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44 terms

CONTRACT FORMATION practice questions

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Topp-Off Pavers, Inc., agrees to repave Unity Building Corporation's parking lot. The elements
required for this agreement to constitute a valid contract do not include
practicality.
Clay offers to pay Dot $50 for a golf lesson for Eula. They agree to meet the day after tomorrow
to exchange the cash for the lesson. These parties have
a bilateral contract.
Paco offers to pay Quik Delivery (QD) $50 if it picks up and delivers to him a package from his accountant Rupert within 30 minutes. QD can accept the offer only by meeting the deadline. If QD performs as directed, these parties will have
a unilateral contract.
Flo tells Gregor that she will buy his textbook from last semester for $65. Gregor agrees. Flo and Gregor have
an express contract.
Avatar, Inc., and Bling Corporation sign a contract in which Avatar agrees to deliver t-shirts emblazoned with video game characters in exchange for Bling's promise to pay. Avatar delivers. The contract is
partially executory.
Scot enters into a contract with Tiffany that later proves voidable at Tiffany's option. If she elects to avoid any duty to perform under the contract
both parties are released from it.
In a state where the age of majority is eighteen, Noni, a seventeen-year-old, signs a contract to sell her car to OK Used Cars. The next day, Noni tells OK that she's decided not to sell the car. Noni is
not liable to OK.
Intoxicated but fully aware of the consequences, Uri agrees to a two-year cell-phone service contract with Wander Talk, Inc., at more than the average market price. This contract is
enforceable.
Neil represents himself as a contractor in Ohio, a state in which it is legally required for contractors performing work in the state to have an Ohio contractor's license. Neil is not licensed in that Ohio. A contract between Pam and Neil by which Neil agrees to build a warehouse for Pam in Ohio is
not enforceable.
U-Can-Own-It Corporation sells appliances to less educated consumers, including Viv, on installment plans. U-Can-Own-It files a suit against Viv when she stops making payments. Viv claims that the deal is unconscionable. The court will most likely consider
the parties' relative bargaining power.
Elmo advertises a reward for the return of his lost dog. Floyd, who does not know of the reward, finds and returns the dog. Floyd cannot recover the reward because he
did not know of the reward when he found and returned the dog
Bill offers to sell his Consumer Service Center business to Dana for $100,000. Dana replies, "The price is too high. I will buy it for $90,000." Dana has
rejected the offer and made a counteroffer.
Kit offers to sell her boat to Larry. Larry accepts, and unknown, to Kit, Larry builds a dock for the boat. Kit's later attempt to revoke the offer will be
ineffective because Larry justifiably relied on Kit's offer.
Coco signs a covenant-not-to-compete with her current employer, Laurel Valley Computer Services, Inc., in exchange for a bonus payment and a raise in her salary. If the covenant is reasonable in terms of geographic area and time, it will most likely be enforceable by
Coco for the payment, but not Laurel Valley for the performance.
A quasi-contract may be defined as?
an implied-law-contract
An acceptance must exactly match the terms of the offer in order to be valid. This is known as?
mirror-image rule
"contractual capacity' best defined would be?
the ability to enter into a contractual relationship
The general rule for disaffirmance of a contract by a minor is?
it may take place at any time during minority
A usurious contract is one that involves?
an illegally high rate of interest
In an exculpatory clause?
one party releases the other party from liability in the event of a monetary or phyiscal injury, no matter who is at fault
If you do not genuinely assent to a contract, you may ?
rescind or cancel the contract
NOT an element of fraud?
the onnicent party must be under 21 years of age
If a party to a contract has an intent to deceive the other party, this is known as?
scienter
The transfer of a right to a 3rd person is knowsn as?
an assignment
THe person to whom rights in a contract are assigned is called the ?
assignee
When you transfer contractual duties to someone else, this is known as?
a delegation
When a party to a contract breaches that contract, the other party is legally entitled to?
money damages
The UCC attempts to provide ?
a consistent and integrated framework of rules to deal with all aspects of commerical sales trasnactons
In order for the rule contained in the UCC to apply to a sale of goods, the goods must?
be tangiable, that is, have physical existence
The UCC statue of frauds provisions governing
the sale of goods worth more than 500
The performance of a party to a contract for the sale of goods will be excused for commerical impractiability only if?
the contigency was unforseen and would not have been contemplated in a given business situation
The common law governs contracts?
for services, real estate and employment
When Mary comes home from work, her yard is mowed and trimmed. Later, a man comes to collect for the yard work he did. Mary refuses to pay for work, since she has never seen the man before. What is most accurate?
Mary would not have to pay for the yard work
Larry goes to his barber to get his hair cut where hes gone for past several years. The barber cuts his hair as they talk about the most recent snow storm. This is an example of?
unilateral, implied contract
An express contract?
has both parties setting forth their intentions
The relationship between the common law and the UCC when sales of goods are involved is best described as?
the UCC controls sales, but where the UCC is silent...the common law still controls
If an offer specifes no time limit in which to accept?
the offeree has a reasonable period during which to accept
Jamie offered to buy Kevins bike. Jamie is the?
offeror
If Rudy offers oscar 200 for his 600 stero and oscar agrees, a court will probably
set aside the agreement based on the adequecy of the consideration
If becky promises not to drink until she is 21 in exchange for bens promise of 1000, then
not enforceable because becky doesnt have a legal right to drink alcohol
What constitutes a legal consideration?
a promise based upon a change in duties
When a party to a contract makes a unilateral mistake, the contract
generally cannot be rescinded by the mistaken party, unless the contract is unconscionable or its proven that the nonmistaken party knew of the error
What is least likely regarded as a necessity?
educational expenses
Example of the type of relationship required to find undue influence would be?
a doctor-patient