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Business Law HW 2

Summary of homework questions for Homework 2 in Fundamentals of Business Law

T/F : "Consideration" refers to the genuine assent of all parties to a contract? False (agreement)
T/F : A unilateral contract is formed when the one receiving the offer completes the requested act or performance. True
T/F : An agreement is evidenced by a single event: an acceptance False (two events: offer and acceptance)
T/F : An offeror's subjective intent determines the effectiveness of an offer. False (objective intent)
T/F : in an auction, the auctioneer is an offeree True (such a bullshit question lol)
T/F : An effective offer requires a reasonable price related to market value. False (relation to market value doesn't matter)
T/F : A mistake of fact can only be bilateral. False (unilateral OR bilateral)
T/F : An integrated contract is the final embodiment of the terms of an agreement. True (by definition)
T/F : Oral evidence of otherwise clear terms in a contract can be introduced at a trial to contradict those terms. False (only vague and unclear terms can be contradicted in trial)
T/F : A contract must be in writing to be enforceable unless its performance is impossible within one year. False (One Year Rule: possibly within one year does not require writing)
T/F : Reliance on a misrepresentation is justified if the misrepresentation is an obviously extravagant statement. True
T/F : In contract law, "consideration" refers to the courtesy that one party shows another in negotiating a deal. False (consideration is the bargained for exchange (courtesy doesn't matter))
T/F : To be legally sufficient, consideration must include something of economic value. False (or a promise to do or not to do something in the future)
T/F : A promise to do something that one has a prior legal duty to do is not consideration. True (they're not giving up anything additional)
T/F : Unforeseen difficulties that justify a demand for additional compensation include risks ordinarily assumed in business. False (unforeseen circumstances might require additional compensation)
T/F : The doctrine of promissory estoppel requires a clear and definite promise. True (needs to be clear or else it's fraud)
T/F : Contractual capacity refers to the legal ability to enter into a contract. True
T/F : A covenant not to compete is enforceable only if it is necessary to restrain trade. False (needs to be reasonable; should not restrain trade)
T/F : A transfer of contract rights to a third party is delegation. False (transfer of rights is assignment)
T/F : An obligor is a person to whom a duty is owed. False (an obligee has a duty owed)
T/F : An assignment of an insurance policy can be prohibited. True (Not one of the exhibitions against transfer of an assignment)
T/F : The assignment of the same contract right to two different parties results in their "splitting the difference". False (It goes to whoever received the rights first or whoever comes forward first)
T/F : An incidental beneficiary can sue directly to enforce a promisee's promise. False (you didn't have an duty to receive shit so you can't sue)
T/F : Any third party beneficiary to a contract who is not an intended benificiary is incidental. True (by definition)
T/F : If a contract condition is not satisfied, the obligations of the contracting parties are discharged. True (This is why a contract condition exists I guess....???)
T/F : Any breach of contract discharges the breaching party. False (Depends on if it's a material breach or a minor breach; discharge MAY happen--you may still be liable)
T/F : A remedy is the relief provided to an innocent contracting party when the other party breaches the contract. True (by definition)
T/F : The four broad types of damages in contract law are conciliatory, consecutive, punctual, and nominative. False (compensatory, consequential, punitive, and nominal)
T/F : On a contract breach, the nonbreaching party's only option is to refuse to perform. False (other options: may still have to perform, sue, satisfaction and accord)
T/F : In a contract for a sale of goods, the usual measure of compensatory damages is the difference between the contract price and the market price. True (by definition under the UCC)
T/F : On the breach of a contract involving the sale of land, money damages is always the most appropriate remedy. False (Money damages is not sufficient; providing the land as remedy is the most appropriate remedy)
T/F : Punitive damages are almost never available in contract disputes. True (very rare to see)
T/F : Nominal damages normally establish that the defendant acted wrongly. True (there's not much money there, just shows who's right and wrong)
On Monday, Neil tells Outdoor Landscaping, Inc. that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had: A unilateral contract as soon as Outdoor began to perform
Wanda tells Vito that she would like to buy his Chocolate Goodies store. Vito declines, but later decides to sell and sends to Wanda, and others, a flyer describing the details. Wanda responds with a letter of "acceptance". Wanda and Vito have: no contract, because Vito sent the letter to more than one party (advertisement to multiple parties)
Business Properties, In (BPI) offers to sell a warehouse to Corporate Investments. Corporate says that it will pay BPI $100 to hold the offer open for three business days. This: makes the offer irrevocable for three days if BPI accepts
Shelby offers to make digital copies of Relay Company's business conference videotapes, CDs, DVDs, and other media for $500. Under the mailbox rule and the Uniform Electronic Transactions Act (UETA), Relay's acceptance by e-mail is ok when: the e-mail is sent (since under the UETA an e-mail is considered the same as a paper record)
Jon agrees to sell his K9 Sports Equipment store to Lacy. As part of the sale, Jon promises never to open a similar, competing store anywhere. Jon's promise is most likely: invalid because of the unreasonable terms of area and time (you can't just say NEVER and ANYWHERE like... dang Jon...)
Mica, a minor, signs a contract to pay Natural Health Club a monthly fee for twenty-four months to use its facilities. Six months later, after reaching the age of majority, Mica continues to use the club. This act is: a ratification
A court adjudicates Huck mentally incompetent and appoints Inez to be his guardian. Later, w/o Inez's knowledge, Huck signs a contract to sell his farm to Kyle for its real market value. The contract is: Void (because Huck was appointed a guardian by the court)
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to being May 1. 1 month prior, Bell loses a client. Bell refuses to hire Chris. Chris can: bring an action immediately (because they breached his contract)
If Bell refuses to hire Chris after a contract is formed, Bell's repudiation is most likely: A material breach.
OK Contractors contracts to build a store for Lo-Cost Jeweler's in Metro City. Then the city zoning laws are changed at that location. The store isn't built, so Lo-Cost files a suit against OK. In this situation: the contract is discharged
Musica and Nora are in a contract for Nora to write 6 songs and Musica agrees to pay. Nora transfers her right to payment under the contract to Omni Entertainment Agency. Nora is: an assignor
Outbound agrees to hire Petra for 1 year w/ a salary of $1k per week. When Outbound cancels, Petra spends $2k to obtain a similar job paying $750 per week for 1 year. Petra is entitled to recover: the difference between the wages at the two jobs plus $2000
Beachside agrees to build Candy a pool but fails to build it according to contract specifications. Candy hires Fix-It to finish the project. Candy may recover from Beachside: the costs needed to complete construction
Call Splitters needs a nanodrill and orders a $3k one from Neato. Cell tells Neato it needs the drill by Tuesday or it'll lose $10k. If Neato agrees to the terms and ships late, Cell can recover: $10,000
A contract between E-Debits and First Credit includes a provision excluding liability as a result of fraud. This provision is: not enforceable
Creekside enters into a contract w/ Downstream to manage and maintain Creekside's apartment complex. Contract says that neither party can recover damage for non-fraud or unintentional breach. This is: a limitation-of-liability clause
Myra has a house, sends Nicole more terms w/ no price, Nicole signs and gives it to her assistant. Before he mails it, she gets a call saying the house isn't for sale at the price Nicole wants. Was there a contract that Nicole can enforce? No; technically no offer made to Nicole directly and acceptance was canceled so there is no agreement; this means 1 of the 4 elements for a contract is missing
General wants Honi to make art for their building. Honi accepts the contract, then delays and then refuses to reform. What can General get from Honi? Not money damages; they could require him to perform, but if he continues to refuse there's not much they can do. Just make sure they get their money back for commissioning him i guess.
General contracts to sell to Idea, but before Idea's transaction goes through, General cancels in favor of a higher bidder. What can Idea get from General? Likely the contract was already legit so this is a material breach...
Waterfront in Boston offers a job to Carol in Denver. Carol orally agrees to work for a year and moves her entire family there and begins work. After 3 months she's fired for no reason. Can Carol succeed in filing suit? Due to promissory estoppel, likely yes. She relied to her legal detriment on the contract being fulfilled.
Created by: fredrickss