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20 Cards in this Set
- Front
- Back
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A "promise" is an unequivocal assurance that something will or will not occur. T/F |
True |
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A "promise" that equivocates is an illusory promise and , therefore, not a promise at all. T/F |
True. If the "promisor" gives himself a complete "out" it is no promise. |
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Moral obligation is never consideration. T/F |
False. States are split |
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A contract has two, not one, considerations : Consideration for the offeror's promise and consideration for the offeree's promise (if the offer was for bilateral contract) or consideration fro the offeree's performance(if the offer was for a unilateral contract). T/F |
True |
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In certain cases, the judge will instruct the jury (if there is a jury) to review adequacy of consideration for evidence of fraud, duress, unconscionability, undue influence, or mental incapacity. T/F |
True. |
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An advertisement in a local newspaper cannot constitute an offer. T/F |
False. |
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Some advertisement in a local newspaper may be offers, while other are only preliminary negotiation. T/F |
True ` |
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In a unilateral contract, the breaching party may only be the offeror. T/F |
True |
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Both the offeror and the offeree may breach a unilateral contract. T/F |
False. This is because the offeree does not promise, just the offeror (again the offeree does not promise) |
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A "no breach compliance" response is distinguished from the "no breach excuse," "no breach justification," and "no breach terminated duty" responses as the "no breach compliance" response denies noncompliance with the terms of the contract while the other three responses admit noncompliance. T/F |
True. Be sure to remember that noncompliance (nonperformance) of a contract does not always = breach of contract. |
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Which of the following statements are offers: a. What will you take for your car? b. I will give you $1500 for your car. c. I will give you $1500 for your car when I am ready. d. I promise to make you an offer to buy your car tomorrow. e. I promise to pay you $2000 for saving my life. |
b. I will give you $1500 for your car. |
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Identify the ingredients for an offer: a. The promisor's promise b. Consideration for the promisor's promise. c. Adequacy of consideration. d. The promisor's promise must be made to induce the promisee to promise or perform). |
a. The promisor's promise
b. Consideration for the promisor's promise. d. The promisor's promise must be made to induce the promisee to promise or perform). |
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Identify the ingredients for an offer for a unilateral contract. a. A promise by the offeror b. Consideration for the offeror's promise c. The promise must be made to induce the offeree to perform d. Adequacy of consideration e. The offeror's promise must be made to induce the offeree to promise to perform. |
a. A promise by the offeror
b. Consideration for the offeror's promise c. The promise must be made to induce the offeree to perform |
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A voidable contract has no legal effect and cannot be enforced by any party. T/F |
False. This would be true for a void contract. It is not true for voidable contract. |
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Oliver promised to pay Doug $2000 if Doug promised to drive Oliver's car from San Francisco to Boston. Although Doug promised to perform the act as Oliver requested, the contract will not be formed until Doug actually drives Oliver's car to Boston. T/F |
False. No this was an offer for a bilateral contract (one formed by mutual promises) so, Doug accepted (and the contract was formed) when he promised to perform the act. |
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Identify the ingredients for an offer for a bilateral contract: a. A promise by the offeror b. Consideration for the offeror's promise c. The promise must be made to induce the offeree to perform d. Adequacy of consideration e. The offeror's promise must be made to induce the offeree to promise to perform. |
a. A promise by the offeror
b. Consideration for the offeror's promise d. Adequacy of consideration |
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Identify what cannot - in any state - constitute consideration: a. A purely pre-existing duty b. sham consideration c. motive d. all the above |
d. all the above
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Widgoco, Inc. ("Widgco") bought a liability policy from Dependable Insurance Company ("dependable"). The policy covered a wide range of possible liabilities but expressly excluded any insurance coverage for pollution related claims against Widgco. On January, 5, 2016, the U.S. EPA and the California EPA notified Widgco that it was responsible for the pollution emanating from one of its facilities near Sacramento, The next day, Widgco filed a claim for coverage with Dependable, Two weeks later, DEpendable issued a declination letter, explaining that it would not pay the claim because of the policy's pollution exclusion. If Widgco sues Dependable for breach of contract (an insurance policy is a contract) alleging that Dependable breached the contract by not paying its claim, Dependable would respond as follows: a. No breach compliance b. No breach excuse c. No breach justification d. No breach terminated duty e. breach |
a. No breach compliance
Dependable will respond; "look at the contract (the insurance policy) it has an applicable exclusion, So, we do not have a duty to pay the claim against you." |
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CSUEB hired Harry Hapless as an assistant professor. Dr. Hapless and CSUEB signed a contract that/would be automatically renewed for another three years unless (a) Dr. Hapless notified CSUEB that he did not want to renew the contract or (b) CSUEB had cause not to renew. The contract clearly defined wht constituted cause. CSUEB did not renew the contraact after the initial three-year period. However, CSUEB's decision not renew was not based on cause - even though, to repeat, the contract required CSUEB to refuse to renew only on cause. Five years after his nonreneweal, Dr. Hapless sued CSUEB for breach of contract. (He alleged that CSUEB breached the contract by not offering him a new three-year contract and tha its refusal was not based on cause). CSUEB responded with the Statue of Limitations. CSUEB's response is as follows: a. No breach compliance b. No breach excuse c. No breach justification d. No breach terminated duty e. breach |
d. No breach terminated duty CSUEB will repsond "You waited too long. The law ended our duty to you." |
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Specific performance is always available as a remedy in a breach of contract lawsuit. T/F |
False. This remedy is when the court orders the defendant to perform his/her duties under the contract. |
