Question

A.

Risky tells WannaBe that he is thinking about selling his skis. This is:

A statement of future intent

An invitation to accept an offer

An offer

An acceptance of an offer

B.

Risky decides to sell his skis and sends all of his friends a text message offering his skis for sale for $500. WannaBe sends Risky a text offering him $400. Risky and WannaBe now have:   

No contract because Risky sent the message to all of his friends, not just WannaBe

A contract because there was an offer and an acceptance

No contract because WannaBe made a counter-offer that has not been accepted

A contract because there is consent and a promise of consideration

C.

The next day, Stony sends Risky a text message offering to give Risky his car in exchange for the skis. Risky has seen Stony’s car in Stony’s driveway and thinks the car is worth about $2,000, so he replies to Stony’s text telling him that he will accept Stony’s offer. The contract may not be an enforceable contract if:

Group of answer choices

Any of the above conditions

Stony made a mistake when he estimated the value of his car at $500

Stony was under the influence of drugs or alcohol when Risky accepted his offer

Stony is under the age of 18

D.

Risky exchanges his skis for Stony’s car that afternoon. When Risky attempts to drive away in the car, he discovers the car has no engine. Risky did not inspect the car before he agreed to the exchange and Stony did not tell Risky the car did or did not have an engine. This is an example of:

An unconscionable mistake

A unilateral mistake

A bilateral mistake

A fraudulent misrepresentation

E.

Risky decides to keep the car. He calls Ima Little Late at 24/7 Towing Company and asks her to tow the car to his house. He agrees to pay Ima $100 to tow his car. Risky tells Ima that she must deliver the car to his house before 5:00 pm that night so that he can get to work by 6:00 pm. Unfortunately, there is a power outage that disables all the traffic lights in the area. Because it is rush hour, traffic is a mess. When Ima calls Risky at 4:30 to tell him she is going to be late, Risky gets angry, calls her “stupid and irresponsible” and hangs up on her. Ima finally drops off the car at Risky’s house at 7:00 pm. Risky refuses to pay Ima the $100, so Ima sues Risky for breaching their contract. In this case, the court will most likely:

Group of answer choices

Decide in Ima’s favor because, when she called Risky to tell him she was going to be late, he verbally assaulted her

Decide in Risky’s favor because Ima did not fully perform her promise

Decide in Risky’s favor because it would be unconscionable to make Risky pay for services that did not meet his expectations

Decide in Ima’s favor because she substantially performed her contract obligation to the extent possible given the power outage

F.

Risky, who likes to work on cars in his leisure time, purchased a brand-new engine direct from Nothingood Manufacturing. He finally got the car running after working on it for several days. Unfortunately, he discovered that whenever the outside temperature reached 74 degrees, the car stopped running. When Risky contacted Nothingood Manufacturing, they told him the engine did not come with a warranty.

Risky may be able to sue the manufacturer of his car engine for the following reason(s):

The car engine did not perform according to product descriptions on the box

The manufacturer did not provide an adequate warning regarding the temperature limitation of the engine

The car engine is not reasonably fit for ordinary use

All of these answers are correct

G.

Risky was finally able to get the manufacturer to replace the problem engine with a newly designed engine that worked well. He was showing off the car to his new girlfriend when he was pulled over by a police officer for speeding. The police officer ran a title report and discovered the car had been reported stolen. Risky told the police officer that Stony had traded him the car for his skis and that Risky had no idea the car had been stolen.

Group of answer choices

Risky may have to take matters into his own hands by visiting Stony and forcing him to pay Risky back for all the trouble he has caused Risky

Risky may be able to get the speeding ticket dismissed if he tells the court about all the problems he has had with the car engine.

Risky will have to return the car to the original owner because his title to the car is void

Risky will be able to keep the car because he did not know it was stolen and is a “good faith purchaser”

Answer 1

(A) The correct option is :-  A statement of future intent

The statement of future intent is a statement of an intention to do something in the future, but it is not an offer. A statement of intention is not a part of the final contract, but might have been used to convince one to accept the offer. We can also say that a statement of future intent is not a legally binding contract. It only indicates an agreement by the two parties involved in the negotiation to attempt to form a future contract.
For example, A statement of future intent - "I plan to sell my 700-pound sow".

(B) The correct option is :- No contract because Risky sent the message to all of his friends, not just WannaBe

A contract is a legally binding agreement. Risky has sent the text message to all of his friends offering his skis at $500, and Wannabe made a counteroffer of $400. But nothing is being said that whether Risky has accepted or rejected Wannabe's counteroffer. So till now there is no contract between Risky and Wannabe.
As we know, a counteroffer is a response given to an initial offer. A counteroffer means the original offer was rejected and replaced with another one. The counteroffer gives the original offerer three options: accept the counteroffer, reject it, or make another offer. There is typically no binding contract between the parties involved until one accepts the other's offer.

(C) The correct option is :- Any of the above conditions.

We know, a contract is a legally binding promise made between at least 2 parties in order to fulfil an obligation in exchange for something of value. Contracts can either be written, oral, or a combination of both.

Under one essential condition for a contract to be enforceable is Capacity. All parties must have the ability to understand the terms of and any obligations under the contract. Also, consent to the contract must be freely given (eg there cannot be any coercion/force, fraud, undue influence, or misrepresentation).

As per law, these type of people generally lack the capacity to enter into contracts:

• children under 18 - unless the contract is for necessities (food and clothing) or education (an apprenticeship or employment contract) and the terms are fair and benefit the child
• people suffering from mental health conditions or under the influence of drugs and/or alcohol - only if the condition affects the person's ability to understand the nature of the transaction or if the other party is aware of their incapacity.
  If a person lacking capacity has entered into a contract, it will generally be up to that person to decide if they want to invalidate the contract.

(D) The correct option is :- A fraudulent misrepresentation

Fraudulent misrepresentation may be defined as any type of lie or false statement that is used to trick a person into an agreement. The misrepresentation can occur through many ways, including written words, spoken words, gestures or body motions (such as a nod), or through silence or inaction. A fraudulent misrepresentation if contested in the court and can be proved, then the contract may be declared as invalid.

There are several different types of fraudulent misrepresentation. These can depend on several factors, including the circumstances surrounding the agreement, as well as state laws.
For instance, if an auto dealers lies about the accident history of a used vehicle, and the purchaser signs a contract because he thought the car was never in an accident (but it was), then it might be considered fraudulent misrepresentation.

Some common types of fraudulent misrepresentation may include:

• Making a statement to the other party that is clearly false;
• Making a statement that is partially true; this means that some parts of the statement may be true while other aspects of it may be false;
• Omitting details in a way that creates false beliefs in the other person’s understanding; or
• Being completely silent on a subject or failing to disclose important information (especially where they are legally required to provide the information).

Here, since Stony did'nt divulge to Risky that the car does'nt have any engine, although he was supposed to know the details of his car and remained completely silent on that matter. So he made a fraudulent misrepresentation.

(E) The correct option is:- Decide in Ima’s favor because she substantially performed her contract obligation to the extent possible given the power outage.

(F) The correct option is :-  All of these answers are correct

As per the Sale of Goods Act, 1979, The following terms may be implied into contracts for the sale of goods even if the express terms of the contract contain no promises at all about the goods.

• Goods sold by description must correspond to their description
• The goods must be of satisfactory quality.
• The goods must be fit for their purpose for which they are normally supplied.
• Be free from defects, including minor one.
• Function properly for a reasonable period of time.
• Have a reasonably satisfactory finish & appearance.

(G) The correct option is:- Risky will have to return the car to the original owner because his title to the car is void.

In normal cases, when the police runs a title report and finds that the car is reportedly stolen, its very likely that the police takes the possession of the car.  If it were reported stolen to the owner’s auto insurance company, they will likely recover the car and return it to the owner. The buyer will not be able to recover his vehicle, unfortunately. If he has purchased insurance on his car, he will probably not be able to make a claim since he does'nt not own the car in question. The most effective remedy is often suing the seller for any money paid. If the buyer has a way to track the seller, like he has his address or other identifying details, he should file a police report and give them as much information as he has.

​​​​​​​