1. Malcolm pays a bribe of $5,000 to Dustin, a county assessor, to get a low assessment on his estate. Dustin turns in a very high assessment. Malcolm sues Dustin to get back his $5,000. Malcolm may get back his $5,000 or have his assessment lowered because he has already performed his part of the contract.

   	A.	The general rule with regard to illegal contracts is that the parties are to be put back where they started
   	B.	Malcolm can get back his $5,000.
   	C.	Malcolm can get back his $5,000 because it is against public policy for county assessors to accept bribes.
   	D.	Malcolm cannot get back his $5,000; the courts do not aid either party to this contract.

2.5 points

QUESTION 9

1. Loral Corporation was awarded a $6,000,000 contract by the U.S. Navy for a production of radar sets. Loral then awarded a subcontract for construction of gear components to Austin Instrumental, Inc. Subsequently Loral asked for bids on a second group of gear components. Austin stated that it would cease delivery under the existing contract unless it received the contract for the second group of components at increased prices for both groups. Loral refused and Austin stopped delivery. Loral was then unable to find another manufacturer who could produce the gears in time so it agreed to the demands of Austin. After the gears were completed, Loral refused to pay the increased price. The Court finds for Loral and rules that there is no contract. The best reason is:

   	A.	unconscionability
   	B.	fraud
   	C.	duress
   	D.	past consideration
   	E.	incapacity

2.5 points

QUESTION 10

1. Jack and Jill are brother and sister with a joint savings account of over a quarter of a million dollars (made from the manufacture and distribution of water pails). Jack wants to go into business making gingerbread houses; moreover, he wants to use the quarter of a million dollars to set himself up. Jill refuses. Jack, though, finally convinces her and she lets him have the money. Jill then has a sudden change of heart and wants to get her money back. However, Jack has already used the money to purchase all of his needs to get started in the gingerbread house business. Jill files a lawsuit against her brother. The Court finds that Jack must prove the validity of the contract between Jill and him. This presupposes:

   	A.	an arms length agreement
   	B.	economic duress
   	C.	undue influence
   	D.	no consideration
   	E.	fraud or innocent misrepresentation

2.5 points

QUESTION 11

1. Plaintiff was a widow of defendant's brother. Defendant told Plaintiff: "If you will come down and see me, I will let you have a place to raise your family, as I have more open land than I know what to do with". Within a month or two Plaintiff sold her home, packed up all of her belongings, and moved her family the sixty miles to the Defendant's residence, where he put her in a house and gave her land to cultivate. After two years, he notified Plaintiff to leave. Plaintiff sues for breach of contract. The court finds that there is no contract but allows Plaintiff to remain in the house indefinitely. The best reason supporting this:

   	A.	enforcement of the contract
   	B.	unjust enrichment
   	C.	specific performance
   	D.	promissory estoppel
   	E.	the doctrine of the necessary

2.5 points

QUESTION 12

1. In problem #11 above, the court did find that there is no contract. What answer best justifies this conclusion?

   	A.	past consideration is evident
   	B.	insufficient consideration is present
   	C.	no offer and acceptance is present
   	D.	the contract has no legal purpose
   	E.	a preexisting duty is evident

2.5 points

QUESTION 13

1. Which offer is irrevocable under common law?

   	A.	Jan, a hairdresser, orally offers to sell her pet poodle to Ted for $200 & to keep the offer open for 30 days.
   	B.	Jan, a hairdresser, orally offers to sell her pet poodle to Ted for $200 and to keep the offer open for thirty days if Ted will put $10 down & Ted does so.
   	C.	Jan, a hairdresser, in writing offers to sell her pet poodle to Ted for $200 & to keep the offer open for 30 days.
   	D.	none of the above are irrevocable.