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Question 1
On March 30th, Sol celebrated his fiftieth birthday by attending a surprise party that his daughter, Michelle, threw in his honor. One of the guests at the party is David, the harpist for the symphony. David is widely considered to be the greatest classical harpist in the world. Knowing that her father is an avid classical music fan, Michelle takes David aside and promises to pay him $500 if David promises to give a one hour concert before the guests leave. Without replying to Michelle, David turns his attention to the guests, asks for quiet and begins to play. About twenty minutes into the concert, Michelle tells David that she is withdrawing her offer and will not pay the $500. David sues Michelle for breach of contract. David will probably:
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Correct The type of acceptance required to conclude a bargain will depend on the offer. The general rule is that any offer for a bi-lateral contract can only be accepted by a promise. Here, Michelle clearly offered a promise for a return promise. David responded with an act. Since Michelle was looking for a return promise from David, David's act does not constitute valid acceptance of Michelle's offer. That being the case, David will not be able to recover against Michelle and D is the correct answer.
Incorrect! The type of acceptance required to conclude a bargain will depend on the offer. The general rule is that any offer for a bi-lateral contract can only be accepted by a promise. Here, Michelle clearly offered a promise for a return promise. David responded with an act. Since Michelle was looking for a return promise from David, David's act does not constitute valid acceptance of Michelle's offer. That being the case, David will not be able to recover against Michelle and D is the correct answer.
Question 2
On March 30th, Sol celebrated his fiftieth birthday by attending a surprise party that his daughter, Michelle, threw in his honor. One of the guests at the party is David, the harpist for the symphony. David is widely considered to be the greatest classical harpist in the world. Knowing that her father is an avid classical music fan, Michelle takes David aside and promises to pay him $500 if David promises to give a one hour concert before the guests leave. Without replying to Michelle, David turns his attention to the guests, asks for quiet and begins to play. After David finishes the concert, Michelle tells him that she is withdrawing her offer and will not pay the $500. David sues Michelle for breach of contract. David will probably:
Correct The type of acceptance required to conclude a bargain will depend on the offer. The general rule is that any offer for a bi-lateral contract can only be accepted by a promise. However, the exception to this rule is that if performance is completed before the initial offer is retracted, full performance will constitute valid acceptance and a contract will be formed. Here, David completed performance before Michelle retracted her offer. Therefore, although David did not accept Michelle's offer with a return promise, his completed performance will be considered a valid acceptance of her offer. That being the case, David will recover from Michelle and A is the correct answer.
Incorrect! The type of acceptance required to conclude a bargain will depend on the offer. The general rule is that any offer for a bi-lateral contract can only be accepted by a promise. However, the exception to this rule is that if performance is completed before the initial offer is retracted, full performance will constitute valid acceptance and a contract will be formed. Here, David completed performance before Michelle retracted her offer. Therefore, although David did not accept Michelle's offer with a return promise, his completed performance will be considered a valid acceptance of her offer. That being the case, David will recover from Michelle and A is the correct answer.
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Question 3
On March 30th, Sol celebrated his fiftieth birthday by attending a surprise party that his daughter, Michelle, threw in his honor. One of the guests at the party is David, the harpist for the symphony. David is widely considered to be the greatest classical harpist in the world. Knowing that her father is an avid classical music fan, Michelle takes David aside and promises to pay him $500 if David gives a one hour concert before the guests leave. David promises that he will give the concert at the end of the party. Before David begins playing, Michelle tells him that she is withdrawing her offer and will not pay the $500. David sues Michelle for breach of contract. David will probably:
Correct
Incorrect!
Correct
Incorrect!
Correct Just as the general rule requires that bi-lateral contracts can only be accepted with a promise, the general rule also says that unilateral offers can only be accepted with actual performance. Here, Michelle offered a promise in exchange for an act. David responded with a promise. Therefore, his acceptance of Michelle's offer was invalid. That being the case, Michelle's retraction was valid, David will not be ale to recover against her and C is the correct answer.
Incorrect! Just as the general rule requires that bi-lateral contracts can only be accepted with a promise, the general rule also says that unilateral offers can only be accepted with actual performance. Here, Michelle offered a promise in exchange for an act. David responded with a promise. Therefore, his acceptance of Michelle's offer was invalid. That being the case, Michelle's retraction was valid, David will not be ale to recover against her and C is the correct answer.
Correct
Incorrect!
Question 4
Paul hires Ringo to redo the roof of his band's recording studio. Paul agrees to pay Ringo $5,000 and Ringo agrees to complete the job in two weeks. True to his word, Ringo completes the job in two weeks. However, he forgets to tell Paul that he has finished. One week later, having not received the $5,000 from Paul, Ringo files suit against Paul for breach of contract. Ringo will win this case:
Correct
Incorrect!
Correct Although the general rule states that a contract is completed with completion of performance, the offeror is not obligated under the contract until the offeree notifies him that performance is complete. That being the case, Paul was not obligated to pay Ringo until Ringo notified Paul of the completed performance. Because Ringo had not notified Paul, Paul was not in breach of contract. Therefore, Ringo cannot recover damages from Paul and FALSE is the correct answer.
Incorrect! Although the general rule states that a contract is completed with completion of performance, the offeror is not obligated under the contract until the offeree notifies him that performance is complete. That being the case, Paul was not obligated to pay Ringo until Ringo notified Paul of the completed performance. Because Ringo had not notified Paul, Paul was not in breach of contract. Therefore, Ringo cannot recover damages from Paul and FALSE is the correct answer.
Question 5
Before leaving on an extended vacation, Paul hires Ringo to redo the roof of his band's recording studio. Paul agrees to pay Ringo $5,000 and Ringo agrees to complete the job in two weeks. True to his word, Ringo completes the job in two weeks. However, he forgets to tell Paul that he has finished. Nine months later, Ringo contacts Paul, who is still on vacation, and tells him that the roof is finished. Paul informs Ringo that he will not be paying Ringo the $5,000. Ringo files suit against Paul for breach of contract. Ringo will win this case:
Correct
Incorrect!
Correct Although the general rule states that a contract is completed with completion of performance, the offeror is not obligated under the contract until the offeree notifies him that performance is complete. However, the offeree must inform the offeror of the completed performance within a reasonable time after performance is completed. If the offeror is notified after a reasonable period of time has passed, his obligation under the contract will be waived. Here, Ringo did not inform Paul of the completed performance within a reasonable period of time. As such, Paul's obligation under the contract is waived. That being the case, Ringo will not be able to recover from Paul and FALSE is the correct answer.
Incorrect! Although the general rule states that a contract is completed with completion of performance, the offeror is not obligated under the contract until the offeree notifies him that performance is complete. However, the offeree must inform the offeror of the completed performance within a reasonable time after performance is completed. If the offeror is notified after a reasonable period of time has passed, his obligation under the contract will be waived. Here, Ringo did not inform Paul of the completed performance within a reasonable period of time. As such, Paul's obligation under the contract is waived. That being the case, Ringo will not be able to recover from Paul and FALSE is the correct answer.
Question 6
Paul hires Ringo to redo the roof of his band's recording studio. Paul is about to go on a two week vacation but, when he returns, he plans on recording an album in the studio. Paul agrees to pay Ringo $5,000 and Ringo agrees to complete the job in two weeks. True to his word, Ringo completes the job in two weeks. However, he forgets to tell Paul that he has finished. A few days after Ringo finishes the work, Paul returns from vacation and goes to the studio to begin work on his album. Upon arriving at the studio, he sees that the roof has been finished. However, Paul does not send Ringo the $5,000 he owes him. One month later, having not received the $5,000 from Paul, Ringo files suit against Paul for breach of contract. Ringo will win this case:
Correct Usually, offeror is not obligated under the contract until the offeree notifies him that performance is complete. However, the offeree will not have to inform the offeror of the completed performance if the performance actually does come to the offeror's attention within a reasonable amount of time. Here, the completed performance came to Paul's attention within a reasonable amount of time. That being the case, he was obligated to pay Ringo even though Ringo did not inform Paul of the completed performance and TRUE is the correct answer.
Incorrect! Usually, offeror is not obligated under the contract until the offeree notifies him that performance is complete. However, the offeree will not have to inform the offeror of the completed performance if the performance actually does come to the offeror's attention within a reasonable amount of time. Here, the completed performance came to Paul's attention within a reasonable amount of time. That being the case, he was obligated to pay Ringo even though Ringo did not inform Paul of the completed performance and TRUE is the correct answer.
Correct
Incorrect!
Question 7
The symphony has just finished a performance at Carnegie Hall. The performance featured a lengthy solo by David, who was playing a special hand held harp crafted specially for this performance. Unfortunately, the harp goes missing after the performance. David looks all over for the instrument but it is nowhere to be found. David places an add in the New York Times, offering a reward of $1,000 to anybody who finds and returns the harp to him. About a week later, Sol finds the harp in a dumpster in the back of Carnegie Hall. Sol goes to the symphony as often as he can and he recognizes the harp as belonging to David as soon as he sees it. Not knowing of the reward offer, Sol immediately makes his way over to the symphony's rehearsal site and returns the harp to David. When David tells Sol to wait for a minute while David gets the reward money, Sol says "I didn't even know that there was a reward for returning the harp." When David hears this, he refuses to pay the $1,000. If Sol sues David for breach of contract, Sol will probably:
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Correct When an offeror makes an offer for a unilateral contract, acceptance of the offer must be made by actual performance. However, the general rule is that performance by someone who has no knowledge of the offer does not form a binding contract. Here, Sol actually performed on David's offer but he had no idea that the offer was ever made. That being the case, Sol's performance did not complete a binding contract and David does not have to pay Sol the reward money. Therefore, D is the correct answer.
Incorrect! When an offeror makes an offer for a unilateral contract, acceptance of the offer must be made by actual performance. However, the general rule is that performance by someone who has no knowledge of the offer does not form a binding contract. Here, Sol actually performed on David's offer but he had no idea that the offer was ever made. That being the case, Sol's performance did not complete a binding contract and David does not have to pay Sol the reward money. Therefore, D is the correct answer.
Question 8
The symphony is getting ready to go on a concert tour of the United States and in preparation for the trip, new bows for all of the string instrument players are ordered. David, a member of the symphony who is coordinating the trip contacts the Merry Melody Music Supply Co. and orders fifty new bows made of oak wood and horse hair to be delivered on April 1st. In response to the order, Merry ships David fifty bows made of oak wood and willow reeds. David decides to keep the bows but he sues Merry for breach of contract anyway. David will probably:
Correct
Incorrect!
Correct
Incorrect!
Correct According to the U.C.C., the seller's shipment of goods will be considered a valid acceptance of the buyer's offer even if the goods are non-conforming. In such a situation, the shipment would be considered both an acceptance of the buyer's offer and a breach of the contract the buyer and the seller now have. That being the case, David will be able to recover from Merry and C is the correct answer.
Incorrect! According to the U.C.C., the seller's shipment of goods will be considered a valid acceptance of the buyer's offer even if the goods are non-conforming. In such a situation, the shipment would be considered both an acceptance of the buyer's offer and a breach of the contract the buyer and the seller now have. That being the case, David will be able to recover from Merry and C is the correct answer.
Correct
Incorrect!
Question 9
The symphony is getting ready to go on a concert tour of the United States and in preparation for the trip, new bows for all of the string instrument players are ordered. David, a member of the symphony who is coordinating the trip contacts the Merry Melody Music Supply Co. and orders fifty new bows made of oak wood and horse hair to be delivered on April 1st. In response to the order, Merry ships David fifty bows made of oak wood and willow reeds. Enclosed with the bows is a note that says "Dear David, we have enclosed bows made of willow reeds because horse hair bows are very difficult to find right now. Rest assured that bows made of willow reeds work just as well as those made of horse hair. Let us know if you are satisfied." David decides to keep the bows but he sues Merry for breach of contract anyway. David will probably:
Correct If the seller ships nonconforming goods to the buyer but sends along a notice that the goods shipped are only an "accommodation" to the buyer, there is no breach and the shipment is considered a counteroffer. In this case, the shipment of willow reed bows will be considered an accommodation to David's offer and not an acceptance and breach. This accommodation will serve as a counteroffer so that David can either accept the bows and pay for them or reject them and send them back. That being the case, Merry was not in breach because they never accepted David's offer. As such, David will not recover against Merry and A is the correct answer.
Incorrect! If the seller ships nonconforming goods to the buyer but sends along a notice that the goods shipped are only an "accommodation" to the buyer, there is no breach and the shipment is considered a counteroffer. In this case, the shipment of willow reed bows will be considered an accommodation to David's offer and not an acceptance and breach. This accommodation will serve as a counteroffer so that David can either accept the bows and pay for them or reject them and send them back. That being the case, Merry was not in breach because they never accepted David's offer. As such, David will not recover against Merry and A is the correct answer.
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Question 10
The symphony has just finished a performance at Carnegie Hall. The performance featured a lengthy solo by David, who was playing a special hand held harp crafted specially for this performance. Unfortunately, the harp goes missing after the performance. David looks all over for the instrument but it is nowhere to be found. David places an add in the New York Times, offering a reward of $1,000 to anybody who finds and returns the harp to him. About a week later, Sol finds the harp in a dumpster in the back of Carnegie Hall. Remembering that he had seen an ad offering a reward for the harp's return, Sol immediately makes his way over to the symphony's rehearsal site and returns the harp to David. Sol tells David "I know that there is a reward for returning the harp but I want you to know that I think returning lost property to people is the moral thing to do and I would have brought the harp back to you anyway." When David hears this, he refuses to pay the $1,000. If Sol sues David for breach of contract, Sol will probably:
Correct When an offeror makes an offer for a unilateral contract, acceptance of the offer must be made by actual performance. The general rule is that performance by someone who has no knowledge of the offer does not form a binding contract. However, where a person does know about the offer but is motivated to perform by something other than the offer, the general rule is that a contract is formed anyway. Here, Sol knew about the reward so his returning of the harp, regardless of his motives, created a binding contract. Therefore, he will be able to recover from David and A is the correct answer.
Incorrect! When an offeror makes an offer for a unilateral contract, acceptance of the offer must be made by actual performance. The general rule is that performance by someone who has no knowledge of the offer does not form a binding contract. However, where a person does know about the offer but is motivated to perform by something other than the offer, the general rule is that a contract is formed anyway. Here, Sol knew about the reward so his returning of the harp, regardless of his motives, created a binding contract. Therefore, he will be able to recover from David and A is the correct answer.