2. Carol says, “Pam, you’re my best friend in the world. I just inherited a million bucks, and I want you to have some of it. Come with me to the bank tomorrow, and I’ll give you $10,000.” “Sweet!” Pam replies. Later that day, Carol has a change of heart. She is allowed to do so. Examine the list of the elements of a contract, and cite the correct reason.
(a) The agreement was not put into writing.
(b) The agreement lacks a legal purpose.
(c) Pam did not give consideration.
(d) Pam does not have the capacity to make a contract.
3. On the first day of the baseball season, Dean orders a new Cardinals hat from Amazon. At the moment he submits his order, Dean and Amazon have an contract. Two days later, Amazon delivers the hat to Dean’s house. At this point, Dean and Amazon have an contract.
(a) Executory; executory
(b) Executory; executed
(c) Executed; executory
(d) Executed; executed
4. Linda goes to an electronics store and buys a high-definition TV. Lauren hires a company to clean her swimming pool once a week. The governs Linda’s contract with the store, and the governs Lauren’s contract with the cleaning company.
(a) Common law; common law
(b) Common law; UCC
(c) UCC; common law
(d) UCC; UCC
5. Consider the following scenarios:
I. Madison says to a group of students, “I’ll pay $35 to the first one of you who shows up at my house and mows my lawn.”
II. Lea posts a flyer around town that reads, “Reward: $500 for information about the person who keyed my truck last Saturday night in the Wag-a-Bag parking lot. Call Lea at 555-5309.”
Which of these proposes a unilateral contract?
(a) I only
(b) II only
(c) Both I and II
(d) None of the above