Exam 10: Legality, consent, and Writing

AAA and XXX companies are both major international conglomerates.They are negotiating a contract whereby AAA will install a computer system for XXX.One clause in the contract states that AAA will not be liable for damages caused by the negligent installation of the computer system,except that AAA warrants the system and will fix any problem for a period of two years following installation.AAA completes the installation of the computer system.XXX loads extensive amounts of information on the system,but all of it is destroyed because AAA negligently installed the memory chips.AAA fixes the memory,but XXX incurred significant expenses in recreating the lost information.XXX sues for these expenses and AAA defends with the noted clause in the contract.Who wins?

Willis and Leslie orally agree to the sale of a parcel of land for $50,000: one-half payable now as a down payment;one-half payable in 30 days at the time of closing when the title will be transferred.The buyer,Willis,is to have possession immediately.Willis pays Leslie $25,000,takes possession of the land,and starts building a house.At the time of closing,the house is nearly completed.However,Leslie refuses to transfer the title,claiming the oral contract is not enforceable.This contract is:

When a party to a contract makes a unilateral mistake,the contract:

The original statute of frauds is the English law that began the practice of requiring written evidence of certain kinds of contracts.

An exculpatory clause is generally enforceable if the affected activity involves medical care or an essential service.

Betty wants to sell her car.If she tells a prospective buyer that the car is mechanically sound,when it is not,she:

Roger parked his car at a garage that has a large sign at the entrance saying,"This garage is not liable for items stolen from a car." This type of notice is referred to as an exculpatory clause.

Discuss the concept of a "material fact" in fraud situations.

Mike owns a house in a poor area of a large city.Mike is on disability and his total monthly income is $700.A sales representative visits his home,selling a water purification system.Mike buys and signs a contract that calls for monthly payments of $500 for the next 10 years.The water system is worth no more than $1000.Mike did not understand what he was signing and thought it was a permission slip allowing the salesman to conduct a free water test to determine the number of toxins in the water.A court would most likely find this contract:

Mark sues Paula to enforce an alleged oral contract to sell a one-acre lot.She defends based on the statute of frauds.Even if Mark proves he paid 15 percent of the purchase price and that Paula was aware that he had begun construction of a house on the lot,Mark will not be allowed to enforce the contract since a contract for the sale of any interest in land must be in writing to be enforceable.

Barb has been a children's day-care provider for several years in the small town of Sallton.She has decided to give it all up and move to the big city for excitement and adventure.She sells her business to Ken,agreeing not to open a competing business within two miles of Sallton for a period of six months.After four months of the big city life,Barb is broke and moves back to Sallton.She opens a new day-care business.Ken sues on the noncompete clause.What is the most likely result?

Jeff was a subcontractor,bidding on a contract for ACE Corp.,the general contractor.When adding up the total of materials and labor,Jeff's secretary mistakenly moved the decimal point one place,ending up with a bid of $3500 rather than $35,000.ACE Corp.accepted Jeff's bid,mostly because all the other bids were over $30,000.When Jeff learned of the mistake,he tells ACE Corp.that he cannot do the job for $3500.If ACE Corp.sues to enforce this contract,what is the most likely result?

E-mation hired Jose to bribe a foreign government official.E-mation gave Jose $10,000 in cash to make the bribe payment and $2000 for Jose's efforts.Instead of paying the bribe,Jose pocketed all of the money.If E-mation sues Jose,E-mation will:

Dallas unearths what he thinks may be a gem while he is working up a garden spot.He takes it to the local jeweler,who says he isn't sure until it is cleaned and polished,but he thinks it may be a semiprecious gem worth about $150.The jeweler offers to buy it,and Dallas is thrilled to sell for that price.If the jeweler later finds that the gem was really a precious gem worth ten times what he paid for it:

Derek and Abyan were discussing business over lunch when they agreed on the sale of a five-acre parcel of land.Since neither of them had any paper with them,Derek wrote the following on a napkin: "Abyan agrees to purchase from Derek a 5-acre parcel located at the local address of 123 Forrest Street,St.Joseph,Minnesota,U.S.A.for the price of $3500 per acre.Transfer of title,payment,and possession to take place on May 1,2010." Abyan signed the napkin.On May 1,2010,Derek was ready to close the deal and transfer title but Abyan refused to pay the purchase price.If Derek sues Abyan for the price of the land,the most likely result will be:

Roger,a minor,buys some electronic equipment from Tuneland,Inc.Roger uses the equipment for a few months and destroys it.In a majority of states,Roger is not entitled to his money back since the merchandise cannot be returned.

Herb was interviewed for a job on Wednesday.The employer orally offered Herb a job right on the spot.Herb orally agreed to start working the following Monday,to be employed from that day,Monday,for one year thereafter.Three weeks after starting the job Herb was fired without cause and replaced by the employer's friend.Will Herb be successful in an action brought against the employer for breach of contract?

Whittle sent an order over the Internet for a $1,200 garage door.His name keyed onto the order will only be effective as a signature sufficient to create a "writing" "signed by the party against whom enforcement is sought" if he follows up with a signature on paper.

Which of the following would not be a sufficient signature on a writing to satisfy the statute of frauds?

Abby dies,and her good friend,Claire is appointed to administer Abby's estate.Abby's house was in poor condition,so Claire orally hired a contractor to make repairs.Claire also orally promised that if the estate could not pay the repair bill,he would pay it even though he does not live in the house and has no entitlement under Abby's estate.The estate does not pay the repair bill.The contractor: