1. True or false. Jack found a sick cat belonging to Dolores, and nursed it back to health. When Dolores discovered what Jack had done, she thanked him profusely and promised to pay him for the care he gave as well as to reimburse him for all of his expenses. Jack was very grateful. Dolores’ promise is binding. 2. True or false. David said to Henry, “I will buy your car for $3,000 as soon as I am given a raise at work.” This offer, if accepted by Henry would result in a binding contract. 3. True or false. Universal Export Company entered into a contract with the Global Supply Company to purchase every piece of SUV steering wheel Global could produce during the year 2020. After the contract was signed by both parties, Global changed its operation from 40 hours per week to 120 hours per week, and tripled the output of steering wheels. Under the existing contract, Global would be able to make this change. 4. True or false. A contract in writing would be valid and enforceable even if it is lacking in consideration. 5. True or false. Martin entered into a contract with Sally to purchase life insurance from Sally’s company. The UCC would regulate this agreement. 6. True or false. Charles, who owned a large mansion, said to his gardener Mark, “I would like you to redesign the look of my backyard. If you can do this while I am away on vacation, I will pay you $20,000.” Mark did not say a word in response, but had everything completed by the time Charles returned from vacation. A valid and enforceable contract has been created. 7. Derick was acting in a very bizarre manner for quite some time, and a court of law finally declared him to be incompetent. He is now under the full care of his son. Without informing his son, Derick rented the Opera House which has a capacity of 12,000 in order to hold the Championship party for the Golden State Warriors. Most likely, this rental agreement would be: a. A void contract, b. A quasi contract, c. A bilateral contract, d. An implied contract. 8. Caroline entered into an employment contract with Galaxy Electronics as a district manager. This contract would be governed by: a. UCC, b. State law, c. Federal law, d. Quasi contract.
