5.On November 1, 2018, Susan (age 60) signs a written agreement with Ricardo, in which she agrees to sell her house to Ricardo for $250,000.Ricardo promises to pay Susan $5,000 by November 10, 2018, and the balance of the purchase price by November 30, 2018.When Susan tells her children what she has done, they suggest that she should have gotten an estimate of value from a broker or appraiser before agreeing to sell.Susan then talks to an appraiser, who lets Susan know that the house is worth about $350,000 in today's market, even though it is tiny and not in very good shape. On Novenber 5 (before Ricardo has paid her anything) Susan sends Ricardo an email in which she says:"Sorry, Ricardo, I have changed my mind about selling my house just now."Does Ricardo have any legal rights?

a.No, Susan has the right to change her mind anytime prior to the completion of the sale.

b.No, Susan can cancel the agreement, because Ricardo has not paid Susan anything yet.

c.Yes, they have a binding contract, and Ricardo can go to court to enforce his contractual rights to purchase Susan's house.

9.Rachel is a poor college student, struggling to work part-time and go to college full-time.Rachel's uncle Roger (feeling sorry for Rachel) sends her a letter in which he promises to pay Rachel $300 per month for the next year, so that Rachel can finish up her Associates Degree.Rachel then quits her job to focus on her studies.Roger makes two monthly payments, but then stops making payments, with no explanation at all.Rachel writes Roger, asking for him to explain, but she never hears back from him.If Rachel takes this to court to try to get the remaining $3,000, what is the likely result?

a.Roger should win, as he did not ask Rachel to quit her job, and they did not have a contract.

b.Roger should win, as family members cannot sue each other for breach of an agreement like this.

c.Rachel should win, as a contract was formed when Roger promised to pay her the $300 per month support for a year.

d.Rachel should win.Even though there was no legal contract here, there is another legal theory that Rachel can use to win her case against Roger.

FACTS for Questions 10 and 11:

Jay faints while visiting an amusement park, and hits his head on a wooden bench.Management of the amusement park calls an ambulance, which takes about 10 minutes to pick Jay up and then take him to the hospital for evaluation.During this 10 minutes time, Jay's friend Billy-Bob has Jay sign a form, to sell his very valuable antique car (worth about $50,000) to Billy-Bob for only $2,000.Billy-Bob takes the car keys out of Jay's coat, and drives off with the car.While Jay is in the ambulance, he becomesunconscious, and is admitted to the hospital with a brain concussion.The next day, Jay wakes up in the hospital, but remembers nothing about where his car is, or why he has $2,000 in his pocket!Jay is discharged from the hospital, and has to take a taxi home.Two days later, he receives a bill from the hospital for $10,000 for "services rendered" to him.

10.Does Jay have to pay the hospital?

A.No - because Jay never entered into a services contract with the hospital.

B.Yes - this is an example of a contract "implied by law" because Jay was unconscious at the time he was brought in and treated.

11.Does Jay lose his car to Billy-Bob?

A)Jay has a binding contract with Billy-Bob.

B)Jay should be able to get out of this "agreement" based on "illegality"

C)Jay should be able to get out of this "agreement" based on "lack of proper form"

12.An offer can be terminated by:

A) revocation by the offeror

B) rejection by the offeree

C) counter-offer by the offeree

D) all of the above

E) only two of the above

13.Intentional breach of contract by one party, knowing it will cost the other party money, is a crime.T/F

15.The parents of a missing toddler post a reward for the person who finds and returns their child.The child, asleep in a vacant lot, is found by a police officer on patrol, and brings the child to the parents.

A)the officer can accept the offer and collect the reward from the parents.

B)the officer can collect the reward because it would be unconscionable to allow the parents to rescind their offer.

C)the officer cannot collect the reward because he was not a party to the contract.

D)the officer cannot collect the reward because he had a pre-existing legal duty to look for the child.

16.John sends Mary an email as follows:"I promise to wash your pickup truck on Saturday, May 5, 2018, for $50."Mary does not reply to John's email message.John shows up on May 5, and washes Mary's pickup truck.When Mary comes home on the bus, she finds her clean truck, and a note from John that says:"You owe me $50.John" Assume that Mary refuses to pay John.If John takes Mary to court, the judge will probably rule that they had a contract, and that Mary owes the $50 to John.True or False

20.If the parties to a contract are in a "special trust relationship" such as attorney-client, or physician-patient, or minister-church member, or parent-child, and the person in position of authority convinces the "dependent" person to sign a contract which is overly-favorable to the person in position of authority, the dependent person:

A)can declare the contract to be void, based on undue influence

B)must honor the contract

C)must declare the contract to be fraudulent

23.A "liquidated damages" clause in a contract spells out how much money is going to have to be paid, by the party who breaches the contract.True/False