Kitty attended an art auction where she bid $40 for a large painting of a tomato. She was the only bidder on the painting, but the auction organizers told her that the painting was worth $5000 and would not be sold for such a low price. Kitty believed the painting was hers and sued the auction organizers for breach of contract. What is the likely outcome of Kitty's lawsuit? Why? O Kitty wins the lawsuit because contracts that result from mistakes of value are usually enforceable. o Kitty wins the lawsuit because her bid constituted an acceptance, which formed a valid contract. Kitty loses the lawsuit because $40 is not adequate consideration for a $5000 painting. o Kitty loses the lawsuit because her bid was only an offer On December 24, John sent a letter to Hans offering a deal on explosives. The offer required that Hans' acceptance fax be sent on or before 5:00pm on December 25. On December 25 at 3:00pm. Hans, busy at his office Christmas party, sent an acceptance by courier. Being the holiday season, the courier did not reach John until December 28. John refused to acknowledge the deal with Hans. Is there an enforceable contract? Yes, because the acceptance was made within the time specified. O No, because the offer required receipt of the acceptance within the time specified. O Yes, because the acceptance was effective when sent. O No, because Hans did not accept by fax. On January 1, Jacqueline wrote to Mimi, offering to sell Mimi a painting by Piet Mondrian for $120,000 cash. Jacqueline's letter stated that the offer would remain open until February 15 if Mimi mailed $100 by January 10. On January 5, Mimi mailed $100 to Jacqueline. On January 30. Mimi telephoned Jacqueline and said, "This painting is just a bunch of right angles and primary colors, Would you consider taking $100,000 for it?" Jacqueline refused to sell at that price and immediately contacted an art gallery to have them list the painting for sale. On February 6, Mimi mailed Jacqueline a letter accepting the original offer to buy the painting at $120,000 cash. The following day, Jacqueline received Mimi' acceptance. At that time, the gallery was offering the painting for $150,000. Which of the following is true? O Mimi's call on January 30 resulted in termination of the January 1 offer Jacqueline revoked the January 1 offer when the gallery listed the painting for sale O Mimi's February 6 letter formed a valid contract based on the original terms of Jacqueline's January 1 letter O Mimi's mailing $100 to Jacqueline on January 5 failed to grant an option Ron was visiting the zoo when he noticed Veronica dangling over the barrier, about to fall into the grizzly bear enclosure. Ron ran over to Veronica and pulled her up and over the barrier, out of the enclosure. Veronica was so grateful that she promised Ron a job at the television news network that she owned. She said that Ron could read the news on her network for the rest of his life because he had saved hers. Ron began working for Veronica, but could not read the cue cards properly and frequently used curse words on air. Veronica decided to fire him. Ron then sued Veronica for breach of contract. Who wins and why? O Veronica wins because she had good cause to fire Ron Ron wins because he and Veronica had a meeting of the minds Veronica wins because Ron did not give consideration O Ron wins because the act of saving Veronica's life was adequate for consideration Which of the following is NOT a required element of a valid contract? O Legality O Writing O Capacity O Consideration 4 pts