Exam 8: Contracts: Enforceable Agreements

Which of the below is an example of a novation? ​ ​

In terms of legal effect, contracts are classified as ____________ , _________________ , or _________________ .​

A minor generally may disaffirm a contract before reaching majority. The minor may also do so within a reasonable time after reaching majority, but if he or she fails to do so, the contract is ratified and binding.​

Fill in the appropriate term. (             )   consists of two parts: something of legal value given in exchange for the promise and a part of a bargained-for exchange. A(n) (           )   gives one of the parties the right to buy (or sell) something at a certain price at a certain time. A rejection of the original offer which is also a new offer is called a   (                 )   . A (                  )   mistake about a   (          )   fact will enable either party to rescind the contract. When there is a valid ( ______ ), one of the original parties to the contract is completely relieved of all former obligations under the contract. The validity of a contract that has been fully performed cannot be challenged for failure to comply with the ( ______________________).

Genuine, abiding love is priceless and as such is the highest form of valid consideration in contracts.​

Broadnorf Warbeagle is specifically designated to receive cash benefits of $2,000 from Ferd under a contract solely between Cantwell and Ferd. Cantwell owes Broadnorf $4,000. Ferd had never heard of Broadnorf before his recent contract with Cantwell. ​ Cantwell, by entering into his agreement with Ferd, has ​ ​

Sara Sou is "bearish" and is of the opinion that the price of Muggle Company stock will drop within a few weeks; Stefan Gordon is "bullish" and thinks the price will go up. Sara sells her 1,000 shares of Muggle Co. stock to Stefan for $100 a share. If, within a few weeks, the price of a share of Muggle Co. stock​

There are two parties to a contract; the ____________ is the person to whom the offer is made.​

Sandy Cowden inherited $700,000 from her grandfather. Reginald LaRocco is a local businessman who operates an almond ranch and is an insurance salesperson. He owns several land parcels in the  local community and wants to sell some of this land to Sandy. He convinces Sandy to buy Riveracres, Reginald's ranch on the outskirts of town. Reginald tells Sandy that there are 130 acres on the ranch. In fact there are only 90. Sandy has the ranch surveyed before buying and learns that it has only 90 acres. Reginald tells Sandy that he paid $50,000 for the land 40 years earlier and it is worth 10 times that today. He actually only paid $25,000 for the land which he purchased 53 years ago. He sells it to Sandy for $380,000 and three months later Sandy finds out a similar adjoining parcel sold for $210,000. Sandy wants to get out of the Riveracres contract. Will she be able to do so? Why or why not? Explain.​

A(n ) _ _ _ _ _ _ _ _ _ _ _ agreement gives one of the parties the right to buy (or sell) something at a certain price within a specified future time.​

When the Statute of Frauds requires that a contract be in writing, how much of a writing is  required? Is a complete, written and signed contract necessary? If not, what satisfies the requirement?​

Sometimes, the parties to a contract specify in advance what the damages shall be in the case of  breach. These provisions are called ___________________ clauses.

An agreement that cannot be enforced is ____________ and is not really a contact at all.​

A contract drafted by a dominant party and then presented to the other party-the adhering party- on a "take it or leave it" basis is called a _________________ and it is generally ________________ .​

Parties to a contract may specify in advance the amount of damages that must be paid in case of breach. These liquidated damages​

Heavyweight boxers Mike Tyson and Evander Holyfield met in 1997 in Las Vegas for a championship match. During the third round of the fight, a desperate Tyson bit off a piece of Holyfield's ear. The fight continued until moments later when Tyson bit Holyfield's other ear. Tyson was disqualified. Some fans were so outraged that they sued Tyson and the fight promoters seeking a refund. They sued on the basis of, among other theories, a claim to being third-party beneficiaries to various contracts into which the defendants had entered. The fans:​

The definition of an executed contract is an illegal agreement calling for harm to another person for a specified fee or price.​

Vian, Mariah Carey's stepfather before she achieved stardom, was in the business of designing, producing, and marketing gift and novelty items. He claimed that Carey agreed orally to give him a license to produce "Mariah dolls," which would be statuettes of the singer that would play her most popular songs. Vian asserted that this right was given in exchange for his financial and emotional support of Carey, including picking her up from late-night recording sessions, providing her with the use of a car, paying for dental care, allowing her to use his boat for business meetings and rehearsals, and giving her various items to help furnish her apartment. Vian based his claims on three conversations, twice in the family car and once on Vian's boat. Vian said to Carey "Don't forget about the M riah dolls." According to Vian, on one occasion, Carey said, "Okay." On other occasions, she merely smiled and nodded. Carey said she thought it was a joke. Is there a contract?​

A contract is a legally binding agreement to do or not to do a certain thing, and is enforceable in court.