Transcript
Chapter 18/Reviewing What you Learned/Activity 1 Explain how a contractual agreement is reached. One party (the offeror) makes an offer (a proposal) to another party (offeree) to enter into a legally enforceable (binding) agreement. Why does a contract usually arise when a customer offers to buy a mismarked product? When an offer contains a condition precedent, the parties are not obligated until the prerequisite is carried out. Give an example of a contract implied in fact. When you board a bus and pay the fare without saying anything to the driver, and the driver says nothing to you, no express contract exists because the terms were not stated. For what reason does the count impose a contract on the parties when a quasi contract arises? One actually does not exists or an expressed contract cannot be enforced. What is the difference between a bilateral contract and a unilateral contract? A bilateral contract contains two promises, one made by each party to the contract. A unilateral contract contains only one promise in exchange for an act, often referred to as a performance. Give an example of a void contract, a voidable contract, and an unenforceable contract. Selling marijuana is an example for void contract. A 16 year old buying a car from an adult and the minor disaffirms and returns the car is an example for a voidable contract. An oral contract for the sale of real property is an example for an uneforceable contract. How does an executory contract differ from an executed contract? Contracts that have come into existence but are not yet carried out are executory. Contracts that are completely carried out are said to be executed. Explain how a click wrap and browsewrap agreements work. The offeree enters into the contract by clicking on a dialog box which is on the screen. A Browesewrap agreement is an online contract or license agreement which states by using the website the user agrees to the site’s terms and conditions. Chapter 18/Understanding Legal Concepts/Activity 2 1 F, revocation 2 F, invitation to deal 3 F, implied fact 4 T 5 T 6 F, unenforceable contract 7 F, may not 8 T 9 T 10 T Chapter 18/Checking Terminology/Activity 3 1 H 2 P 3 EE 4 Y 5 D 6 M 7 A 8 DD 9 F 10 JJ 11 U 12 N 13 R 14 HH 15 L/MM 16 LL 17 GG 18 AA 19 KK 20 MM 21 Q 22 K 23 J 24 BB 25 V 26 E 27 II 28 O 29 Z 30 C 31 FF 32 S/T 33 I 34 W 35 X Chapter 18/Using Legal Language/Activity 4 Monica placed a sign on her car that read, “FOR SALE: $1,000.” Seeing the sign, Alex approached Monica and said, “I’ll give you $800 for it.” Monica replied, “I’ll take $900 for it.” The sign was a(n) invitation to negotiate, or deal. Alex’s statement was a(n) offer, and Monica’s response was a(n) counteroffer, which required a(n) acceptance on the part of Alex to create a(n) contract. Alex did not answer immediately, causing Monica to change her mind about the $900 offer and to take it back. However, before she voiced her revocation, Alex answered with a(n) rejection by saying, “I don’t want it at that price.” Alex left Monica and took a bus to visit his nephew. This action resulted in a(n) implied contract between Alex and the bus company, because the terms of the contract were not stated. Because the contract arose from the conduct of the parties, it was a contract implied in fact. When Alex got off the bus, he noticed that he was being followed by a small poodle that looked just like one that was advertised as being lost, in the newspaper he had just read. The advertisement offered a reward of $150 to anyone who returned the lost poodle to its owner. Alex went to the address given in the newspaper and returned the dog to its owner, thus creating a(n) unilateral contract. While there, he noticed a car for sale in front of the house and said to the dog owner, “I’ll take that car instead of the $150 reward.” Alex was the offorer; the dog owner was the offoree. The dog owner replied, “It’s a deal.” At this point, the contract was in its executory stage, because it had not been carried out completely. When the dog owner turns the car over to Alex, the contract will be executed. In addition, because the terms of the contract were stated, this agreement was a(n) express contract. It was not a contract implied in law (which is also known as a(n) (quasi contract), because no unjust enrichment occurred. Because both parties made promises, it was a(n) bilateral contract. The contract met the requirements of law; therefore, it was valid. Alex said to his 14-yearold nephew, Otto, “I’ll sell you my baseball glove for $15.” Otto replied, “I’ll buy it.” This contract was voidable because of Otto’s age. He was still a(n) infant and could disaf-firm all contracts except for necessaries unless he ratified them after reaching majority. Otto then said to Alex, “I’ll bet you $2,000 that the White Sox will win the pennant this year.” Alex asked, “Where will you get the money if you lose?” “From a loan shark at 50 percent per annum interest,” Otto answered. This loan would involve charging a greater amount of interest than is allowed by law. Such a contract is a(n) nullity and is absolutely void. This type of agreement is not an example of a(n) unenforceable contract, which is a contract that is valid, but that cannot be enforced for some legal reason.
