Contracts Keyed to Calamariback
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A manufacturing company was in the business of making copper tubing. A retail seller telephoned the manufacturing company’s sales department and placed an order for J 0,000 linear feet of copper tubing at a sale price of $2 per foot. The tubing was to be used in the production of a custom order for one of the retail seller’s customers. The manufacturing company installed special equipment for the manufacture of the tubing to the retail seller’s specifications and had completed a portion of the order when the retail seller again telephoned the ales department. This time, however, the retail seller canceled its order, saying it no longer had need of the tubing because its customer had been declared bankrupt and refused to pay for the order.
If the manufacturing company sues for breach, it will:CorrectIncorrect
A twenty-one-year-old college senior loved cars. He worked long hours after school to make the payments on his car. A bank had extended him a two-year loan with no pre-payment penalty. The student fell behind in his payments, prompting the bank to write him a letter stating, “If payments are not resumed by January 15, we will be forced to repossess your car.” The student dropped out of school to work longer hours at the local fast food restaurant so that he would be able to resume his payments. On January 6, the student’s uncle, a fifty-five-year-old real estate tycoon and bachelor, discovered the student’s plans to pay his debt. He called the student on the telephone and said, “I can’t let my favorite nephew mess up his life. If you stay in school and quit your part-time job, I will assume all payments on your car and provide you with $200 spending money every month until next May.”
The student agreed to quit his job and stay in school. The uncle called the bank and left a message with the receptionist stating, “I will pay you all the money the student owes and assume all his future payments if you guarantee not to repossess his car. If the bank does not return my call, I will assume he has accepted the offer.” The bank did not respond to the uncle’s call, did not repossess the car, and cashed the uncle’s checks over the next six months.
The student drove off the side of a winding mountain road four months before his graduation from college. The student died in the crash and the car was reduced to ashes. The bank sued the uncle for the remaining payments due on the car. The student’s estate brought suit against the uncle for six remaining monthly payments of $200 spending money promised to the student.
If the uncle argues that the bank’s original agreement to give the student a two-year loan to buy the car was void because it was oral, will the court rule in the uncle’s favor on this issue?CorrectIncorrect
A seller orally agreed to sell his mercantile shop to a buyer. The buyer remodeled the store for $15,000 and spent $3,000 in moving expenses and supplies. The seller repudiated the contract, relying on the Statute of Frauds.
Which of the following facts will the judge rely on in reaching a decision that the contract is enforceable?CorrectIncorrect
A landowner and a purchaser orally agreed that the landowner would convey 20 acres of his 160-acre farm to the purchaser. At the time of their agreement, the landowner wrote on the back of an envelope, “I hereby promise to convey the northern 20 acres of my farm to [the purchaser] for $10,000.” One month later, the purchaser tendered $10,000 to the landowner, but the landowner refused to convey the 20 acres.
If the purchaser sues the landowner to convey the land and the landowner prevails, it will most likely be because the writing:CorrectIncorrect
A man and a woman met in a bar. The woman told the man that she greatly admired the diamond stickpin he had in his lapel. “Oh, this,” the man laughed. “It’s no diamond; it’s only a piece of glass.” The woman acknowledged his statement, but kept commenting on how nice it looked. After further conversation, the man orally agreed to sell the stickpin to her for $510. They agreed that in two days, he would bring the stickpin to the same bar, and the woman would bring the $510 in cash. The man duly appeared with the pin, but the woman failed to appear. The man filed suit against the woman for $510.
The woman’s best defense is:CorrectIncorrect
A fashion designer was embarrassed that his friend dressed like a slob and a pauper. The fashion designer constantly nagged his friend about his appearance. “What can I do?” his friend replied. “I am a law student. I can’t afford nice clothing.”
“Come on. Your father is loaded, and he gives you plenty of cash,” The fashion designer replied.
“Yeah, but my girlfriend won’t eat in a restaurant that charges less than $100 for dinner. I also buy lots of lottery tickets in the hope that I might be able to drop out of law school,” answered his fried.
The fashion designer went to a local clothing store and ordered $400 worth of clothing for his friend. The clothing store delivered the clothing on the basis of the fashion designer’s statement that “My friend is honest, he’ll pay. If he doesn’t, I will.”
His friend wore the clothing but could not and did not pay the bill. The clothing store brought an action against the fashion designer for $400.
Is the clothing store likely to prevail?CorrectIncorrect
A buyer wanted to purchase a car, but he didn’t have any free time to go to the dealers. He authorized an agent to buy him a new car from a car dealership. The agent signed the contract, “Buyer by Agent, his agent.” When the car arrived at the showroom three weeks later, the buyer refused to accept or pay for it. The car dealership asserted an action against the buyer based on breach of contract.
Which of the following choices is LEAST accurate?CorrectIncorrect