Exam 9: Formation in Traditional and E-Contracts

In contract law,"consideration" refers to the courtesy that one party shows another in negotiating a deal.

Legally,a minor may not contract with an adult.

If a voidable contract is avoided,the parties to it are released from it.

An online offer should include provisions relating to dispute settlement.

An offer must be practical to be effective.

A letter of credit is a formal contract.

When Jeff's car breaks down,he asks Kwik Tow,Inc.,to tow it from its location to Loyal Repair Shop.There is no discussion of a price,and Jeff and Kwik do not sign any documents.After the tow,Kwik sends Jeff a bill.With respect to Jeff's obligation to pay the bill,this is

Scot and Tiffany enter into an implied contract.The parties' conduct

An executory contract is one that has been fully performed.

Employment Sources,Inc.,enters into a contract with Fred.If Fred is a minor,this contract is most likely

On May 1,Brand Name Industries,Inc.(BNI),sent Carol a letter,via overnight delivery,offering to employ her to audit BNI's financial statements for the current year for $10,000.In the letter,BNI stated that Carol had ten days to accept.On May 5,Carol sent BNI a fax that stated,"The price for the audit seems too low.Would you consider paying $12,000" BNI received the fax.The next day,Dan offered to conduct the audit for $8,000.On learning of Dan's offer,Carol immediately e-mailed BNI,agreeing to do the work for $10,000.BNI received this e-mail on May 7.Explain why BNI and Carol do,or do not,have a contract.

A contract to do something that is prohibited by law is void.

There are no exceptions to the rule that contracts voluntarily entered into will be enforced.

Myra owns a house,which she advertises for sale for $200,000.On May 1,Nicole offers Myra $180,000 for the house.On May 5,Myra delivers to Nicole a form that includes additional terms but does not state a price.At 9 a.m.on May 6,Nicole signs the form and gives it to Odell,her administrative assistant,with instructions to mail it.At 10 a.m.,Myra calls to tell Nicole that the deal is off.The next day,Odell mails the signed form to Myra.When Myra refuses to sell the house,Nicole files a suit against her,alleging breach of contract.Myra claims that there was no contract.What are arguments supporting each party's position? What is the court likely to rule? Explain.

Wanda tells Vito that she would like to buy his Chocolate Goodies store.Vito declines,but later decides to sell and sends to Wanda,and others,a flyer describing the details.Wanda responds with a letter of "acceptance." Wanda and Vito have

An invitation to negotiate-"can you afford this"-is an offer.

On Monday,Neil tells Outdoor Landscaping,Inc.,that he will pay Outdoor $500 if a variety of tasks are completed by Friday.On Wednesday,when Outdoor is more than half done with the work,Neil says that he has changed his mind.These parties had

Deb buys a song through eSongs,an online music vendor.Before completing the purchase and downloading the song,Deb must agree to a provision not to sell copies of the song.This provision is

Kim sends an offer to Leo to cut down and remove a tree for $200.Kim says,"If you say nothing,I will consider you to have accepted my offer." If Leo does not respond,he will be deemed to

Mica buys "Nature," a movie,through Open View,an online entertainment vendor.Before completing the purchase and downloading "Nature," Mica must review a warning not to make and sell a copy of it.This warning is