5. Shortly after purchasing the property, Bea and Connie learn that there’s a water
leakage problem at the property that the seller had tried to hide. They’re very busy
getting their new day care business
established so they forget to sign the complaint
their lawyer sent to them. Several years later, the water problem gets worse and they
remember they still have the complaint in their files. They sign the complaint and send
it back to their lawyer to get the lawsuit filed. If their lawyer tells them at the lawsuit
will likely be unsuccessful, what legal rule or principle is most probable reason?
A. Statute of frauds C. Statute of limitations
B. Liquidated damages
6. Ty and Cher went out for dinner to discuss a business venture. Cher had several
glasses of wine and became visibly intoxicated. Ty and Cher continued to discuss the
venture, and formed a contract
in which Ty received 80% of the profits resulting from
the venture, and Cher received 20%, even though Cher agreed to invest the majority
of the money. Ty agreed to contribute her expertise and services to the venture. The
next morning, Cher realizes her terrible mistake. Cher’s best chance to avoid the
contract with Ty is to say that
A. she didn’t know what she was doing at the time the contract was formed.
B. she was drunk at the time the contract was formed.
C. the contract is unconscionable.
D. the contract is illegal.
8. Samantha is employed by Creative Card Company. After five years of terrific employee
reviews and with no notice, Samantha is terminated. She feels it’s because of her
advancing age, as she just turned 50. Samantha sues Creative Card Company for
wrongful termination. The lawsuit takes four years before it’s finally litigated. During
this time, Samantha sits at home and turns down several other job offers from people
she had worked with in the past who knew she was a very good, productive employee.
Samantha wins her lawsuit but receives substantially less in damages than she was
seeking. What is the likely reason for this?
A. The failure to mitigate damages
B. The establishment of a quasi contract
C. The unavailability of equitable remedies
D. Lack of punitive damages
9. Jackie told a group of her friends that she plans to sell her home one day. Meg asked
how much she hoped to get for the house, and Jackie replied, “$50,000.” Meg said,
“I accept your offer to purchase your house for $50,000.” No contract exists because
A. Jackie’s statements were merely preliminary negotiations.
B. the terms of the offer weren’t reasonably certain.
C. the offer wasn’t properly communicated.
D. Jackie didn’t objectively intend to enter a contract.
10. Paul enters into a contract with Harry to put a new roof on Harry’s house. Harry, in
return, agrees to pay Paul $5,000. Paul, however, is late on a payment to one of his
suppliers, Sam’s Supply House, and tells Sam’s manager that he will pay them as soon
as he receives his money from Harry. Sam’s manager has heard this in the past from
Paul and he hasn’t received any money. What can Sam’s manager do to ensure they’ll
be paid from the money Harry is paying to Paul?
A. Have Harry assign his interests under the contract with Paul to Sam’s Supply House
B. Tell Harry that Paul is indebted to Sam’s Supply House, which automatically makes
them a creditor beneficiary entitled to the payment
C. Have Paul assign his interests under the contract with Harry to Sam’s Supply House
D. Require an accord and satisfaction be entered into
11. Grandpa Graham declares at his eightieth birthday party that because she’s his favorite
grandchild, he’ll leave $100,000 to his beloved granddaughter Elsie upon his death.
Sadly, Grandpa Graham dies just three days later. No provision of his will left Elsie the
$100,000. Elsie files a breach of contract claim against Grandpa Graham’s estate. The
most likely result will be that Elsie will lose because no contract existed due to
A. lack of agreement and consideration
. C. lack of form.
B. lack of contractual capacity. D. illegality.