Question

1. Which of the following requires a written contract to be enforceable? a)Jonah rents a luxury yacht for a month at a cost of $10,000. b)Philmont agrees to paint your house for $500 c) Stanton's pit bull has just had a litter, and he agrees to sell you a puppy for $500 when the pups are weaned from their mother d) Lindsay borrows $5,000 from Roberto to buy a car

2. Sharon has contracted with Craig to buy Craig's car. She agreed to pay $5,000 in cash in exchange for the title and registration for the vehicle. Sharon and Craig agree to meet at 10 a.m. on Wednesday to exchange their consideration. Unfortunately, Craig dies Tuesday evening. a) The contract is still enforceable; however, Craig's heirs may renegotiate the terms because they are now the owners of the car b)The contract automatically terminates due to impracticability caused by Craig's death c)The contract automatically terminates due to impossibility caused by Craig's death d) The contract is still valid and Craig's heirs must go through with it based on the agreed terms.

3. In a shipping contract, the risk of loss passes to the buyer when a) the goods are delivered to the carrier b) the goods are delivered to the buyer c) the contract is signed and finalized d) the goods are en route and at least halfway to the buyer

Answer 1

1. Option c. there are six categories of contracts that require to be written. One of them is a contract of sale of goods of $500 or more. Lease contracts need to be longer than a year to be made written.

2. Option D. Death of Craig does not terminate the contractor renders it impracticable. The contract can still be performed on the said terms by the heirs to whom car has been transferred.

3. Option A. The goods are delivered to the carrier. In shipping contract buyer bears the risk of loss during transport.

In a destination, contract risk is transferred when the goods are delivered to the buyer.