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Question 1
College Painters, Inc. is a house painting company staffed and run by college students from Boston College. The company has just signed a contract with Howard, a private homeowner, to paint his house. The contract states that the company will paint the house white with blue trim and Howard will pay the company $10,000 for the job. The contract says nothing about when the job must be completed. Two days before the company is supposed to begin working, they get an offer to paint a larger house for $15,000. The company calls Howard and tells him that they will not be painting his house. Howard immediately sues the company. The company defends itself by arguing that the contract was void because time of performance was left out. The company will win:
Correct
Incorrect!
Correct A contract does not fail, even if it leaves out a material term, if the court can fill in the missing term by inference. Here, the court will be able to infer that the job must be completed within a reasonable time. That being the case, the contract between the company and Howard is valid and FALSE is the correct answer.
Incorrect! A contract does not fail, even if it leaves out a material term, if the court can fill in the missing term by inference. Here, the court will be able to infer that the job must be completed within a reasonable time. That being the case, the contract between the company and Howard is valid and FALSE is the correct answer.
Question 2
College Painters, Inc. is a house painting company staffed and run by college students from Boston College. The company has just signed a contract with Howard, a private homeowner, to paint his house. The contract states that the company will paint the house, the job to be completed in two weeks, and Howard will pay the company $10,000 for the job. The contract says nothing about the color that the house is to be painted. Two days before the company is supposed to begin working, they get an offer to paint a larger house for $15,000. The company calls Howard and tells him that they will not be painting his house. Howard immediately sues the company. The company defends itself by arguing that the contract was void because of indefiniteness. The company will win:
Correct A contract does not fail, even if it leaves out a material term, if the court can fill in the missing term by inference. Here, however, the contract will fail because there is no way for the court to infer what color Howard wants his house to be painted. That being the case, the contract between the company and Howard is void and TRUE is the correct answer.
Incorrect! A contract does not fail, even if it leaves out a material term, if the court can fill in the missing term by inference. Here, however, the contract will fail because there is no way for the court to infer what color Howard wants his house to be painted. That being the case, the contract between the company and Howard is void and TRUE is the correct answer.
Correct
Incorrect!
Question 3
College Painters, Inc. has just signed a contract with Howard, a private homeowner, to paint his house. The contract states that the company will paint the house, the job to be completed in two weeks, and Howard will pay the company $10,000 for the job. The contract says nothing about the color that the house is to be painted. However, Howard lives in a neighborhood whose zoning laws require all houses to be white with blue trim. Two days before the company is supposed to begin working, they get an offer to paint a larger house for $15,000. The company calls Howard and tells him that they will not be painting his house. Howard immediately sues the company. The company defends itself by arguing that the contract was void because of indefiniteness. The company will win:
Correct
Incorrect!
Correct A contract does not fail, even if it leaves out a material term, if the court can fill in the missing term by inference. Usually, the court could not infer something like the color a house is supposed to be painted and so, usually, this contract would fail. However, given that the zoning laws in Howard's neighborhood are what they are, the court will be able to fill in this missing term. That being the case, the contract between the company and Howard is valid and FALSE is the correct answer.
Incorrect! A contract does not fail, even if it leaves out a material term, if the court can fill in the missing term by inference. Usually, the court could not infer something like the color a house is supposed to be painted and so, usually, this contract would fail. However, given that the zoning laws in Howard's neighborhood are what they are, the court will be able to fill in this missing term. That being the case, the contract between the company and Howard is valid and FALSE is the correct answer.
Question 4
Ben and Jerry, the owners of an ice cream manufacturer, negotiate a contract with Moo Juice, Inc. under which Moo Juice will provide 2% milk to Ben and Jerry at a price of $1 per gallon. The contract states that Moo Juice will deliver the milk to Ben and Jerry's plant on the first of each month and that the contract will last for two years. The contract says nothing about how much milk Moo Juice is supposed to deliver each month. The day before the first delivery is due, Ben and Jerry contact Moo Juice to tell them that they have found a new milk supplier and that they will not be buying milk from Moo Juice. Moo Juice immediately sues Ben and Jerry for breach of contract. Moo Juice will probably:
Correct
Incorrect!
Correct
Incorrect!
Correct U.C.C. considers indefinite contracts for the sale of goods valid if the parties had intended to make a contract and there is a reasonably certain basis for filling in the gaps. To that end, the U.C.C. provides gap fillers for price, for place of delivery, for time of delivery and for time of payment. The U.C.C. does not contain a gap-filler for quantity, simply because "reasonable quantity" is impossible to determine. That being the case, the contract between Ben and Jerry and Moo Juice will fail due to indefiniteness because quantity has been left out. Therefore, Moo Juice will not be able to recover from Ben and Jerry and C is the correct answer.
Incorrect! U.C.C. considers indefinite contracts for the sale of goods valid if the parties had intended to make a contract and there is a reasonably certain basis for filling in the gaps. To that end, the U.C.C. provides gap fillers for price, for place of delivery, for time of delivery and for time of payment. The U.C.C. does not contain a gap-filler for quantity, simply because "reasonable quantity" is impossible to determine. That being the case, the contract between Ben and Jerry and Moo Juice will fail due to indefiniteness because quantity has been left out. Therefore, Moo Juice will not be able to recover from Ben and Jerry and C is the correct answer.
Correct
Incorrect!
Question 5
Ben and Jerry, the owners of an ice cream manufacturer, negotiate a contract with Moo Juice, Inc. under which Moo Juice will provide 2% milk to Ben and Jerry at a price of $1 per gallon. The contract states that Moo Juice will deliver the milk to Ben and Jerry's plant on the first of each month and that the contract will last for two years. The contract says nothing about how much milk Moo Juice is supposed to deliver each month. At the beginning of the first month, Moo Juice ships, and Ben and Jerry accept and pay for, ten thousand gallons of milk. The same thing happens at the beginning of the second and third months. The day before delivery is due at the beginning of the fourth month, Ben and Jerry contact Moo Juice to tell them that they have found a cheaper milk supplier and that they will not be buying milk from Moo Juice. Moo Juice immediately sues Ben and Jerry for breach of contract. Moo Juice will probably:
Correct
Incorrect!
Correct Contracts that might be unenforceable because of indefiniteness may become enforceable if the parties have begun performance, because the beginning of the performance may give the court enough evidence with which to fill in the missing term that would ordinarily invalidate the contract. In this case, the missing quantity would ordinarily make the contract between Ben and Jerry and Moo Juice void. However, the partial performance of the contract has identified the quantity that Ben and Jerry and Moo Juice intended, thereby supplying the degree of certainty the contract needs in order to be enforceable. Therefore, Moo Juice will be able to recover from Ben and Jerry and B is the correct answer.
Incorrect! Contracts that might be unenforceable because of indefiniteness may become enforceable if the parties have begun performance, because the beginning of the performance may give the court enough evidence with which to fill in the missing term that would ordinarily invalidate the contract. In this case, the missing quantity would ordinarily make the contract between Ben and Jerry and Moo Juice void. However, the partial performance of the contract has identified the quantity that Ben and Jerry and Moo Juice intended, thereby supplying the degree of certainty the contract needs in order to be enforceable. Therefore, Moo Juice will be able to recover from Ben and Jerry and B is the correct answer.
Correct
Incorrect!
Correct
Incorrect!
Question 6
Ben and Jerry, the owners of an ice cream manufacturer, negotiate a contract with Moo Juice, Inc. under which Moo Juice will provide 2% milk to Ben and Jerry, to be delivered on the first of each month, and that the contract will last for two years. The contract says that the price of each month's delivery will be determined by the market price of milk at the first of each month. Market price usually fluctuates between $1 and $1.10 per gallon. The day before the first delivery is due, Ben and Jerry contact Moo Juice to tell them that they have found a cheaper milk supplier and that they will not be buying milk from Moo Juice. Moo Juice immediately sues Ben and Jerry for breach of contract. Moo Juice will probably:
Correct Even if parties do not negotiate specific terms of a contract, the contract will be enforceable if they establish a method for filling in the omitted terms and the method reserved for determining the omitted terms is an objective standard. Here, Ben and Jerry and Moo Juice agreed to base the contract price for each month's delivery on the market price at the time of the delivery. Therefore, even though Ben and Jerry may end up paying different prices for each delivery, the contract is enforceable. That being the case, Moo Juice can recover from Ben and Jerry and A is the correct answer.
Incorrect! Even if parties do not negotiate specific terms of a contract, the contract will be enforceable if they establish a method for filling in the omitted terms and the method reserved for determining the omitted terms is an objective standard. Here, Ben and Jerry and Moo Juice agreed to base the contract price for each month's delivery on the market price at the time of the delivery. Therefore, even though Ben and Jerry may end up paying different prices for each delivery, the contract is enforceable. That being the case, Moo Juice can recover from Ben and Jerry and A is the correct answer.
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Question 7
College Painters, Inc. has just signed a contract with Howard, a private homeowner, to paint his house. The contract states that the company will paint the house, the job to be completed in two weeks. The contract also says that Howard and the company will agree on a price at some point in the future but before the job has been finished. Two days before the company is supposed to begin working, they get an offer to paint a larger house for $15,000. The company, knowing that they will not make as much painting Howard's house, calls Howard and tells him that they will not be painting his house. Howard immediately sues the company. The company defends itself by arguing that the contract was void because of indefiniteness. The company will
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Correct Howard and the company have an "agreement to agree" on a price for the job. The general rule regarding agreements to agree is that they are only enforceable if they concern a non material term of the contract. If the agreement to agree concerns a term that is material to the contract, the agreement will be unenforceable. Here, the agreement to agree concerns price, which is a material term of the contract. That being the case, the contract between Howard and the company is unenforceable, the company will win this suit and D is the correct answer.
Incorrect! Howard and the company have an "agreement to agree" on a price for the job. The general rule regarding agreements to agree is that they are only enforceable if they concern a non material term of the contract. If the agreement to agree concerns a term that is material to the contract, the agreement will be unenforceable. Here, the agreement to agree concerns price, which is a material term of the contract. That being the case, the contract between Howard and the company is unenforceable, the company will win this suit and D is the correct answer.
Question 8
College Painters, Inc. has just signed a contract with Howard, a private homeowner, to paint his house. The contract states that the company will paint the house, the job to be completed in two weeks and that Howard will pay the company $10,000 upon completion of the job. The contract also says that Howard and the company will agree at some point in the future as to the brand of paint the company will use. Two days before the company is supposed to begin working, they get an offer to paint a larger house for $15,000. The company calls Howard and tells him that they will not be painting his house. Howard immediately sues the company. The company defends itself by arguing that the contract was void because of indefiniteness. The company will
Correct
Incorrect!
Correct Howard and the company have an "agreement to agree" on the brand of paint to be used on the job. The general rule regarding agreements to agree is that they are only enforceable if they concern a non material term of the contract. If the agreement to agree concerns a term that is material to the contract, the agreement will be unenforceable. Here, the agreement to agree concerns the brand of paint to be used on the job, which is not a material term of the contract. That being the case, the contract between Howard and the company is enforceable, he will be able to recover from the company and B is the correct answer.
Incorrect! Howard and the company have an "agreement to agree" on the brand of paint to be used on the job. The general rule regarding agreements to agree is that they are only enforceable if they concern a non material term of the contract. If the agreement to agree concerns a term that is material to the contract, the agreement will be unenforceable. Here, the agreement to agree concerns the brand of paint to be used on the job, which is not a material term of the contract. That being the case, the contract between Howard and the company is enforceable, he will be able to recover from the company and B is the correct answer.