Exam 9: Introduction to Contracts and Agreement

Reference - Bank Robbery. Safe Bank was robbed of a significant sum of cash by Victor. Safe Bank offered a reward of $10,000 for anyone who captured or provided information leading to the capture of Victor. Ted, a police officer in town, promised Safe Bank officials that he would apprehend Victor. While on duty, Ted arrested Victor at a hamburger joint in town. He found Victor based upon a hunch he had after Ursula, who dated Victor, told him about various places Victor enjoyed eating. The bank refuses to pay either Ursula or Ted any of the reward money. In a lawsuit between the bank and Ted, regarding the reward funds, who is likely to prevail and why?

Reference - Marcy's Mom. Marcy's mother, Sue, did not want her to date until she was older. She also wanted Marcy to attend law school. Just before Marcy started her freshman year in college, Sue told Marcy that if Marcy would refrain from dating until she received her law degree, then Sue would pay off all Marcy's school loans and throw in an extra $50,000. Marcy agrees and states, "Thanks, Mom, and by the way, when I graduate I'm throwing you a big party for all you've done for me!" Sue smiles and hugs Marcy. Marcy finished law school and asked for payment of her loans, the $50,000 in cash, and for a car. Sue said "No way - I know you went out on some dates during law school, and I never agreed on the car." Marcy said those were just study nights and that her mother had never objected to Marcy's frequent statements that she wanted a car upon graduation. Sue asks about the party. Marcy tells her that she is nuts because there is no way Marcy can afford a party since Sue has backed out of the deal. After some serious negotiation Marcy and Sue settled their dispute with Sue agreeing to pay for half of Marcy's school loans and for all the expenses of Marcy's upcoming wedding, and to forget about Marcy throwing a party for her. In reaching a settlement, Marcy and Sue entered into a[n] _____________.

Past consideration, as a rule, qualifies as consideration.

Reference - Alien babies. Toymaker Alice came out with a doll that looked like a baby alien. Alice initially had trouble selling the doll to retailers even after offering retailers a contract by which they could buy all the dolls they needed for $10. Slick Eddie, however, who had a retail toy store, signed the agreement, whereby he could buy all the dolls he needed for $10. Slick Eddie had a toy store but did very little business because he was so sleazy. Parents wanted to keep kids out. After a few months, the baby alien doll was a surprise hit and every child wanted one. Slick Eddie, however, did not see much demand in his store because, regardless of whether he had alien baby dolls or not, parents disliked him. When demand grew, Alice raised to $40 per doll the price charged to retailers who had not signed a contract to purchase all the dolls they needed for $10. Slick Eddie decided to purchase alien dolls for $10 from Alice and then resell them for $35 to a retailer, Ben, who did not have a contract with Alice to purchase the dolls for $10. His contract with Ben required that he also gift wrap the dolls and that he would provide Ben with all the gift-wrapped dolls he could produce. Eddie then ordered 10,000 alien baby dolls from Alice. When Alice figured out what was happening, sales of alien baby dolls to Slick Eddie were stopped. What type of contract did Slick Eddie have with Alice?

Reference - Bank Robbery. Safe Bank was robbed of a significant sum of cash by Victor. Safe Bank offered a reward of $10,000 for anyone who captured or provided information leading to the capture of Victor. Ted, a police officer in town, promised Safe Bank officials that he would apprehend Victor. While on duty, Ted arrested Victor at a hamburger joint in town. He found Victor based upon a hunch he had after Ursula, who dated Victor, told him about various places Victor enjoyed eating. The bank refuses to pay either Ursula or Ted any of the reward money. Which of the following is true regarding the offer of the reward?

When an accord and satisfaction is at issue, the _____________ is the new agreement to pay less than the creditor claims is owed.

Which of the following was the result in Mast Long Term Care v. Forest Hills Rest Home, the case in the text in which the plaintiff claimed that the defending rest home breached its agreement to buy from the plaintiff all the drugs needed for its patients that were not commonly stocked at the rest home?

Which of the following is true of an output contract under common law?

Which of the following represents a valid accord and satisfaction?