Question 1

Fact Pattern 7-2
Hester offers to sell her house to Frank for $250,000. Frank says that he would like to think about it, and Hester says that is fine. The next day, Martha, Hester's friend, says that she will give Hester $240,000 for the house. Hester really likes Martha more than Frank and signs a contract to sell the house to Martha. Later that day Hester sees Frank walking up her driveway. She immediately opens the window and yells "I revoke the offer on the house" before Frank says anything. Frank replies that he accepts the offer and expects to purchase the home. Frank tells Hester that while he has not yet taken steps to sell his own home or get a loan, he feels confident that there will be no problem with those matters and he is a ready, willing, and able buyer.
-Refer to Fact Pattern 7-2.Which of the following is true regarding whether Hester's attempted revocation was effective?

Accepted Answer

A)   It was effective because Hester had left the offer open the amount of time required by law regardless of whether she revoked before Frank could accept.
B)   It was effective because Hester issued the revocation before Frank could accept.
C)   It was ineffective because the amount paid by Martha was less than the offer to Frank.
D)   It was ineffective because Hester attempted the revocation at too early a point in time.E) All of the above
F) C) and D)

Question 2

Fact Pattern 7-1
Prudence offered to sell her car to Danny for $3,000. Danny was not sure what to do, so he asked Prudence if she would hold the offer open for him for one week for $50. Prudence said sure, and the parties signed a contract to the effect that Prudence would hold the car. A few hours later, Bobby unexpectedly offered Prudence $3,500 for the car, and Prudence sold it to him on the spot. Danny decided to buy the car, but when he came by to pick it up the next day, it was gone. Prudence gave Danny his $50 back telling him that was her only obligation and that if he had any complaints, he could take it up with Bobby. Danny found a similar car the next week for $3,500 and purchased it.
-Refer to Fact Pattern 7-1.What damages,if any,could Danny likely collect against Bobby in litigation over the car?

Accepted Answer

A)   None
B)   Reliance damages consisting of $500
C)   Incidental damages consisting of $50
D)   Compensatory damages consisting of $500E) C) and D)
F) B) and D)

Question 3

Generally,prior to upholding a contract,a court will carefully scrutinize the value of consideration to be sure that the contract is a fair one.

Accepted Answer

A) True 
 B)False

Question 4

Liquidated damages are damages that:

Accepted Answer

A)   punish the breaching party.
B)   fluctuate with the market conditions.
C)   are agreed upon.
D)   none of these choices.E) A) and D)
F) A) and C) C

Question 5

A counteroffer does not terminate the original offer.

Accepted Answer

A) True 
 B)False

Question 6

Void means the same thing as voidable in contract law.

Accepted Answer

A) True 
 B)False

Question 7

Penny found a billfold on a city street; looked inside to determine its owner and returned it to its true owner,Richard.A few days later she found out that Richard had offered a reward in the amount of $100 for the return of the billfold.She asks Richard for the reward money,but he refuses.Is Penny entitled to the reward,and why or why not?

Accepted Answer

Penny is not entitled to the reward.The reason is that in order to establish the existence of a contract,the offeror must have communicated the offer to the offeree prior to the offeree's performance.

Question 8

The Statute of Frauds requires certain types of contracts to be evidenced by some form of written communication.

Accepted Answer

A) True 
 B)False

Question 9

Identify and discuss the two elements focused on in relation to procedural unconscionability.

Accepted Answer

The procedural element of unconscionabil...

Question 10

.Whether a contract is a bilateral or unilateral contract depends upon whether the sale of goods is involved.

Accepted Answer

A) True 
 B)False

Question 11

Only a licensed attorney can hold a power of attorney.

Accepted Answer

A) True 
 B)False

Question 12

List the elements necessary for the doctrine of promissory estoppel to be applied.

Accepted Answer

Promissory estoppel applies if...

Question 13

Fraud in the __________ occurs when a party is persuaded to sign one document thinking that it is another.

Accepted Answer

A)   acceptance
B)   obligation
C)   factum
D)   inducementE) A) and B)
F) None of the above

Question 14

Which of the following is true regarding the effect of death and incapacity on an offer?

Accepted Answer

A)   Death or incapacitation of either party terminates an offer.
B)   Death of either party terminates an offer, and incapacity on the part of the offeror terminates an offer, but incapacity on the part of an offeree does not terminate an offer.
C)   Death of either party terminates an offer, and incapacity on the part of an offeree terminates an offer, but incapacity on the part of the offeror does not terminate an offer.
D)   Neither death nor incapacity on either the part of the offeror or offeree terminates an offer.E) None of the above
F) B) and C) A

Question 15

An agreement between two parties that provides that the seller will sell all of a product that he produces to the buyer is called a(n) :

Accepted Answer

A)   illusory promise.
B)   requirements contract.
C)   output contract.
D)   fulfillment contract.E) A) and C)
F) A) and D)

Question 16

In CASE 7.1 SIGA Technologies,Inc.v.PharmAthen,Inc.(2013) the main issue before the Supreme Court of Delaware was whether:

Accepted Answer

A)   the pre-contractual letter of intent was enforceable.
B)   Pharmathene had breached its obligation to negotiate the licensing agreement in good faith.
C)   SIGA had breached its obligation to negotiate the licensing agreement in good faith.
D)   the Delaware court had properly applied New York law in the case.E) C) and D)
F) All of the above

Question 17

Generally,if Tom's factory unforeseeably burns down through no fault of his own,Tom is discharged from his contractual obligation to manufacture widgets for Jerry.

Accepted Answer

A) True 
 B)False

Question 18

Define the term "consideration" as it is used in contract law.

Accepted Answer

Formation of a valid contract ...

Question 19

Helen tells her nephew,Bernard,that she will pay him $100 if he will stop smoking for six months.Helen was hopeful that if Bernard stopped smoking for six months,he would stop altogether.Bernard stops smoking for six months but then resumed his smoking.Helen will not pay him.She says that the type of promise she made cannot constitute a binding contract and that,furthermore,it was at least implied that he would stop smoking for good.Can Bernard legally collect $100 from Helen?

Accepted Answer

A)   No, because under the law his stopping smoking was not adequate consideration.
B)   No, because it was implied that he would stop smoking for good, and he only quit for six months.
C)   Yes, because his stopping smoking for six months, as agreed, was adequate consideration for the contract.
D)   Yes, because stopping smoking was good for his health even if he only did it for six months.E) None of the above
F) All of the above

Question 20

Which of the following is a technique by which a new party is substituted for one of the old parties,and a new contract is written (with the consent of all old and new parties) to effect the desired change?

Accepted Answer

A)   Novation
B)   Substitution
C)   Formal change
D)   Verified changeE) None of the above
F) A) and B)

Exam 7: Contracts.

Correct Answer
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Correct Answer
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Generally,prior to upholding a contract,a court will carefully scrutinize the value of consideration to be sure that the contract is a fair one.

Correct Answer
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Liquidated damages are damages that:

Correct Answer
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C

A counteroffer does not terminate the original offer.

Correct Answer
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Void means the same thing as voidable in contract law.

Correct Answer
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Correct Answer
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Penny is not entitled to the reward.The reason is that in order to establish the existence of a contract,the offeror must have communicated the offer to the offeree prior to the offeree's performance.

The Statute of Frauds requires certain types of contracts to be evidenced by some form of written communication.

Correct Answer
verified

Identify and discuss the two elements focused on in relation to procedural unconscionability.

Correct Answer
verified
The procedural element of unconscionabil...
View Answer

.Whether a contract is a bilateral or unilateral contract depends upon whether the sale of goods is involved.

Correct Answer
verified

Only a licensed attorney can hold a power of attorney.

Correct Answer
verified

List the elements necessary for the doctrine of promissory estoppel to be applied.

Correct Answer
verified
Promissory estoppel applies if...
View Answer

Fraud in the __________ occurs when a party is persuaded to sign one document thinking that it is another.

Correct Answer
verified

Which of the following is true regarding the effect of death and incapacity on an offer?

Correct Answer
verified
A

An agreement between two parties that provides that the seller will sell all of a product that he produces to the buyer is called a(n) :

Correct Answer
verified

In CASE 7.1 SIGA Technologies,Inc.v.PharmAthen,Inc.(2013) the main issue before the Supreme Court of Delaware was whether:

Correct Answer
verified

Generally,if Tom's factory unforeseeably burns down through no fault of his own,Tom is discharged from his contractual obligation to manufacture widgets for Jerry.

Correct Answer
verified

Define the term "consideration" as it is used in contract law.

Correct Answer
verified
Formation of a valid contract ...
View Answer

Correct Answer
verified

Which of the following is a technique by which a new party is substituted for one of the old parties,and a new contract is written (with the consent of all old and new parties) to effect the desired change?

Correct Answer
verified

Exam 7: Contracts.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Generally,prior to upholding a contract,a court will carefully scrutinize the value of consideration to be sure that the contract is a fair one.

Correct AnswerverifiedShow Answer

Liquidated damages are damages that:

Correct AnswerverifiedC

A counteroffer does not terminate the original offer.

Correct AnswerverifiedShow Answer

Void means the same thing as voidable in contract law.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedPenny is not entitled to the reward.The reason is that in order to establish the existence of a contract,the offeror must have communicated the offer to the offeree prior to the offeree's performance.

The Statute of Frauds requires certain types of contracts to be evidenced by some form of written communication.

Correct AnswerverifiedShow Answer

Identify and discuss the two elements focused on in relation to procedural unconscionability.

Correct AnswerverifiedThe procedural element of unconscionabil...View AnswerShow Answer

.Whether a contract is a bilateral or unilateral contract depends upon whether the sale of goods is involved.

Correct AnswerverifiedShow Answer

Only a licensed attorney can hold a power of attorney.

Correct AnswerverifiedShow Answer

List the elements necessary for the doctrine of promissory estoppel to be applied.

Correct AnswerverifiedPromissory estoppel applies if...View AnswerShow Answer

Fraud in the __________ occurs when a party is persuaded to sign one document thinking that it is another.

Correct AnswerverifiedShow Answer

Which of the following is true regarding the effect of death and incapacity on an offer?

Correct AnswerverifiedA

An agreement between two parties that provides that the seller will sell all of a product that he produces to the buyer is called a(n) :

Correct AnswerverifiedShow Answer

In CASE 7.1 SIGA Technologies,Inc.v.PharmAthen,Inc.(2013) the main issue before the Supreme Court of Delaware was whether:

Correct AnswerverifiedShow Answer

Generally,if Tom's factory unforeseeably burns down through no fault of his own,Tom is discharged from his contractual obligation to manufacture widgets for Jerry.

Correct AnswerverifiedShow Answer

Define the term "consideration" as it is used in contract law.

Correct AnswerverifiedFormation of a valid contract ...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a technique by which a new party is substituted for one of the old parties,and a new contract is written (with the consent of all old and new parties) to effect the desired change?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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C

Correct Answer
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Correct Answer
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Correct Answer
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Penny is not entitled to the reward.The reason is that in order to establish the existence of a contract,the offeror must have communicated the offer to the offeree prior to the offeree's performance.

Correct Answer
verified

Correct Answer
verified
The procedural element of unconscionabil...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Promissory estoppel applies if...
View Answer

Correct Answer
verified

Correct Answer
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A

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Formation of a valid contract ...
View Answer

Correct Answer
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Correct Answer
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