Exam 9: Contract Formation

Vicky contracts with Rashad for the delivery of hospice services to benefit Sigmund.This is

Misrepresentation of a material fact can occur through conduct alone.

When Jeff's car breaks down,he asks Kwik Tow,Inc. ,to tow it from its location to Lou's 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

Deepwater Mining Corporation offers to sell East China Refining,Inc. ,a certain quantity of unrefined oil.If East China sends an acceptance via Deepwater's authorized mode of communication,it will be effective when it is

Under the mailbox rule,an acceptance takes effect at the time it is sent.

Panini Vittles,Inc. ,contracts with Qino to deliver its sandwiches.Later,the parties decide to cancel their contract.They can

Under a contract with Bucolic Farms,Agro Excavation,Inc. ,begins digging an agricultural pond.In mid-project,Agro asks for $15,000 over the contract price,claiming an increase in the "cost of doing business." Bucolic agrees but later refuses to pay.Their agreement is

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 $1,000.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 $1,200" BNI received the fax.The next day,Dan offered to conduct the audit for $800.On learning of Dan's offer,Carol immediately e-mailed BNI,agreeing to do the work for $1,000.BNI received this e-mail on May 7.Explain why BNI and Carol do,or do not,have a contract.

Grande Properties,Inc. ,and Investment Capital Corporation enter into a contract for a sale of land.To be enforceable,the contract must be in writing if the land is valued at

Kelsey promises to pay Jon,her son,$5,000 if he obtains his degree at Ivy University,where he is currently in his second year.Jon graduates.Kelsey is

To be effective,an offer must be communicated to the offeree.

Parties are not usually free to bargain as they wish.

As a general rule,contract duties can be delegated.

The only requirement of a valid contract is that it be voluntarily entered into.

Maya is a stockbroker.Nora believes that the price of OK Goods,Inc.(OKGI),a widely traded stock,is going to increase substantially.Through Maya,Nora buys 500 shares of OKGI at $10 per share,but the price soon drops to $2.Nora can successfully recover from Maya

If a contractual promise is not fulfilled,the person who made it is not subject to the sanctions of a court.

The rules of contract law are often followed to avoid potential disputes.

A contract is always enforceable even if one party is aware that the other party made a mistake of fact.

Jolie signs a contract with Keaton,an unlicensed physician,to perform plastic surgery-a medical procedure.This contract is enforceable by

Ed,a businessperson,is a friend of Fran,the owner of a candy store.Every day,Ed spends five minutes in Fran's candy store,looking at the candy and usually buying one or two candy bars.One afternoon,Ed goes into the store,looks at the candy,and picks up a $1 candy bar.Ed waves the candy at Fran without saying a word and walks out.Is there a contract If so,how would it be classified in terms of formation,performance,and enforceability