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Lucy offered Akira $5 million for a three-year contract to record three albums for her company. which was the fair market value for a star of Akira's fame. Akira had no desire to record for Lucy's company. but after discussing the matter with Lucy for about half an hour. she signed a contract written on the back of a receipt from the hotel restaurant that Lucy wrote up on the spot. Akira thought it was ajoke and had no subjective intentions of entering into the agreement Which of the following is true of this situation? 7 Akira. a hip hop star. was sitting in a hotel lobby when she was approached by Lucy. a record company executive. E 00:52" Multiple Choice 00:15:41 0 There is no contract because Akira's subjective intentions prevent formation of the contract 0 Since the contract was written without lawyers present, it was likely not really serious, so no contract was actually formed 0 Because the terms were fair. the parties are bound by the contract regardless of their intent or capacity. 0 Akira's actions made her appear serious; therefore, she is bound by the contract despite what she was inwardly thinking Billy offered Shane $500 if he would run around the football stadium three times wearing a duck outfit during the playoff game. Which of the following is true? Multiple Choice 0 The offer is for a unilateral contract This is a void contract This contract is enforceable only if it is in writing. 000 This contract is enforceable only if Shane verbally or in writing accepts the offer prior to starting the run. 9 Nichole was the owner of Nicho Manufacturing Incorporated (NMI), which produced car tires. They averaged $500,000 in profits per month. NMI contacted American Manufacturing Equipment (AME), which produced the main machine that made their tires, and told them that their current AME tire manufacturing machine was about to break down and she needed a new one. Nichole advised them things needed to be done quickly because $500,000 in profits a month were at stake. Martha, the CEO of AME, assured Nichole that they would have a new 00:25:18 machine out to her company within two weeks. The machine was worth $700,000 and that was the contract price for the machine that AME promised to deliver. Martha later contacted Nichole and told her they would not be able to deliver the promised machine. NMI's machine then broke down, and Nichole had to purchase a machine from a competitor of AME, and paid a premium for the rush" as it read better. order, the competitor's machine cost NMI $800,000. NMI was down for one-month total as a result of AME's breach and as a result lost $500,000 in profits. What type of damages can Nichole recover?Multiple Choice 9 O $100,000 compensatory, $500,000 consequential 00:25:12 O $100,000 consequential, $500,000 compensatory O $600,000 consequential O No damages, as AME did not intentionally defraud NMI