Master Your Legal Contract Knowledge

Legal Contracts and Remedies Summary

• A unilateral contract is formed when one party promises to perform in exchange for a specified act by the other party.

• The UCC allows buyers to inspect goods before making payment, but parties can agree that payment is required before inspection.

• Impossibility of performance excuses performance of a contract if an unforeseeable event makes it impossible.

• The parol evidence rule prohibits the introduction of extrinsic evidence to contradict or modify an unambiguous writing.

• Consideration is a benefit to the promisor or a detriment to the promisee that was bargained for and given in return for the promisor’s promise.

• A promise not to assign a contract is enforceable, but an assignment made in violation of such a promise is usually regarded as valid.

• In an action for breach of an employment contract, a non-breaching employee is entitled to receive the full contract price for the balance of the term plus consequential damages, less damages avoided by mitigation.

• A defendant’s statement implying a promise may form a contract, and a subsequent refusal to perform would be a breach.

• The doctrine of frustration of purpose may excuse performance of a contract when an unforeseen event destroys its underlying purpose, but only if both parties knew what that purpose was.

• The Statute of Frauds requires a contract for the sale of goods with a price of $500 or more to be in writing, but it does not apply to a contract for services.

• A promise to pay a sum of money to settle a claim for debt is supported by consideration if the debt is valid or the person asserting the claim believes that it is.

• The parol evidence rule does not prevent the admission of extrinsic evidence for the purpose of establishing the meaning of a writing.Contracts Multiple Choice Questions

• The existence of an oral agreement before execution of a written contract can establish a condition precedent to the formation of a contract.

• The oral agreement to modify a contract is made after the formation of the contract.

• The defendant cannot be estopped from denying the validity of a written agreement if they have not asserted its validity.

• The Statute of Frauds requires a contract for the sale of goods with a price of $500 or more to be in writing.

• A minor may disaffirm a contract on the ground of incapacity, but their recovery may be offset by the reasonable value of the benefit received.

• An offer may be revoked at any time prior to its acceptance and is effectively revoked when the offeree learns of an act by the offeror that is wholly inconsistent with the offer.

• A court may reform a contract to reflect the intentions of the parties if, as a result of inadvertence, the writing does not actually reflect the intentions.

• An agreement for the sale of goods FOB a particular place requires the seller to load the goods on board a carrier at that place.

• A contract is formed upon acceptance of an offer, and a modification of a contract is treated as a new contract.

• An implied warranty of merchantability accompanies every sale by a merchant unless disclaimed by unequivocal language.

• When either party to a contract breaches it, the other party is excused from further performance and entitled to damages.

• An option is a promise to keep a particular offer open for a specified period of time if it is supported by consideration.Contracts Practice Questions and Answers

• The enforceability of a promise is supported by consideration, even if the consideration is in writing and not actually given or received.

• Attempted testamentary substitutes are ineffective if they fail to satisfy formal requirements on wills.

• Courts do not inquire into the adequacy of consideration to avoid interfering with the freedom of contract.

• A plaintiff who agreed to postpone his wedding in exchange for a cash bonus and tuition payment from his father, and successfully completed his first year of law school, can sue his father's estate for the $1,000 cash bonus.

• A furniture dealer who sold all her chairs to another buyer after a decorator canceled an order for 500 barrel chairs advertised at $75 each can sue the decorator for breach of contract, but damages would depend on the terms of the contract.

• A defendant who could not complete a construction contract due to a fire that destroyed the partial structure is not liable for breach of contract based on the defense of impossibility of performance.

• A seller who refused to unload and uncover construction-grade wooden studs before receiving payment from the buyer cannot claim breach of contract against the buyer.

• A gardener can refuse to consent to the assignment of a contract for personal services to another party without being in breach of contract.

• A police officer who apprehended arsonists after seeing a reward poster cannot claim the reward if the offer was for a gratuitous cash award.

• A written memorandum of sale that states the total price of a product in dollars can be interpreted as either U.S. dollars or San Sebastian dollars, depending on the intention of the parties at the time of the agreement.

• A promise to pay a reward for saving a person's life is not enforceable against the person's estate if the person dies before paying the reward.

• These are practice questions and answers related to contract law.Legal Case Scenarios and Questions

• The scenario involves a plaintiff who attempted to rescue a drowning man and lost her fishing gear in the process. She demands compensation from the executor of the man's estate, who rejected her demands.

• The question asks which party the court should rule in favor of if the plaintiff sues the executor of the man's estate for the value of her fishing gear.

• The scenario involves a woman who hired a body shop to repaint her antique car and agreed to pay $700, with $300 in advance and $400 on completion. The body shop also offered to sell her a new bumper for $150. Both parties signed a written contract.

• The question asks what obligations are set forth in the writing signed by the woman and the body shop owner.

• The scenario involves a plaintiff who had a five-year contract with the defendant as a department manager. The defendant terminated the plaintiff's employment two years into the contract due to company reorganization. The plaintiff found a new job six months later.

• The question asks which party the court should give judgment to in an action by the plaintiff against the defendant for damages resulting from breach of the employment contract.

• The scenario involves a plaintiff who owned a fleet of taxis that he leased to independent drivers. He called a defendant's auto-painting company to inquire about the price of painting all the cars in his fleet and negotiated a price of $125 per car. The defendant later refused to paint the cars, claiming to be too busy.

• The question asks which additional fact or inference, if true, would be most helpful to the plaintiff in his action against the defendant.

• The scenario involves a plaintiff who inherited an office building with a vacant motion picture theater. The defendant expressed interest in leasing the theater without disclosing that he intended to show pornographic films. They signed a rental agreement, but the city council later passed an ordinance prohibiting the showing of pornographic films in the neighborhood where the theater was located.

• The question asks which party the court should find for if the plaintiff sues the defendant for breach of contract.

• The scenario involves a builder who contracted to add a room to a homeowner's house for $3,000, with the understanding that the materials used by the builder were to be included in that price. The homeowner canceled the deal before work began.

• The question asks which statement is most correct about the application of the Statute of Frauds to the contract between the homeowner and the builder.

• The scenario involves a plaintiff who accepted the defendant's promise to pay $2,000 as payment in full for a $3,000 debt. The defendant later refused to make payment, and the plaintiff asserted a claim for $2,000 based on the defendant's promise.

• The question asks which additional fact or inference, if true, would be most likely to result in a judgment for the plaintiff.

• The scenario involves a building contractor who agreed to build a brick fireplace for the defendant in return for

Contracts and Breach of Contracts

• A father promised his son a cash bonus and tuition payment for law school if he postponed his wedding, but the son failed to register for a second year of law school and demanded the cash bonus.

• A furniture dealer advertised barrel chairs at a lower price to an interior decorator, but when the decorator cancelled the order, the dealer sold the chairs to someone else.

• A contract for construction of a garage was breached due to an impossibility of performance caused by a fire that destroyed the partial structure.

• A seller of wooden studs demanded payment prior to inspection, but the buyer refused and the seller claimed breach of contract.

• An offer for a cash prize for developing a modification of a computer program was made to employees by a company, and an engineer accepted the offer but his acceptance was not received.

• A gardener refused to consent to the assignment of a yard maintenance contract to a new owner and breached the contract, leading the new owner to hire another gardener.

• A police officer who received information leading to the arrest of arsonists demanded a reward from the city, but the city refused to pay.

• A contract for the sale of glue contained a discrepancy in the currency used for payment, leading to a dispute.

• A woman who saved a man from drowning demanded payment for her lost fishing gear and a promised token of gratitude, but the executor of the man's estate rejected her demands.

• A body shop owner wrote out an order blank for a woman who wanted her antique car repainted and a new bumper, with specific payment terms and conditions.

• The conditions of payment and performance in a contract can be interpreted as either conditions precedent or conditions subsequent, depending on the language used and the intent of the parties.

• Breach of contract can occur when one party fails to perform their obligations under the contract, but certain circumstances such as impossibility of performance or lack of consideration can be used as defenses.Contracts and Breach of Contract Scenarios

• In a contract for car painting, payment and painting are concurrent conditions and neither party's obligation is conditioned upon performance by the other party.

• In an employment contract, if the plaintiff's position is eliminated, the court should give judgment to the defendant.

• In a rental agreement for a motion picture theater, if the government makes the subject matter unlawful, the defendant will likely win under the doctrine of frustration of purpose.

• In a contract for building a room with materials included, if the homeowner cancels the deal before work begins, the builder may assert a claim for breach of contract.

• In a promise to pay scenario, if the defendant promises to pay $2,000 and subsequently refuses, the plaintiff may win if they were threatening to or had already commenced a lawsuit for the full $3,000.

• In a contract for building a brick fireplace, if the defendant fails to obtain a loan and calls off the deal, the defendant may not be successful in asserting their inability to obtain a loan as a defense.

• The enforceability of an agreement over the defendant's objection, under the Statute of Frauds, varies based on the fact pattern, with some being more likely to be enforced than others.

• In a used car sale scenario, if the plaintiff returns the car and demands their money back, they may be entitled to the purchase price less the damage the car sustained, or the reasonable rental value of the car.

• In a contract for selling a garden tractor, if the seller's offer was irrevocable until a certain date and the buyer accepted before that date, the court may find for the buyer.

• In a written contract without an agreed-upon price, oral testimony may be admitted to establish the price that the parties intended.

• In a written agreement for home painting, additional oral agreements made prior to signing the memorandum may or may not be admitted into evidence during litigation to enforce the contract.

• The doctrine of frustration of purpose may apply when government action makes the subject matter of a contract unlawful, making the contract void.Contracts and Sales Scenarios

• In a painting contract, the painter and homeowner agreed that oral promises were enforceable, even if not included in the written contract.

• A contract between an air conditioning company and a buyer was assigned to a plaintiff without the consent of the defendant, resulting in the destruction of the shipment and a potential legal dispute.

• An art dealer and a niece of a renowned artist entered into a verbal agreement to purchase paintings, but the niece changed the price after the dealer accepted the offer.

• A contract between an aluminum siding contractor and a homeowner included a clause prohibiting assignment, but the homeowner assigned the contract to a new owner. The contractor refused to do further work.

• A wholesaler and a retailer agreed to a different price for typewriter ribbons due to a shortage of materials, but the retailer rejected the delivery after finding a better deal elsewhere.

• A seller of arts and crafts products sent a catalog to a buyer with a 10% discount on COD orders only. The buyer ordered 1,000 Greek coffeepots and typed a payment agreement on the seller's order form.

• A car dealer sold a car with a defect that caused an accident and damage to the car, leading to a claim for damages from the buyer.

• A doctor treated a patient with group insurance, but the payment was sent to the patient instead of the doctor, leading to an unpaid bill.

• A landowner hired a contractor to build an amusement park with a written contract and payment schedule. The contractor completed everything but the roller coaster, demanding payment, which was refused.

• A landowner wrote an option contract for her son to purchase her realty, but she died before the transaction could be completed, leading to a dispute over the validity of the document.

• The enforceability of oral promises, written contracts, and assignment clauses are common issues in contract law.

• Sales scenarios often involve negotiations, verbal agreements, and written contracts with payment schedules and delivery terms.

• Valid consideration, such as payment or performance, is necessary for a contract or option contract to be enforceable.

Contracts and Breach of Contracts

• A father promised his son a cash bonus and tuition payment for law school if he postponed his wedding, but the son failed to register for a second year of law school and demanded the cash bonus.

• A furniture dealer advertised barrel chairs at a lower price to an interior decorator, but when the decorator cancelled the order, the dealer sold the chairs to someone else.

• A contract for construction of a garage was breached due to an impossibility of performance caused by a fire that destroyed the partial structure.

• A seller of wooden studs demanded payment prior to inspection, but the buyer refused and the seller claimed breach of contract.

• An offer for a cash prize for developing a modification of a computer program was made to employees by a company, and an engineer accepted the offer but his acceptance was not received.

• A gardener refused to consent to the assignment of a yard maintenance contract to a new owner and breached the contract, leading the new owner to hire another gardener.

• A police officer who received information leading to the arrest of arsonists demanded a reward from the city, but the city refused to pay.

• A contract for the sale of glue contained a discrepancy in the currency used for payment, leading to a dispute.

• A woman who saved a man from drowning demanded payment for her lost fishing gear and a promised token of gratitude, but the executor of the man's estate rejected her demands.

• A body shop owner wrote out an order blank for a woman who wanted her antique car repainted and a new bumper, with specific payment terms and conditions.

• The conditions of payment and performance in a contract can be interpreted as either conditions precedent or conditions subsequent, depending on the language used and the intent of the parties.

• Breach of contract can occur when one party fails to perform their obligations under the contract, but certain circumstances such as impossibility of performance or lack of consideration can be used as defenses.Contracts and Breach of Contract Scenarios

• In a contract for car painting, payment and painting are concurrent conditions and neither party's obligation is conditioned upon performance by the other party.

• In an employment contract, if the plaintiff's position is eliminated, the court should give judgment to the defendant.

• In a rental agreement for a motion picture theater, if the government makes the subject matter unlawful, the defendant will likely win under the doctrine of frustration of purpose.

• In a contract for building a room with materials included, if the homeowner cancels the deal before work begins, the builder may assert a claim for breach of contract.

• In a promise to pay scenario, if the defendant promises to pay $2,000 and subsequently refuses, the plaintiff may win if they were threatening to or had already commenced a lawsuit for the full $3,000.

• In a contract for building a brick fireplace, if the defendant fails to obtain a loan and calls off the deal, the defendant may not be successful in asserting their inability to obtain a loan as a defense.

• The enforceability of an agreement over the defendant's objection, under the Statute of Frauds, varies based on the fact pattern, with some being more likely to be enforced than others.

• In a used car sale scenario, if the plaintiff returns the car and demands their money back, they may be entitled to the purchase price less the damage the car sustained, or the reasonable rental value of the car.

• In a contract for selling a garden tractor, if the seller's offer was irrevocable until a certain date and the buyer accepted before that date, the court may find for the buyer.

• In a written contract without an agreed-upon price, oral testimony may be admitted to establish the price that the parties intended.

• In a written agreement for home painting, additional oral agreements made prior to signing the memorandum may or may not be admitted into evidence during litigation to enforce the contract.

• The doctrine of frustration of purpose may apply when government action makes the subject matter of a contract unlawful, making the contract void.Contracts and Sales Scenarios

• In a painting contract, the painter and homeowner agreed that oral promises were enforceable, even if not included in the written contract.

• A contract between an air conditioning company and a buyer was assigned to a plaintiff without the consent of the defendant, resulting in the destruction of the shipment and a potential legal dispute.

• An art dealer and a niece of a renowned artist entered into a verbal agreement to purchase paintings, but the niece changed the price after the dealer accepted the offer.

• A contract between an aluminum siding contractor and a homeowner included a clause prohibiting assignment, but the homeowner assigned the contract to a new owner. The contractor refused to do further work.

• A wholesaler and a retailer agreed to a different price for typewriter ribbons due to a shortage of materials, but the retailer rejected the delivery after finding a better deal elsewhere.

• A seller of arts and crafts products sent a catalog to a buyer with a 10% discount on COD orders only. The buyer ordered 1,000 Greek coffeepots and typed a payment agreement on the seller's order form.

• A car dealer sold a car with a defect that caused an accident and damage to the car, leading to a claim for damages from the buyer.

• A doctor treated a patient with group insurance, but the payment was sent to the patient instead of the doctor, leading to an unpaid bill.

• A landowner hired a contractor to build an amusement park with a written contract and payment schedule. The contractor completed everything but the roller coaster, demanding payment, which was refused.

• A landowner wrote an option contract for her son to purchase her realty, but she died before the transaction could be completed, leading to a dispute over the validity of the document.

• The enforceability of oral promises, written contracts, and assignment clauses are common issues in contract law.

• Sales scenarios often involve negotiations, verbal agreements, and written contracts with payment schedules and delivery terms.

• Valid consideration, such as payment or performance, is necessary for a contract or option contract to be enforceable.