Exam 6: Overview and Language of Contracts

Justin is 17 years old and just signed a contract to buy his first car. This contract is unenforceable.

Valid contracts can be written or oral.

A contract for installing a new furnace is an example of a hybrid contract.

Real estate deeds and mortgages that require a seal to be enforceable are considered:

When a party to a contract is of proper age and mental competence, it is said that he or she has:

Only written agreements are enforceable as contracts by courts.

Something of value that is exchanged as part of an agreement is called:

The reason and outcome of the contract must be a ___________ purpose.

In Georgia Malone & Company Inc., v. Ralph Rieder et al., Malone was a real estate firm that accused a former potential buyer of selling confidential information Malone had gathered about the sale property. The former buyer sold the information to a competing real estate firm. How did the court rule in the case, and what must a plaintiff show to recover under this equitable theory?

Why is it so important that the law of contracts be ordered and strong, particularly with regard to the business world?

Legal purpose means the contract itself does not violate the law.

April is at work when a commercial painter's truck pulls up in front of her house. After checking the address on his assignment sheet, the painter starts erecting ladders against April's house and unloading brushes, rollers, and cans of paint. April has not contracted with this company, and the company has mistakenly put the wrong address on the painter's assignment sheet. When April arrives home, the painter is just finishing and he presents her with a bill. Is she obligated to pay? Why or why not?

What are the categories of contracts in the following scenario? An avid skier, Dr. Pearson decides to purchase a new pair of skis. He goes to a local ski shop and is assisted by the shop's owner as he looks at several pairs. He really likes a pair that costs $1,085, the most expensive set in the store, and says he will buy them if the owner will include bindings. The owner agrees and prints an order form with instructions to the shop staff for fitting the skis with bindings. Dr. Pearson pays for the skis and collects his receipt. The shop staff prepares the skis, and Dr. Pearson returns the following week to pick them up, ready to hit the slopes.

Ally, a minor, purchases a car from a used-car dealer. The law allows minors the right to cancel a contract until the time the minor turns 18. The contract between Ally and the dealer is:

A(An) ___________ contract is one in which each component of the contract is dependent on every other component.

Any meeting of the minds resulting in mutual assent to do or refrain from doing something is called a contract.

Will and Kendrick live in a state that requires that contracts involving transactions over $500 be in writing. If they enter a verbal agreement to buy a car for $1,500, this contract is:

Mike is walking through a parking lot and finds Kathy lying unconscious. He puts her in his car and takes her to the hospital. The hospital saves her life, and when she becomes conscious, it presents her with a bill.

A unilateral contract is formed by an exchange of promises.

A professor tells a student that if she writes a 5,000-word paper on the evils of plagiarism by May 13, he will pay the student $750.