13. Bella and Connie are struggling to find jobs. They decide they want to open a child daycare center togethe?
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13. Bella and Connie are struggling to find jobs. They decide they want to open a child daycare center together. They see a house in the perfect neighborhood with a "For Sale by Owner." They talk to the owner, reach an agreement, and shake hands. Just before the closing on the house, at which they'll take ownership of the house, the owner decides not to sell to Bella and Connie. They tell the owner they're going to sue him for breach of contract. Bella and Connie most likely A. will win because the owner breached his agreement to sell them the house. B. won't win because they shouldn't have entered into an oral contract to buy the house. C. won't win because they can find another house that will work just as well. D. will win because the owner shouldn't have entered into a contract with them if he wasn't sure he wanted to sell the house. 14. Candice hires Otto to work as a tax preparer in Candice's tax return business. The employment contract restricts the ability of Otto to set up a competing business or engage in tax preparation services if Otto leaves Candice's employ. Otto discovers he likes this kind of work and wants to set up his own tax return business. He asks you whether the restrictions in his contract with Candice will be enforceable. You should tell him that A. any restriction regarding employment will be enforceable as long as there was adequate consideration. B. any restriction regarding employment is unenforceable as against public policy. C. restrictive covenants regarding future employment will be enforceable if they're reasonable. D. restrictive covenants regarding future employment will be enforceable if the value of the consideration given for the covenant equals the value of the income loss that would be caused by enforcing the agreement. 15. Jordan is charged with a crime, and Jeff is chosen to be on the jury. Jordan offers to pay Jeff $500 if he votes not guilty. Jeff does so, but Jordan refuses to pay. Jeff sues Jordan for breach of contract. Jeff will A. win because of the statute of frauds. B. lose because the contract is against public policy. C. lose because the contract is usurious. D. win because Jordan materially breached. 16. Jessica orally agrees that she will sell 400 pairs of flip-flops to a customer for $600. This agreement is A. enforceable because all necessary elements are met. B. unenforceable because all necessary elements aren't met. C. unenforceable because of the parol evidence rule. D. unenforceable because of the statute of frauds 17. Collin purchases a house, using a loan from Big Bank. As a condition of the loan, Big Bank requires that Collin purchase life insurance payable to Big Bank, to the extent of the outstanding mortgage, if Collin dies before fully paying the mortgage. Big Bank is A. both a creditor beneficiary and a donee beneficiary. B. an incidental beneficiary but not a donee beneficiary. C. an intended beneficiary but not a donee beneficiary. D. a creditor beneficiary but not a donee beneficiary. 18. Will contracts with Grace to sell her 100 lamps for $1,000. Will breaches his contractual duty to deliver the lamps, and Grace buys 100 lamps for $2,000 from another dealer. Grace sues Will for breach of contract. She will most likely receive what type of damages? A. Nominal damages of $100 B. Consequential damages of $3,000 C. Compensatory damages in the amount of $1,000 D. Compensatory damages in the amount of $2,000 19. Horatio agrees to paint Stella's house for $1,000. Horatio fails to paint, and Stella hires Winston to paint the house for $1,000. Stella sues Horatio for breach of contract. Stella likely will receive __________ damages. A. nominal B. consequential C. liquidated D. punitive 20. Which of the following is an example of discharge by impossibility? A. Jason agrees to paint Sheila's house for $1,000. Sheila changes her mind and asks Jason not to paint. Jason agrees. B. Jason agrees to paint Sheila's house for $1,000. Sheila later tells Jason that she won't pay him. As a result, Jason decides not to paint. C. Jason agrees to paint Sheila's house for $1,000. Before Jason can paint, Sheila's house burns down. D. Jason agrees to paint Sheila's house for $1,000. Jason paints, but before Sheila pays him, she files bankruptcy. As a result, Jason doesn't get paid.
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