Jack enters into a contract with Bill to buy a small piece of land for $400.00. The contract does not have to be in writing.

True

False

Hugo Boss, asks his employee Pee Wee Herman to buy 50 boxes of Girl Scout cookies from his daughter. He agrees to do so. Pee Wee

	a.	cannot rescind the contract because 50 boxes is not an unreasonable amount of cookies.
	b.	cannot rescind the contract because he is an adult and Boss did not hold a gun to his head.
	c.	can rescind the contract because he felt pressured to buy the cookies because Hugo was his boss and this is considered undue influence
	d.	can rescind the contract because he is not a girl scout.

Carmine drafts a contract to sell his house to George. George signs the contract but he changes one clause to state that he will also get the patio furniture

	a.	This is a valid offer and acceptance and a contract has been formed
	b.	This a valid offer and acceptance and a contract for the sale of house, with out the patio furniture, has been formed
	c.	This is not a valid offer and acceptance because you can never change the terms of the existing agreement
	d.	This is not a valid offer and acceptance because of the mirror image rule

Bill enters into a contract to invest with Dave, whereby Dave would advance Bill his share of his investment at a 40% interest rate. The contract would not be enforced because this is:

	a.	Usury and the contract is void
	b.	Duress and the contract is void
	c.	Fraud and the contract is voidable
	d.	Res Ipsa Loquitor and the contract is voidable

UESTION 32

Kurt enters into a contract to rent his Southampton home to Gerta. for 5,000. She backs out a week before the summer because she needs surgery, but her sister Marta says she would rent the home for 4,000. Kurt can successfully sue Gerta for:

	a.	$1,000
	b.	$4,000
	c.	$5,000
	d.	Nothing because the parties had a good reason to cancel

A promise by a 25 year old togive up (cigarette) smoking is not supported by consideration.

True

False

Sammy Seller puts his house on the market but before he shows the house he creates a false ceiling to hide numerous leaks. Bob buyer signs a contract to buy the house, but later finds out that Sammy has built the false ceiling.

	a.	Bob can rescind the contract due to fraud.
	b.	Bob can rescind the contract anytime for any reason before closing without penalty
	c.	Bob cannot rescind the contract because it was his obligation to hire an architect to inspect the house before signing
	d.	Bob cannot rescind the contract because Sammy did not actually lie about the ceiling

Where two parties contract for the sale of an old and very rare Stradivarius violin, and the offeror changes his mind, a court would likely grant the offeree's request that the court force the sale under the doctrine of specific performance.

True

False

Donald enters into a contract with Drake for $$50,000 to sing at his party.Drake cancels.Donald can sue for specific performance and have the court order that Drake sing at the party.

True

False

QUESTION 7

Ian a minor age 16, bought a bicycle from Dan,an adult age 22. He paid $200.00. Ian wants to rescind the contract. Before he returns the bike all the tires become flats becauseIan rode over a bed of nails.Ian returns the bike and tells Dan he want to disaffirmthe contract. In New York Ianwould receive afull refund of $200.00 and he does not pay for the flat tires because minors can rescind a contract without making restitution.

True

False

If Mary offers June $100 for her $400 coat, and June knowingly and voluntarily acceptsthe offer.Which statement is correct?:

	a.	A court will set aside the agreement based on the theory it was an illusorycontract
	b.	A court would set aside the agreement because of insufficient consideration
	c.	A court would uphold the agreement because parties are free to set the price of a contract
	d.	A court would set aside the agreement because it was not in writing

Bloomingdales orders 100 dresses from Channel for Christmas at cost of $1,000.00 each. They planned on selling them for $6,000 each. Chanel fails to deliver the dresses. Bloomingdales wants to sue for their lost profit of $500,000. These damages are:

	a.	Consequential or Special Damages
	b.	Compensatory Damages
	c.	Punitive Damages
	d.	Nominal Damages

Cindy drives her car into a line for a car wash. She says nothing and the car goes through the car wash and is cleaned. Cindy refuses to pay for the car wash, stating that there was no contract. The car wash sues. What is the likely result?

	a.	Cindy wins, since she said nothing, there can be no contract
	b.	Car wash wins; this is an express bilateral contract that has been accepted
	c.	Cindy wins; since the employee made no promise to wash her car, there is no contract
	d.	Car wash wins, this is animplied unilateralcontract that has been accepted