Exam 10: Contracts

Which is not an element for an offer to be effective:

Contract law governs the enforceability of:

Fact Pattern 10-1 Lulene makes the best lemon meringue pies in Mississippi. So Ellen, who owns Ellen's Old Fashion Cafe, contracts with Lulene to buy 50 pies per week at the price of $5.00 per pie. Although Lulene took a class in business law, she forgot to get her agreement with Ellen in writing. Lulene and Ellen agreed during a chat. Lulene said: "I will supply you with lemon meringue pies for however long you want them at $5.00 per pie." Ellen said: "That's great, I'll take them." Both women were pleased. Soon Lulene had a problem. Between a hurricane in Florida and brush fires in California, the price of lemons increased by 200%. Now, instead of the $5.00 per pie price she intended to charge Ellen, she feels she must charge $7.00 per pie to make a little profit. Lulene calls Ellen with the bad news and Ellen has a fit. She tells Lulene that's too bad, but the deal is off. Lulene says, "That's what you think!" and goes to see Amanda, her attorney. -Refer to Fact Pattern 10-1. Suppose the Mississippi legislature passes a law, one day after Lulene and Ellen make their contract, that the sale of lemon pies is prohibited in the state because lemons have been found to cause cancer. This statute makes the contract:

The Statute of Frauds is quite old, having evolved from an English law of 1677.

Smith, who lives in your apartment building, drives you crazy. You agree to give Ratzo $5,000 if he gets rid of Smith for you. After disposing of her, Ratzo returns for his money. You refuse to pay. Ratzo sues you; the court holds the contract is:

Contracts where one party, being in a position of strength, takes advantage of the other party, and which are held to be unenforceable, are called:

Roberta says "Susan, I will sell you my car for $5,000." Susan says, "I'll give you $4,500." Roberta says "No." Later Susan calls Roberta and says, "I have $5,000 and want the car." Roberta:

Under the economic loss rule, when a breach of contract does not include a tort, such as injury to persons, the damages:

In fulfilling the obligations of a contract, both parties are expected to act in good faith.

Contract law is primarily:

Susan agrees to buy Jan's car for $4,000. Susan is to bring the money the next day. That night Jan wrecks the car. Susan:

19th century English courts referenced ____ when resolving contract disputes.

Without consideration:

"Unless you say no, then you must buy my car for $5,000," says A. B says nothing. B must buy the car.

Basic elements of a contract need not include:

A contract is a(n) ____ if there is a written or oral expression of intent by the parties to enter into a legally binding agreement.

____ is the legal ability to create a contract.

An effective revocation:

Contracts in many low income countries are more difficult and costly to enforce than they are in more developed countries.

"I will pay you $100 to not sell your $500,000 house to anyone else for the next month so I can see if I can get the money together to buy it," you say. "Ok," says the home owner. The $100 payment is a valid contract.