Question 1

In Lucy v. Zehmer, the court ruled that under the objective theory of contracts

Accepted Answer

The court in Lucy v. Zehmer ruled that the conduct and language of Lucy and Zehmer, when viewed from the perspective of a reasonable person, indicated a serious intent to contract, despite Zehmer's later claims that he was not serious. This decision emphasizes the objective theory of contracts, which looks at outward expressions rather than internal intentions.

Question 2

A meeting of the mind requires

Accepted Answer

A meeting of the mind, in legal and business terms, refers to both parties having a mutual understanding and agreement on the terms of a contract. It does not necessarily require a fair offer from both sides, compromise, or court validation of the agreement's wisdom.

Question 3

Candace texts Rosa the following, "Hey Rosa, do you want to buy a car for a really great price?" Rosa immediately replies, "YES!!!!" Has there been a meeting of minds?

Accepted Answer

The offer lacks specificity regarding the car, price, and terms, making it too vague to form the basis of a contract.

Question 4

In e-Contracts a "click wrap" agreement is when

Accepted Answer

A "click wrap" agreement in e-Contracts refers to the process where the user agrees to the terms and conditions of a service or product by clicking an "I Accept" button or similar mechanism on a website. This is a common method used by online providers to ensure users have consented to the terms of use or sale before proceeding with a transaction.

Question 5

Morgan downloads some software for a video gaming system. By completing the download she agrees to the terms in what type of agreement.

Accepted Answer

The answer of Morgan downloads some software for a video...

Question 6

Les orders a set of vitamins online. When it arrives the vitamins were packaged in shrink wrap. When he opens the packaging, he is accepting what type of agreement?

Accepted Answer

Shrink wrap agreements are contracts where the terms are enclosed within the product's packaging, often under the shrink wrap. By opening the packaging, the consumer agrees to the terms.

Question 7

Click wrap agreements

Accepted Answer

Click wrap agreements are generally enforceable as long as the user has had the opportunity to review the terms and has affirmatively agreed to them, typically by clicking an "I agree" button.

Question 8

Paris offers to sell her landscaping business to Steve for $100,000.00. Before Steve responds, Paris tells him that she has changed her mind. Which statement is true?

Accepted Answer

Paris, as the offeror, has the right to revoke her offer at any point before acceptance by Steve, the offeree. This principle allows the person making the offer to retain control over their proposal until it is formally accepted.

Question 9

Kiiko offers to sell her dog to Taiga for $250.00. Taiga immediately yells, "heck no!" Later Taiga changes his mind and calls Kiiko up to tell her that he accepts her offer. Which statement below is correct?

Accepted Answer

Taiga's initial rejection of Kiiko's offer to sell her dog effectively terminated the offer. Once an offer is rejected, it cannot be accepted later unless the offeror (Kiiko, in this case) makes a new offer.

Question 10

Karen offers to sing five songs at Meyer's wedding for $500.00. Meyer responds that he will pay her $500.00, but he needs her to sing six songs. Meyer's actions constitute

Accepted Answer

Meyer's response is not an acceptance of Karen's original offer but a counteroffer because he is changing the terms of the agreement by asking for an additional song.

Question 11

A revocation is effective

Accepted Answer

Revocation of an offer is effective when the offeree receives it, ensuring that the offeree is aware of the revocation before taking any action based on the belief that the offer is still valid.

Question 12

Ed writes Gwen a letter and offers her a job as a financial analyst for his construction company at a salary of $75,000.00 a year. Two days later he sends her another letter telling her that he has changed his mind. Gwen receives both of the letters and after reading the letter with the job offer, does not open the second letter, and spends a couple of days thinking about the offer and whether she should accept it. Four days later, Gwen decides to accept the offer but still has not read the second letter revoking the offer. Which statement is correct?

Accepted Answer

A revocation is effective once it is received, regardless of whether the offeree has read it or not.

Question 13

Option contracts form an offer that is

Accepted Answer

Option contracts involve a payment for the right to either proceed or not proceed with a transaction in the future, making the offer irrevocable for a specified period.

Question 14

Gigi, as a kind gesture, offers to let her friend, Bonnie, stay at her house for free instead of paying the high rent she is currently paying. Bonnie loads up her moving truck and terminates her current lease. When Bonnie shows up to Gigi's house with a full moving truck, Gigi decides she no longer wants her to stay at her house and turns her away. Does Bonnie have any legal recourse?

Accepted Answer

Detrimental reliance, also known as promissory estoppel, occurs when a party reasonably relies on the promise of another party to their detriment. In this case, Bonnie terminated her lease and incurred moving expenses based on Gigi's promise, which Gigi later reneged on. This could give Bonnie legal recourse under the concept of detrimental reliance.

Question 15

Chris, the owner of Bloom's Aglow, offers to contract with Lisa for her upcoming wedding bouquet and decoration needs. Chris specifically states in the offer that he will only use the Western Prairie Fringed Orchids in all arrangements. While contemplating the offer, the federal government passes a law that classifies the Western Prairie Fringed Orchids as a near extinct flower and makes it illegal to use, to sell or to kill it. Does this affect the offer between Chris and Lisa?

Accepted Answer

The change in law makes the performance of the contract illegal due to supervening illegality, thus revoking the offer.

Question 16

Dawn offers Tom $1000.00 to create a social media marketing campaign for her new shoe business. In the letter that she sends to Tom with this offer, she states, "if you accept this job, please sign this form and return it to me in the self-addressed stamped envelope by Friday." Tom immediately texts Dawn, "Hi Dawn! I happily will do your marketing." Has Tom accepted the offer?

Accepted Answer

C) No because if the offer specifies a method of acceptance, that is the only effective method to accept.

Question 17

According to the mailbox rule, an acceptance if effective

Accepted Answer

The mailbox rule states that an acceptance is effective when dispatched by the offeree, provided it is done so in a manner that is deemed commercially reasonable. This means that the contract is considered accepted at the moment the acceptance is sent, not when it is received by the offeror.

Question 18

Herb offers to sell Ron a cow that both parties believe is newly pregnant. A few months later they both realize that the cow is not pregnant. Can either party avoid the contract?

Accepted Answer

Both parties were under the mistaken belief that the cow was pregnant, which constitutes a mutual (or bilateral) mistake about a basic assumption on which the contract was made. This can be grounds for voiding the contract if the mistake materially affects the agreed performance.

Question 19

Gabrielle, a 19 year old college freshman, promises not to drink any alcohol while she is away at college in exchange for her parents' promise to pay for her tuition. Is there consideration?

Accepted Answer

The answer of Gabrielle, a 19 year old college freshman,...

Question 20

Hannah shops at a high-end doggy boutique and purchases a designer dog collar for $3500.00. As soon as she got home, she put it on her dog who wore it for a couple of days. After a few days, she realized that she could not afford the collar and did not really like it. She attempted to return it to the store and they refused. Hannah filed suit against the store stating that they charged way too much for their products and made an unfair and unreasonable profit. What would most likely be the outcome of the case?

Accepted Answer

The court will likely rule in favor of the store because consideration exists when something of legal value is exchanged between the parties, and in this case, Hannah received the dog collar in exchange for her payment of $3500.00. The fact that she later regretted the purchase does not negate the existence of consideration.

Quiz 7: Mutual Assent: Agreement and Consideration