Exam 7: Contracts

Fact pattern 7-1 Prudence offered to sell her car to Danny for $3,000.Danny was not sure what to do,so he asked Prudence if she would hold the offer open for him for one week for $50.Prudence said sure.Meanwhile,the next day,Bobby offered Prudence $3,500 for the car,and Prudence sold it to him on the spot.When Danny came to pick up the car the next day,it was gone.Prudence gave Danny his $50 back and told him that was her only obligation and that if he had any complaints,he could take it up with Bobby.Danny found a similar car the next week for $3,500 and purchased it. -Refer to fact pattern 7-1.What damages,if any,could Danny likely collect against Bobby in litigation over the car?

Courts enforce liquidated damages as a form of a penalty.

Reliance damages are awarded in addition to expectation damages.

Which of the following are damages that compensate the plaintiff for any expenditures it made in reliance on a contract that was subsequently breached?

Fraud in the ________ occurs when a party is persuaded to sign one document thinking that it is another.

Most advertisements are treated not as offers but as invitations to negotiate.

Define the term "consideration" as it is used in contract law.

A counteroffer does not terminate the original offer.

Helen tells her nephew,Bernard,that she will pay him $100 if he will stop smoking for six months.Helen was hopeful that if Bernard stopped smoking for six months,he would stop altogether.Bernard stops smoking for six months and then resumes his smoking.Helen will not pay him.She says that the type of promise she made cannot constitute a binding contract and that,furthermore,it was at least implied that he would stop smoking for good. Can Bernard legally collect $100 from Helen?

If a contractual promise is broken,the person to whom the promise was made,the __________,has certain legal rights against the person who made the promise,the ________.

Which of the following are damages that give the plaintiff the benefit of its bargain,putting the plaintiff in the case position it would have been in if the contract had been fulfilled?

Any breach of a contract discharges the nonbreaching party from its obligations and provides grounds to sue for damages.

Fully discuss the following issues involving mistake. a.When will a unilateral mistake of fact by one party make a contract voidable? b.What will a court consider in determining whether to undo a contract based on a mistaken assumption of fact by both parties?

An offeror may not revoke an offer before the offeree has had a reasonable time in which to consider it.

What are the elements necessary for a valid contract? Define and discuss these elements.

Most non-English-speaking countries follow the common law tradition.

Fact pattern 7-2 Hester offers to sell her house to Frank for $250,000.Frank says that he would like to think about it,and Hester says that is fine.The next day,Martha,Hester's friend,says that she will give Hester $240,000 for the house.Hester really likes Martha more than Frank and signs a contract to sell the house to Martha.Later that day Hester sees frank walking up her driveway.She immediately opens the window and yells "I revoke the offer on the house" before Frank says anything.Frank replies that he accepts the offer and expects to purchase the home. -Refer to fact pattern 7-2.Which of the following is rue regarding whether Hester's attempted revocation was effective?

An objective standard is used in determining whether an offer has been made.

Consequential damages are compensation for losses that occur as a foreseeable result of the breach.

A __________ is a provision specifying which country's courts will have exclusive jurisdiction over any dispute involving a multinational contract.