A buyer bought a property without telling the seller or broker of his intended purpose for the property. The contract contained no contingency clauses and was properly signed and executed. He became very angry when he was unable to obtain the zoning for the commercial project he had planned and now wants to declare the contract null and void and get his money back. What is the status of the contract at this time? O This is a breach of contract since the buyer cannot use the property. . This is an implied, valid contract. O This is a voidable, enforceable contract. O This is a valid, enforceable, executed contract.
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- Under the frustration of purpose doctrine, performance is excused when: Group of answer choices 1. something that is essential to the promisor's performance is destroyed through no fault of the promisor, but its substitute is available. 2. statutes and legislation make the performance more difficult. 3. the promisor impliedly assumes the risk that the event would occur. 4. events occur after the formation of the contract that would make the return performance of the other party worthless to the promisor.In 2010, X and B agreed that they will pretend that they will enter into a contract of sale so that X will have a lesser tax to pay. In the contract of sale, it was indicated that X will sell the car for P50Million to which B agreed. What is this kind of contract? A. Absolute simulation B. Relative simulation C. Factual simulation D. Fictional simulationWhich one of the following is a term that is implied by statute? Select one: a. A term required to make the contract between the parties effective b. A term that goods must be of merchantable quality c. Good faith d. A term implied on the basis of past dealings between the parties
- A sold a parcel of land to B for P2,000,000. In the deed of sale, there is a stipulation that the purchase price shall be paid on a certain date and that in case of failure to pay on such a date, A can rescind the contract. Suppose that B fails to pay on the date stipulated in the contract, is Article 1191 of the NCC applicable? Why?If a minor purchase a $150.00 pair of designer blue jeans the merchant may be unable to enforce this contract because: a) the jeans were a necessity. b) clothes are a statutory contract. c) designer jeans are a luxury. d) only emancipated minors wear jeans. 2. An adult who intentionally drinks so much liquor as to have their judgment impaired will a) easily defeat a contract they entered in to while drunk b) have no chance of winning under any circumstances. c) probably lose, voluntary intoxication is usually a poor defense. 3. Which of the following must a person possess to have contractual capacity? a) Comprehend the nature of the Contract b) Comprehend the purpose of the Contract c) Comprehend the consequences of the Contract d) All of the above are required1. Seller and Buyer negotiate for the sale of 100 acres of land. They orally agree on a price of $100,000, one half in cash at closing and the other half 90 days after closing. Buyer sends Seller a letter in which all the terms are included and is signed by Buyer. Seller never responds. When the closing date arrives, Seller refuses to transfer title. Buyer sues. Is the agreement enforceable at law? 2. Seller and Buyer negotiate for the sale of 100 acres of land. They orally agree on a price of $100,000, with payment to be made within 10 days and the deed delivered within another 30 days. Buyer sends Seller a letter in which all these terms are included, along with a check for $100,000 that Seller deposits. Seller fails to deliver a deed, and Buyer seeks to enforce the contract. Is the contract enforceable? 3. John is president and sole shareholder of Photo, Inc. Photo, Inc. wishes to borrow money, but to do so, the bank requires John to orally guarantee to repay the loan if…
- Assume that Elkins contracted to build an addition to Cromwell’s plant producing cruise missiles just prior to the Gulf War. The war ended before Elkins started work, and Cromwell tried to cancel the contract. Can Elkins do anything about the loss of his anticipated profit (a) if the contract contained a proper cancellation clause? (b) if the contract contained no clause dealing with cancellation?Kelly contracted to sell Bradshaw a load of Coal which both parties believed to be in a wharehouse at Newport West. Earlier the same day, there was a massive fire at the warehouse everything, including the coal was destroyed. This contract is void for mistake, as the subject matter is no longer in existence. This contract is voidable for mistake as the subject matter is no longer in existence. Kelly can sell Bradshaw at a later date. The parties can renegotiate this contract. Since the contract was already made, the payment cannot be recovered.Dylan negotiates with a buyer for a Seven Eleven store to sell a one-year supply of syrups for use in its Slurpee machine, with a big discount if the buyer will take and pay for the entire quantity in the first month, assuring the buyer that the syrups have an 18-month shelf life before they would become unusable. It turns out that they have a 6-month shelf life and then go bad. The buyer should prevail on a damages claim for misrepresentation. True OR False
- 2. Seller and Buyer negotiate for the sale of 100 acres of land. They orally agree on a price of $100,000, with payment to be made within 10 days and the deed delivered within another 30 days. Buyer sends Seller a letter in which all these terms are included, along with a check for $100,000 that Seller deposits. Seller fails to deliver a deed, and Buyer seeks to enforce the contract. Is the contract enforceable?Wong engages Chen as his agent to sell his house. Wong's brother tells Chen that Wong will sell the house for $500.000. A purchaser offers to buy the house for $510.000. Chen tells the purchaser, I can accept that offer on behalf of my client The purchaser obtains a bank loan to buy the house. When Wong finds out what Chen has done he is furious and refuses to accept the proposed sale agreement. Which of the following statements is true: (A) Wong is bound to sell the house to the purchaser for $510,000. (B) Wong is not bound by Chen's acceptance' because he did not authorize Chen to make any sale agreement on his behalf. (C) Wong's brother authorized Chen to accept the offer and therefore Wong is bound to sell the house to the purchaser for $510,000. (D) Chen is entitled to apply to the court for an order of specific performance compelling Wong to complete the contractForest Running Shoes, a sneaker store, orders three hundred pair of running shoes from Mercury Shoes, Inc. Mercury Shoes has all their sneakers in a warehouse which contains 20,000 pairs of sneakers. Before Mercury can separate the 300 pairs for Forest, a fire destroys all the shoes in the warehouse. Absent a contrary agreement between the parties, a. Forest has no rights in the 300 pairs of shoes because, since the parties didn't place any terms regarding this risk in their written contract, the contract is unenforceable. b. Forest has rights in the 300 pairs of shoes because identification took place at the time of the contract. c. Forest has no right in the 300 pairs of shoes because identification has not yet taken place. d. Forest has no rights in the 300 pairs of shoes because a buyer can never have rights to goods until it is delivered to them.