Question 1

To bid on a job,Budget Construction Company relies on the oral promise of Coldwater Plumbing,Inc. ,to perform certain work at a certain price.Coldwater fails to per?form.Budget can

Accepted Answer

Budget Construction Company can recover under the doctrine of promissory estoppel. This is because Coldwater Plumbing, Inc. made an oral promise upon which Budget relied to bid on the job, and as a result, Budget suffered harm when Coldwater failed to perform. The principle of promissory estoppel allows for such promises to be enforced even if they don't meet the requirements of a traditional contract. Both parties did make a voluntary agreement, and it is only fair for budget Construction Company to recover.

Question 2

Barrie is induced to leave a sales position with Car Town Auto Dealership due to a false promise by Delacroix,a sales supervisor at Rev Up Motors,as to the amount of compensation Barrie would earn at Rev Up.Barrie is most likely a victim of

Accepted Answer

Barrie is a victim of fraud because Delacroix made a false promise to induce him to leave his previous job, which resulted in Barrie suffering a loss. This false promise led Barrie to change his position, so it meets the criteria for fraud.

Question 3

GPS Devices Inc.sponsors a "Finders Keepers!" contest in which Erwin and other entrants agree to race to certain locales to win small prizes and collect clues that lead to the "Grand Lost Treasure," which the first finder will be awarded.GPS reserves the right to cancel the contest or change its terms at any time.If Erwin challenges this reservation in court,the court will most likely hold that GPS can

Accepted Answer

GPS explicitly reserves the right to cancel or change the terms of the contest at any time, and Erwin, along with other contestants, agreed to these terms by entering the contest. Therefore, the court is likely to uphold this reservation and allow GPS to cancel the contest or modify its terms.

Question 4

Ray and Strip Mines,Inc. ,enter into a contract for a sale of the coal beneath Ray's land for a fraction of the value of the coal and the cost to restore the land.A court is most likely to determine that this deal is unfair under

Accepted Answer

The concept of unconscionability refers to a contract that is so one-sided or unfair that it would be unreasonable to enforce it. In this case, the fact that Ray is selling the coal for a fraction of its value and the cost to restore the land suggests that the contract is unfairly one-sided in favor of Strip Mines, Inc.

Question 5

Leticia contracts with Mariana to sell land that,unknown to either party,has groundwater contaminated from adjacent land that was occupied several decades earlier by a chemical manufacturing plant.When this is discovered,Leticia asserts the doctrine of commercial impracticability.This doctrine applies only when,with respect to an event that renders performance impossible,at the time the contract was formed the parties

Accepted Answer

The doctrine of commercial impracticability applies only when, with respect to an event that renders performance impossible, at the time the contract was formed, the parties could not have reasonably foreseen the supervening event. In this case, neither Leticia nor Mariana could have reasonably foreseen the contamination of the groundwater from adjacent land that was occupied several decades earlier by a chemical manufacturing plant. Therefore, the doctrine of commercial impracticability applies.

Quiz 10: D: Nature and Terminology

To bid on a job,Budget Construction Company relies on the oral promise of Coldwater Plumbing,Inc. ,to perform certain work at a certain price.Coldwater fails to per?form.Budget can

Barrie is induced to leave a sales position with Car Town Auto Dealership due to a false promise by Delacroix,a sales supervisor at Rev Up Motors,as to the amount of compensation Barrie would earn at Rev Up.Barrie is most likely a victim of

Ray and Strip Mines,Inc. ,enter into a contract for a sale of the coal beneath Ray's land for a fraction of the value of the coal and the cost to restore the land.A court is most likely to determine that this deal is unfair under