Which of the following contracts is subject to applicable provisions of the Uniform Commercial Code?
Buyer, an independent coffee shop, agrees to buy a small house from Seller for $125,000, if the local zoning authority will approve Buyer’s request to grant a variance from the local zoning ordinance, which currently only allows houses in this part of town to be used as residences. The contract between Buyer and Seller is
Homeowner enters into a contract with Flooring Company to refinish Homeowner’s hardwood floors on October 15 and 16. The contract price is $4,000, payable after the completion of the work. Flooring Company fails to do any of the work, and Homeowner pays Flooring Company nothing. Homeowner has to pay $4,400 to another flooring contractor to refinish his floors. Which of the following correctly describes Homeowner’s “expectation interest”?
Which of the following policies is not one that the Uniform Commercial Code is designed to further?
Which of the following benefits can be recovered under the doctrine of restitution and not under the doctrine of consideration?
Which of the following contracts is subject to the CISG?
Which statement most accurately describes the difference between the expectation interest and reliance interest in contract damages?
Which of the following is a false statement regarding consideration?
Buyer and seller contract for Buyer to purchase and Seller to sell as many widgets as Buyer requires each month for the following 12 months, at a cost of $25 per widget. Choose the best answer:
Garrett has been an employee of Construction Company for seven years. His manager notices that he has been working late making sure that the shop equipment is properly stored and locked up at the end of each workday. The manager tells Garrett that he has appreciated his hard work, that Garrett should not feel obligated to stay late to lock up the equipment anymore, and that Garrett can expect a $250 bonus in his next paycheck because of his past efforts. Is the manager’s statement enforceable under the “bargain” theory of consideration?
A contract to settle a lawsuit is supported by consideration, even if the claims made in the lawsuit are invalid,
Which of the following is a gift promise, unenforceable under the “bargain” theory of consideration?
An agreement modifying a contract governed by the UCC does not require any consideration to be binding, but must be made in good faith.
Where a promisor’s motive is mixed, and her promise is made, in part to obtain a return promise, and in part to make a gift, the mixed motive of the promisor will not prevent the promise from being consideration, if bargained for.
True or False: The Uniform Commercial Code does not include a provision defining consideration or bargain, so contracts for the sale of goods never require consideration.
Two parties enter into a services agreement called the Original Services Agreement. One month later they want to modify that agreement, and they agree to a Revised Services Agreement. The Revised Services Agreement requires some consideration in addition to the performances required under the Original Services Agreement in order to be binding under the ________________ duty rule.
When a promisor makes a promise in which he reserves so much discretion regarding whether he will perform the promise or not, that the promise is impossible to breach, the promise is called an ______________ promise.
A ____________ contract is a contract in which the parties exchange a promise for a return performance.
Banker promises to Customer that the Bank will make a loan to the Customer’s son if the Customer promises that, if the son fails to repay the loan, the Customer will pay any balance on the loan to the Bank immediately. Customer agrees. Later the Customer’s son defaults on repaying the loan. Customer argues that his agreement is unenforceable against Customer, since the Bank provided no benefit to the Customer and only provides a benefit to the son. Is this argument correct? Explain your answer.
Angus is a drywall contractor. He learns that his neighbor, Bonnie, had some water damage and has been talking to Drywall Solutions, another drywall contractor, to complete the repairs. Angus tells Bonnie that she does not need to hire a drywall contractor, and that he will perform the work at no cost if Bonnie will supply the drywall materials. Bonnie calls Drywall Solutions, who had offered to do the work for $3,000, and tells them not to come. Angus subsequently refuses to do the work. Bonnie has to pay a third drywall contractor $4,000 to complete the job. Assume there is no consideration for Angus’ promise to Bonnie. Explain how the doctrine of reliance might provide a right for Bonnie to recover from Angus.