LSB 3213 Exam 2..docx

Retail Outlets, Inc., contracts with Smooth Paving Inc. to grade and pave a parking lot. Smooth assigns the contract to Tough Road Company, which has a poor record of completing projects. Retail could most successfully argue that the contract cannot be assigned because - correct answer the assignment will materially increase the risk of nonperformance. In an exchange of e-mails, Rob, a landlord, and Sam agree to a lease of a certain apartment for one year. Under the Statute of Frauds, this lease is enforceable provided - correct answer the e-mail is signed by the party against whom enforcement is sought. Idina admires Jules's collection of guitars. July says, "I plan to sell the collection when I get tired of it." Jules's statement is - correct answer not an offer because July expressed only an intent to enter into a future contract. On May 1 Ralph offers to cure and smoke Sam's pork. On May 3 Ralph mails Sam a letter revoking the offer. Sam receives the letter on May 5 and responds on May 6. Ralph's revocation of the offer - correct answer became effective on May 5. Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in OptiBank through Newt's investment firm. Unknown to Mona, Newt realizes a commission from the investment. Most likely, Mona may rescind the contract on the basis of - correct answer undue influence. Wally offers to repair and service a forklift for Valu Lumber Outlet, but Wally dies before Valu accepts. Most likely, Wally's death - correct answer terminates the offer. Ready Repair Service enters into a contract to fix washers and dryers in Scrub n' Dry Company's coin-operated laundries. If Ready Repair breaches by only partially performing the contract, Scrub n' Dry can - correct answer sue Ready Repair for compensatory and consequential damages. A valid contract requires - correct answer an offer and an acceptance Flora enters into a contract with Global Shipping, Ltd., to insure and ship a painting from France to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would - correct answer allow the parties to rescind the contract. Lewis tells a representative of Musical Instruments, Inc., that he will pay for Nora's trumpet if she does not. Lewis does not secure any personal benefit for this promise. This promise is enforceable as a contract - correct answer only if it is in writing. Floyd signs a contract to buy a drum kit just before reaching the age of majority. After reaching the age of majority, Floyd does not take possession or make payments. With respect to the contract, most courts would hold that this is - correct answer disaffirmance. Dim threatens physical harm to force Ed to sell his business, Flowers, Inc., to Dim for a below-market price. This is - correct answer Duress Jess, a nurse practitioner, renders aid to Kurt, who is injured and unconscious. Jess can recover the cost of the aid from Kurt - correct answer as if the parties had entered into an actual contract. Maya tries to start her new car with no success. She yells that she will sell the car to anyone for $10. Nero, a passerby who owns Nero's Motors, hands Maya $10. This is - correct answer not a valid acceptance because Maya does not seriously intend to sell. On Monday, Neil tells Outdoor Landscaping, Inc., that he will pay Outdoor $500 if a variety of tasks are completed by Friday. On Wednesday, when Outdoor is more than half done with the work, Neil says that he has changed his mind. These parties had - correct answer a unilateral contract as soon as Outdoor began to perform. Field Construction, Inc., contracts with Mesa Ranch to build a new horse barn on Mesa's property for which Mesa agrees to pay. The elements of this, and any other, contract include - correct answer Legality Moe asserts that a deal he entered into with Nina to sponsor and host a motivational conference for independent sales representatives is an unenforceable contract. Defenses to the enforcement of a contract include - correct answer the lack of a party's voluntary consent. Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment. The contract expressly prohibits any transfer of rights. A contract right may be transferred, however, if the transfer involves - correct answer a right to receive payment. Smith & Jones, Accountants, agrees to perform an audit for Brick & Mortar Stores, Inc. Whether or not this agreement meets all of the requirements of a contract, the parties are likely to follow the rules of contract law because they - correct answer want to avoid potential disputes. Sales Corporation and Real Properties, Inc., agree to the payment of a commission for the sale of certain property. If this deal has all of the elements necessary for one of the parties to enforce it in court, it is - correct answer a valid contract Tile & Grout (T&G) contracts to resurface the insides of the pools at Water Park. T&G knows that without the resurfacing, Water Park will have to delay its seasonal opening. T&G does not perform as promised. As consequential damages, Water Park can recover - correct answer the loss of profit from the delayed opening. Rico, a user of SmartPhoneA's Web site, can download apps for free if he first clicks on "I accept" after viewing certain terms. This is - correct answer a contract that includes the terms. Ray promises to give Steve his iPod in exchange for Steve's promise to pay Ray $50. Later, they exchange the device for the funds. A contract was created when - correct answer Steve promised to pay Ray for the iPod Don enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over. When the results do not match this promise, Don learns that Eve does not have access to any unique software and files a suit, alleging fraud. Proof of an injury is required to - correct answer recover damages. Intoxicated but capable of comprehending the consequences of her actions, Cricket signs a contract to sell her phone app design to Download, Ltd. This contract is - correct answer enforceable. The requirement that both the subject matter and performance of a contract must be legal is called - correct answer Legality ABC Land Co. is negotiating the sale of an office building to Mega Co. Which laws will govern the contract for the sale of the building? - correct answer State common law. Clyde contracts with Seaside Resorts to rent an oceanfront room for a romantic weekend with his girlfriend Anne. In fact, Clyde intends to propose to Anne on the beach under the full moon during their stay. He made this decision after booking the room. The contract with Seaside Resorts requires a $250 deposit with the remaining $250 due upon check-in. The deposit is nonrefundable unless the reservation is canceled at least 48 hours prior to check-in. The day before they are to leave for the resort, Clyde and Anne have a huge fight and break up. If Clyde calls Seaside, cancels the reservation, and demands a refund of his deposit, is Seaside legally obligated to refund Clyde's money? - correct answer No. Seaside is not legally obligated to provide a refund.