Completed on Friday, 11 October 2019

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Grade 95.00 out of 100.00

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Questions 1 through 3 are based on the following fact situation:

On May 1, Ohner telegraphed Byer, “Will sell you any or all of the lots in Grover
subdivision at $5,000 each. Details follow in letter.” The letter contained all the
necessary details concerning terms of payment, insurance, mortgages, etc., and
provided, “This offer remains open until June 1.” On May 2, after he had received the
telegram but before he had received the letter, Byer telegraphed Ohner, “Accept your
offer with respect to lot 101.” Both parties knew that there were fifty lots in the Grove
subdivision and that they were numbered 101 through 150.

Question 1
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For this question only, assume that Ohner and Byer were bound by a contract for the sale of lot 101
for $5,000, that on May 3, Ohner telephoned Byer that because he had just discovered that a
shopping center was going to be erected adjacent to the Grove subdivision, he would "have to have
$6,000 for each of the lots including lot 101", that Byer thereupon agreed to pay him $6,000 for lot
101 and that on May 6, Byer telegraphed, "Accept your offer with respect to the rest of the lots."
Assuming that the two contracts were formed and that there is no controlling statute, Byer will most
likely be required to pay:
Select one:
A. Only $5,000 for each of the fifty lots.

B. Only $5,000 for lot 101, but $6,000 for the remaining forty-nine lots. 
C. $6,000 for each of the fifty lots.
D. $6,000 for lot 101, but only $5,000 for the remaining forty-nine lots.

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The correct answer is: Only $5,000 for lot 101, but $6,000 for the remaining forty-nine lots.

Question 2
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For this question only, assume that on May 5, Ohner telephoned Byer that he had sold lots 102
through 150 to someone else on May 4 and that Byer thereafter telegraphed Ohner, "Will take the
rest of the lots." Assume further that there is no controlling statute. In an action by Byer against
Ohner for breach of contract, Byer probably will:
Select one:
A. Succeed because Ohner had promised him that the offer would remain open until June 1.
B. Succeed, because Ohner's attempted revocation was by telephone.
C. Not succeed, because Byer's power of acceptance was terminated by Ohner's sale of the lots to
another party.

D. Not succeed, because Byer's power of acceptance was terminated by effective revocation. 

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The correct answer is: Not succeed, because Byer's power of acceptance was terminated by
effective revocation.

Question 3
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For this question only, assume that on May 6, Byer telegraphed Ohner, "Will take the rest of the
lots," and that on May 8, Ohner discovered that he did not have good title to the remaining lots.
Which of the following would provide the best legal support to Ohner's contention that he was not
liable for breach of contract as to the remaining forty-nine lots?
Select one:
A. Impossibility of performance.
B. Unilateral mistake as to basic assumption.

C. Termination of the offer by Byer's having first contracted to buy lot 101. 
D. Excuse by failure of an implied condition precedent.

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The correct answer is: Termination of the offer by Byer's having first contracted to buy lot 101.

Question 4
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Brown contended that Green owed him $6,000. Green denied that he owed Brown anything. Tired of
the dispute, Green eventually signed a promissory note by which he promised to pay Brown $5,000
in settlement of their dispute. In an action by Brown against Green on the promissory note, which of
the following, if true, would afford Green the best defense?
Select one:
A. Although Brown honestly believed that $6,000 was owed by Green, Green knew that it was not
owed.
B. Although Brown knew that the debt was not owed, Green honestly was in doubt whether it was

owed. 
C. The original claim was based on an oral agreement, which the Statute of Frauds required to be in
writing.
D. The original claim was an action on a contract, which was barred by the applicable Statute of
Limitations.

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The correct answer is: Although Brown honestly believed that $6,000 was owed by Green, Green
knew that it was not owed.
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Questions 5, 6 and 7 are based on the following fact situation:

Paul and Daniel entered a contract in writing on November 1, the essential part of which
read as follows: “Paul to supply Daniel with 200 personalized Christmas cards on or
before December 15 bearing a photograph of Daniel and his family, and Daniel to pay
$100 thirty days thereafter. Photograph to be taken by Paul at Daniel’s house. Cards
guaranteed to be fully satisfactory and on time.” Because Daniel suddenly became ill,
Paul was unable to take the necessary photograph of Daniel and his family until the first
week of December. The final week’s delay was caused by Paul’s not being notified
promptly by Daniel of his recovery. Before the photograph of Daniel and his family, Paul
advised Daniel that he was likely to be delayed a day or two beyond December 15 in
making delivery because of the time required to process the photograph and cards.
Daniel told Paul to take the photograph anyway. The cards were finally delivered by
Paul to Daniel on December 17. Paul having diligently worked on them in the interim.
Although the cards pleased the rest of the family, Daniel refused to accept them
because, as he said squinting at one of the cards at arm’s length without bothering to
put on his reading glasses, “The photograph makes me look too old. Besides, the cards
weren’t delivered on time.”
Question 5
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In an action by Paul against Daniel, which of the following would be Daniel's best defense?
Select one:
A. The cards, objectively viewed, were not satisfactory.

B. The cards, subjectively viewed, were not satisfactory. 

C. The cards were not delivered on time.
D. Daniel's illness excused him from further obligation under the contract.

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The correct answer is: The cards, subjectively viewed, were not satisfactory.

Question 6
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Which of the following statements is most accurate?
Select one:
A. Payment by Daniel of the $100 was a condition precedent to Paul's duty of performance.
B. The performances of Paul and Daniel under the contract were concurrently conditional.
C. Payment by Daniel of the $100 was a condition subsequent to Paul's duty of performance.
D. Performance by Paul under the contract was a condition precedent to Daniel's duty of payment of

the $100. 

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The correct answer is: Performance by Paul under the contract was a condition precedent to
Daniel's duty of payment of the $100.

Question 7
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Which of the following statements regarding the legal effect of Daniel's illness is LEAST accurate?
Select one:
A. Daniel's illness and the related developments excused Paul from his obligations to deliver the
cards on or before December 15.
B. Prompt notice by Daniel to Paul of Daniel's recovery from illness was an implied condition of
Paul's duty under the circumstances.
C. Paul was under a duty of immediate performance of his promise to deliver the cards, as of
December 15, by reason of the express language of the contract and despite the illness of Daniel

and the related developments. 

D. Daniel's conduct after his illness constituted a waiver of the necessity of Paul's performing on or
before December 15.
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The correct answer is: Paul was under a duty of immediate performance of his promise to deliver the
cards, as of December 15, by reason of the express language of the contract and despite the illness
of Daniel and the related developments.
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Questions 8, 9 and 10 are based on the following fact situation:

On November 1, the following notices was posted in a privately operated law school:

The faculty, seeking to encourage legal research, offers to any student at this school
who wins the current National Obscenity Law Competition the additional prize of $500.
All competing papers must be submitted to the Dean’s office before May 1.

(The National Competition is conducted by an outside agency, unconnected with any

law school.) Student read this notice on November 2, and thereupon intensified his
effort to make his paper on obscenity law, which he started in October, a winner.
Student also left on a counter in the Dean’s office a signed note saying, “I accept the
faculty’s $500 Obscenity Competition offer.” This note was inadvertently placed in
Student’s file and never reached the Dean or any faculty member personally. On the
following April 1, the above notice was removed and the following substituted therefore:

The faculty regrets that our offer regarding the National Obscenity Law Competition
must be withdrawn.

Student’s paper was submitted through the Dean’s office on April 15. On May 1, it was
announced that Student had won the National Obscenity Law Competition and the prize
of $1,000. The law faculty refused to pay anything.
Question 8
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Assuming that the faculty's notice of November 1 was posted on a bulletin board or other
conspicuous place commonly viewed by all persons in the law school, such notice constituted a:
Select one:
A. Preliminary invitation to deal, analogous to newspaper advertisements for the sale of goods by
merchants.

B. Contractual offer, creating a power of acceptance. 

C. Preliminary invitation, because no offeree was named therein.
D. Promise to make a conditional, future gift of money.

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The correct answer is: Contractual offer, creating a power of acceptance.

Question 9
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As to Student, was the offer effectively revoked?
Select one:
A. Yes, by the faculty's second notice.
B. No, because it became irrevocable after a reasonable time had elapsed.

C. No because of Student's reliance, prior to April 1, on the offer. 

D. No, unless Student became aware of the April 1 posting and removal before submitting the
paper.

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The correct answer is: No because of Student's reliance, prior to April 1, on the offer.

Question 10
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The offer proposed a:
Select one:

A. Unilateral contract only. 

B. Bilateral contract only.
C. Unilateral contract or bilateral contract at the offeree's option.
D. Unilateral contract which ripened into a bilateral contract, binding on both parties, as soon as
Student intensified his effort in response to the offer.

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The correct answer is: Unilateral contract only.

Question 11
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August 1st Paris offers to sell her prize winning horse to Hunter for $100,000. Hunter tells Paris that
he needs to think about it and gives her $100 to keep the offer open for 30 days. However, Paris'
horse is well known in the horse racing industry, and Breed, a horse breeder has offered $150,000
for the horse. On August 10th Paris accepts his offer. On August 15, Hunter sends an email to Paris
stating that he is tight on cash and asked if she will take $90,000 for the horse. On the same day
Hunter sent an email to Paris he received a tax refund check in the mail for $10,000. Hunter
immediately sent Paris another email, stating, good news! I do have the money to purchase your
prize winning horse. I will drop off the money tomorrow and pick up the horse. When Hunter goes to
pick up the horse, he learns that Paris has already sold the horse to Breed. Hunter brings suit. Who
will prevail?
Select one:
a. Hunter, because a contract was created on August 15th.

b. Hunter, because he accepted the offer within the option period. 

c. Paris, since no contract was created.
d. Paris, unless Hunter knew of the sale of the horse on August 10th.

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The correct answer is: Hunter, because he accepted the offer within the option period.

Question 12
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Distributor distributes tractors. Buyer enters into a written contract with Distributor and for the sale of
10 specially made John Deer tractors at $10, 000 per tractor. The parties agreed that the tractor will
be delivered in two parts. The agreement was that five tractors were to be delivered by March 1, and
payment was to be made no more than 30 days from delivery. Further, the remaining five tractors
were to be delivered by June 1, and payment was to be made no more than 30 days from delivery.
At the time of signing the contract Buyer asked Distributor if he pays cash at the time of delivery if he
can get a 10% discount. Distributor agreed that if cash was paid at the time of delivery he would
allow the 10% discount. When Distributor delivered the first installment, Buyer tender $45,000 cash.
Distributor is demanding the remaining $5,000. If distributor files suit for the remaining $5,000
balance the court will find for?
Select one:
a. Buyer, because the parties entered into an agreement if cash was paid there would be a 10%
discount given.
b. Buyer, because a valid modification was formed.

c. Distributor, because the contract was fully integrated. 

d. Distributor, because the contract was in writing, and the agreement was oral.

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The correct answer is: Distributor, because the contract was fully integrated.

Question 13
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Farmer John is interested in selling his farm. June 1st, he mails a letter to an old friend, Samuel
stating that he was interested in selling his farm for $300,000. The letter reached Samuel on June
3rd. Samuel on June 5th writes back to Farmer John "I accept your offer." June 6th Samuel changes
his mind about the purchase and calls Farmer John and leaves a message that he is not interested
in purchasing the farm. However, Farmer John was out of town and he did not return until June 10th.
When he returned home opened Samuel's letter dated June 5th. He then listens to his voice mail
and hears Samuel's statement that he is not interested in purchasing the farm. Farmer John now
refuses to sell the farm to Samuel. Who will prevail?
Select one:
a. Samuel, since there was a valid contract.

b. Samuel, since an acceptance is effective upon dispatch a contract was formed June 5th. 
c. Farmer John, since Samuel rejected his offer, terminating the power of acceptance.
d. Farmer John, since Samuel's letter dated June 6th did not create a contract.

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The correct answer is: Samuel, since an acceptance is effective upon dispatch a contract was
formed June 5th.

Question 14
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In January, Seller entered into a contract with Farmer for the sale of 10 acres of farm land. Farmer
moved into the premises and did not make any payments. After six months had lapsed, Seller
brought an eviction action and Farmer was removed from the premises. Seller now institutes an
action against Farmer for the sales price of the land. Will Seller succeed in a breach of contract suit?
Select one:
a. Yes, since the contract was partially performed.
b. Yes, since Farmer took possession of the property.
c. No, since Farmer never made any improvements on the land.

d. Yes, unless the contract was oral. 

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The correct answer is: Yes, unless the contract was oral.

Question 15
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Jenny graduated from high school with honors. She does not know what she wants to do with her
life. Jenny's mother, Mary wants her to be a doctor. Her mother offers to pay for her medical school,
living expenses, and also agrees to pay her $1,000 for every A she received in medical school. The
next day, Jenny tells her grandfather of the offer, and being a doctor himself, tells Jenny that if her
mother does not pay, he will. Jenny starts medical school. Her mother did pay the first year tuition,
her living expenses and because Jenny received 5 A's she paid her the $5,000. During Jenny's
second year in medical school, her mother dies. Jenny received 5 more A's in medical school and
approaches her grandfather for the $5,000. Grandfather refuses to pay. Jenny brings suit in order to
enforce Grandfather's promise. The promise is
Select one:
a. Unenforceable, since it is illusory
b. Unenforceable, since the agreement was not supported by consideration.

c. Unenforceable, unless the agreement was in writing. 

d. Enforceable, since she relied on the promise.

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The correct answer is: Unenforceable, unless the agreement was in writing.

Question 16
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John always thought Joan's t bird car was beautiful. Her car reminded him of his youth. John told
Joan that if she ever wanted to sell her car that he would like to buy it. On August 1, Joan decided to
sell her car to John. Looked on the internet and found a contract sales form and filled it out with all of
the definite terms, signed it and placed it in John's mailbox. The contract did have all of the
necessary terms. John arrived home and found the contract in his mailbox. John signed the contract
and mailed it back to his neighbor, Joan. However, later that day he had second thought on buying
the car and called Joan and told her he decided to not buy the car and disregard the contract once
she received it. Is there an enforceable contract between John and Joan for the sale of the car?
Select one:
a. No, because John revoked the offer prior to Joan receiving the acceptance.
b. No, because John's statement was express and terminated the power of acceptance.

c. Yes, because John's act of mailing the signed contract was an effective acceptance. 
d. Yes, because the revocation was not effective since it was oral and not in writing.

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The correct answer is: Yes, because John's act of mailing the signed contract was an effective
acceptance.

Question 17
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Owner decides to place his house up for sale. He learns that if he paints the house he can ask a
higher sales price. Owner contacts several painters in order to get bid to paint the interior and
exterior of his home. He receives several bids. The first bid was submitted by John with a total price
of $10,500. The next bid was from Tony at $12,000 and the last bid was from Tommy at $9,500.
Owner decides to accept Tommy's bid. Owner contacts Tommy and they set a date to start the job.
Several days before Tommy is to start painting Owner's home he notices that his numbers for his bid
were added up incorrectly. The bid amount should have been $12,500. Tommy calls Owner and tells
him I added up the numbers incorrectly in the bid, the price should have been $12,500. I can't do the
job for less than $12,500. Owner files suit. Who will prevail?
Select one:
a. Owner, only if it was too late to accept another's bid for the job.

b. Owner, because he was not aware of the error in the bid. 

c. Tommy, because he was not aware that he made a mistake in his calculation of his bid.
d. Tommy, because he gave notice to Owner and performance has not started.

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The correct answer is: Owner, because he was not aware of the error in the bid.

Question 18
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Timothy is interested in selling his farm. On June 1st he mails a letter to an old friend, who has in the
past asked him if he was interested in selling his farm. The letter stated "I hereby offer to sell my
farm at 123 County Road to Marvin, my friend, for $100,000 cash. Closing to be within 60 days of
acceptance". The letter reached Marvin on June 3rd. June 5th Marvin decides that he wants the farm
and writes back to Timothy "Received your offer to sell your farm located on Country Road, would
you be willing to accept $95,000?" June 7th Timothy receives the offer and emails back to Marvin,
"No, I will only take $100,000." Marvin receives the email and emails back to Timothy, "okay, I
decided to take you up on your June 1st offer. You have a deal." Timothy now refuses to sell the
farm to Marvin. Marvin files suit. The court will find for?
Select one:

a. Marvin, since there was a valid contract. 

b. Timothy, since no contract was formed.
c. Timothy, since Marvin's letter dated June 5th was a rejection to Timothy's offer.
d. C. Timothy, since Marvin's letter dated June 5th created a counter offer and it was not accepted.

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The correct answer is: Marvin, since there was a valid contract.

Question 19
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Vicky was badly injured while she was crossing the street when she was struck by Matt. Matt was
not paying attention since he was texting at the same time he was driving the vehicle that hit Vicky,
who was in the cross walk, and lays limp and unconscious in the street. Passer saw the accident
and called for help. Amber Care Ambulance was called to the scene and transported Vicky to the
closest hospital where she was announced dead on arrival. Amber Care Ambulance sends Vicky's
family the bill for payment. The family refuses to pay the bill and Amber Care Ambulance files suit.
Will Amber Care Ambulance prevail in an action against Vicky's estate?
Select one:
a. No, because Vicky was not unjustly enriched.
b. No, if Vicky was unconscious and did not accept Amber Care Ambulance services.
c. Yes, because based on the implied in law contract between Vicky and Amber Care Ambulance

was created. 
d. Yes, since Vicky was legally obligated to pay any claims from Amber Care Ambulance.

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The correct answer is: Yes, because based on the implied in law contract between Vicky and Amber
Care Ambulance was created.

Question 20
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While jogging in Hilltop park Caleb noticed a tree starting to fall and was about to hit a woman who
was walking in the park. Caleb jumped in the way and saved her life. Caleb was badly injured as a
result and was told he would not be able to walk again. The woman, who was named Marie, stated
to Caleb that she owed him for saving her life so she promised that she would pay him $500 a month
in order to help him. Marie paid Caleb for two years, and then she died in a boat accident. Marie's
estate refuses to pay Caleb any money. Caleb files suit for breach of contract. Will Caleb succeed?
Select one:

a. Yes, if this jurisdiction finds moral obligation valid consideration. 

b. Yes, if Caleb can show he relied on Marie's promise.
c. No, since past consideration is no consideration
d. No, because the services given were not bargained for an exchange.

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The correct answer is: Yes, if this jurisdiction finds moral obligation valid consideration.