Exam 10: Contracts

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. Assume that Ellen says to Lulene that she would like blueberry pies rather than lemon pies. Assume that Lulene agrees to this and states that she will supply Ellen with all the blueberry pies she needs. This is known as:

An offer is made by an offeree.

A ____ to the promisor exists when the promisor acquires some legal right through the promisee's act, promise to act, or refraining from doing some act.

The party who makes an offer can require the acceptance to be communicated in a very specific way or the acceptance is not good.

Restitution is a form of damages granted by courts to allow parties to recover for profits lost that would have been earned had a contract been fulfilled.

If the offeree accepts an offer through performance requested, unilateral contract is formed.

In Deschamps v. Treasure State Trailer Court, Ltd. where Deschamps was sued after he bought a mobile home trailer park and then stopped making payments on it because he claimed the seller told him the water system was in good condition when in fact it required $400,000 of repairs, the supreme court of Montana held that:

In violation of their contract, a partner quits a partnership and goes into competition with her old partner. The old partner may ask the court for:

Restitution is an equitable remedy that may be used to prevent unjust enrichment when one party accepts benefits provided by another that were not under contract.

To transfer contractual duties to a third party is:

An exculpatory agreement:

Some contracts must be in writing and signed to be enforceable. Contracts that are covered by the statute of frauds include:

A contract that violates state or federal statutory law is:

____ is an effort by a party to induce another party to enter into a contract based on false information.

A(n) ____ is an order by the court that requires a party to perform or to refrain from performing certain acts.

Without consideration:

A promise to do something or to refrain from doing some specific thing is a:

If you anticipate that the other party to a contract will breach the contract, you must wait until the breach occurs before taking an alternative course of action or you will have breached the contract.

A ____ occurs when one party to a contract enters into it with false information or accidentally makes an error in a significant matter.

Which of the following is usually not a requirement for a contract to be valid?