Exam 8: Contract Formation

How is prior consideration viewed when legally enforcing a contract?

The legal power created in the offeree to bind the offeror in a contract lasts forever.

The advantage of the mailbox rule is that the offeror can revoke the offer even when the offeree has accepted it.

Systek 22 Inc.made a promise to Garrett offering him a job with an annual salary of $150,000 and at least two years of employment.Since Garrett had to move to New York for the new job,Systek 22 also offered to reimburse all of his moving expenses.Based on this promise,Garrett resigned from his job at another firm that offered him an annual salary of $100,000.When Garrett moved to New York,his employment with Systek 22 was terminated,because the company found a candidate who was willing to work for a lesser salary.Which of the following is true of this situation?

Quasi-contracts are usually applied by courts in cases where the contract is unenforceable for some reason,such as a lack of capacity of a party in a contract.

Kaylie and Kumar visit Scarlet Jewels to buy a diamond engagement ring.The jeweler presents them a zircon ring and intentionally calls it a diamond ring.Kaylie loves the ring,so Kumar buys it.Kaylie and Kumar later discover that the ring is a zircon ring.Analyze on what grounds Kumar can sue the jeweler.

Contracts are legally enforceable promises.

Smith Inc.sends a letter dated August 1 to Cervaille Stores,offering to sell 20 table lamps to Cervaille Stores at $80 each.Cervaille Stores provides a consideration of $160 to Smith Inc.to keep the offer open for at least two weeks.In the second week of August,Smith Inc.receives an offer from Shine Retailers Inc.to purchase the table lamps at a price of $85 each.Can Smith withdraw its offer made to Cervaille Stores?

Fixman Inc.agrees to renovate Melanie's house for $50,000.During the renovation,Fixman demands an additional $10,000 to complete the work,to which Melanie agrees.Fixman can sue Melanie if she fails to pay the additional amount.

A voidable contract is an agreement when at least one party has the right to withdraw from the promise made without incurring any legal liability.

An important exception to the rule requiring consideration to support a promise is the doctrine of ______.This doctrine arises when a promisee justifiably relies on a promisor's promise to his or her economic injury.

Mateo applies for a loan of $80,000 to purchase land from Chad.Chad makes an oral promise to Mateo that he will allow Mateo a period of two months to accept his offer.Chad refuses to give this promise in writing.Discuss how Mateo can ensure that the owner does not sell the land to another buyer in two months.

In the context of contracts formed by promises,which of the following is an agreement containing mutual promises?

Pomona hires Tom to renovate her farm house and repair some minor damages for $1,000.Tom informs her that it will take him at least six months to complete the work.Discuss whether the parties in question have to enter into a written agreement for such a contract to be enforceable.

Steve,who is 17 years old,intentionally misrepresents his age while buying a television set from Rainbow Electronics Inc.His father discovers this and forces Steve to return the television set and get the money back.Steve visits Rainbow Electronics and disaffirms the contract to buy the television set.Analyze the case.

What is the capacity of an intoxicated and a mentally incompetent person in a contract?

Explain the mailbox rule.

Laborers working on a building are promised by their contractors that their wages would be paid at the end of every month.The laborers also in return promise to work from the beginning of the subsequent month.When the laborers have worked for the entire duration of the month and are awaiting their wages at the end of the month,the contract is ______.