Question 1

Whitewater Canyon Adventures, Inc., and Xtra Overstock Company enter into an oral contract for Xtra's sale to Whitewater of five rafts for $2,000 each. Before Whitewater takes possession of the rafts, this contract is enforceable by

Accepted Answer

An oral contract for the sale of goods for $500 or more is not enforceable unless it is evidenced by a writing. Therefore, the contract is not enforceable by either party or any third party until a written contract is created.

Question 2

Hal's True Hardware Stores and Ideal Tools, Inc., sign a written con­tract for a sale of goods. To be enforceable, this written contract must include

Accepted Answer

A quantity term is one of the essential elements of a contract for the sale of goods under the Uniform Commercial Code (UCC). It indicates the amount of goods to be sold and purchased, and its absence can render the contract unenforceable. While having a correct title, date, and contact information can be useful, they are not strictly necessary for a contract's validity under the UCC.

Question 3

Dick's Burgers n' Shakes enters into an oral contract with Restaurant Equipment Warehouse (REW) for REW's sale to Dick's of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the con­tract is enforceable by​

Accepted Answer

An oral contract can be enforceable if the terms can be proven. In this scenario, there is an oral contract between Dick's Burgers n' Shakes and Restaurant Equipment Warehouse for the sale of a single-spindle milkshake mixer for $300. Both parties are bound to the terms of the contract and can enforce it. The manufacturer of the mixer is not a party to the contract and therefore cannot enforce it. A third party with a material interest, such as one of Dick's suppliers, is also not a party to the contract and therefore cannot enforce it.

Question 4

On Monday, Merlin buys a tablet for $500 from a Pads & Pods store. On Tuesday, he returns to the store and buys a GPS device for $200. On Wednesday, he downloads $100 worth of tunes from singsong.com. To be enforceable as a contract, a writing is required for the purchase of

Accepted Answer

A writing is required for the purchase of the tablet only because it exceeds $500, which is the threshold for the Statute of Frauds requiring a written contract for the sale of goods. The other purchases do not meet this threshold.

Question 5

Eleanora offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanora's son Glenn. This promise is enforceable​

Accepted Answer

The answer of Eleanora offers Flossy the amount of an...

Question 6

Fact Pattern 13-1
Odell and Paula sign a contract for the sale of Odell's Pizza Parlor to Paula. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement Odell must first buy the building from Quin, after which Odell and Paula will negotiate a final price.
-Refer to Fact Pattern 13-1.Paula later disputes some of the provisions of the deal with Odell. If the dispute results in litigation, a court will most likely admit evidence of additional terms that are​

Accepted Answer

Since the written contract is intended to be a final statement of most of the terms, the court will likely only admit evidence of additional terms that are consistent with the written contract. Contradictory or ambiguous terms would only create more confusion and are less likely to be admitted. Clear terms are already included in the written contract.

Question 7

Lucas orally agrees to sell his Mountain Spring Water Company to Natural Beverages, Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against

Accepted Answer

The agreement is enforceable against Lucas because he signed the document, indicating his intention to be bound by the terms. However, without Natural's signature, it may not be enforceable against them.

Question 8

Donald and Etta orally agree on the sale of Donald's Electrical Supplies Company to Etta and jot down the terms on the back of one of Donald's blank invoices, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain

Accepted Answer

A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain the essential terms, which includes the subject matter of the contract, the price, and the parties involved. Preliminary and qualitative terms are not essential and could vary depending on the specific agreement. All terms may not be necessary, as long as the essential terms are included.

Question 9

In a transaction for the sale of a warehouse, Standard Storage Company tells Tri-County Investment Corporation that the office furniture is in­cluded. The contract says nothing about office furniture, but does state, "This document supersedes all oral promises relating to the sale." Is the furniture part of the sale? Why or why not?​

Accepted Answer

The answer of In a transaction for the sale of...

Question 10

Fact Pattern 13-1
Odell and Paula sign a contract for the sale of Odell's Pizza Parlor to Paula. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement Odell must first buy the building from Quin, after which Odell and Paula will negotiate a final price.
-Refer to Fact Pattern 13-1.The writing that Odell and Paula signed is a contract that is

Accepted Answer

The fact pattern states that the parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement. This makes the contract partially integrated, meaning that not all terms are included and the parties may have additional agreements.

Question 11

Health Source, Inc., offers to buy Medico Equipment & Supplies Corporation. On June 1, Medico gives Health Source copies of Medico's financial statements for the pre­vious year. The statements show an inventory of $10 million. On June 15, Medico discovers that the previous year's inventory is overstated by $500,000, but does not inform Health Source. On July 1, Health Source, relying on the fi­nancial statements, buys Medico. On July 10, Health Source discovers the inven­tory over­statement. Can Health Source succeed in a suit against Medico? On what basis?​

Accepted Answer

The answer of Health Source, Inc., offers to buy Medico...

Question 12

Ranchland Properties and Prairie State Investments sign a writ­ten contract for a sale of land. In some states, to be enforceable, this con­tract must include​

Accepted Answer

A description of the land is a crucial element in a contract for the sale of land as it specifies the exact location and boundaries of the property being sold. While the other options may be included in a contract, they are not necessary for enforceability in most states.

Quiz 13: Defenses to Contract Enforceability

Whitewater Canyon Adventures, Inc., and Xtra Overstock Company enter into an oral contract for Xtra's sale to Whitewater of five rafts for $2,000 each. Before Whitewater takes possession of the rafts, this contract is enforceable by

Hal's True Hardware Stores and Ideal Tools, Inc., sign a written contract for a sale of goods. To be enforceable, this written contract must include

Dick's Burgers n' Shakes enters into an oral contract with Restaurant Equipment Warehouse (REW) for REW's sale to Dick's of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the contract is enforceable by

On Monday, Merlin buys a tablet for $500 from a Pads & Pods store. On Tuesday, he returns to the store and buys a GPS device for $200. On Wednesday, he downloads $100 worth of tunes from singsong.com. To be enforceable as a contract, a writing is required for the purchase of

Eleanora offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanora's son Glenn. This promise is enforceable

Lucas orally agrees to sell his Mountain Spring Water Company to Natural Beverages, Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against

Donald and Etta orally agree on the sale of Donald's Electrical Supplies Company to Etta and jot down the terms on the back of one of Donald's blank invoices, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain

Ranchland Properties and Prairie State Investments sign a written contract for a sale of land. In some states, to be enforceable, this contract must include

Quiz 13: Defenses to Contract Enforceability

Whitewater Canyon Adventures, Inc., and Xtra Overstock Company enter into an oral contract for Xtra's sale to Whitewater of five rafts for $2,000 each. Before Whitewater takes possession of the rafts, this contract is enforceable by

Hal's True Hardware Stores and Ideal Tools, Inc., sign a written con­tract for a sale of goods. To be enforceable, this written contract must include

Dick's Burgers n' Shakes enters into an oral contract with Restaurant Equipment Warehouse (REW) for REW's sale to Dick's of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the con­tract is enforceable by​

On Monday, Merlin buys a tablet for $500 from a Pads & Pods store. On Tuesday, he returns to the store and buys a GPS device for $200. On Wednesday, he downloads $100 worth of tunes from singsong.com. To be enforceable as a contract, a writing is required for the purchase of

Eleanora offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanora's son Glenn. This promise is enforceable​

Lucas orally agrees to sell his Mountain Spring Water Company to Natural Beverages, Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against

Donald and Etta orally agree on the sale of Donald's Electrical Supplies Company to Etta and jot down the terms on the back of one of Donald's blank invoices, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain

Ranchland Properties and Prairie State Investments sign a writ­ten contract for a sale of land. In some states, to be enforceable, this con­tract must include​

Hal's True Hardware Stores and Ideal Tools, Inc., sign a written contract for a sale of goods. To be enforceable, this written contract must include

Dick's Burgers n' Shakes enters into an oral contract with Restaurant Equipment Warehouse (REW) for REW's sale to Dick's of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the contract is enforceable by

Eleanora offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanora's son Glenn. This promise is enforceable

Ranchland Properties and Prairie State Investments sign a written contract for a sale of land. In some states, to be enforceable, this contract must include