Questions 1 through 3 are based on the following fact situation:
On May 1, Ohner telegraphed Byer, “Will sell you any or all of the lots in Grover subdivision at $5,000 each. Details follow in letter.” The letter contained all the necessary details concerning terms of payment, insurance, mortgages, etc., and provided, “This offer remains open until June 1.” On May 2, after he had received the telegram but before he had received the letter, Byer telegraphed Ohner, “Accept your offer with respect to lot 101.” Both parties knew that there were fifty lots in the Grove subdivision and that they were numbered 101 through 150.
Question1
Marks: 5
For this question only, assume that Ohner and Byer were bound by a contract for the sale of lot 101 for $5,000, that on May 3, Ohner telephoned Byer that because he had just discovered that a shopping center was going to be erected adjacent to the Grove subdivision, he would "have to have $6,000 for each of the lots including lot 101", that Byer thereupon agreed to pay him $6,000 for lot 101 and that on May 6, Byer telegraphed, "Accept your offer with respect to the rest of the lots." Assuming that the two contracts were formed and that there is no controlling statute, Byer will most likely be required to pay:
Choose one answer.
A. Only $5,000 for each of the fifty lots.
B. Only $5,000 for lot 101, but $6,000 for the remaining forty-nine lots.
C. $6,000 for each of the fifty lots.
D. $6,000 for lot 101, but only $5,000 for the remaining forty-nine lots.
Correct
Marks for this submission: 5/5.
Question2
Marks: 5
For this question only, assume that on May 5, Ohner telephoned Byer that he had sold lots 102 through 150 to someone else on May 4 and that Byer thereafter telegraphed Ohner, "Will take the rest of the lots." Assume further that there is no controlling statute. In an action by Byer against Ohner for breach of contract, Byer probably will:
Choose one answer.
A. Succeed because Ohner had promised him that the offer would remain open until June 1.
B. Succeed, because Ohner's attempted revocation was by telephone.
C. Not succeed, because Byer's power of acceptance was terminated by Ohner's sale of the lots to another party.
D. Not succeed, because Byer's power of acceptance was terminated by effective revocation.
Incorrect
Marks for this submission: 0/5.
Question3
Marks: 5
For this question only, assume that on May 6, Byer telegraphed Ohner, "Will take the rest of the lots," and that on May 8, Ohner discovered that he did not have good title to the remaining lots. Which of the following would provide the best legal support to Ohner's contention that he was not liable for breach of contract as to the remaining forty-nine lots?
Choose one answer.
A. Impossibility of performance.
B. Unilateral mistake as to basic assumption.
C. Termination of the offer by Byer's having first contracted to buy lot 101.
D. Excuse by failure of an implied condition precedent.
Correct
Marks for this submission: 5/5.
Question 4 is based on the following fact situation:
Question4
Marks: 5
Brown contended that Green owed him $6,000. Green denied that he owed Brown anything. Tired of the dispute, Green eventually signed a promissory note by which he promised to pay Brown $5,000 in settlement of their dispute. In an action by Brown against Green on the promissory note, which of the following, if true, would afford Green the best defense?
Choose one answer.
A. Although Brown honestly believed that $6,000 was owed by Green, Green knew that it was not owed.
B. Although Brown knew that the debt was not owed, Green honestly was in doubt whether it was owed.
C. The original claim was based on an oral agreement, which the Statute of Frauds required to be in writing.
D. The original claim was an action on a contract, which was barred by the applicable Statute of Limitations.
Correct
Marks for this submission: 5/5.
Questions 5, 6 and 7 are based on the following fact situation:
Paul and Daniel entered a contract in writing on November 1, the essential part of which read as follows: “Paul to supply Daniel with 200 personalized Christmas cards on or before December 15 bearing a photograph of Daniel and his family, and Daniel to pay $100 thirty days thereafter. Photograph to be taken by Paul at Daniel’s house. Cards guaranteed to be fully satisfactory and on time.” Because Daniel suddenly became ill, Paul was unable to take the necessary photograph of Daniel and his family until the first week of December. The final week’s delay was caused by Paul’s not being notified promptly by Daniel of his recovery. Before the photograph of Daniel and his family, Paul advised Daniel that he was likely to be delayed a day or two beyond December 15 in making delivery because of the time required to process the photograph and cards. Daniel told Paul to take the photograph anyway. The cards were finally delivered by Paul to Daniel on December 17. Paul having diligently worked on them in the interim. Although the cards pleased the rest of the family, Daniel refused to accept them because, as he said squinting at one of the cards at arm’s length without bothering to put on his reading glasses, “The photograph makes me look too old. Besides, the cards weren’t delivered on time.”
Question5
Marks: 5
In an action by Paul against Daniel, which of the following would be Daniel's best defense?
Choose one answer.
A. The cards, objectively viewed, were not satisfactory.
B. The cards, subjectively viewed, were not satisfactory.
C. The cards were not delivered on time.
D. Daniel's illness excused him from further obligation under the contract.
Incorrect
Marks for this submission: 0/5.
Question6
Marks: 5
Which of the following statements is most accurate?
Choose one answer.
A. Payment by Daniel of the $100 was a condition precedent to Paul's duty of performance.
B. The performances of Paul and Daniel under the contract were concurrently conditional.
C. Payment by Daniel of the $100 was a condition subsequent to Paul's duty of performance.
D. Performance by Paul under the contract was a condition precedent to Daniel's duty of payment of the $100.
Correct
Marks for this submission: 5/5.
Question7
Marks: 5
Which of the following statements regarding the legal effect of Daniel's illness is LEAST accurate?
Choose one answer.
A. Daniel's illness and the related developments excused Paul from his obligations to deliver the cards on or before December 15.
B. Prompt notice by Daniel to Paul of Daniel's recovery from illness was an implied condition of Paul's duty under the circumstances.
C. Paul was under a duty of immediate performance of his promise to deliver the cards, as of December 15, by reason of the express language of the contract and despite the illness of Daniel and the related developments.
D. Daniel's conduct after his illness constituted a waiver of the necessity of Paul's performing on or before December 15.
Correct
Marks for this submission: 5/5.
Questions 8, 9 and 10 are based on the following fact situation:
On November 1, the following notices was posted in a privately operated law school:
The faculty, seeking to encourage legal research, offers to any student at this school who wins the current National Obscenity Law Competition the additional prize of $500. All competing papers must be submitted to the Dean’s office before May 1.
(The National Competition is conducted by an outside agency, unconnected with any law school.) Student read this notice on November 2, and thereupon intensified his effort to make his paper on obscenity law, which he started in October, a winner. Student also left on a counter in the Dean’s office a signed note saying, “I accept the faculty’s $500 Obscenity Competition offer.” This note was inadvertently placed in Student’s file and never reached the Dean or any faculty member personally. On the following April 1, the above notice was removed and the following substituted therefore:
The faculty regrets that our offer regarding the National Obscenity Law Competition must be withdrawn.
Student’s paper was submitted through the Dean’s office on April 15. On May 1, it was announced that Student had won the National Obscenity Law Competition and the prize of $1,000. The law faculty refused to pay anything.
Question8
Marks: 5
Assuming that the faculty's notice of November 1 was posted on a bulletin board or other conspicuous place commonly viewed by all persons in the law school, such notice constituted a:
Choose one answer.
A. Preliminary invitation to deal, analogous to newspaper advertisements for the sale of goods by merchants.
B. Contractual offer, creating a power of acceptance.
C. Preliminary invitation, because no offeree was named therein.
D. Promise to make a conditional, future gift of money.
Correct
Marks for this submission: 5/5.
Question9
Marks: 5
As to Student, was the offer effectively revoked?
Choose one answer.
A. Yes, by the faculty's second notice.
B. No, because it became irrevocable after a reasonable time had elapsed.
C. No because of Student's reliance, prior to April 1, on the offer.
D. No, unless Student became aware of the April 1 posting and removal before submitting the paper.
Incorrect
Marks for this submission: 0/5.
Question10
Marks: 5
The offer proposed a:
Choose one answer.
A. Unilateral contract only.
B. Bilateral contract only.
C. Unilateral contract or bilateral contract at the offeree's option.
D. Unilateral contract which ripened into a bilateral contract, binding on both parties, as soon as Student intensified his effort in response to the offer.
Correct
Marks for this submission: 5/5.
Question11
Marks: 5
August 1st Paris offers to sell her prize winning horse to Hunter for $100,000. Hunter tells Paris that he needs to think about it and gives her $100 to keep the offer open for 30 days. However, Paris' horse is well known in the horse racing industry, and Breed, a horse breeder has offered $150,000 for the horse. On August 10th Paris accepts his offer. On August 15, Hunter sends an email to Paris stating that he is tight on cash and asked if she will take $90,000 for the horse. On the same day Hunter sent an email to Paris he received a tax refund check in the mail for $10,000. Hunter immediately sent Paris another email, stating, good news! I do have the money to purchase your prize winning horse. I will drop off the money tomorrow and pick up the horse. When Hunter goes to pick up the horse, he learns that Paris has already sold the horse to Breed. Hunter brings suit. Who will prevail?
Choose one answer.
a. Hunter, because a contract was created on August 15th.
b. Hunter, because he accepted the offer within the option period.
c. Paris, since no contract was created.
d. Paris, unless Hunter knew of the sale of the horse on August 10th.
Correct
Marks for this submission: 5/5.
Question12
Marks: 5
Distributor distributes tractors. Buyer enters into a written contract with Distributor and for the sale of 10 specially made John Deer tractors at $10, 000 per tractor. The parties agreed that the tractor will be delivered in two parts. The agreement was that five tractors were to be delivered by March 1, and payment was to be made no more than 30 days from delivery. Further, the remaining five tractors were to be delivered by June 1, and payment was to be made no more than 30 days from delivery. At the time of signing the contract Buyer asked Distributor if he pays cash at the time of delivery if he can get a 10% discount. Distributor agreed that if cash was paid at the time of delivery he would allow the 10% discount. When Distributor delivered the first installment, Buyer tender $45,000 cash. Distributor is demanding the remaining $5,000. If distributor files suit for the remaining $5,000 balance the court will find for?
Choose one answer.
a. Buyer, because the parties entered into an agreement if cash was paid there would be a 10% discount given.
b. Buyer, because a valid modification was formed.
c. Distributor, because the contract was fully integrated.
d. Distributor, because the contract was in writing, and the agreement was oral.
Incorrect
Marks for this submission: 0/5.
Question13
Marks: 5
Farmer John is interested in selling his farm. June 1st, he mails a letter to an old friend, Samuel stating that he was interested in selling his farm for $300,000. The letter reached Samuel on June 3rd. Samuel on June 5th writes back to Farmer John "I accept your offer." June 6th Samuel changes his mind about the purchase and calls Farmer John and leaves a message that he is not interested in purchasing the farm. However, Farmer John was out of town and he did not return until June 10th. When he returned home opened Samuel's letter dated June 5th. He then listens to his voice mail and hears Samuel's statement that he is not interested in purchasing the farm. Farmer John now refuses to sell the farm to Samuel. Who will prevail?
Choose one answer.
a. Samuel, since there was a valid contract.
b. Samuel, since an acceptance is effective upon dispatch a contract was formed June 5th.
c. Farmer John, since Samuel rejected his offer, terminating the power of acceptance.
d. Farmer John, since Samuel's letter dated June 6th did not create a contract.
Correct
Marks for this submission: 5/5.
Question14
Marks: 5
In January, Seller entered into a contract with Farmer for the sale of 10 acres of farm land. Farmer moved into the premises and did not make any payments. After six months had lapsed, Seller brought an eviction action and Farmer was removed from the premises. Seller now institutes an action against Farmer for the sales price of the land. Will Seller succeed in a breach of contract suit?
Choose one answer.
a. Yes, since the contract was partially performed.
b. Yes, since Farmer took possession of the property.
c. No, since Farmer never made any improvements on the land.
d. Yes, unless the contract was oral.
Incorrect
Marks for this submission: 0/5.
Question15
Marks: 5
Jenny graduated from high school with honors. She does not know what she wants to do with her life. Jenny's mother, Mary wants her to be a doctor. Her mother offers to pay for her medical school, living expenses, and also agrees to pay her $1,000 for every A she received in medical school. The next day, Jenny tells her grandfather of the offer, and being a doctor himself, tells Jenny that if her mother does not pay, he will. Jenny starts medical school. Her mother did pay the first year tuition, her living expenses and because Jenny received 5 A's she paid her the $5,000. During Jenny's second year in medical school, her mother dies. Jenny received 5 more A's in medical school and approaches her grandfather for the $5,000. Grandfather refuses to pay. Jenny brings suit in order to enforce Grandfather's promise. The promise is
Choose one answer.
a. Unenforceable, since it is illusory
b. Unenforceable, since the agreement was not supported by consideration.
c. Unenforceable, unless the agreement was in writing.
d. Enforceable, since she relied on the promise.
Incorrect
Marks for this submission: 0/5.
Question16
Marks: 5
John always thought Joan's t bird car was beautiful. Her car reminded him of his youth. John told Joan that if she ever wanted to sell her car that he would like to buy it. On August 1, Joan decided to sell her car to Joan. Looked on the internet and found a contract sales form and filled it out with all of the definite terms, signed it and placed it in John's mailbox. The contract did have all of the necessary terms. John arrived home and found the contract in his mailbox. John signed the contract and mailed it back to his neighbor, Joan. However, later that day he had second thought on buying the car and called Joan and told her he decided to not buy the car and disregard the contract once she received it. Is there an enforceable contract between John and Joan for the sale of the car?
Choose one answer.
a. No, because John revoked the offer prior to Joan receiving the acceptance.
b. No, because John's statement was express and terminated the power of acceptance.
c. Yes, because John's act of mailing the signed contract was an effective acceptance.
d. Yes, because the revocation was not effective since it was oral and not in writing.
Correct
Marks for this submission: 5/5.
Question17
Marks: 5
Owner decides to place his house up for sale. He learns that if he paints the house he can ask a higher sales price. Owner contacts several painters in order to get bid to paint the interior and exterior of his home. He receives several bids. The first bid was submitted by John with a total price of $10,500. The next bid was from Tony $12,000 and the last bid was form Tommy at $9,500. Owner decides to accept Tommy's bid. Owner contacts Tommy and they set a date to start the job. Several days before Tommy is to start painting Owner's home he notices that his numbers for his bid were added up incorrectly. The bid amount should have been $12,500. Tommy calls Owner and tells him I added up the numbers incorrectly in the bid, the price should have been $12,500. I can't do the job for less than $12,500. Owner files suit. Who will prevail?
Choose one answer.
a. Owner, only if it was too late to accept another's bid for the job.
b. Owner, because he was not aware of the error in the bid.
c. Tommy, because he was not aware that he made a mistake in his calculation of his bid.
d. Tommy, because he gave notice to Owner and performance has not started.
Correct
Marks for this submission: 5/5.
Question18
Marks: 5
Timothy is interested in selling his farm. On June 1st he mails a letter to an old friend, who has in the past asked him if he was interested in selling his farm. The letter stated "I hereby offer to sell my farm at 123 County Road to Marvin, my friend, for $100,000 cash. Closing to be within 60 days of acceptance". The letter reached Marvin on June 3rd. June 5th Marvin decides that he wants the farm and writes back to Timothy "Received your offer to sell your farm located on Country Road, would you be willing to accept $95,000?" June 7th Timothy receives the offer and emails back to Marvin, "No, I will only take $100,000." Marvin receives the email and emails back to Timothy, "okay, I decided to take you up on your June 1st offer. You have a deal." Timothy now refuses to sell the farm to Marvin. Marvin files suit. The court will find for?
Choose one answer.
a. Marvin, since there was a valid contract.
b. Timothy, since no contract was formed.
c. Timothy, since Marvin's letter dated June 5th was a rejection to Timothy's offer.
d. C. Timothy, since Marvin's letter dated June 5th created a counter offer and it was not accepted.
Correct
Marks for this submission: 5/5.
Question19
Marks: 5
Vicky was badly injured while she was crossing the street when she was struck by Matt. Matt was not paying attention since he was texting at the same time he was driving the vehicle that hit Vicky, who was in the cross walk, and lays limp and unconscious in the street. Passer saw the accident and called for help. Amber Care Ambulance was called to the scene and transported Vicky to the closest hospital where she was announced dead on arrival. Amber Care Ambulance sends Vicky's family the bill for payment. The family refuses to pay the bill and Amber Care Ambulance files suit. Will Amber Care Ambulance prevail in an action against Vicky's estate?
Choose one answer.
a. No, because Vicky was not unjustly enriched.
b. No, if Vicky was unconscious and did not accept Amber Care Ambulance services.
c. Yes, because based on the implied in law contract between Vicky and Amber Care Ambulance was created.
d. Yes, since Vicky was legally obligated to pay any claims from Amber Care Ambulance.
Correct
Marks for this submission: 5/5.
Question20
Marks: 5
While jogging in Hilltop park Caleb noticed a tree starting to fall and was about to hit a woman who was walking in the park. Caleb jumped in the way and saved her life. Caleb was badly injured as a result and was told he would not be able to walk again. The woman, who was named Marie, stated to Caleb that she owed him for saving her life so she promised that she would pay him $500 a month in order to help him. Marie paid Caleb for two years, and then she died in a boat accident. Marie's estate refuses to pay Caleb any money. Caleb files suit for breach of contract. Will Caleb succeed?
Choose one answer.
a. Yes, if this jurisdiction finds moral obligation valid consideration.
b. Yes, if Caleb can show he relied on Marie's promise.
c. No, since past consideration is no consideration
d. No, because the services given were not bargained for an exchange.
Correct
Marks for this submission: 5/5.