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Exam 9: Consideration, Capacity, and Legality

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Question 21

True/False

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A release bars any further recovery beyond the terms stated in the release.​

A) True
B) False

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Question 22

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​Rosa, a seventeen-year-old, signs a contract to sell her car to Street Fleet Cars. Later, Rosa decides not to sell the car. Rosa is liable to Street Fleet for

A) ​the cost of a car of comparable value.
B) ​the value of her performance under the contract.
C) ​the amount of the buyer's profit on the deal.
D) ​nothing.

E) A) and B)
F) A) and C)

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Question 23

True/False

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A usurious contract involves the purchase and sale of usable goods.​

Games Galore Corporation hires Haley, a minor, to create new customized game software for certain clients. Haley signs a contract that requires her to work for Games Galore for eighteen months. Before beginning work, however, Haley tells Games Galore that she will not create new software for Games Galore and that she is going to work for Ideal Worldcraft, Inc., a Games Galore competitor. Is Games Galore's contract with Haley enforceable? Why or why not?​

A contract that one party retains the exclusive right to cancel at any time is fully enforceable.​

A contract to commit a tortious act is unenforceable.​

Research Data Corporation sells access to its database of scientific research to users for a certain price per month. Research Data files a suit against its user Tom when, in violation of their contract, he stops making payments. Tom claims that the deal is unconscionable. The court will most likely consider​

Under the doctrine of promissory estoppel, a promise will not be enforced unless it is supported by consideration.​

An obligation is enforceable only if it is made in return for actions or events that have already taken place.​

Reed agrees to sell his Sports Equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely​

A contract between Kim and Larry to lease residential property contains an exculpatory clause. This clause is​

If a person has been determined by a court to be mentally incompetent, any contract entered into by that person is void.​

Kent buys Lizzie's house for $100,000, which is the fair market value of the house. If the contract is later disputed in court, the court is likely to declare Kent's consideration​

If a promise is made, it will be enforced.​

Rita, a minor, misrepresents her age as twenty-one and signs a contract with Sporty Motors to buy a sport utility vehicle (SUV. In most states, Rita may​

Contractual capacity includes the financial ability to pay for the benefits of a contract.​

An illusory promise is an unenforceable promise.​

A minor has a reasonable time, after the minor reaches the age of majority, to disaffirm a contract.​

Rescission is the remaking of a contract so as to enrich one party at the expense of the other.​

Maria is the sheriff of Narez, Texas. Oscar robs a Narez gas station and a $500 reward is offered for his capture. When, later, Maria finds and arrests him, with respect to the reward, she can​