Exam 6: Overview and Formation of Contracts

Bud calls Lou and says,"I'll sell you my car for a thousand bucks,interested?" Lou says,"I'll look it up on the Internet.If the Blue Book price is close,I'll pay you $1000 in the morning." At sunrise Lou shows up with $1000.00.

Helen's cat Fluffy has run away and she places reward posters throughout her neighborhood.Mark sees the reward poster and spends the next six hours searching for Fluffy.While Mark is searching the neighborhood,Fluffy gets hungry and comes home.

A contract formed from a party's actions rather than their words is called a/an ________ contract.

It is not possible for a total stranger with no ties to the alleged victim to commit undue influence over another.

Generally,mutual mistakes will often lead to the court allowing an avoidance of a contract; however,a unilateral mistake is not usually grounds to cancel a contract.

A contract that is so blatantly unfair that it shocks the objective conscience would be rendered unenforceable and subject to the defense of _______.

Contracts that involve goods and services are known as ________ contracts.

Dick has made a statement that the average person would realize is puffery.Dick is guilty of:

Ralph calls Alice and asks her out on a date to see a movie.Alice agrees.This is the type of promise that the courts will enforce as a contract.

Which of the following is not required for promissory estoppel to apply?

If you give a truthful answer to a question during contract negotiations,but something then happens that makes that answer now false,you are not obligated to notify the other party unless they ask the question again.

If an offer does not specify a required type or form of acceptance,the offeree is required to provide a written acceptance for valid mutual assent to be proven.

According to the mailbox rule,a revocation is valid the moment that it is mailed.

Jon works for a major bank.The revised employee handbook that he received five years ago says that all employees with 25 years of service will receive a retirement party.He is about to hit 25 years of service and has announced his retirement.His manager tells him that the company,based on his years of service,will throw him a party and present him with a gold watch.Jon retires on his 25^th anniversary and his manager announces that the company will not throw the party or give him the watch.

In Lucy v.Zehmer,the two parties were drinking in a bar when Lucy offers to buy Zehmer's farm.After some negotiation a written contract was executed.Zehmer claimed that the whole episode was only a joke and he never intended to sell the farm.The court determined that:

In 1975,Denise purchased a used Volkswagen Beetle from Don.At the sale,Don produced a title to the car that said it was a 1972 car.In 1976,Denise sold the car to Ed,delivering a title stating that the car was a 1972 Volkswagen Beetle.Both titles were genuine and issued by the proper state office.In the 1970's,Volkswagen Beetles underwent essentially no body changes and quite frankly the cars were indistinguishable from year to year except to experts.When Ed takes the car to his mechanic for some routine maintenance,he is told that the car is actually a 1970,not a 1972 model.Ed immediately calls Denise and accuses her of fraud.Denise calls Don and is told that the car was indeed a 1970 car but he had replaced the motor with a new 1972 motor and had the car reregistered for the year of the new engine which at the time was legal in that state.Has Don committed an actionable wrong? Has Denise committed any form of an actionable wrong?

In many states,if a person has been declared incompetent,contracts that person enters into are classified as void ________ or not valid from the onset.

An agreement to purchase $499 worth of land does not have to be in writing to be enforceable.

A minor's contract for actual necessities does not require that the minor be mentally competent for the contract to be valid.

Use of unfair coercion to force another into a contract constitutes _______.