Bus 340 – ch 7 quiz

Rescission is the substitution of one party to a contract for a third party, who agrees to assume the contractual duties
A check, like other negotiable instruments, is a formal contract.
An expression of opinion¾”your customers will like this”¾is an offer.
An invitation to submit bids¾”how much would you charge to do this work?” ¾is an offer
Lively Toys Store and Movin’ Products Company (MPC) enter into an e-contract under which MPC agrees to ship a case of electronic, remote-controlled bugs to Lively Toys, which agrees to pay on delivery. The Uniform Electronics Transactions Act (UETA)
supports the enforcement of such contracts.
Resolving whether a promise should be enforced is the essence of contract law.
Fabio, a user of GameCenter.com’s Web site, can download gaming software for free if he first clicks on “I accept” after viewing certain terms. This is
a contract that includes the terms.
An offer may invite an acceptance to be worded in such specific terms that the contract is made definite.
An implied-in-fact contract is implied from the conduct of the parties.
Saf-T Storage, Inc. (SSI), offers to sell a warehouse to Richfield Investments. Richfield says that it will pay SSI $100 to hold the offer open for three business days. This
makes the offer irrevocable for three days if SSI accepts.
An electronic symbol, adopted by a person with the intent to sign an e-record, is an e-signature.
The doctrine of promissory estoppel requires a clear and definite promise
An effective offer requires reasonably certain terms.
A promise to do something that one has a prior legal duty to do is not consideration.
Dave’s Hobby Town and Eva’s Yarn Shoppe are adjacent stores with adjoining parking lots. Dave offers Eva a discount on purchases from Dave’s store if Eva will not tow the cars of Dave’s customers who park in Eva’s lot.

Refer to Fact Pattern 8-1. Dave’s discount is legally sufficient consideration

because it is a promise of something of value.
GR8 Marketing Company and Hot Tunes, Inc., sign a document that states GR8 agrees to create a marketing campaign for Hot and Hot agrees to pay GR8 for the service. GR8 and Hot have
an express contract.
Magic Math Corporation makes business accounting software, which is packaged with a shrink-wrap agreement. National Distribution Company distributes the software to retailers, including an Office Stuff store, where Peg buys a package of it. The parties to the shrink-wrap agreement are
Magic Math and Peg only.
Opie offers to sell his guitar to Pinky for $100. Pinky agrees. They complete and sign a printed form that includes, near the blanks for their signatures, the word “seal.” This is
A formal contract
A bargained-for exchange is one of the elements of consideration.
Contract law shows what excuses our society accepts for breaking certain types of promises.
One of the requirements of a valid contract is a fair price.
An accord and satisfaction requires that the amount of a debt be certain.
Fact Pattern 8-3
Dex and Carmen are in an auto accident. Dex offers Carmen $2,000 if she promises not to pursue her potential legal claim against Dex. Carmen agrees. Later, Carmen discovers that it will cost $1,500 to repair her car and $4,000 to cover the medical expenses for a latent injury.

Refer to Fact Pattern 8-3. In Carmen’s suit against Dex to recover her repair and medical expenses, Carmen will most likely recover

Normally, a court of law will not question the adequacy of consideration.
Fact Pattern 8-2
Brad defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal¾a student loan accruing interest at a certain rate and payable beginning on a certain date¾was unfair because the consideration for their contract was inadequate.

Refer to Fact Pattern 8-2. A court is most likely to evaluate the adequacy of consideration if