Reference no: EM131709918
1. John and Jane contract for John to buy a car from Jane. John believes he is buying a 2001 Honda Accord and Jane believes she is selling a 2001 Toyota. This contract would be considered:
A. Void
B. Voidable
C.Fraudulent
D.Unfair
2. John and Jane contract for Jane to build John a house for $150,000. As Jane is getting to the end of the job, she tells John that she will need another $10,000 to finish the job because of unforeseen supply costs and increased labor costs. John pays Jane the extra $10,000 to get her to finish the job and then later sues her to recover the money. Concerning the outcome of the suit:
A.John will win the case because of the pre-existing duty rule
B.Jane will win under a theory of unilateral mistake
C.Jane will win because the modification is an enforceable contract
D.Jane will win because it is unconscionable for her not to recover
3. John goes to Sleazy Autos to buy a car and purchases a 1968 Camaro in perfect condition for $4000. The salesman tells John that the car has 40,000 miles on it when in fact the salesman knows that it has 140,000 miles on it. The fair market value of the car is $30,000. John sues Sleazy Autos. John will:
A.Win on a theory of inadequate consideration
B.Win on a theory or fraud in the inducement
C.Win on a theory or fraud in the execution
D.Recover nothing in court
4. Jane tells Bill that if he comes to her house on Saturday she will hire him to mow her lawn if she doesn't have to do any work that day. Jane's statement would be described as:
A.An offer
B.An acceptance
C.An illusory promise
D.Unconscionable
5. Jim is a college student. His parents tell him that they want him to buy his aunt's used car with the earnings he has made working for library of campus and that if he doesn't buy the car they will cut off financial support for him. In a later suit by Jim to void the contract to purchase his aunt's car, Jim can argue that the contract was:
A.Voidable
B.Void-fraud in the execution
C.Rescindable because of inadequate consideration
D.Subject to a novation