Business Law Essay

2148 Words Mar 17th, 2011 9 Pages
In the case in the text where someone purchased a used safe at an auction for $50, but was later found by the buyers to contain more than $30,000 in cash, how did the court rule? a. There was no contract because the buyer was unjustly enriched.
b. There was no contract because the act of opening the safe was not completed before the buyers took the safe.
c. This was an implied-in-fact contract and the buyers were required to pay the fair value for the safe and its contents.
d. There was objective intent that the parties intended that the safe, and whatever might be in it, be sold for a price of $50.
D [moderate p. 196]
56. The doctrine that applies when one person confers a benefit on another who retains the benefit in a
…show more content…
d. This situation does not result in the creation of a contract.
D [moderate p. 196]
68. Mr. Smith awakens one morning to the sound of construction in his back yard. When he looks out the window, he sees Ajax Construction Co. apparently erecting a garage on his property. He had not spoken or contracted with Ajax for this service. However, Mr.
Smith really wanted a new garage, so he let them continue. Later, it was discovered that the garage was intended to go next door. Ajax sues Mr. Smith for the value of the garage. What is the probable result?
a. Ajax wins; this is a case of a contract implied-in-fact, and Mr. Smith implicitly agreed to pay for the garage.
b. Smith wins; there was no contract upon which Ajax could recover, and people are not liable for benefits that are thrust upon them.
c. Ajax wins; although there is no real contract, this is a case of unjust enrichment, and because Mr. Smith accepted the garage, he must pay for it.
d. Smith wins; unjust enrichment does not apply here because Mr. Smith had no duty to tell Ajax that they had the wrong house.
C [difficult p. 197]
69. Mike and Ike agreed orally that Mike would tutor Ike in geology for $10 per hour for three hours. After Mike has done the three hours of tutoring, but before Ike pays him next week, this contract is:
a. Executed.
b. Implied-in-fact.
c. Executory.
d. Performed.
e. Quasi-executed.
C [moderate p. 199]
70. Jana and Annie enter into a written

Related Documents