Contract Law Test Question With 100% Complete Solutions 2023 Updated Real Exam

Contract Law Test Question With 100% Complete Solutions 2023 Updated Real Exam Hamer v. Sideway - ANSWER- Nephew was promised by his uncle that if he did refrain from drinking using tobacco, swearing, and playing cards or billboards until he became 21 years of age and then he would pay him $5,000. The nephew preformed the terms of the promise and he sent a letter to his uncle informing him of the performance. Uncle said he would give him the money just once he is a little older. The uncle died and the nephew did not receive the money. Consideration is enough if something is promised, done, forborne, or suffered by the party to whom the promise is made with. He gave up drinking and other bad habits, something he had a legal right to partake in for the $5K. Doesn't matter how tough it was. Nephew's behavior does not need to benefit the uncle as long as the Nephew's behavior is what the uncle wants. Contract - ANSWER- A promise or set of promises for the breach, which the law gives a remedy, or performance of which the law in some way recognizes as a duty promises that are result of bargain and have consideration is a contract. Freedom of Contract - ANSWER- Freedom of individuals and groups (such as corporations) to form contracts without government restrictions, freedom to breach contract, freedom to make promise under own will. Promise under coercion is not a valid promise. Consideration - ANSWER- Consideration a return promise that is bargained for (has to be bargained for) In which the promise must do something that the promisor wants that promise to do which is something which there is a legally bounding detriment or benefit of doing something that one is not legally obligated to do, Giving away something someone is not legally obliged to give up, or refrain to do something that one is legally permitted to do. Consideration provides evidence of intent to be bound and that it is serious. Consideration is important because seriousness and enforceable nature of promise and helps courts distinguish between serious and married just. Evidence parties have deliberated. At Will - ANSWER- An employer/employee relationship where the parties had not agreed that the relationship end at a certain time either employee or employer can end the relationship at any time and for any reason "at will". Peppercorn Theory - ANSWER- There was a bargain if the person initiates the promise. It shows a manifestation that she wanted it or sought the peppercorn. As long as they have proper mental state, no intent. Court only looks for existence of consideration not the adequacy. Even a peppercorn can suffice as consideration if it is bargained for. The fact it was a sham deal does not make a peppercorn the consideration because they knew of it for a pretense. I.e. a peppercorn for $200,000 then it is not bargained for and no consideration. Have to show she really wanted the item that seems cheap. Recital of Consideration - ANSWER- or Purported Consideration When the contract explicitly says "in consideration for $1". This is not considered adequate consideration unless shown it was bargained for Mutuality - ANSWER- A returned promise, both sides promised Oral - ANSWER- Not in writing, a spoken contract. Verbal is written and oral, not strictly oral. Merger Clause - ANSWER- The entire deal in the document and no other agreements or deals made outside the document. Requirement for Exchange (To Bargain For) - ANSWER- To bargain for is to manifest an intention to induce or entice the other side to preform or return promise and be induced by it. If it is sought by the promisor in exchange for his promise and is given by the promise in exchange for that promise. Dispute Over Meaning of Contract - ANSWER- Normally goes against the drafter. Drafter should know to specifically define them and didn't Promisor - ANSWER- Promisor is the one making the promise like uncle in Hammer. For consideration need a benefit, a gain, or advantage Promise - ANSWER- One agreeing to and giving something for the promise Deed - ANSWER- Enforceable absent of consideration because it is very formal instrument and that kind of document is substitute for consideration. Words are often spoken unadvisedly and without deliberation, therefore law says contract by words need consideration. But deed there is deliberation, thinks before he signs, seals it, and hands it over. Cash v. Bernard - ANSWER- Plaintiff was in military, the defendant was his full time clerk. He needed filling out the application for spousal insurance and the Defendant said she would help him just to turn in the application with money. She did not remember this and he never had his application turned in. He asked the second defendant Mr. Sisk what was up and she said she saw a check on the defendant’s desk and would look into it. She later came back and gave him the application and told him to do it himself. He didn't his wife died and he sued for breach of contract. Neither the defendant nor Sisk benefit from expression indicating that the defendant would help the plaintiff send the application or Sisk would look into it. Neither was promise for a promise agreement or promises that were not bargained for exchange. One who orally expresses an intention to help or investigate a matter for someone; they do not reasonably believe they are entering a legal contract. Mr. Sisk and the defendant did not show detriment suffered when he made the promise. No bargain or exchange. Daugherty v. Salt - ANSWER- The plaintiff was an 8 year old boy whose aunt made a promissory note for $3,000 payable at her death or before because she was pleased with how he turned out. She gave it to her nephew and told him not lose this, it will be valuable someday. The note was the voluntary and unenforceable promise, it was a gift. The child not a creditor and Aunt were not paying a debt. There was not consideration because there was no detriment or benefit by the boy. Daugherty v. Salt Synopsis of the Rule - ANSWER- Although a note states that value has been received, if value has not in fact been received, the note is unenforceable as a contract for lack of consideration. Why Promise Should Be Enforced - ANSWER- Promise (beneficiary of contract) intended it to be fulfilled, as a practical matter we have to enforce promise, and brings predictability. NY and Seal Consideration - ANSWER- follows common law rule that consideration is required for an enforceable promise. They abolished the seal rule, and haven't replaced it with anything. A signed writing does not substitute or equal a seal. Quasi-Contract Doctor Seeing a Stranger Hurt - ANSWER- A doctor sees a stranger hurt, because their medical expertise he or she can help the stranger. While no implied or expressed contract the stranger could be considered unjustly enriched if the stranger gives nothing for their efforts. In this situation quasi-contract might obligate the stranger to compensate the physician Different then the violin player because the stranger would likely have contracted doctor's services. Agent - ANSWER- You tell someone to sell your car you are obligated to the sale which Frank negotiates on John's behalf. If stranger sells it without any authority John will not be bound. An agent's authority to act for a principal can be expressed, but often is implied or apparent. Kantor v. Boise Cascade Corp. - ANSWER- Company was held to be bound by a promise made by its mill to give an employee a pension, even if the authority did not extend to pensions. Since the manager had express actual authority to oversee the operation of the mill and hire employees he was impliedly authorized to all things necessary to carry out his responsibility