L201 Final Exam Practice Questions And Answers 2022/2023

Reggie went to the Napa Valley Harvest Festival, when he stopped at Tracy's booth where she was selling paintings of vineyards. Reggie admired a painting of vineyards, which did not appear to be for sale. Reggie said to Tracy, "I will give you $200 if you give me that painting right now." Tracy said nothing in response, but she gave Reggie the painting, and Reggie gave her $200 in cash. This is an example of a contract that is now: unilateral and executed Sarah is 16 years old. She left home at age 15; her parents no longer support her. Sarah entered into a contract with Best Groceries for the purchase of $100 of groceries on credit. The groceries consisted of basic, necessary items. However, their reasonable value is only $80. If Sarah discovers that she has been overcharged and refuses to pay, Best is entitled to collect: $80 A contract in which one or more of the parties have the legal right to cancel their obligations under the contract is called a(n): voidable contract Which of the following allows a party who has materially breached a contract to recover the reasonable value of any benefits he has conferred on the promise? quasi-contract When the surrounding facts and circumstances indicate that an agreement has in fact been reached, a(n) __________ has been created. implied contract Sara tells Kate that she will give her $50 to clean her garage. When Kate is halfway done, Sara decides to revoke her offer. Is this a valid revocation? No, because this is now a bilateral contract Sue offers to buy a house from John and they were negotiating the price of the house. In the meantime, Sue confides in John's girlfirend that she is willing to pay an amount of $50,000 for the house. Delighted to hear this, John's girlfriend tells him the good news. John immediately calls up Sue and accepts her offer. Is there a binding contract? No, because the offeror had not communicated the terms of the offer to the offeree Why is past consideration not a consideration in a present promise? It does not pertain to the present exchange Which form of damages is intended to give the victim of the breach of contract the "benefit of the bargain"? Compensatory Which of the following is true of revocation? Promissory estoppels are used to prevent revocations Aaron promises to sell his house to Matt, and Matt promises to buy it from Aaron. What type of contract is this? Bilateral contract According to the Code, when there is an acceptance that contains terms that are different from the original terms of the contract, the contrat will consist of __________ and the appropriate gap-filling presumptions of the Code. Terms on which the parties' writings agree Whose signatures are needed in order to satisfy the statute of frauds? Only the signature of the party against whom enforcement is being sought Mr. Yellow delivers a stack of newspapers to Mr. Green's store to see if he wants them. A note attached indicates the stack of papers is $50. Mr. Green without commmunicating an acceptance sold the entire stack of papers to his customers. What is the status of the agreement between Mr. Yellow and Mr. Green? There is a contract becausee Mr. Green accepted by implied action Normally, an illegal contract is: Unenforceable Kyle sent Tara a letter offering to sell Tara his car. Tara left the letter on her desk, where her roommate, Maggie saw it. After reading the letter, Maggie wrote to Kyle and stated that she wanted to accept Kyle's offer. Which of the following is true? There is no contract betwen Kyle and Maggie because Kyle did not communicate the offer to Maggie In deciding whether consideration necessary to form a contract exists, a court must determine whether: There is mutuality of consideration Nina has breached a contract between Milo and her, but not materially. This means that Milo can: Sue only for damages caused by the breach A memorandum on the sale of goods that does not indicate the __________ of goods to be sold will not satisfy the UCC's writing requirement. Quantity The legal remedy of __________ requires the defendant to pay the value of the benefits that the plaintiff has conferred on him. Restitution Mr. White contracts with his wife, Ms. White to watch their kids, Joe and Jimmy, for $50 per night. What is the status of the contract between Mr. White and Ms. White? There is no contract because Ms. White gave inadequate consideration Contracts in which one party to the agreement agrees to buy all of the other party's production of a particular commodity is called a(n) Output contract A bilateral contract is accepted when the offeree: Makes the promise requested by the offer When a promisee who has an existing claim agrees with the promisor that he will accept some performance different from that which was originally agreed upon, both parties can use the remedy of: Accord and satisfaction King sent Foster, a real estate developer, a signed offer to sell a specified parcel of land to Foster for $200,000. King, an engineer, had inherited the land. Foster telephoned King the same day that he received his letter and accepted the offer. Which of the following statements concerning the contract is correct under the statute of frauds? A contract was formed, although it would be enforceable only against King Guy and Boyd made an oral contract whereby Guy agrees to sell Boyd, 480 widgets at a price of $480. Later, the parties want to modify the contract so that the price would become $520. This modification: Must be in writing The "confirmatory memorandum" exception to the UCC's statue of frauds provision: Requires that both parties to the contract be merchants April and Brian entered into a partially integrated written contract. Before the written contract was completed, April made an oral statement to Brian regarding the terms of the contract. This statement was not contained in the written contract. Under the parol evidence rule, evidence of April's oral statement would be admissible if it were used to: Prove an additional term consistent with the written agreement In order for the consideration requirement in contracts to be met: Each party must give consideration On May 1, 1985, Mint a 16 year-old, purchased a sailboat from Sly Boats. Mint used the boat for six months, at which time he advertised it for sale. Which of the following statements is correct? Mint may disaffirm the May 1 contract at any time prior to reaching majority Can a local businessman pay a police officer $50 a week to watch the business more closely? No, public officials cannot give consideration on duties they are already supposed to perform Austen Construction, a general contractor, advertised for bids from subcontractors on the eletrical work for the renovation of one of State University's parking structures. The advertisement announced that the contract will be awarded to the lowest responsible bidder. Bronte, a responsible electrical subcontractor, submitted the lowest bid to Austen for the eletrical portion of the work. Austen informed Bronte that she would begin work immediately. Bronte then stated that she is "withdrawing" her bid from Austen. Which of the following statements is most accurate? Bronte has accepted Austen's offer by submitting the lowest bid Which of the following contracts are agreements that create no legal obligations and for which no remedy is given? Void contracts Helen worked for ABC Motors for 25 years. The president of ABC said to her: "In consideration of your past service for 25 years, I promise to give you a new car next week." However, he did not give the car. Is the promise legally enforceable? No, legal consideration is absent When the parties to a contract wish to cancel their contract and be in the same position as they were prior to forming the contract, they should seek to obtain a(n) Rescission A minor entered into a contract with GAM & Co. On attaining majority, he wishes to enforce the contract. The adult party must: Perform the contract Which of the following contracts is void? A contract made by a person who has been adjudicated insane & institutionalized Tracy, aged 12, is named the sole inheritor of her family mansion, which is valued to be worth millions. She has disaffirmed the agreement on the advice of her uncle and guardian Pete. This automatically transfers the title to the latter. Which of the following statements is true of the case? Tracy cannot disaffirm unitl she has reached majority Which of the following is true of necessaries? The liability for necessaries is quasi-contractual Price signed a contract to sell Wyatt a parcel of land for $90,000. The entire sales price was payable at the closing. Price has decided to keep the land. If Wyatt commences an action against Price, what relief is Wyatt most likely to receive? Specific performance Which of the following meets the requirements of consideration? A promise that involves the exchange of a legal value Morton Reeves, a building subcontractor, submitted a bid for construction of a portion of a high-rise office building. The bid contained material errors in computation. Lago Corp. the general contractor, accepted the bid with the knowledge of Reeves' error. Reeves: Can avoid liability on the contract since Lago knew of his errors Bing engaged Dill to perform personal services for $2,200 a month for the period of four months. The contract was entered into orally on July 1, 1984, and performance was to commence September 1, 1984. On August 10, Dill anticipatorily repudiated the contract. As a result, Bing Can immediately sue for breach of contract Damages that are agreed upon at the time the contract is entered into are called ___________. Liquidated damages A bilateral contract is "taken out of the statute of frauds" when: It is fully performed by at least one party When the consideration given in exchange for the collateral promise is something the guarantor seeks primarily for his own benefit rather than for the benfeit of the primary debtor, the contract: Is outside the statute of frauds (quasi-contract) Which of the following characterizes the effect of incapacity caused by mental impairment? If a contract is found to be voidable on the ground of mental impairment, the person who lacked capacity at the time the contract was made has the right to disaffirm the contract Three days before she was judicially declared mentally incompetent and institutionalized, Irma bought a $50,000 automobile by cash and took delivery of it. Which of the following is true about this contract? The contract is voidable due to Irma's institutionalization Which of the following ends the right to rescind a voidable contract? Ratification Betty, age 16, buys a car and wrecks it one week later. She takes it back to the seller and demands all her money back. According to the traditional rule, is she entitled to get all her money back? Yes, regardless of the condition of the car, because this was a voidable contract Jonas contracts with Lucy to paint Lucy's house. Jonas paints Sarah's house by mistake, thinking it belongs to Lucy. Sarah is on vacation and does not know Jonas is painting her house. Sarah comes home from vacation and discovers her house has been painted. Sarah's house looked much better than it did before the paint job. Jonas' work has greatly improved the value of Sarah's house. Jonas sends a bill to Sarah and she refuses to pay. Jonas sues Sarah. Who most likely wins? Why? Sarah most likely wins because never requested the services or agreed to them If Pool Liner Manufacturing Company makes an offer in a signed writing in which it proposes to sell 100 of its SunRay Pool Liners to AquaSystems Pro for $200,000 and gives assurances that the offer will be kept open for six months, the offer is: Firm offer that cannot be revoked for 3 months