Question 1
Marcus is employed as a computer services technician with AB West.
Box Data, Inc. approaches Marcus and orally offers Marcus a job to
perform the same services for one year. As a part of the oral contract
for services, the parties agree that Marcus will commence his services
for Box Data as soon as he can negotiate his termination with AB West
in a professional manner. Is the contract within the Statute of Frauds?
A) No, because the contract was for one year, less two weeks.
B) Yes, unless Marcus can negotiate his termination with AB West in a professional manner within one da
agreement with Box Data.
C) No, because Marcus could die before the end of one year.
D) Yes, because the contract was for services.
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The correct answer is (b). A contract that is not capable of performance within one year of the
making of the contract must be in writing. To determine the starting date of a personal services
contract, courts will permit oral contracts for one year of service if the work is to begin on the
same day the contract is executed or the day following the execution of the contract. (a) is
incorrect, the time for performance is counted from the day the contract is formed. (c) and (d)
are incorrect, as neither factor cited impacts the applicability of the one year rule. If you missed
this question, please review Hornbook Section 5.03[B].
Question 2
Arnold writes to Becky making an offer to buy Becky's 1998
automobile for $15,000 cash on delivery. In the letter, Arnold states
that he will consider the offer accepted unless he hears from Becky
within 72 hours. Becky receives the unsolicited letter/offer, but ignores
it and does not reply. Is there a contract?
A) Yes, because Arnold is the master of the offer and Becky failed to reply.
B) No, because the offer was unsolicited and Becky's silence would not be construed as an acceptance und
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C) Yes, if Becky likes the price.
D) No, because the letter was unsolicited and does not constitute an offer.
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The correct answer is (b). As a general rule, silence by the offeree will not be deemed to be an
acceptance of an offer, even when the offer states that the offeree's silence will constitute an
acceptance, which is why (a) is incorrect. (c) is incorrect, whether Becky likes the price or not
has no impact. (d) is incorrect, because the letter was an offer and the fact that it was unsolicited
is irrelevant. If you missed this question, please review Hornbook Section 4.05[D].
Question 3
Andrea asks Blinky, a lawyer, to prepare an estate plan. Blinky agrees,
but no price is set. The reasonable value of the work is $5,000. When
the work is done, Andrea is satisfied and promises to pay Blinky $7,500
for the work. Blinky wants to think about the $7,500, but before he
agrees, Andrea withdraws her promise. Blinky sues Andrea on her
promise to pay $7,500. What result?
A) Blinky will recover $7,500 because Andrea did not know of the reasonable value when she made her pr
B) Blinky will recover $5,000, because (without consideration or mutual assent) a subsequent promise to p
is limited to the reasonable value of the services.
C) Blinky will recover nothing because an enforceable contract requires an agreement on price.
D) Blinky will recover $7,500, because no consideration or mutual assent is required to support a promise
discharge of a pre-existing liability.
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The correct answer is (d). Even without consideration or mutual assent, a subsequent promise to
pay for benefits received (after a request for those benefits) will be enforceable. (a) and (b) are
incorrect, as the reasonable value for the services does not control over the value agreed to in the
contract (notwithstanding Corbin's approach, the cases follow Williston on this issue). (c) is
incorrect, as the parties formed a contract with an implied promise to pay the reasonable value of
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