Exam 12: Defenses to Contract Enforceability

A primary obligation is created when a party agrees to pay for something on the condition that a certain other party does not make the payment.

Lou uses undue influence to induce Mona to sign a contract to invest her student loan funds in National Overseas Bank. Mona may

Miranda orally promises Nicky that she will buy his fishing trawler for $20,000. If Nicky acts in reliance on this promise, under the doctrine of promissory estoppel, the transaction is enforceable by

Byron agrees to sell to Charity, for $1,500, a remote parcel of land. They believe the land to be worthless, but beneath it is a gold mine. A court would

A mistake in value will rarely enable a party to a contract to avoid the contract.

An innocent party may never rescind a fraudulent contract.

Jane and Phil enter into a contract, but make a bilateral mistake. For the contract to be rescinded by either party, the bilateral mistake must be about

For a party to a contract to receive relief from either a unilateral or a bilateral mistake, the mistake must involve a material fact.

Under the Statute of Frauds, oral contracts are void.

Atlantic Applications, Inc., and Pacific Resale Company (PRC) enter into an oral contract for Atlantic's sale to PRC of six used forklifts for $1,900 each. Before PRC takes possession of the items, this contract is enforceable by

In a transaction for the sale of a warehouse, Standard Storage Company tells Tri-County Investment Corporation that the office furniture is included. The contract says nothing about office furniture, but does state, "This document supersedes all oral promises relating to the sale." Is the furniture part of the sale? Why or why not?

Scienter exists if a party makes a statement that he or she believes to be scientifically verifiable.

Brenda induces Carmen to enter into a contract for the sale of a gas station and convenience store. Brenda tells Carmen that she is the sole owner, but their signed, written contract lists Brenda's parents as co-owners. The parol evidence rule governs

James is in an art gallery when Mitch, who has no special art expertise, points to a painting and says, "That artist is so good. That piece will be worth a fortune in a few years!" James buys the painting, which does not turn out to be valuable. James tries to return the painting and recover his purchase price. A court will

Evermore Sports Gear Corporation and Trendy Goods, Inc., enter into a contract. To be enforceable, the contract must include

A deceived person must have a justifiable reason for relying on a misrepresentation.

An oral contract may be enforceable if the person making the promise could foresee that the promisee would rely on the promise.

A party's oral agreement to pay another's debt is NOT enforceable if the party's main purpose is to derive a benefit for himself or herself.

The primary purpose of the Statute of Frauds is to ensure that all parties to a contract understand all the terms of the contract.

Chloe files a suit against Digital Associates, Inc. (DAI), to enforce a contract. The only written evidence of the contract is a memo on DAI's letterhead as signed by a DAI officer in its files. The contract can be enforced if the memo includes