Contracts

Which of the following contracts would be governed by Article 2 of the Uniform Commercial Code?

• A contract for the sale of land

• A contract for the sale of a car

• A contract for the sale of lawn mowing services

• a contract for employment

A businesswoman offered to make a $1,000,000 donation to a university in exchange for the university naming a new building after her. A week later, the university informed her that it had officially named the building after her.

Assuming that the applicable state law treats the enforceability of charitable pledges under its general law of contracts, is the woman obligated to make the $1,000,000 donation to the university?

• No, because the university's action in naming the building does not constitute an acceptance of the woman's offer

• No, because the university’s action in naming the building does not constitute consideration.

• No, because the woman’s demand that the university name a building after her exhibits an intent not to be bound by her promise.

• Yes, because all requirements of contract formation have been met.

Which of the following best describes a bilateral contract?

• An agreement between two parties in which the offeror makes a promise and the offeree also makes a promise

• An agreement between two parties in which the offeror makes a promise and the offeree renders a performance without making any promise

• An agreement between two parties in which the offeror renders a performance without making any promise, and the offeree makes a promise.

• An agreement between two parties in which both the offeror and the offeree render performances without making any promises.

A man who was known to be in dire financial straits was at a party with his best friend. The man said to the friend, “I’ll pay you $50,000 if you drink that bottle of hot sauce.” The friend drank all the hot sauce in the bottle.

Which of the following best states a reason why a court might find that the parties’ actions did NOT satisfy the four elements of contract formation at common law?

• Drinking the bottle of hot sauce was not an appropriate form of acceptance.

• Drinking a bottle of hot sauce is not valuable consideration.

• In context, it was clear that the man did not intend to be legally bound.

• In context, the terms of the bargain were not objectively fair.

Which of the following is necessary to form a contract under the Second Restatement of Contracts?

• A written agreement

• Consideration

• An exchange of money

• An exchange of promises

A woman told her friend that she was very frustrated because she couldn’t find a painter who would paint her house for less than $1,500. The friend offered to paint the woman’s house for $1,200. The woman responded, “I can only promise to give you $1,000.” The friend replied that she would not do the work for $1,000.

What is the legal status of the friend’s original offer to paint the house for $1,200?

• The original offer was terminated by the woman's counteroffer

• The original offer was revoked upon the firend's refusal of the woman's counteroffer

• The original offer will remain open unless the woman explicitly refuses it.

• The original offer will remain open unless the friend explicitly revokes it.

In the context of contract formation, which of the following would NOT terminate an offer?

• The death of the offeror

• The death of the offeree

• The lack of a written instrument

• A counteroffer

In the context of contract formation, which of the following is most likely to be considered a valid offer?

• "I offer to pay you to paint my house."

• "I will pay you $100 to paint my house."

• "I might pay you $100 to paint my house."

• "I will not pay you more than $100 to paint my house."

A man told his neighbor that he had always admired her car. The neighbor told the man that she would sell him the car for $10,000, and that she would keep the offer open for one week if the man gave her $100. The man did not have any money at the time, but he stated that he would deliver the $100 later that day. The man did not deliver the payment that day, and the next day the neighbor received and accepted an offer from a different buyer. Two days later, when the man attempted to give the neighbor the $100 payment, the neighbor told him that she had already sold the car.

If the man sues the neighbor for breach of contract, is he likely to be successful?

• Yes, because the man provided the agreed-upon consideration within a reasonable time.

• Yes, because the neighbor’s offer was irrevocable for one week.

• No, because the man did not provide the required consideration to keep the neighbor’s offer open.

• No, because an option contract must be in writing.

In the context of contract formation, which of the following is true regarding a firm offer?

• The offeror must be a merchant

• The offer can be written or oral

• The offeree must provide consideration

• The offer is always irrevocable during the time specified by the offeror