Exam 10: Defenses to Contract Enforceability

In a bike shop, Jessie, who is not knowledgeable about bikes, overhears Kevin say, "This bike could win any race!" Jessie buys the bike, but does not win any races with it. Kevin's statement is​

When a naïve purchaser enters into a contract in reliance on the opinion of an expert, the innocent party is not entitled to rescind the deal.​

A contract entered into under undue influence is voidable.​

​Fact Pattern 10-4 Alain and Brie sign a contract for the sale of Alain's Patisserie to Brie. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement-Alain must first buy the building from Commercial Properties, Inc., after which Alain and Brie will agree on a price. -Refer to Fact Pattern 10-4. The writing that Alain and Brie signed is​

Ranchland Properties and Prairie State Investments sign a written contract for a sale of land. In some states, to be enforceable, this contract must include​

To be enforceable, a contract for a sale of goods priced at $500 or more must designate the buyer, seller, terms of payment, and price.​

An innocent party can rescind a fraudulent contract and be restored to his or her original position.​

A written contract for a transfer of land is usually enforceable.​

Fact Pattern 10-3 Grain Co-op, LLC and Hearty Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Grain faxes Hearty a memo on Grain's letterhead that summarizes the points on which they agreed, including a two-year term. Grain begins to perform, and Hearty accepts the deliveries but refuses to pay. -Refer to Fact Pattern 10-3. Between Grain and Hearty, there is​

Fact Pattern 10-1 County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from Doyle to Ezra, the furnished information is mistaken. ​ -Refer to Fact Pattern 10-1. If Doyle and Ezra are both ignorant of the mistake, it is​

Under the Statute of Frauds, land includes physical objects permanently attached to it, such as buildings, fences, trees, and soil.​

If a party against whom enforcement of an oral contract is sought admits under oath that a contract for sale was made, the contract will be enforceable.​

Ray agrees to buy one hundred pounds of almonds from Sol. To be enforceable, the agreement must be in writing if the almonds cost at least​

Car Lot's salesperson Dick offers to sell Ernie, who is twenty years old, a car. Dick intentionally misrepresents the vehicle's use and repairs. In reliance, Ernie buys the car. To prove fraud, Ernie does not have to show that​

​Fact Pattern 10-4 Alain and Brie sign a contract for the sale of Alain's Patisserie to Brie. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement-Alain must first buy the building from Commercial Properties, Inc., after which Alain and Brie will agree on a price. -Refer to Fact Pattern 10-4. Brie later disputes some of the provisions of the deal with Alain. If the dispute results in litigation, a court will most likely admit evidence of additional terms that are​

Colin and Delta Water Company enter into an oral contract under which Delta agrees to provide Colin with lifetime employment. This contract may be enforceable by​

An integrated contract is a contract with more than one subject or part.​

Normally, a contract will be set aside because certain pertinent information was not volunteered.​

Fact Pattern 10-1 County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from Doyle to Ezra, the furnished information is mistaken. ​ -Refer to Fact Pattern 10-1. The contract between Doyle and Ezra that includes the mistake may be rescinded if the mistake concerns​

Marketing, Inc., and Nature's Foods Corporation (NFC) discuss a contract. They exchange "signed" e-mails that summarize the terms on which they agree. Marketing begins to perform, but Nature's refuses to pay. Between Marketing and Nature's, the e-mails are​