Exam 8: Contract Formation

Juan offers to sell his cycle to Charles for $1,000.Charles agrees saying,"I will pay you $1,000,if you give me an extra tire with the cycle." This is an example of a binding contract that is created between Juan and Charles as a result of the mirror image rule.

A party who is injured due to another's fraud generally has the option to avoid the contract and seek return of any consideration conveyed.

Which of the following statements is true about the laws under the Uniform Commercial Code (UCC)?

The Uniform Commercial Code (UCC)applies to individuals as well as firms.

Shane wants to sell his car.He accepts Layla's offer and sells the car at $15,000.Layla is the offeree.

Odelia offers in writing to sell her ranch to Erik for $150,000.A week later,when Erik is about to mail his acceptance,Odelia dies in a motor vehicle accident.Odelia's heir informs Erik that she is no longer interested in selling the ranch.Erik decides to move to court,stating that the offer cannot be revoked since he had already accepted the offer and was about to mail his acceptance.Analyze the case and discuss what the court is likely to rule.

Dustin,who is 17 years old,purchased a car from Speed Auto Sales Inc.for $1,000.The following year,Dustin's father gifted him a brand new car on his 18th birthday.Dustin returned the car that he had purchased to Speed Auto Sales the next day,and he demanded his money back.At the time of disaffirmance,Dustin was 18-the age at which he was considered an adult in his jurisdiction.Will this disaffirmance be enforceable in the court of law?

In which of the following cases does the legal power of the offeree to bind the offeror end?

Tristam,an insurance agent,wants Philomena to purchase the insurance policy of his choice.Despite Philomena's resistance to accept his offer,Tristam compels her to purchase the policy by exerting his physical force on her and forces her to sign the insurance documents.Which of the following has been most likely used by Tristam to complete the contract arrangements?

A(n)______ contains a specific promise and a specific demand.

Manuel and Janice enter into an oral contract which states that Janice will sell her house to Manuel.Manuel makes a partial payment to Janice as per the contract.When Janice vacates the house,Manuel hires a contractor to build a fence around the backyard to ensure security.However,Janice revokes her offer saying that a third party is paying a higher price for the house,and her offer to Manuel was not in written form.Manuel,who has spent $5,000 on the fencing,decides to sue Janice.Analyze the case.

Tony's Carpets Inc.wants to charge $9.80 a yard for installing a carpet for Serenity Bookstore but accidentally states $8.90 a yard in the bid.Serenity Bookstore accepts Tony's Carpets' bid.Tony's Carpets made a ______.

Zainab wants to sell her house to Tiffany for $300,000.Tiffany responds stating that she will be glad to buy the house at $300,000 and asks if the price includes the furniture.Zainab says that the furniture is not included.Tiffany agrees to pay $300,000,but Zainab demands $350,000,stating that Tiffany's counteroffer terminates the earlier offer.Discuss the case.

Cecilia and Ellen meet with an accident as a result of Ellen's speeding.Cecilia suffers injuries and "cannot remember" what caused the accident due to aftershock and trauma.Ellen,who suffers injuries herself,takes advantage of the situation and convinces Cecilia that the accident was no one's fault.They sign a contract agreeing that neither will sue the other for damages.Analyze the case if the contract is challenged in court.

Brett offers to sell his old but functioning cell phone to James for $65.James says he will accept the offer if Brett lowers the price to $60.James has

Ivan places an oral order for 30 computers with a local manufacturer.He specifies the unique combination of hardware and software that is to be part of the computers.He also informs the manufacturer that he will not require such computers again in the future.The manufacturer informs Ivan that the total cost of these unique computers would amount to $66,000 and begins production of the computers.Analyze whether this oral contract is enforceable in a court of law.

Aria asks Jessica if she can borrow an outfit for an office party and Jessica agrees.When Aria picks an outfit,Jessica refuses to give it to her.Which of the following statements is true of this situation?

A minor can disaffirm a contract and legally recover any consideration that has been given to an adult,even if the minor cannot return the adult's consideration.

A(n)______ is one when parties have not performed their agreement.

The mirror image rule is the same under common law rules and the Uniform Commercial Code (UCC).