1. The Abe Company has a contract with Wilkes, LLC for component parts. Abe needs the parts shipped on time to meet other contingent obligations. Wilkes refuses to ship the parts to Abe unless Abe signed a new contract for additional parts at a higher price. Abe agrees to the demand. From these facts, which statement below is most accurate?
Wilkes is a shrewd but unethical businessman.
Wilkes has used undue influence in getting Abe to agree to the second contract.
Wilkes has used economic duress in getting Abe to agree to the second contract.
Wilkes has done nothing wrong and the second contract is valid and enforceable.
Wilkes has committed fraud in the inducement and the contract is voidable.
2. What is necessary to satisfy the writing requirement under the Statute of Frauds?
The agreement must be a formal written contract, signed by each of the parties.
The agreement must be a single document, it must be titled "contract" and it must be signed by each of the parties.
Any "note, memorandum, or other" writing or series of writing that shows the terms of the agreement and that is signed by each of the parties is sufficient.
Any "note, memorandum, or other" writing or series of writings that shows the terms of the agreement and that is signed by the party against whom enforcement is sought is sufficient.
"Writing" is undefined and is a questions of fact for the jury.
3. In which of these situations should the obligee not reasonably expect / demand perfect tender of the contract obligation by the obligor?
The payment of a fixed sum of money.
The payment of a sum of money plus interest at a variable rate.
The delivery of a specified quantity of produce.
The construction of a retaining wall to prevent erosion in a yard.
All of the above.
4. The obligee should always expect and demand perfect tender. Anything less is a breach of contract.
Gundrun owned a 2,000 acre country estate. She signed a written agreement with Johann in which she agreed to sell the house on the property and "a sufficient amount of land surrounding the house to create a park." The price stated was $250,000. Gundrun later refused to honor the agreement and Johann sued. Who will win the lawsuit, and why?
Gundrun will win because the written agreement is not sufficiently definite about the terms to be a contract.
Gundrun will win because the written agreement did not contain financing terms.
Johann will win because the contract falls within the Statute of Frauds and there is a writing to show that a contract was entered.
Johann will win because the parties obviously intended to make a contract, as shown by the existence of a writing.
No one will win. The court will refuse to hear the case because the parties should have chosen some form of ADR to resolve the dispute.
5. The president of Deal Corporation wrote to Boyd, offering to sell the Deal factory to Boyd for $300,000. The offer was sent by Deal on August 3 and was received by Boyd on August 5. The offer stated that it would remain open until December 20. This offer
Constitutes an enforceable option and cannot be revoked.
Constitutes a firm offer under the UCC and cannot be revoked.
Constitutes a firm offer under the UCC, and is therefore irrevocable for 3 months.
May be revoked by Deal at any time prior to an acceptance by Boyd, the written terms notwithstanding.
Is likely to be viewed as an advertisement, an invitation for Boyd to make an offer and/or to negotiate if he is interested in making a contract.