Capacity
Legality
Damages
Statute of Frauds
Miscellaneous
100
Sally is declared incompetent by a court on Monday. On Tuesday, she goes to a local car dealership and signs a contract to buy a car. She was lucid at the time of purchase. Identify the status of the contract.
What is void? because a court declared her incompetent, she can no longer enter into valid contracts. only her legal guardian can do so; it does not matter that she was lucid at the time
100
Sam goes to work as a landman for Devon Energy and agrees that he will not compete with Devon for a period of 19 years in the entire US. The status of the agreement is . . . .
What is unenforceable due to violation of public policy as the number of years is unreasonable?
100
Joe has to spend $50 in gas to find a substitute vendor for the wine Sally was supposed to have timely delivered. Name the type of damages the $50 is considered
What is incidental, compensatory damages?
100
Sally and Joe are talking in a local cafe and Joe says he will buy her mineral rights for $10000 and Sally says she will hand over the deed on Monday. When Joe shows up for the deed on Monday, Sally says she's changed her mind. The status of the contract is
What is unenforceable as it must be in writing?
100
Sally is having a garage sale and is selling her grandmother's antique sewing machine for 50 cents. An antique dealer sees it at the sale and knows that it was once owned by Betsy Ross and was used to make the US flag and is worth $1,000,000. He says to Sally what a great machine it is but that it doesnt look like it will work properly and will she sell it for 25 cents. she agrees and he buys it. As he is walking off he laughs and tells her how much it is worth. What is the status of the contract.
What is enforceable? Even though he is an expert, Sally didnt ask him how much it was worth so it is a unilateral mistake of value
200
Sally has good days and bad days. On Monday, she does not know who she is. On Tuesday, she does and goes and buys a car, but on Wednesday, she has forgotten who she is again and doesnt remember buying the car. The status of the contract is...
What is valid? she knew who she was and what she was doing on the date she entered the contract.
200
Sally signs a waiver for her child to attend a birthday party at a petting zoo and the waiver includes the following: "Parties agree to hold zoo and its agents, employees, volunteers harmless for any and all injuries resulting from negligence or otherwise." The status of the clause is
What is unenforceable exculpatory clause?
200
Sally asks Joe to repair her cash register and that for each day it is under repair, her store will be closed and she will lose $1000 per day. Joe promises to have it repaired within 2 days, but it takes him 4 days. Sally wants to recover $2000. Name the type of damages she is seeking
What are consequential damages?
200
Widgets R Us and Home Depot enter into a verbal agreement for Widgets R Us to provide Home Depot with 1000 gallons of paint worth $50 per gallon delivery on Friday. They do not have any prior dealings. Widgets R Us did not deliver the paint and Home Depot wishes to sue them. The status of the contract is
What is unenforceable? Contracts for $500 or more of goods between merchants must be in writing (unless an exception exists: prior dealings, partial performance, promissory estoppel)
200
Sally comes to buy Joe's car for $10,000 and it has 50,000 miles on it. Joe tells Mary he only drove the car to and from OKC for work purposes and neglects to tell her he drove it to and from the grocery store as well. Sally later learns this and wonders what the status of the contract is
What is enforceable? Any misstatement like this would be immaterial
300
Sally is 17 and buys a car from Bob Moore. When she is 19, she takes the car back and demands a refund. The status of the contract is...
What is valid. Even though minors may disaffirm a contract, they must do so within a reasonable time after their 18th birthday. Oklahoma allows one year and this exceeds 1 year.
300
Sally places a bet in Norman on the Final 4 basketball game and with Joe. Sally loses and Joe demands payment. Sally refuses and Joe sues her for breach of contract. The status of the contract is
What is unenforceable as gambling contracts are illegal?
300
American Airlines hires a pilot to work for it for 6 months. This contract must be in writing....
What is false? It can be performed within 1 year
300
Sally is supposed to deliver 10 widgets to Joe on Friday but calls Joe on Tuesday and advises she is now bankrupt and cant deliver. This is
What is anticipatory repudiation? you might also argue that it is impossible for her to perform
400
Sally and Tom are drinking at 747 and discussing the sale of his car which Sally has wanted to buy for years. Tom has 10 shots of vodka in front of her and would legally be considered intoxicated. However, he knows what he is doing and signs over his car to Sally. The status of the contract is ....
What is valid? He knew what he was doing; you have to be so intoxicated you dont understand the legal consequences of your actions to be voidable.
400
A contract contains the following: "For breach of this contract, Vendor shall be entitled to both compensatory and punitive damages from buyer; however, buyer agrees he may seek only compensatory damages against Vendor." Identify the type of claim you would make regarding this particular clause
What is substantively unconscionable?
400
Sally successfully sues John for fraud. In addition to compensatory damages, what else can she recover from John?
What are punitive damages? Fraud is a tort; no punitive damages for contract breach alone
400
American Airlines hires a pilot to work for it for 5 years beginning on June 1, 2016. This contract must be in writing.
What is true?
400
Joe hires Sam as his lawyer to represent him in Court on Monday for $5,000. 15 min before the hearing, the lawyer says he wants Joe to agree to pay him $10,000. What is the status of the additional $5,000 contract amount?
What is unenforceable due to economic duress?
500
Tom is taking pain pills for his knee surgery and agrees to sell Sally his car for $10. It is worth $1,000. The status of the contract is. . .
What is valid unless Tom can demonstrate that he did not understand the legal consequences of his actions?
500
On the back of the sales agreement with an auto dealer the fine print reads: "Whereas, party A and party B agree that heretofore Party A shall be free and clear of any and all liability regardless of fault."
What is procedurally (and likely substantively) unconscionable?
500
ABC, Inc. executes an employment agreement with VP Smith that provides he must pay ABC, Inc. $500,000 if he leaves the company within 5 years. This clause refers to this form of damages
What are liquidated damages? These are considered valid where estimating damages is uncertain and the amount is not a penalty
500
American Airlines hires a pilot to work for "life." This contract must be in writing.
What is false? Technically he/she could die within a year.
500
Joe tells his elderly mother that if she does not deed to him her ranch that he will no longer visit her in the nursing home. She does so. If after her death Joe's brother sues Joe to negate the deed, what is the status of the deed...
What is unenforceable due to undue influence?
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