Calvin owns a race horse, Moe, that has lost 10 races in a row. Calvin is sick of losing and tired of taking care of the horse, so he loudly announces that he will sell Moe for $25. Susie hears this and tells Calvin that she will buy Moe for $25. Calvin says, "Immediately after the 2pm race in which Moe is already obligated to run- I will take $25 and you can have the horse." To Calvin's surprise, Moe won the 2pm race. Susie approached Calvin to congratulate him and also to complete the sale, when Calvin said he no longer wanted to sell. Do Calvin and Susie have a valid contract? Why or why not? O No. Calvin's offer was based on the presumption that Moe was a losing horse. o Yes. All the required elements of a valid contract are present. O Maybe. If a court finds that Calvin was serious about selling Moe, the consideration is more likely to be adequate. O No. The contract is not valid because $25 is not adequate consideration for a race horse. The following statements all apply to rescission EXCEPT: O Rescission is a means of discharging a contract by agreement. O Contracts can only be rescinded prior to performance. Restitution is a natural companion to rescission. O Rescission results in the parties returning to the positions they were in prior to the contract. Ant Marge lives in North Dakota. She is getting older and has had enough of the cold, snowy weather She decides to move to a retirement community in Arizona, where she rents a condo. After a few years in AZ Marge starts losing physical strength and mobility. She also begins to show signs of cognitive decline. She needs help to go about her daily routine. Her family is worried and Marge's great nephew, Jerry, decides to move into Marge's condo to take care of her. Marge is grateful for Jerry's presence and is dependent on him for everything. One day, Jerry, without telling Marge where they are going, takes her to the bank, where he has set up a meeting with one of the bank managers. Jerry then tells Marge to add him to her account. He calmly says to her, "Putting me on the account is going to make everything better. Besides, you need the help and you don't have anybody else. I love you." Marge adds Jerry to the account. This is most likely an example of: Duress Fraudulent misrepresentation O Avalid contract Undue influence Kal agreed to buy El's car. Because the actual purchase was not to occur for several months, they drafted a lengthy agreement that specified all of the rights and obligations of the parties. They hired an attorney to review this two-page, single spaced document. After the attorney suggested a few changes, the document was retyped and both Kal and El signed it. This contract is: O A bilateral contract O A formal contract O An informal contract O An executed contract O An express contract The following conversation took place between Darren and Samantha: Samantha: Darren, if you wanted to sell your table, what would you ask for it? Darren: I suppose $400 would be a fair price. Samantha: I'll take it, if you will have it refinished. Darren: Sold What is the conclusion of this conversation? Samantha's reply "I'll take it, if you will have it refinished" was a conditional acceptance, terminating Darren's offer. O A contract was formed when Darren said, "Sold." O Darren's statement. "I suppose $400 would be a fair price." constituted an offer. No contract resulted because Darren never stated he would actually sell the table for $400
