Exam 11: Contracts and Sales: Performance, Remedies, and Rights

A contract with a minor is voidable at the minor's option.

The Jameses were negotiating the purchase of the Smith's home but requested a termite inspection. The inspection came back clear from ABC Bug, Inc. The Jameses bought the house and immediately began to notice signs of termite infestation. They called Goodbye Bug, Inc., and their technician confirmed significant termite infestation and damage. The technician said he had inspected the home for the Smiths just a few weeks earlier, but was never asked to repair and exterminate. The Jameses want out of the house and the contract. Do they have a basis?

Rescission is another term for consideration.

Which of the following contracts would be void?

Lisa and Mandy have a contract. Mandy wants out of the contract; Carla Sue is willing to take Mandy's place, which is satisfactory with Lisa. When the Carla Sue for Mandy exchange is made, this is known as:

Puffing is sufficient grounds for setting aside a contract on the basis of misrepresentation.

A lawyer/client relationship is an example of a confidential relationship.

Which of the following must be made clear in contracts for home equity loans?

A force majeure clause is a clause that prevents additional terms in acceptances from becoming part of the contract.

Why are some types of debts not discharged in bankruptcy?

Distiguish among fraud, duress and undue influence. Give examples of each.

Teshawn and Amber have a contract with a clause that states that in the event of a breach, the breaching party will pay the non-breaching party $5,000.00. The type of clause is referred to as a _____ clause.

Describe the changes that the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 made in prior bankruptcy law.

The failure to deal fairly with a party to a contract can result in damages for breach.

A life insurance policy beneficiary is a good example of a:

James Krieg has finished law school but has unsuccessfully taken the bar exam twice. Krieg is running low on patience and cash. He has begun writing wills to see him through this time of crisis and is charging $200 per will. Some of his will clients have refused to pay Krieg and he wishes to take them to a small claims court. Which of the following statements is true?

Scienter is required for misrepresentation.

The seller of a dry cleaning business has agreed not to open another dry cleaning business for two years within a one-mile radius of the sold business. Such an agreement:

An example of a condition precedent in a home purchase contract is that the buyer must qualify for financing first.

In a relationship of dependence, the failure to deal fairly can result in liability for the party controlling the contract term.