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Business Law HW 2
Summary of homework questions for Homework 2 in Fundamentals of Business Law
| Question | Answer |
|---|---|
| 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
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