1. Alan and Brian contracted for Alan to mow Brians lawn once a week for 20 weeks, at a price of $20 per week. Three weeks later, Alan demands $25 per week to mow Brians lawn, and Brian agrees. Later, if Brian only pays Alan $20 per week and Alan sues Brian for the difference, Brians promise to pay $25 per week is enforceable.

True or False?

2. Smith says to Ford, Id like to buy your house, and Ford responds, Ok, youve got a deal! This is not a valid offer because of a lack of:

A.consideration

B.definiteness in the terms of the offer

C.communication to offeree

D. present intent to contract

3. Jim saw an advertisement in the Daily Press stating that the Brass Cro store was offering to sell Browning shotguns, model 100, for $400. Jim went the next day to the Brass Cro store and said Here is $400. I accept your offer to sell me a Browning model 100 for $400. Has an enforceable contract been formed?

A.Yes, because the ad was an offer.

B.Yes, because the price was less than $500.

C.No, because the ad was not an offer.

D. No, because the acceptance was oral

4. Alan and Brian contracted for Alan to mow Brians lawn once a week for 20 weeks, at a price of $20 per week. Three weeks later, Alan demands $25 per week to mow Brians lawn, and Brian agrees. Later, if Brian only pays Alan $20 per week and Alan sues Brian for the difference, Brians promise to pay $25 per week is enforceable.

True or False?

5. Best Buy orders 200 TVs from Sony at $500 each. Best Buy later attempts to cancel the contract. Sony refuses, but agrees to reduce the price to $400 each. Sonys promise to reduce the price to $400 each is enforceable.

True or False?

6. Which of the following statements, if false, is most likely to create liability for fraud or misrepresentation?

A.This rare antique chair is probably worth $10,000.

B.This crane will lift a 10,000-pound load.

C.This car is a perfect gem.

D.In my opinion, this car is in flawless mechanical condition.

7. Pedro sold his car to Juan, telling him that the car only had 50,000 miles of use. The odometer read 50,000. In truth, the actual mileage was 150,000. However, Pedro did not know this, as he had purchased the car from Maria, who had told him that the mileage was 40,000 at the time of that sale, when in truth it was 140,000. Pedro had driven the car for 10,000 miles and he believed that it had only 50,000 miles when he told Juan that was the mileage. Soon Juan discovered the truth and sued Pedro. Pedro will:

A.win the suit because he was personally innocent of any wrongdoing.

B.win because Juan will be unable to prove legal misrepresentation or fraud.

C.lose because fraud has occurred.

D.lose because legal misrepresentation has occurred.

8.Arnold agrees to lease Bob the fourth floor of his house. Arnold himself resides on the second floor. The person typing the contract strikes the wrong keys, and the contract reads second floor. Neither Arnold nor Bob notices this error when they read and sign the contract. What will the court do?

A.Avoid the contract

B.Rescind the contract

C.Enforce the contract

D.Reform the contract

9.Otto inherited an old safe from his uncle. Otto did not have the combination to the safe and had no idea of its contents, if any. Nevertheless, he sold the safe to his friend Marcel as is for $35. When Marcel hired a locksmith to open the safe, he found $25,000 in cash. Now Otto wants to rescind the contract, claiming that the doctrine of mistake gives him that right. Identify the accurate statement.

A.:Otto is correct, because there is mutual mistake here as neither party knew of the money inside the safe.

B.Otto is correct, because it would be unfair to him to allow Marcel to keep the money.

C.Otto is not correct, because Otto assumed the risk of the mistake.

D.Otto is not correct, because the remedy of rescission is available only when there is a unilateral mistake; here both parties were mistaken.