Exam 9: Introduction to Contracts and Agreement

An agreement consists of an assignment by one party and a delegation by the other party.

Quasi-contracts are also known as implied-in-fact contracts.

As of the publication of the textbook,how many states still allow a contract without consideration to be enforced if it is under seal?

Used Car Sales.Walter sells used cars.He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands.The first thing that Walter does is say that during the first week of December,he will give a $500 rebate on used cars under two years old.To spice things up,he also offers to sell any car on the lot that is under five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th.(Hula hooping was a practice popular some years ago in which a person,usually around the waist,would swing around a large hoop.)Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hula-hoop for ten hours straight.Walter put an advertisement pertaining to the rebate and hula-hoop opportunity in the local newspaper.The promotion went over very well.Although he had several on hand,Walter ran out of cars under two years old within one day.During the rest of the week,shoppers were told that no cars of that description were available.A customer named Sam was very unhappy when he discovered the next day that no cars under two years old were available.On December 7th,while Walter was watching the hula hoopers,Sally was shopping for a car.She was in college and did not have much money.She saw one,an older car,that she liked but she really did not know if it would run or not.She was going to talk to her parents.Walter eventually approached her and Sally asked him if he would take $3,000 for the car.Walter said,"Yes,sold." Sally tried to explain that she needed to talk to her parents first,but Walter would not hear of it.While Walter was still fuming from his encounter with Sally,Zack walked up and started to criticize the nature of Walter's inventory.Walter told him that he had great cars.Zack pointed at an old jalopy that was banged up,had 200,000 miles on it,and a cracked windshield.Zack said,"Sure,I'll pay $10,000 for that car." Walter said,"Sold." Zack said,"Wait a minute.I was only kidding." Walter said,"No way." Meanwhile all the hula hoopers dropped out prior to ten hours of hula hooping except for Barbara.One minute before the ten hours were up,Walter yelled out "I revoke!" Barbara completed the hula hooping anyway and asked for her car for $1,000.Walter refused saying that the offer was revoked.Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate.Additionally,Barbara sued Walter,and Walter sued Zack and Sally.What is the most likely result in the lawsuit brought by Barbara against Walter?

If nothing is stated to the contrary in terms of an auction,an auction is presumed to be ________.

Which of the following are formal contracts?

Which of the following is recognized by a court to prevent one party from being unjustly enriched at the expense of another party?

Indicate the ways in which an offer can terminate.

An example of a(n)________ is a bond used as bail in a criminal case.

If Maria says to Peter "I bet you a million dollars that it is going to rain tomorrow" and Peter knows that Maria is joking,Maria's statement would not be a valid offer due to the lack of:

Discuss the meaning of a void contract and a voidable contract,and the effect of a determination that a contract is voidable after one party has fully or partially performed.

The law of contracts is primarily ________ law.

Refusal to Pay.Business law professor Debby needed some yard work done.She told her class that she would give $50 to the first person who mowed her yard.She also entered into an agreement with Brenda to trim some shrubbery for $40.Max went to mow Debby's yard.Unfortunately,just as he finished mowing,a neighborhood dog bit him and he had to go to the emergency room for a couple of stitches.Debby refused to pay Max on the basis that the agreement was not in writing and that Max ended up being more trouble than he was worth.Max refused to pay the emergency room because he said that they did not have a binding,bilateral contract.Brenda refused to trim the shrubbery because she got a better offer and claimed that she was not bound by the contract until she started to perform.Which of the following is an appropriate characterization of the agreement between Debby and Max?

While negotiable instruments and recognizances are examples of informal contracts,letters of credit and contracts under seal are examples of formal contracts.

Used Car Sales.Walter sells used cars.He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands.The first thing that Walter does is say that during the first week of December,he will give a $500 rebate on used cars under two years old.To spice things up,he also offers to sell any car on the lot that is under five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th.(Hula hooping was a practice popular some years ago in which a person,usually around the waist,would swing around a large hoop.)Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hula-hoop for ten hours straight.Walter put an advertisement pertaining to the rebate and hula-hoop opportunity in the local newspaper.The promotion went over very well.Although he had several on hand,Walter ran out of cars under two years old within one day.During the rest of the week,shoppers were told that no cars of that description were available.A customer named Sam was very unhappy when he discovered the next day that no cars under two years old were available.On December 7th,while Walter was watching the hula hoopers,Sally was shopping for a car.She was in college and did not have much money.She saw one,an older car,that she liked but she really did not know if it would run or not.She was going to talk to her parents.Walter eventually approached her and Sally asked him if he would take $3,000 for the car.Walter said,"Yes,sold." Sally tried to explain that she needed to talk to her parents first,but Walter would not hear of it.While Walter was still fuming from his encounter with Sally,Zack walked up and started to criticize the nature of Walter's inventory.Walter told him that he had great cars.Zack pointed at an old jalopy that was banged up,had 200,000 miles on it,and a cracked windshield.Zack said,"Sure,I'll pay $10,000 for that car." Walter said,"Sold." Zack said,"Wait a minute.I was only kidding." Walter said,"No way." Meanwhile all the hula hoopers dropped out prior to ten hours of hula hooping except for Barbara.One minute before the ten hours were up,Walter yelled out "I revoke!" Barbara completed the hula hooping anyway and asked for her car for $1,000.Walter refused saying that the offer was revoked.Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate.Additionally,Barbara sued Walter,and Walter sued Zack and Sally.What is the likely result in Walter's lawsuit against Sally in which he claims that she must pay $3,000 for the car at issue?

The part of the Uniform Commercial Code that governs contracts for the sale of goods is Article ________.

What are the elements of a binding contract?

According to the Restatement of Contracts,silence can never constitute acceptance.

Used Car Sales.Walter sells used cars.He is seeking a way to increase sales and profits because he would like to take his girlfriend on a nice diving trip to the Grand Cayman Islands.The first thing that Walter does is say that during the first week of December,he will give a $500 rebate on used cars under two years old.To spice things up,he also offers to sell any car on the lot that is under five years old for $1,000 to the first three customers who can hula hoop ten hours straight on December 7th.(Hula hooping was a practice popular some years ago in which a large hoop would be swung around by a person,usually around the waist.)Walter was not very concerned about the hula hooping issue because he thought that no one would be able to hula hoop for ten hours straight.Walter put an advertisement pertaining to the rebate and hula hoop opportunity in the local newspaper.The promotion went over very well.Although he had several on hand,Walter ran out of cars under two years old within one day.During the rest of the week,shoppers were told that no cars of that description were available.A customer named Sam was very unhappy when he discovered the next day that no cars under two years old were available.On December 7th,while Walter was watching the hula hoopers,Sally was shopping for a car.She was in college and did not have much money.She saw one,an older car,that she liked but she really did not know if it would run or not.She was going to talk to her parents.Walter eventually approached her and Sally asked him if he would take $3,000 for the car.Walter said,"Yes,sold." Sally tried to explain that she needed to talk to her parents first,but Walter would not hear of it.While Walter was still fuming from his encounter with Sally,Zack walked up and started to criticize the nature of Walter's inventory.Walter told him that he had great cars.Zack pointed at an old jalopy that was banged up,had 200,000 miles on it,and a cracked windshield.Zack said,"Sure,I'll pay $10,000 for that car." Walter said,"Sold." Zack said,"Wait a minute.I was only kidding." Walter said,"No way." Meanwhile all the hula hoopers dropped out prior to ten hours of hula hooping except for Barbara.One minute before the ten hours were up,Walter yelled out "I revoke!" Barbara completed the hula hooping anyway and asked for her car for $1,000.Walter refused saying that the offer was revoked.Sam was very angry and sued Walter for not having a car available that was under two years old so that he could get a good deal and a $500 rebate.Additionally,Barbara sued Walter,and Walter sued Zack and Sally.Which of the following is the likely result in the lawsuit brought by Sam complaining that Walter ran out of cars available for a rebate?

In a(n)________ contract,the offeror wants a performance to form the contract.