Question

Label each fact situation with the term that best describes the legal concept illustrated. Each term is used once.

Submit your answers in the Assignment Submission section. Do not submit your answers in the Add Comments section.  Do not retype the questions. Number your answers to correspond to the relevant questions. Return to the left margin for the beginning of each answer.

Terms

• Implied contact
• Objective theory of contracts
• Agreement
• Counteroffer
• Revocation of offer
• Legal capacity
• Illegal contract
• Exculpatory clause
• Genuine consent
• Statute of frauds
• Parol evidence rule
• Material breach
• Anticipatory breach
• Rescission
• Accord and satisfaction
• Statute of limitations
• Compensatory damages
• Consequential damages
• Liquidated damages
• Specific performance

Fact situations

1. Avik pulls into the local Shell station where he regularly buys gas. He waves to the regular station attendant, who authorizes the tank to dispense gas. Avik inserts the pump nozzle into his car’s gas tank.
2. After discussing the terms of a business merger over the phone, A Co.’s CEO believes that an agreement has been reached. Z Corp’s CEO believes no agreement has been reached.
3. Nicole buys a ticket for $207 to fly from Chicago to New York on United Airlines.
4. Jonathan offers to buy a house for $240,000. The owners reply that they will sell it to Jonathan for $250,000.
5. Nina decides she would rather have a sporty VW Beetle instead of the Golf GTI that she just offered to buy. She tells the salesman her decision as he reenters his cubicle before he has a chance to say anything.
6. Mitchell gets extremely intoxicated at a bachelor party and sells his car to his friend in exchange for a bottle of Jack Daniels whiskey.
7. Joanna buys Ecstasy from Nick at a party. She feels no effect from the drug and thinks Nick should return her money to her.
8. Zephyr Company requires employees returning to the office during the Covid-19 epidemic to sign a waiver that they will not sue the company if they contract Covid-19 at the office.
9. Jimmy’s Used Cars cleverly repairs collision damage to a vehicle and then sells the vehicle after assuring the buyer it was never involved in an accident.
10. Tim and Kathy sign their marriage license prior to their wedding ceremony.
11. While interviewing for a new job, Nadia’s prospective employer tells her that employees get paid holidays for their birthdays and free Starbucks coffee during work hours in the office. No mention of these benefits is made in the written information given to her by the human resources representative she when she fills out her W-4. On her birthday, she finds herself at her desk drinking water from the refrigerator dispenser, the only beverage available.
12. American Airlines cancels its scheduled flights from London to New York leaving ticketed passengers stranded.
13. Janay informs her landlord that she intends to move out of her apartment and stop paying rent five months before her lease is due to expire.
14. The day before class starts Javier decides he really doesn’t want to take a business law class at COD. He withdraws from the class using MyAccess. His credit card is credited the amount of tuition he had previously been charged.
15. Someone backs into Amanda’s car door while she is at class at COD. She estimates the repair to cost $1000.00 Her insurance company offers to pay her $1000.00 immediately if she agrees it will be full and final payment for all damages resulting from this incident. She agrees and accepts the $1000.00.
16. Acme Corporation belatedly sends out invoices for services it performed five years ago. The recipients don’t pay them because their records don't go back that far.
17. The new lamp Javier purchased from Walmart doesn’t work. He takes it back to the store, and they replace it with a new one that works.
18. The sump pump that Cristobal purchased from Home Depot for $129.00 last week fails during a downpour. As a result, his basement floods, ruining his carpeting and furniture. He demands that Home Depot reimburse him $4,000.00 for the cost of replacing the carpeting and furniture.
19. Retaj fails to pay his cell phone bill on time. He notices an additional $25.00 charge on his next month’s bill.
20. A private art collector agrees to sell an Andy Warhol painting to the Art Institute of Chicago, then decides to keep the painting for sentimental reasons. The Art Institute of Chicago sues the collector for breach of contract and asks the court to transfer title and possession of the painting to the Art Institute of Chicago.

Answer 1

Sr. No.	Terms	Fact Situation
1	Implied contract	Avik pulls into the local Shell station where he regularly buys gas. He waves to the regular station attendant, who authorizes the tank to dispense gas. Avik inserts the pump nozzle into his car’s gas tank.
2	Objective theory of contracts	After discussing the terms of a business merger over the phone, A Co.’s CEO believes that an agreement has been reached. Z Corp’s CEO believes no agreement has been reached.
3	Agreement	Janay informs her landlord that she intends to move out of her apartment and stop paying rent five months before her lease is due to expire.
4	Counteroffer	Jonathan offers to buy a house for $240,000. The owners reply that they will sell it to Jonathan for $250,000.
5	Revocation of offer	American Airlines cancels its scheduled flights from London to New York leaving ticketed passengers stranded.
6	Legal capacity	Mitchell gets extremely intoxicated at a bachelor party and sells his car to his friend in exchange for a bottle of Jack Daniels whiskey.
7	Illegal contract	Joanna buys Ecstasy from Nick at a party. She feels no effect from the drug and thinks Nick should return her money to her.
8	Exculpatory clause	Zephyr Company requires employees returning to the office during the Covid-19 epidemic to sign a waiver that they will not sue the company if they contract Covid-19 at the office.
9	Genuine consent	Nina decides she would rather have a sporty VW Beetle instead of the Golf GTI that she just offered to buy. She tells the salesman her decision as he reenters his cubicle before he has a chance to say anything.
10	Statute of frauds	Tim and Kathy sign their marriage license prior to their wedding ceremony.
11	Parol evidence rule	While interviewing for a new job, Nadia’s prospective employer tells her that employees get paid holidays for their birthdays and free Starbucks coffee during work hours in the office. No mention of these benefits is made in the written information given to her by the human resources representative she when she fills out her W-4. On her birthday, she finds herself at her desk drinking water from the refrigerator dispenser, the only beverage available.
12	Material breach	A private art collector agrees to sell an Andy Warhol painting to the Art Institute of Chicago, then decides to keep the painting for sentimental reasons. The Art Institute of Chicago sues the collector for breach of contract and asks the court to transfer title and possession of the painting to the Art Institute of Chicago.
13	Anticipatory breach	Jimmy’s Used Cars cleverly repairs collision damage to a vehicle and then sells the vehicle after assuring the buyer it was never involved in an accident.
14	Rescission	The day before class starts Javier decides he really doesn’t want to take a business law class at COD. He withdraws from the class using MyAccess. His credit card is credited the amount of tuition he had previously been charged.
15	Accord and satisfaction	Someone backs into Amanda’s car door while she is at class at COD. She estimates the repair to cost $1000.00 Her insurance company offers to pay her $1000.00 immediately if she agrees it will be full and final payment for all damages resulting from this incident. She agrees and accepts the $1000.00.
16	Statute of limitations	Acme Corporation belatedly sends out invoices for services it performed five years ago. The recipients don’t pay them because their records don't go back that far.
17	Compensatory damages	The new lamp Javier purchased from Walmart doesn’t work. He takes it back to the store, and they replace it with a new one that works.
18	Consequential damages	The sump pump that Cristobal purchased from Home Depot for $129.00 last week fails during a downpour. As a result, his basement floods, ruining his carpeting and furniture. He demands that Home Depot reimburse him $4,000.00 for the cost of replacing the carpeting and furniture.
19	Liquidated damages	Retaj fails to pay his cell phone bill on time. He notices an additional $25.00 charge on his next month’s bill.
20	Specific performance	Nicole buys a ticket for $207 to fly from Chicago to New York on United Airlines.