L201 Graded Quiz 7

James goes to a dentist to have a tooth extracted. James never signs a written contract for this service, and he and the dentist never made an oral agreement either. Later, the dentist bills James who refuses to pay. The dentist sues James. Which of the following is true? A. The dentist can recover under the doctrine of promissory estoppel. B. The dentist cannot recover because there was no express contract. C. The dentist cannot recover under an implied contract theory. D. The dentist can recover under a theory of quasi-contract liability. - ANS-D. The dentist can recover under a theory of quasi-contract liability. Explanation: A quasi-contract represents an obligation imposed by law to avoid injustice, not a contractual obligation created by voluntary consent. True or False: Many Restatement (Second) provisions are similar to their analogous provisions in UCC Article 2. - ANS-True Explanation: Many Restatement (Second) provisions are virtually identical to their Code analogues. In Thomas v. Archer, the case in the text, the Alaska Supreme Court held that the trial court erred when it decided that: A. there was no actual promise. B. the Thomases failed to show a substantial change in position. C. the Thomases change in position was not foreseeable. D. enforcement of the promise was not necessary in the interest of justice. - ANS-B. The Thomases failed to show a substantial change in position Explanation: The court found that the trial court erred when it concluded that even if all other elements of promissory estoppel were met, the Thomases "fail to show a substantial change in position" because of Rachel's testimony that she "would have gone to Swedish even if she knew the [medivac] would not be covered." True or False: The mutual agreement necessary to create an express contract must be evidenced by a writing. - ANS-False Explanation: In an express contract, the parties have directly stated the terms of their contract orally or in writing at the time the contract was formed. However, the mutual agreement necessary to create a contract may also be demonstrated by the conduct of the parties. Fun Foods fraudulently induces Holly to buy a household products franchise by grossly misstating the average revenues of its franchisees. She discovers the misrepresentation after she resold some products that she received but before she has paid Fun Foods for the products. Holly wants to cancel the franchise contract on the basis of fraud. What is the remedy available to her? A. Quasi-contract B. Executory contract C. Duty of good faith D. Promissory estoppel - ANS-A. Quasi-contract Explanation: To prevent unjust enrichment, the courts imply as a matter of law a promise by the benefited party to pay the reasonable value of the benefits he received. This is called quasi-contract because it represents an obligation imposed by law to avoid injustice, not a contractual obligation created by voluntary consent. Early American courts took a subjective approach to contract determination. This was troublesome as it created uncertainty in the enforcement of contracts because: A. the intent of the parties was not required to be in writing. B.there was no "meeting of the minds" between parties. C. every contract was vulnerable to disputes about actual intent. D. no evidence could be admitted as to the parties' intent. - ANS-C. every contract was vulnerable to disputes about actual intent. Explanation: Early American courts took a subjective approach to contract formation, asking whether there was truly a "meeting of the minds" between the parties. This subjective standard, however, created uncertainty in the enforcement of contracts because it left every contract vulnerable to disputes about actual intent. On May 1, Ida makes a written offer to Miranda for the sale of Ida's car. On May 2, Ida mails Miranda a letter revoking the offer. On May 3, Ida telephones Miranda to tell him that he is revoking the offer. On May 4, Miranda learns that Ida sold the car to Chris. On May 5, Ida's letter finally gets to Miranda. Ida's offer terminated on: Continues...