Exam 12: Nature and Classes of Contracts: Contracting on the Internet

A void contract is one that is otherwise valid but may be rejected or set aside by one of the parties.

A contract for an amount greater than $1 million must be made under seal or it is not binding.

Because transfer of value is essential to a valid contract, contracts cannot arise in the performance of personal services.

Louise owned a house next to Robert's house. Robert made a contract with Midcity Painters to paint his house. The painters arrived to paint Robert's house, but mistakenly painted Louise's house. She saw the painters at work and made no comment. Later, Midcity Painters sent Louise a bill for painting her house. She claimed that she was not liable because she had not made any contract with them. Is this a valid defense?

A party to a contract may be:

A quasi contract may arise in a situation in which no contract exists.

A contract is:

A contract requires:

When a contract is fully performed by one party, it is called a unilateral contract.

Whenever a person receives a benefit for which payment has not been made, there is an unjust enrichment and the value of such benefit must be paid to the person conferring the benefit.

The subject matter of a contract may relate to:

A contract can only involve two parties.

When Gordon told Hanson that he was considering selling his house, Hanson offered to buy it. Gordon and Hanson entered into a contract in which Hanson paid Gordon $1,000 in cash for the right to buy Gordon's house for $150,000 in the event Gordon decided to sell it. Two weeks later, Jones offered Gordon $200,000 for his house, and Gordon agreed to sell it to her for that amount. Hanson sued Gordon to force Gordon to sell the house to him for $150,000, rather than to Jones for $200,000. Identify the probable result of the action. What type of contract, if any, was entered into between Gordon and Hanson?