the following statements is NOT true regarding course of dealing, course of performance, and usage of trade?

A) These topics are not applicable at common law

Which of the following is the best description of the Statute of Frauds?

C) Only certain types of contracts need to be in writing

Regarding the One Year Rule of the Statute of Frauds, which of the following statements is true?

D) The test is not how long the performance will take, but instead when it will be complete from the time the agreement was entered into

Regarding the Land provision of the Statute of Frauds, which of the following statements is true?

A) The doctrine of part performance is an exception.

Regarding the Marriage provision of the Statute of Frauds, which of the following statements is true?

A) The Statute of Frauds applies to any agreement made on consideration of marriage, except mutual promises to marry.

Which of the following is a well-recognized exception to the suretyship contracts covered by the Statute of Frauds?

A) The main purpose rule

Which of the following statements is not true with regard to the applicability of the Statute of Frauds to suretyship contracts?

B) The promisor and the principal debtor can owe the original debt jointly.

Which of the following statements about a promise by an executor or administrator is not true?

A) A promise by an administrator or executor to pay a claim out of the assets of the decedent's estate is within the Statute of Frauds

Regarding the Goods provision of the Statute of Frauds, which of the following statements is true?

C) The doctrine of part performance is an exception that allows the contract to be enforced without a sufficient writing, but only to the extent of the consideration provided.

Marcus is employed as a computer services technician with AB West. Box Data, Inc. approaches Marcus and orally offers Marcus a job to perform the same services for one year. As a part of the oral contract for services, the parties agree that Marcus will commence his services for Box Data as soon as he can negotiate his termination with AB West in a professional manner. Is the contract within the Statute of Frauds?

B) Yes, unless Marcus can negotiate his termination with AB West in a professional manner within one day of making the agreement with Box Data.

Arnold writes to Becky making an offer to buy Becky's 1998 automobile for $15,000 cash on delivery. In the letter, Arnold states that he will consider the offer accepted unless he hears from Becky within 72 hours. Becky receives the unsolicited letter/offer, but ignores it and does not reply. Is there a contract?

B) No, because the offer was unsolicited and Becky's silence would not be construed as an acceptance under the circumstances.

Andrea asks Blinky, a lawyer, to prepare an estate plan. Blinky agrees, but no price is set. The reasonable value of the work is $5,000. When the work is done, Andrea is satisfied and promises to pay Blinky $7,500 for the work. Blinky wants to think about the $7,500, but before he agrees, Andrea withdraws her promise. Blinky sues Andrea on her promise to pay $7,500. What result?

D) Blinky will recover $7,500, because no consideration or mutual assent is required to support a promise to pay a fixed sum in discharge of a pre-existing liability

Sarah agrees, over the phone, to sell her pig ranch to Barney for $800,000. Barney pays Sarah the $800,000, but Sarah refuses to transfer title to the ranch to Barney, claiming the defense of the Statute of Frauds. What result?

B) Barney will be entitled to restitution of the purchase price, but not specific performance of the contract.

Buster's Saddle Shop calls Samson's Fine Leather and orders specific quantities of specified leather to be delivered once each month for the next two years. The total price of the contract consideration was $10,000. Samson orally agreed to supply the specified leather. Two days later, Buster's Saddle Shop received a signed written confirmation of all the specified leather deliveries the parties agreed to. Six months later, Buster's Saddle Shop called Samson's Fine Leather and said they would not accept any more leather claiming that the agreement was not enforceable under the Statute of Frauds. Buster's Saddle Shop has paid for all leather received in the first six months of the agreement. In an action to enforce the contract, Samson's Fine Leather will:

B) Prevail, for the entire amount of leather specified in their agreement.

Arthur calls Betty and says: "I am in a real fix and I must sell my house. I am so motivated that I would consider $100,000 for it." Immediately Betty says: "I'm sorry about your predicament. I will buy your house for $100,000." Is there a contract?

C) No, because Arthur never accepted Betty’s offer

When Darlene bought some mountain property, she constructed a road on her property, but next to the border of adjacent land owned by Ms. Painter. Darlene asked Ms. Painter if she would be interested in sharing the cost of construction and maintenance in exchange for use of the road. They agreed. By the terms of their written agreement, Ms. Painter was allowed to terminate the agreement at will. Everything went fine for a number of years and both Darlene and Ms. Painter paid one-half of the road maintenance expense until Darlene refused to allow Ms. Painter to use the road. Ms. Painter sues Darlene for breach of contract and Darlene claims, as her defense, mutuality of agreement. What result?

B) Ms. Painter will prevail, because the court would imply that reasonable notice be given prior to termination.

Over coffee, Eddie and Jackie orally agree that Jackie will locate a specifically described car for Eddie at a price of $22,000. This specific agreement is reduced to writing, signed by the parties, but before leaving the coffee shop, both parties agree that they need to redraft the contract to change the type of car and the price. They agree to meet later to make these changes in a second writing. Does the first writing constitute an integration?

D)

No, because the first writing was not intended to be the final embodiment of their agreement.

Sanders Pizza, Inc. a large national chain and Henry's Gardens enter into a written contract within the one-year provision of the Statute of Frauds. At the time the contract was signed, neither party realized that a clerical mistake was made changing the price per tomato from $.03 to $.30. The parties had intended the price to be $.03. How does this error affect the rights of the parties?

B) The writing will be reformed because it did not express the bargain between the parties.

Based on your reading of the New York Bronze Powder Co. v. Benjamin Acquisition Corp. case, which of the following statements is true?

C) In determining whether a particular agreement makes an event a condition, courts interpret doubtful language as a promise or constructive condition rather than an express condition.

Where a general contractor agrees to pay a subcontractor when payment is received by the general contractor from the owner, most modern cases will view this agreement between the contractor and subcontractor as:

B) An expression of the time for payment

A promises to buy B's business if A can get a loan. Which of the following statements is most accurate under modern Contract law if A does not apply for the loan?

B) A's promise created a condition that A would apply for a loan in good faith and A's failure to attempt to obtain a loan is a breach of A's implied promise to use reasonable efforts to cause the condition to occur.

Which of the following is a false statement regarding conditions and/or promises?

D) Creating a condition requires the use of “on the condition that,” “unless”, “subject to” , or “provided that”

Regarding omitted terms, which if the following statements is true?

A) Omitted terms are often supplied by looking through the lens of the covenant of good faith and fair dealing.