Exam 10: Contracts

Termination of an offer by operation of law occurs:

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 doesn't call the deal off when she is told the price is now $7.00, but wants to hold Lulene to the deal to supply pies at $5.00. If Lulene fails to supply the pies, and if Ellen then sues her for a breach of contract, what is Lulene most likely to argue to avoid liability?

A offers B $100,000 for his farm, and they sign an agreement for the sale. Before the money is paid, A finds out that the market value of the farm is only $55,000. A:

To be enforceable, which of the following contracts require a written document under the statute of frauds?

The ____ means that there are also responsibilities imposed on parties who commit to binding relationships in contracts.

Profits you reasonably would have earned had the other party to a contract not breached are called:

A third-party beneficiary is a party who is not part of an original contract but who acquires rights under the contract.

An exculpatory agreement:

The doctrine that prevents an injustice due to the promisee's reasonable reliance on the promisor's promise is:

A voidable contract is a contract that one party has the right to avoid.

If, during a contract, a party incurs "extreme or unreasonable difficulty, expense, injury or loss" the courts may call this impracticability or:

In Caley v. Gulfstream Aerospace, the employer told the employees that as a condition of continued employment they had to agree to a new dispute resolution policy that would take effect in two weeks. Caley sued, contending the new policy was not backed by consideration, so there was no enforceable contract. The appeals court held that:

To make an offer, the offeror must:

If a minor buys a car and later wants his money back after the car burns in a fire, courts will typically hold the contract to be voidable and a full refund is required.

Uncle Jim tells his niece as she goes off to Creepy U. that if she maintains a 3.5 average that he will buy her a BMW convertible when she graduates. At graduation she has a 3.7 GPA and so she wants the BMW convertible. Uncle Jim says that he doesn't have to give her the BMW convertible because what she did was for her own good. Niece wants to sue Uncle Jim to get the BMW convertible. There probably is:

A transfer of contractual duties to a third party is a(n):

"Bozo, if you wash my car I will pay you $10." Bozo says nothing but washes the car later that day. There is what may be called:

A "contract" that does not exist at law, such as a contract to commit a crime, is what kind of contract?

17-year-old Robert purchased a car from King that was later destroyed by fire. Robert sued to recover the price of the car. The court would hold that:

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