To login with Google, please enable popups
Forgot your password?
Don’t have an account? Sign up
To signup with Google, please enable popups
Sign up with Google or Facebook
To sign up you must be 13 or older. Other people won’t see your birthday.
By signing up I agree to StudyBlue's
Already have an account? Log in
StateBank offers to lend money to Rodeo Promotions, Inc., at 15 percent interest.Before Rodeo accepts, a statute is enacted prohibitingloans at interest rates greater than 12 percent. Rodeo and the bank have
a. have a contract for a loan at 15 percent interest.
b. have a contract for a loan a 12 percent interest.
c. have a contract for a loan at 0 percent interest.
d. no contract for a loan.
Brad defends against a breach-of-contract suit by College CreditCorporation by claiming that their deal—a student loan accruing interest at acertain rate and payable beginning on a certain date—was unfair because theconsideration for their contract was inadequate. Referto Fact Pattern 10-1. “Adequacy”of consideration refers to
a. "How much" consideration is given.
b. legally sufficient value in the eyes of the law.
c. the intangible value to a contracting party of a thing exchanged.
d. the substantiality of the consideration exchanged.
Dex and Carmen are in an autoaccident. Dex offers Carmen $2,000 if she promises not to pursue her potentiallegal claim against Dex. Carmen agrees. Later, Carmen discovers that it willcost $1,500 to repair her car and $4,000 to cover the medical expenses for alatent injury. Refer to Fact Pattern 10-2. The agreement between Dex and Carmen is
a. a covenant not to sue.
b. an accord and satisfaction.
c. a release.
d. promissory estoppel.
Cherry and Basil are minors who marry each other. Their minority statusmay be terminated under the laws of
a. all states.
b. most states.
c. some states.
d. no states.
Cielo is fifteen. In most states, Cielo would be considered a minorbecause she is under the age of
Neil represents himself as acontractor in Ohio, but he is not licensed in that state. A contract betweenPam and Neil by which Neil agrees to build a warehouse for Pam in Ohio is
a. enforceable only if Pam does not object after learning of Neil's status.
b. enforceable only if Pam knows that Neil is unlicensed.
c. enforceable only if the outcome is successful.
d. not enforceable.
Fran and Greg enter into a bilateral contract, which is created when
a. Fran gives a promise in exchange for Greg's performance of a particular act.
b. Fran gives a promise in exchange for Greg's promise.
c. either a or b.
d. none of the above.
John offers to pay Mary $100 if she walks across the Brooklyn Bridge.Mary can accept the offer only by walking across the bridge. If Mary walksacross the bridge, she and John will have formed
a. a bilateral contract.
b. a unilateral contract.
c. a performance contract.
d. a surety contract.
Abby and Bill enter into an implied-in-fact contract. Under thiscontract, the conduct of the parties is examined
a. only to define the contract's terms.
b. only to determine whether they intended to form a contract.
c. to define the contract's terms and to determine whether the parties intended to form a contract.
ConsumerSales, Inc., sends its catalogue to Carol and includes a “personalized” letterinviting her to buy any item in the catalogue at the advertised price. This
a. constitutes an offer because of the ltter.
b. constitutes an offer only if Carol previously bought items from the firm.
c. constitutes an offer because there is no room for price negotiation.
d. does not constitute an offer.
Ned Contractors, Inc., begins construction of a mallfor Van Development Corporation and after six months demands an extra $100,000.Van agrees to pay. Imagine that Ned offered no reason for the extra $100,000 but said only that i would stop working if Van did not agree to pay. The agreement is
a. enforceable because the parties executed an accord and satisfaction.
b. enforceable because of the unforeseen difficulties.
c. unenforceable due to the preexisting duty rule.
d. unenforceable as an illusory promise.
Ned Contractors, Inc., begins construction of a mallfor Van Development Corporation and after six months demands an extra $100,000.Van agrees to pay. Imagine that Ned explained, as a reason for theextra $100,000, that ordinary business expenses had increased. The agreementis
Ned Contractors, Inc., begins construction of a mallfor Van Development Corporation and after six months demands an extra $100,000.Van agrees to pay. Imagine that Ned explained, as a reason for theextra $100,000, that unforeseen soil and rock conditions would add considerablecosts to the project. The agreement is
Ethan contracts with Ethyl to buy a ring from her. Whenboth parties change their minds, they inform each other that they would like tocancel the contract. Ethan and Ethyl
a. must perform their contract.
b. must perform the part of their contract that is still executory.
c. may rescind their contract altogether.
d. may rescind their contract to the extent that it is executory.
Ethan contracts with Ethyl to buy a ring from her. Whenboth parties change their minds, they inform each other that they would like tocancel the contract. Imagine that the next day, Ethan changes his mindand again offers to buy the ring. Ethyl is willing to sell, but for a higherprice. Ethan and Ethyl
a. must perform their original contract.
b. must perform the part of their original contract that is still executory
c. may agree to a new contract that includes the higher price.
d. may agree to a new contract, but it cannot include the higher price.
Nancy promises to payTilly $50 a day to come work for her. Tilly agrees and quits her job. If Nancyfails to provide a job for Tilly, then Tilly will have a cause of action basedon
a. promissory estoppel.
b. the statute of limitations.
c. a covenant not to sue.
d. uncertain performance.
Tony,a minor, attempts to return to its former owner, a car that he recentlypurchased and subsequently wrecked, in a state in which a duty of restitutionis imposed. Tony
a. can return the car in its present condition and avoid any further liability.
b. is not required to return the car due to his or her minority.
c. must return the car and pay for the damage.
d. will no be able to return the car unless it can be fully restored to its original condition.
Whileintoxicated, Steve agrees to a contract to sell his restaurant to Tina. Thiscontract would be considered void
a. if Steve appeared intoxicated to Tina.
b. if Steve were so intoxicated as to have no memory of the deal.
c. under any circumstances.
d. under no circumstances.
Mikeobtains a consumer loan from a bank at an interest rate of 35 percent. The bankhas
a. obviously decided that Mike is a poor credit risk.
b. probably violated the usury laws.
c. unlawfully engaged in a restraint of trade.
Bobruns an illegal business and pays Carl, a law enforcement officer, not tointerfere. The payments are discovered. Bob and Carl are sent to prison. Bobcan successfully sue Carl for the return of
a. only the money paid to Carl that Carl has not spent.
b. only the money paid to Carl that Carl has spent.
c. all of the money paid to Carl.
Sign up for free and study better. Anytime, anywhere.
Get started today!