Question 1

Seth told the salesperson at Outdoor Times that he wanted the sleeping bag that was advertised in the Sunday paper; one that would keep him comfortable if the temperature drops to 10 degrees Fahrenheit. The salesperson told Seth they were sold out of that bag, but there were two other styles that would meet his needs and were the same price. Seth insisted he wanted the advertised bag and threatened to sue for breach of contract. Which is true?
A)Outdoor Times is guilty of "bait and swap."
B)Seth will prevail in his case, as Outdoor Times is responsible for having sufficient stock of advertised items.
C)Seth will not prevail, as the advertisement was simply a request for offers.
D)Outdoor Times must provide Seth with a raincheck, ensuring he can buy the same bag at the sales price at a later date.

Accepted Answer

The advertisement was simply a request for offers and not a binding contract. As such, Outdoor Times is not obligated to provide Seth with the advertised sleeping bag. Furthermore, Seth's threat to sue for breach of contract is baseless.

Question 2

Briefly discuss how an offer can be accepted. Include in your answer the application of the mirror image rule.

Accepted Answer

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Question 3

Yolanda was shoveling snow from her sidewalk, and just to be nice, she also shoveled snow from her neighbor Melody's walk. The next day, Melody promises that she will pay Yolanda $25 for shoveling snow from her walk. Has a contract been created?
A)No, Yolanda had a preexisting duty to shovel Melody's walk.
B)No, past consideration is not valid consideration.
C)Yes, Melody made a promise and that created the contract.
D)Yes, Melody has a moral obligation to pay for the work, even if she didn't request it.

Accepted Answer

Past consideration, which refers to an act done before a contract is made, is not considered valid consideration for the purposes of forming a contract. Since Yolanda had already shoveled the snow without any agreement for compensation at the time of the act, Melody's subsequent promise does not create a valid contract.

Question 4

Wally owns 200 acres of land. Wally offers to sell the land to Robert for $1,500 per acre. Robert replies that he does not need 200 acres of land but would like to buy 40 acres at $1,500 per acre. Wally agrees to sell but does not identify which 40 acres. Later, Wally refuses to sell any land to Robert. What is the result?
A)Robert wins; this is an enforceable contract with complete and definite terms.
B)Robert wins; the UCC will decide which 40 acres are to be sold.
C)Wally wins; the original offer was not intended to be an offer but merely an invitation to negotiate.
D)Wally wins; this agreement is too indefinite since it does not identify which 40 acres are to be sold.

Accepted Answer

The agreement between Wally and Robert is too indefinite since it does not specify which 40 acres of land will be sold. Therefore, it is not an enforceable contract. While Robert made a specific request for a certain amount of land, Wally did not agree to the specific terms of the request. Therefore, there was no acceptance of the offer, and no contract was formed.

Question 5

If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000, the agreement is
A)enforceable because Becky is giving up the right to do something she would otherwise be entitled to do.
B)enforceable because the agreement accomplishes Ben's goal of keeping Becky from drinking.
C)not enforceable because Becky does not have a legal right to drink alcohol.
D)not enforceable because Becky is a minor and could disaffirm the contract.

Accepted Answer

The answer of If Becky promises not to drink alcohol...

Question 6

A seller's form clearly states no warranty is included. The buyer's form states that the seller warrants the goods for one year. In this case
A)no contract can be created.
B)the warranty term is a "different term," and the majority of states hold that a contract can be formed but the contradictory terms cancel each other out.
C)the warranty term is an "additional term" that becomes part of the contract in most states.
D)the warranty term is a "different term," which in most states becomes part of the contract unless the seller promptly objects.

Accepted Answer

The warranty term is considered a "different term" because it directly contradicts the seller's statement of no warranty. In the majority of states, when there are contradictory terms like this in forms exchanged by the parties, a contract can still be formed, but the contradictory terms cancel each other out. This means that neither the seller's disclaimer of warranty nor the buyer's assertion of a one-year warranty would apply, and the contract would be formed without any warranty term.

Question 7

ACME, Inc. is a software producer that entered into a verbal agreement with XYZ Corporation wherein XYZ agreed to buy ACME's newly developed software. The agreement also provided that ACME would supply training personnel, as well as technical personnel, to work with XYZ employees in installing and learning the software. What law governs this agreement?

Accepted Answer

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Question 8

Travel Lines offered to sell 10 round-trip tickets to Elaine. Travel Lines stated that the acceptance must be in writing by USPS next-day service. Which of the following acceptances will create a contract between Travel Lines and Elaine?
A)Elaine calls Travel Lines and states that she will buy the tickets.
B)Elaine sends a fax to Travel Lines stating she will buy the tickets.
C)Elaine sends a letter by USPS next-day service to Travel Lines stating that she will buy the tickets.
D)All of the these responses will create a contract between Travel Lines and Elaine since they constitute reasonable means of communication.

Accepted Answer

The offer required acceptance by USPS next-day service, so only option C fulfills that requirement, creating a valid contract. Option A is not in writing and Option B does not fulfill the requirement of next-day service. Option D is incorrect as the offer specifically required acceptance by USPS next-day service.

Question 9

McCann Construction purchased a poured concrete form from Advance Concrete Forms, Inc. McCann purchased the concrete form by placing a phone call to Advance in Madison, Wisconsin. Advance delivered the concrete form with an invoice stating the terms of the sale required payment within 30 days and a 1 1/2 % interest per month finance charge would be charged on accounts over 30 days. When McCann failed to pay the invoice on time, interest was charged according to this rate. Later, McCann refused to pay the accumulated interest charge, claiming there was not a meeting of the minds regarding the finance charge in any conversation prior to the sale. The trial court concluded that the finance charge was in fact an additional term added by Advance when it accepted McCann's purchase order. Discuss Uniform Commercial Code Section 2-207 in general and with regard to this situation. Does McCann owe the interest accrued?

Accepted Answer

The answer of McCann Construction purchased a poured concrete form...

Question 10

List and briefly describe the seven key characteristics that must be present for a contract to be enforceable.

Accepted Answer

The answer of List and briefly describe the seven key...

Question 11

Discuss the requirements of promissory estoppel.

Accepted Answer

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Question 12

In January, Alex promised to pay Y-K Inc. $5,000 if it would refrain from filing suit against him on a breach of contract action. Y-K agreed and accepted a $5,000 check from Alex. Which of the following statements is correct?
A)Y-K's promise to refrain from suing Alex was not supported by legal consideration.
B)Y-K's promise to refrain from suing Alex was supported by legal consideration and is enforceable.
C)This is an accord and satisfaction, and Y-K cannot sue.
D)The courts would apply promissory estoppel in this situation.

Accepted Answer

Y-K's promise to refrain from suing Alex was supported by legal consideration because Alex promised to pay $5,000 in exchange for Y-K's promise not to sue him. This makes the agreement enforceable.

Question 13

Briefly discuss the meaning of bilateral, unilateral, executory, and executed contracts.

Accepted Answer

The answer of Briefly discuss the meaning of bilateral, unilateral,...

Question 14

Regarding consideration, an act occurs when a person
A)complies with the law.
B)fulfills an obligation under an existing contract.
C)does something not legally required.
D)All of these are correct.

Accepted Answer

An act constitutes consideration when a person does something that they are not legally required to do. This means they are providing something of value in exchange for a promise, which is a fundamental element of forming a contract. Complying with the law or fulfilling an existing contractual obligation does not count as consideration because there is no new value being provided; these are actions that one is already bound to do.

Question 15

In the historic case of Hamer v. Sidway, the nephew
A)lost, as the Court found there  was no consideration.
B)lost, as the uncle was dead.
C)won, as the Court found there  was consideration.
D)won, as there was a completed gift.

Accepted Answer

The nephew won the case as the Court found that the uncle's promise of paying him $5,000 was a binding contract. The promise was based on consideration because the nephew refrained from engaging in vices like drinking, smoking, gambling, and swearing until he turned 21, which was a legal detriment to himself. Thus, there was a give-and-take exchange between the parties, making it a valid contract.

Question 16

What is consideration and what are the two basic elements of consideration?

Accepted Answer

The answer of What is consideration and what are the...

Question 17

Jack mails an offer to Joan that states, "I offer to sell you my car for $2,000. If I don't hear from you in 10 days, I will assume you are willing to buy the car for the stated price." Jack hears nothing by the deadline and assumes he has a deal. What is the result?
A)Jack has a deal. His offer was intended and contains definite terms.
B)Jack has a deal. Joan should have responded saying she is not interested in the car if she didn't want to be bound to the offer.
C)Joan is not bound. Generally, an offeree must say or do something to accept an offer.
D)Joan is not bound. Ten days is not a reasonable amount of time to consider the offer and accept by mail.

Accepted Answer

Joan is not bound because acceptance of an offer in contract law typically requires the offeree to communicate their acceptance to the offeror. Silence or failure to respond does not constitute acceptance.

Question 18

What elements are necessary for an offer to be valid? Give two examples of nonoffers.

Accepted Answer

The answer of What elements are necessary for an offer...

Question 19

Police Officer Paul apprehends a wanted criminal and then demands the $10,000 reward offered by Crime Stoppers. Which of the following statements is true?
A)Police Officer Paul is not entitled to the reward because past consideration is never valid consideration.
B)Police Officer Paul is entitled to the reward because he puts his life on the line every day.
C)Police Officer Paul is not entitled to the reward because he was under a preexisting duty to make the arrest.
D)Police Officer Paul is not entitled to the reward but may have an argument under promissory estoppel.

Accepted Answer

Police Officer Paul was performing his duty as a police officer and had a preexisting duty to catch the criminal. Therefore, he is not entitled to the reward offered by Crime Stoppers.

Question 20

Preferred Contractors was a general contractor and owner of a condominium complex that was under construction. Barrett, a subcontractor, had been hired by Henderson Plumbing, another subcontractor, to help it complete the plumbing work on the project. When Henderson began using shoddy installation procedures and subsequently fell behind the scheduled completion time for the project, Preferred Contractors urged Barrett to correct Henderson's mistakes and to finish the job. Barrett refused to continue until he knew who would pay him, since he feared Henderson's financial position was shaky. Nonetheless, Preferred Contractors' job superintendent told Barrett to go ahead even if Barrett and Preferred Contractors had no contract because "he would use his influence to try to help Barrett get his money." Barrett finished the work and sent a $7,500 bill to Henderson, which was never paid. When Barrett later sent the bill to Preferred Contractors, these facts emerged: Preferred Contractors told him that due to Barrett's failure to notify Preferred Contractors promptly of Henderson's non-payment, Preferred Contractors had already paid Henderson in full and therefore would not pay twice for the work. Discuss the best possible theory of recovery Barrett may argue.

Accepted Answer

The answer of Preferred Contractors was a general contractor and...

Quiz 10: Introduction to Contracts

Briefly discuss how an offer can be accepted. Include in your answer the application of the mirror image rule.

Yolanda was shoveling snow from her sidewalk, and just to be nice, she also shoveled snow from her neighbor Melody's walk. The next day, Melody promises that she will pay Yolanda $25 for shoveling snow from her walk. Has a contract been created?

If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000, the agreement is

A seller's form clearly states no warranty is included. The buyer's form states that the seller warrants the goods for one year. In this case

Travel Lines offered to sell 10 round-trip tickets to Elaine. Travel Lines stated that the acceptance must be in writing by USPS next-day service. Which of the following acceptances will create a contract between Travel Lines and Elaine?

List and briefly describe the seven key characteristics that must be present for a contract to be enforceable.

Discuss the requirements of promissory estoppel.

In January, Alex promised to pay Y-K Inc. $5,000 if it would refrain from filing suit against him on a breach of contract action. Y-K agreed and accepted a $5,000 check from Alex. Which of the following statements is correct?

Briefly discuss the meaning of bilateral, unilateral, executory, and executed contracts.

Regarding consideration, an act occurs when a person

In the historic case of Hamer v. Sidway, the nephew

What is consideration and what are the two basic elements of consideration?

Jack mails an offer to Joan that states, "I offer to sell you my car for $2,000. If I don't hear from you in 10 days, I will assume you are willing to buy the car for the stated price." Jack hears nothing by the deadline and assumes he has a deal. What is the result?

What elements are necessary for an offer to be valid? Give two examples of nonoffers.

Police Officer Paul apprehends a wanted criminal and then demands the $10,000 reward offered by Crime Stoppers. Which of the following statements is true?