Exam 10: Contracts

Joe contracts with Phil to set fire to Joe's warehouse so he can collect the insurance money, but then Joe refuses to pay Phil for his work. This contract is unenforceable.

Preliminary negotiations are:

A binding promise is:

If a person signs a contract because of "undue influence" by the other party to the contract, the person can later disaffirm the contract.

A minor may ratify a contract, upon reaching the age of majority, that she had the right to disaffirm if she so desired.

A clause in a contract that says the contract will become void in case of war between the countries of the two contracting parties is called a legal impossibility agreement.

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. After Lulene offers to supply Ellen with pies, Ellen says, "That's great, but I would like to have some coconut lemon bars as well." In this case, Ellen's acceptance:

The legally binding agreement that is the essence of a contract is reached though a process of:

The courts may impose obligations on one party to a dispute to avoid unjust enrichment to the other party. This is called:

Quasi contract is also referred to as quantum meruit, a rule that allows courts to avoid injustice such as unjust enrichment.

Consideration is the element of a contract that:

To transfer contractual duties to a third party is:

Courts will not enforce contracts if the consideration is not "reasonably consistent" with what is received in exchange.

Not all promises are enforceable contracts.

In a case of ____, a person enters into a contract because they are so dominated by another person, or have so much trust in that person that they are subject to improper persuasion.

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. If Lulene sues to enforce her contract with Ellen, a court is most likely to:

An example of an equitable remedy is:

Specific damages to be paid in case of breach, that the parties agree to in the contract in advance of a breach are called ____ damages:

You verbally agree to buy a house for $250,000. When the contract is prepared, the price is accidentally typed in as $25,000 rather than $250,000, but no one notices it until after you and the seller sign the document. At that point, you claim you only have to pay $25,000 and you claim that was the price you had agreed to originally. The court will say you are:

If one party breaches a contract, the party suffering from the breach has no duty to mitigate (reduce) the extent of the damages suffered from the breach.