Exam 7: Contracts

Expectation damages give the plaintiff the benefit of its bargain,putting the plaintiff in the cash position it would have been in if the contract had been fulfilled.

Which of the following does not generally make a contract voidable?

A _________ contract is a promise given in exchange for another promise.

Which of the following is true regarding a mistake of judgment?

The statute of frauds requires that all contracts be in writing to be enforceable.

An option contract holds an offer open for a certain amount of time in exchange for some consideration.

Under the doctrine of ________,a court may invalidate an agreement if one party had sufficient influence and power over the other as to make genuine assent impossible.

Big Company owed Struggling Company $50,000.Because officials at Big Company knew that Struggling Company was having significant financial problems,the president of Big Company told the president of Struggling Company that Big Company would only pay $25,000 in satisfaction of the debt.The president of Big Company knew that Struggling Company lacked sufficient assets with which to hire a lawyer and sue.Struggling Company did accept the $25,000 in settlement of the debt and signed a release.A few months later,Struggling Company's financial position improved.The president of Struggling Company would like to sue Big Company for the remaining sums.What theory represents Struggling Company's best chance to prevail,and what elements must be proven under that theory?

Which of the following is not one of the basic elements for formation of a valid contract?

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.Meanwhile,the next day,Bobby offered Prudence $3,500 for the car,and Prudence sold it to him on the spot.When Danny came to pick up the car the next day,it was gone.Prudence gave Danny his $50 back and told 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.Did Danny have any type of contract with Prudence,and if so what type?

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

Which of the following is a doctrine that may excuse the government from performance on a contract due to legislative or executive acts?

S calls B and says,"I will sell my 1966 Mustang convertible to you for $3,000." B knows that the car is worth $4,000.B replies,"Would that include the trunk-mounted spare tire?" S hangs up without a word.B calls back in three days and says,"I'll buy the car for $3,000." Is there a contract? Discuss fully.

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.Meanwhile,the next day,Bobby offered Prudence $3,500 for the car,and Prudence sold it to him on the spot.When Danny came to pick up the car the next day,it was gone.Prudence gave Danny his $50 back and told 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 Prudence in litigation over the car?

Under the doctrine of ________,a court may order restitution if one party has received a benefit for which it has not paid when there was no contract between the parties

Under traditional common law,the acceptance must be the ________ of the offer.

A novation occurs when a new party is substituted for one of the original parties to a contract.

Which of the following is a type of conditional promise?

A third party beneficiary is someone who is not

An offer can be terminated by __________.