1. Diane heard of an exciting new Tesla model that due to be released and called the dealership. The sales manager informed her that the new models should start to arrive in about three weeks and indicated that they would cost $45,000. Diane negotiated a contract that called for a sale price of $42,000 with a down payment of $3,000. As soon as the telephone call was over, she sent the $3,000 check.

When Diane called a week later to find out when her car would be delivered, the sales manager told her that he would not sell the car unless Diane was willing to pay $45,000. Two days later, Diane received a check from the sales manager for $3,000. In the memo section of the check, the sales manager wrote, return of down payment. Is there a contract? Please explain.

Please answer questions 2 - 6 with a true or false response. You need not explain your answers, and do not attach the questions along with your answers.

1. Daniel, a cabinetmaker, contracts to make a china cabinet to Loras satisfaction and Lora promises to pay Daniel $2,800 for the cabinet if she is satisfied with it when completed. Daniel completes the cabinet in a workmanlike manner using the wood Lora has chosen. If Lora tells Daniel that she is not satisfied with the cabinet and refuses to accept or pay for it, Daniel is entitled to recover from Lora the reasonable value of the cabinet if her dissatisfaction is unreasonable.

2. A person who has made a financially unsound contract may be relieved from performance under the doctrine of commercial impracticability.

3. Where a contract is unenforceable because of the statute of frauds, a party may recover the benefits conferred on the other party in reliance on the contract.

4. Deanne contracts with Leonard to paint her barn in two weeks. If Leonard breaches the contract, Deanne can elect the remedy of damages or the remedy of injunctive relief to prevent Leonard from providing his painting services for anyone else until he paints her barn.

5. The costs or losses an injured party avoids by not having to perform are not figured in the computation of damages.