Blog

Amelia calls up her financial advisor, Susan, and tells her that she is considering selling her beach house and wants Susan’s input on whether this would be a smart financial decision. Susan, as it turns out, had secretly always wanted to buy Amelia’s beach house. Susan tells Amelia that in her professional opinion, it would be a great time to sell the beach house and that she thinks Amelia could get a great price because the real estate market is so high. In fact, she tells Amelia that she would be interested in buying the beach house if Amelia were conformable selling to her. Amelia takes some time to consider Susan’s advice and has her friend Carlos, who is also a financial advisor, give her a second opinion. Carlos agrees with Susan and advises Amelia to sell the beach house to Susan. Amelia ends up selling the beach house to Susan at a price that is within the range of the estimated fair market value of the house. Is legal assent present in this hypothetical scenario?

Which type of contract is formed when the behaviors of the parties show an intent to enter into an agreement even if no explicit contractual offer and acceptance exist?

Paula includes a clause in her lease agreement with Raúl that says if he fails to pay rent in the future, he must move out of her apartment immediately. This is an example of which of the following?

The implied warranty of merchantability is only present when goods are purchased from a seller who is a merchant.

In a contract for the sale of goods in which delivery of the goods and payment will both take place at some time in the future, the only term that generally needs to be specified in the contract at the time the contract is made is the price at which the goods will be sold.

A contract for the sale of a bus for $20,000 will be governed by the UCC and not by common law.

Which of the following is an example of liquidated damages?

In which of the following contractual circumstances would Paul fail to provide valid consideration?

Dante has a written contract with Stacia to sell her two tons of hay for $1,500 and to deliver all of the hay to Stacia’s farm by April 15. The contract says that “time is of the essence.” After they form the contract, but before Dante delivers the hay, Stacia sells her livestock which means she no longer has any need for the hay. On April 16, Dante delivers the hay, and, upon delivery, Stacia inspects the hay and realizes that the hay bales are too small and that the total weight of the hay is only 1.75 tons and not two tons as the contract requires. She promptly informs Dante that she will not pay for any of the hay and that she doesn’t want any of it. Three days later, Dante delivers her another other quarter ton of hay and says that he will sue her for breach of contract if she continues to refuse to pay for the two tons of hay. Who would win if this case resulted in a breach of contract lawsuit?

In a contract for the sale of goods, a court will always consider whether the buyer paid a fair amount if it is asked to help determine whether the sales contract is valid.