LGS 200 Exam 3 (ruth ann hall)

4 elements of a valid contract

contracts under the UCC (uniform commercial code)

Bilateral vs. Unilateral

Valid offers / elements of

Termination of an offer

acceptance of a contract

mailbox rule

acceptance by fax machine

counteroffers

rejection

revocation

Offers of a award

Unilateral offers

Objective theory / test

Lucy vs Zehmer case

Contracts implied in law

Contracts implied in fact

Consideration / bargained for exchange

Peppercorn rule

Capacity : Minors

Emancipation

illegal contracts

courts position / illegality

Unconscionable contracts / elements of

Exculpatory Clauses

non-compete clause

The Statute of Frauds / which contracts must comply

Types of damages for breach of contract / remedies

Compensatory Damages

Liquidated Damages

Consequential Damages

Equitable remedies for breach of contract

Injunction

Specific performance

Mitigation of Damages

Duress

Fraud

Undue influence

Mistake in unilateral vs bilateral

Mistakes of value

Fraud / elements of

Rescission of contract / mutual

Novation

Anticipatory Breach

Executory Contracts

Third party rights

condition precedent / subsequent

Mary offers to sell John her plane ticket to Tahiti for $500. John says he has to think it over. Mary gives him 3 days. On day two, she sells it to Bob without letting John know. John sues her for breach of contract. Which of the following is true?

a. John wins because Mary did not notify him that she was revoking the offer.

b. John wins because Mary was required by law to leave the offer open for three days.

c. John loses because Mary can revoke at any time.

d. John loses because he had not yet accepted the offer when it was revoked.

a

Jerry sends Carolyn an offer by express mail. Carolyn receives it at 10 am on Tuesday. At 11 am on Tuesday, Carolyn drops the acceptance in the mail. Jerry does not receive the acceptance until Wednesday at 8 am. At what time does the law consider the acceptance to be effective?

a. at 10 am on Tuesday

b. At 11 am on Tuesday

c. at 8 am on Wednesday

d. at the time Jerry reads the acceptance.

b

Which of the following would most likely be considered a valid offer?

a. Would you like to buy this?

b. I'd give $50 for a glass of cold water.

c. Special sale on DVD players today -- $200 each.

d. $75 reward for return of lost dog to Jane Adams, 350 Main St., Northport, Alabama.

e. I'll pay you $50 to mow my yard tomorrow, if I feel like it.

d

A unilateral offer is a promise for a specific act. A unilateral offer may be accepted only by:

a. performance of the requested act

b. promising to perform the requested act

c. partial performance of the requested act

d. All the above.

a

Jay, an art collector, offers to buy a Rembrant original from Unique Gallery. Unique Gallery balks at the price, sending Jay a letter of rejection. That day the Gallery discovers that the Rembrant painting is not as highly valued as originally thought. Unique Gallery immediately telephones Jay to accept his offer prior to receiving the mailed rejection. Is there a contract?

a. Yes, since the acceptance was received before the rejection.

b. No, because the rejection was effective upon dispatch.

c. No, because the rejection terminated the offer.

d. Yes, because an acceptance is always effective no matter what.

a

Day 1: Mark sends Terry a letter offer to sell his aquarium to her for $150.

Day 2: Terry faxes Mark an acceptance.

Day 2: Mark receives Terry's fax.

Day 3: Mark calls Terry to revoke his offer.

Mark and Terry:

a. do not have a contract since Terry used the wrong means of acceptance

b. do not have a contract because Mark revoked his offer before Terry accepted properly.

c. have a contract as of the receipt of the fax.

d. have a contract as of when the fax was sent.

c

Jane: "Ill pay you $50 if you will clean my house."

Joe: "Ill do it for $75."

Jane: "$65 and it's a deal.

Joe: "No way."

Which of the following is a true statement?

a. Jane is correct, there is a contract.

b. There is no contract

c. There is a contract to clean the house for $65.

d. There is a contract to clean the house for $75.

b

Scarlette: "I'll buy that armoire for $800."

Melanie: "It is not for sale."

Scarlette: "How about $1200."

Melanie: "I don't know, it's been in my family for 130 years."

Scarlette: "How about $1500?"

Melanie: "I'll think about it."

a. There is an option contract.

b. There is no contract.

c. There is a reliance case.

d. There is a quasi contract.

b

The Uniform Commercial Code governs which of the following types of contracts?

a. Real estate or land sales

b. Employment contracts

c. Goods that are rare or unique

d. Contracts for the sale of goods or sales contracts

e. All of the above.

d