Law 3220 Final Exam - Clemson – Schulze
Test Questions With Well Elaborated
Solutions
-Bargained for exchange between parties to a contract.
-Anything of value is ___________ (e.g., money, goods, time, services) given in
exchange for performance. - ANSWER -consideration
Each party to a contract receives a benefit, and suffers a detriment. - ANSWER -
benefit-detriment approach
Ex: A offers to pay B $40 to mow A's lawn. B mows the lawn. The work of
mowing the lawn was a legal detriment & a legal benefit to B. Getting a freshly
mowed lawn is a legal benefit & a legal detriment to A. - ANSWER -benefit-
detriment approach
Promises to make a gift are not contracts because they lack ___________. -
ANSWER -consideration
Ex: A offers to give B her boots. B accepts. There is no contract. Why? -
ANSWER -because gifts are not consideration
Courts do not care _____ ______ consideration is given for a promise; just that
there was consideration. - ANSWER -how much
Doctrine allowing recovery on a promise made without consideration when:
A party's reliance on the promise was reasonable, and the promisee relied on it to
his or her detriment. - ANSWER -promissory estoppel
Ex: Mr. Martin is the principal of Hendersonville High School where Taylor Swift
attended. Swift approaches Mr. Martin to discuss implementing a new music
program on campus. Excited about the possibilities this will bring to students and
relying on Swift's financial support, Mr. Martin began planning for the program.
He order construction of a new building complete with soundproofing and a stage.
,Next, new furniture, fixtures, and musical instruments were delivered. He even
hired staff to manage the new music program. Then, in one fell swoop, the promise
was retracted - Swift changes her mind. The doctrine of __________ __________
can help Mr. Martin recover his financial losses from Swift, even without the
parties having entered into a valid contract. - ANSWER -promissory estoppel
Ability to understand that you are entering into a contract, and what the contract
means. - ANSWER -contractual capacity
___________ is presumed to have contractual capacity unless proven otherwise. -
ANSWER -everyone
Parties lacking mental capacity by law - ANSWER -Minors, intoxicated persons,
mentally disabled.
Minors: Can enter into contracts but legally lack _________ _________ to do so. -
ANSWER -contractual capacity
Contracts made by minors are _________ at the election of the minor only. -
ANSWER -voidable
void or voidable?
-cannot be enforced my either party. Treated as if it had never been formed -
ANSWER -void
void or voidable?
a valid contract that can be enforced (one party is bound to contract terms and
other is unbound and allowed to cancel the contract) - ANSWER -voidable
A minor can _________ a contract only during the age of minority and for a
reasonable time after attaining the age of majority. - ANSWER -disaffirm
Even if a minor __________ (lies about) their age, it generally does not affect the
minor's power to disaffirm the contract. - ANSWER -misrepresents
, If minor still has item received from other party (e.g., car), minor must "put things
back to the original position" (i.e., return the car) - ANSWER -Status Quo Ante
If minor can't put things back to the original position (i.e., car destroyed), minor
can still ________ the contract and is required to return only what remains.
Upon return of the item (or what is left), the contracting party must return the
money received (minus restitution) - ANSWER -disaffirm
For a contract to be _______, it must be lawful. (legality) - ANSWER -valid
a contract is illegal when:
its formation or performance is a _______
Ex: A written agreement between A & B where B will sell cocaine for A in
exchange for cash. NOT a contract. - ANSWER -crime
a contract is illegal when:
its formation or performance is a _____ (civil wrong)
Ex: A written agreement between A & B where B will commit battery against C in
exchange for cash from A. NOT a contract. - ANSWER -tort
a contract is illegal when:
it is contrary to public policy
Ex: An __________ clause within an employment contract releasing the employer
from any harm to the employee caused by the employer while on the job. NOT a
contract. - ANSWER -exculpatory clause
a contract is illegal when:
it is contrary to public policy
Ex: An ___________ contract which provides that Rent-To-Ownership Co. will
charge 150% interest on all payments made by customers. NOT a contract. -
ANSWER -unconscionable contract
Any agreement found to be illegal is ______ [never legally existed]. - ANSWER -
void
Test Questions With Well Elaborated
Solutions
-Bargained for exchange between parties to a contract.
-Anything of value is ___________ (e.g., money, goods, time, services) given in
exchange for performance. - ANSWER -consideration
Each party to a contract receives a benefit, and suffers a detriment. - ANSWER -
benefit-detriment approach
Ex: A offers to pay B $40 to mow A's lawn. B mows the lawn. The work of
mowing the lawn was a legal detriment & a legal benefit to B. Getting a freshly
mowed lawn is a legal benefit & a legal detriment to A. - ANSWER -benefit-
detriment approach
Promises to make a gift are not contracts because they lack ___________. -
ANSWER -consideration
Ex: A offers to give B her boots. B accepts. There is no contract. Why? -
ANSWER -because gifts are not consideration
Courts do not care _____ ______ consideration is given for a promise; just that
there was consideration. - ANSWER -how much
Doctrine allowing recovery on a promise made without consideration when:
A party's reliance on the promise was reasonable, and the promisee relied on it to
his or her detriment. - ANSWER -promissory estoppel
Ex: Mr. Martin is the principal of Hendersonville High School where Taylor Swift
attended. Swift approaches Mr. Martin to discuss implementing a new music
program on campus. Excited about the possibilities this will bring to students and
relying on Swift's financial support, Mr. Martin began planning for the program.
He order construction of a new building complete with soundproofing and a stage.
,Next, new furniture, fixtures, and musical instruments were delivered. He even
hired staff to manage the new music program. Then, in one fell swoop, the promise
was retracted - Swift changes her mind. The doctrine of __________ __________
can help Mr. Martin recover his financial losses from Swift, even without the
parties having entered into a valid contract. - ANSWER -promissory estoppel
Ability to understand that you are entering into a contract, and what the contract
means. - ANSWER -contractual capacity
___________ is presumed to have contractual capacity unless proven otherwise. -
ANSWER -everyone
Parties lacking mental capacity by law - ANSWER -Minors, intoxicated persons,
mentally disabled.
Minors: Can enter into contracts but legally lack _________ _________ to do so. -
ANSWER -contractual capacity
Contracts made by minors are _________ at the election of the minor only. -
ANSWER -voidable
void or voidable?
-cannot be enforced my either party. Treated as if it had never been formed -
ANSWER -void
void or voidable?
a valid contract that can be enforced (one party is bound to contract terms and
other is unbound and allowed to cancel the contract) - ANSWER -voidable
A minor can _________ a contract only during the age of minority and for a
reasonable time after attaining the age of majority. - ANSWER -disaffirm
Even if a minor __________ (lies about) their age, it generally does not affect the
minor's power to disaffirm the contract. - ANSWER -misrepresents
, If minor still has item received from other party (e.g., car), minor must "put things
back to the original position" (i.e., return the car) - ANSWER -Status Quo Ante
If minor can't put things back to the original position (i.e., car destroyed), minor
can still ________ the contract and is required to return only what remains.
Upon return of the item (or what is left), the contracting party must return the
money received (minus restitution) - ANSWER -disaffirm
For a contract to be _______, it must be lawful. (legality) - ANSWER -valid
a contract is illegal when:
its formation or performance is a _______
Ex: A written agreement between A & B where B will sell cocaine for A in
exchange for cash. NOT a contract. - ANSWER -crime
a contract is illegal when:
its formation or performance is a _____ (civil wrong)
Ex: A written agreement between A & B where B will commit battery against C in
exchange for cash from A. NOT a contract. - ANSWER -tort
a contract is illegal when:
it is contrary to public policy
Ex: An __________ clause within an employment contract releasing the employer
from any harm to the employee caused by the employer while on the job. NOT a
contract. - ANSWER -exculpatory clause
a contract is illegal when:
it is contrary to public policy
Ex: An ___________ contract which provides that Rent-To-Ownership Co. will
charge 150% interest on all payments made by customers. NOT a contract. -
ANSWER -unconscionable contract
Any agreement found to be illegal is ______ [never legally existed]. - ANSWER -
void
