Exam 9: Introduction to Contracts and Agreement

Saturday Auction.Barry,an auctioneer,was holding an auction on a Saturday morning.At the beginning of the auction,Barry announced that the auction was being held without reserve.Helen,Mary,and Chris were all in attendance.Helen saw an old cash register with a stuck drawer that she thought would look great in her den.The auctioneer put the cash register up for sale,noting that the drawer was stuck and that no one really knew what was inside.Helen bought it for $20.At the same auction,Mary saw a great deal on a used table.She bid $20 on it.No one else bid anything.Barry announced that $20 was clearly insufficient for the table,that it was worth much more than that,and that he was taking it out of the auction.Chris started bidding on a diamond ring for his girlfriend.He bid $2,000.Just as Barry was getting ready to say "Sold," Chris looked over at his girlfriend,decided that he was not sure about marriage,and leaped up yelling,"I revoke." Barry,however,immediately yelled "Sold." When she got it home and broke into it,Helen discovered that the cash register actually contained $5,000.Unfortunately,Helen had a teenage son named Tad who started bragging to his friends about the family's good fortune.Barry heard about what had happened and sued Helen for return of the $5,000.Mary sues Barry attempting to obtain possession of the table.Barry sues Chris attempting to enforce a contract for the sale of the engagement ring.What is the likely result in the lawsuit brought by Mary against Barry for the table?

Wally wants to sell his used computer to Susan for $400.Susan says that she will think about it.Wally tells Susan on Monday that if she wants the computer,she must call him on his cell phone by 6 p.m.,the next day.That next morning Susan decides she does want the computer,but she has misplaced Wally's cell phone number.She finds his address in an old campus directory.Therefore,she drops a note to him through the United States Postal Service telling him that she wants the computer.Meanwhile,on Wednesday,before he gets Susan's acceptance,Wally sells the computer to Alice.When Wally calls Susan to tell her the bad news,Susan tells Wally that she accepted the contract and that under the Mailbox Rule,he is liable to her for damages computed by the difference between $400 and the amount it costs her to obtain a similar computer.Who will win in the dispute between Wally and Susan and why?

Saturday Auction.Barry,an auctioneer,was holding an auction on a Saturday morning.At the beginning of the auction,Barry announced that the auction was being held without reserve.Helen,Mary,and Chris were all in attendance.Helen saw an old cash register with a stuck drawer that she thought would look great in her den.The auctioneer put the cash register up for sale,noting that the drawer was stuck and that no one really knew what was inside.Helen bought it for $20.At the same auction,Mary saw a great deal on a used table.She bid $20 on it.No one else bid anything.Barry announced that $20 was clearly insufficient for the table,that it was worth much more than that,and that he was taking it out of the auction.Chris started bidding on a diamond ring for his girlfriend.He bid $2,000.Just as Barry was getting ready to say "Sold," Chris looked over at his girlfriend,decided that he was not sure about marriage,and leaped up yelling,"I revoke." Barry,however,immediately yelled "Sold." When she got it home and broke into it,Helen discovered that the cash register actually contained $5,000.Unfortunately,Helen had a teenage son named Tad who started bragging to his friends about the family's good fortune.Barry heard about what had happened and sued Helen for return of the $5,000.Mary sues Barry attempting to obtain possession of the table.Barry sues Chris attempting to enforce a contract for the sale of the engagement ring.What is the likely result in the lawsuit Barry brought against Chris?

The person who makes an offer is called the ________.

Constance asks Kathy if Kathy will sell her used business law book for $50.What is the status of the negotiations?

A quasi-contract is an agreement by the parties to prevent unjust enrichment.

If a firm enters into a contract governed by the Uniform Commercial Code in Ohio,it would be operating under:

Wrong Deck.Penny hires Jackson to paint the back deck on her house.She agrees to pay him $200 for the job and he accepts,sight unseen.They enter into the agreement on Tuesday,and he is to paint the deck on Saturday.When Jackson arrives,neither Penny nor her neighbor is at home.He mistakenly paints the neighbor's deck.Penny calls him the next day and asks him why he did not paint her deck.He informs her that he did paint the deck.It is then realized that he mistakenly painted the neighbor's deck.Penny tells him not to worry because the neighbor will be required to pay him.Jackson says that if the neighbor does not pay,he expects all of his funds from Penny.What was the status of the agreement between Jackson and Penny as of Tuesday when they agreed upon the price for the job?

Which of the following is the source to consult in order to understand how the various member states of the European Union regulate contracts?

If a(n)________ contract exists,the administrator of an offeror's estate must hold the offer open until it expires in accordance with the contract.

Which of the following is the first element of a contract?

When acceptance is examined under the common law,how do the basic requirements for a valid acceptance compare to those for a valid offer?

The legal ability to enter into a binding agreement is known as ________.

If Bill overhears Sam offer to sell his car to Helen for $5,000,Bill can walk over to Sam and form a contract by accepting the offer.

Which of the following represent(s)a lack of genuine assent?

Wrong Deck.Penny hires Jackson to paint the back deck on her house.She agrees to pay him $200 for the job and he accepts,sight unseen.They enter into the agreement on Tuesday,and he is to paint the deck on Saturday.When Jackson arrives,neither Penny nor her neighbor is at home.He mistakenly paints the neighbor's deck.Penny calls him the next day and asks him why he did not paint her deck.He informs her that he did paint the deck.It is then realized that he mistakenly painted the neighbor's deck.Penny tells him not to worry because the neighbor will be required to pay him.Jackson says that if the neighbor does not pay,he expects all of his funds from Penny.Which of the following is true regarding Jackson's assertion that Penny must pay him?

Under the common law,the agreement begins when one party,the offeror,makes an offer to another party,the offeree.

Millie mows her own yard to save money.Her neighbor Paul,however,hires a lawn service to mow his yard.One day Millie is looking out the window and sees Paul's lawn service drive up.Surprisingly,they begin to mow her yard,not Paul's yard.Millie thinks that is great and keeps her mouth shut while they mow the yard.Later,she gets a bill.She calls the owner of the lawn service and says that she does not have to pay because there was no contract in which she agreed to have her yard mowed.Discuss whether the lawn service is entitled to any recovery and why or why not.

Gretchen offers $100 to anyone who can return her lost dog,Sparky.Haley returns the dog and requests the money.Gretchen says that there is no binding contract.Which of the following is true regarding Gretchen's statement?

In the absence of a time condition in an offer,the offer will expire ________.