Question

6. Debbie promises to pay Josh, her son, $15,000 if he obtains his degree at Middlesex University where he is currently in his second year. Josh graduates. Debby is:

1.       not required to pay, because Josh was already at Middlesex.

2.       not required to pay, because obtaining a degree benefits Josh.

3.       required to pay because a job can be hard to find after college.

4.       required to pay because Josh obtained a degree at Middlesex

7. Carla, a minor, buys her groceries at Sam’s Mini-Mart. Two days later, Carla disaffirms the purchase. Carla owes Sam’s:

1.         the reasonable value of the groceries which are necessaries.

2.         the lowest sale price of the groceries.

3.         the value of the groceries plus interest.

4.         nothing

8.         Barbie signs a contract with Ken, an unlicensed physician, to perform a surgical procedure. This contract would be enforceable by:

1.         Barbie only.
2.         Barbie or Ken.
3.         Ken only.
4.         no one.

           

9.        The four types of damages for breach of contracts are:
   1. punitive, nominal, consequential, and compensatory.
   2. impracticability, punishment, financial and capacity.
   3. repudiation, specific performance,discharge, satisfaction.
   4. performance, breach, tort, intentional.

           

10.      Natalie and Izzy want to rescind their contract under which Natalie sold a dress to Izzy for $50. To fully rescind the contract:

1.         Izzy must return the dress and Natalie must return the $50.
2.         Natalie must return the $50 only.
3.         Izzy must return the dress only.
4.         The parties cannot rescind the contract because it was a sale of goods.

           

11. .       Sophie files a suit against Max. Before going to trial, the parties, with their attorneys, meet to try to resolve their dispute. A third party helps them to reach their own agreement. This is:

1.         arbitration.
2.         litigation.
3.         mediation.
4.         negotiation

12. Speedy cleaning service has been contracted to clean the home of the Small family at 118 Spring Street. On the first visit, Speedy Cleaning Service rings the bell at 120 Spring Street and Mr. Big lets them in. Speedy spends 3 hours cleaning the house and leaves a bill for $120.

1.         The theory of quasi contract will apply and Mr. Big a 120 Spring Street will have to pay.
2.         There is no intent to contract by Mr. Big, so no payment will be required.
3.         The Small family will pay based on the contractual agreement.
4.         Speedy doesn’t get paid because of breach of contract with the Small family.      

13.    Chuck agrees to meet Blaire at a fancy restaurant at 7:00 p.m. for a date. Blair arrives early, orders dinner, and waits for Chuck. He never shows up:

2. Everyone knows Chuck is rude.
3. Blair can sue Chuck for the cost of dinner.
4. Blair has no remedy against Chuck as they had a social appointment and not a contract.
5. Blair can sue Chuck for pain and mental anguish as he upset her so much by not showing up.

Answer 1

6. Answer – D

Statement :- Debbie promises to pay Josh, $15000, if he obtains his degree at Middlesex University

Assumption :- He is in Second year in Middlesex University so he will be graduating from the same University which is equivalent to obtaining a degree.

Option A- Condition was obtaining a degree not staying at Middlesex University. He may be there for master’s degree.

Option B – It is not relevant because there is no condition related to benefits

Option C - It is also irrelevant because there is no talk about job in statement.

Option D – He graduates which is equivalent to obtaining a degree. So Option D is Correct Answer.

7. Answer- D

Reason 1 :- Carla who is a minor buys her groceries at Sam’s Mini Mart. So here is no talk about the transaction which can be happen via cash or credit. But If Sam gave Carla groceries on credit so there should be some contract for transaction which is not mentioned. So if Either Carla disaffirms the groceries or confirms the purchase he is not liable to give any value to Sam.

Reason 2 :- If they signed a contract for purchase on credit than honoring of a contract depend on the minor if he wants to honor or deny it. So here minor disaffirms the purchase so he is not liable to pay anything.

So the Correct Answer is D

8. Answer - D

A contract to perform an illegal activity is always void and not enforceable by any party. Performing a Surgery without having license is an illegal activity. So the contract can’t be enforceable by either Barbie or Ken.

So the Correct is answer is No one (option D)

9. Answer – A

Punitive :- They are designed to punish a breaching party or counter party for the breaches. Generally, they are not rewarded for breaching contracts but for frauds cases.

Nominal :- When the injured party doesn’t loss any money but judge want to show that injured party is true. So very small fine will be charged by the breached party.

Consequential :- This is a type of Compensatory damage. It is meant to return the indirect loss to injured party which is outside of what was covered.

Compensatory :- They are monetary damages that are awarded for compensating the injured party for any loss they suffered due to breach of contract.

So Correct answer is A.

10. Answer – A

Rescission can take place by both parties with mutual consent or by one of the two parties with proper rationale. Once the contract is rescinded, both parties can go back to same positions when they were before the contract was signed. If a rescission occurs, both parties must return anything they received as a part of the contract to each other.

So correct answer is A. because Izzy must return the dress and Natalie must return the $50.

11. Answer –C

Option A - Arbitration is generally conducted with multiple arbitrators who take on a role like that of a judge, make decisions for both the parties which is binding so here they take help of third party to just resolve the dispute which is not binding.

Option – B – Litigation is generally settled in the court in front of judge whose decision is binding on both the parties.

Option – C- Mediation is generally conducted with a single mediator who does not judge the case but simply helps to facilitate the negotiation and eventual resolution of the dispute. So here Sophie and Max both take help of third party to reach a common consensus which is not binding.

Option D – It is between the two parties, there is no involvement of third parties in negotiation.

So correct answer is C.

12. Answer – A

Quasi Contract: - A quasi contract is a assumed contract between two parties who have no previous obligations to one another to correct a circumstance in which one party acquires something valuable at the expense of the other. This contract is to prevent one party from unfairly gain profit from the condition at the other party's expense. These arrangements may be imposed when goods or services are accepted, though not requested, by a party—and the acceptance then creates an expectation of payment.

So here speedy cleaning services gave services to 120 Spring Street mistakenly and Mr. Big intentionally accepted the services. So he is liable to pay to speedy cleaning services according to quasi contract terms.

So correct answer is A.

13. Answer – D

An agreement which is not legally bind is not enforceable. So here, this is a social agreement between Chuck and Blaire and there is not contract between them which says that chuck will pay the restaurant’s bill so Blaire has not any remedy against this.

So Correct answer is D