Dave Tompkins was up late one night watching a television campaign for a charitable
organization. The organization was seeking donations in order to construct a new
building that would serve as the organization’s headquarters. One of Tomkins’ favorite
performers appeared to promote the campaign, and this prompted Dave to telephone in
a pledge. Tomkins pledged $10,000 to the charity and, feeling good about his action,
finally went to sleep. The next morning, Tomkins regretted making the pledge because
its enforcement would cause great personal financial hardship. Will the charity be able
to legally enforce the pledge Tomkins made? If so, why might the charity choose not to
enforce a lawful pledge?
The liability of an agent to a third person depends on the existence of authority and the
manner of executing the contract.
UCC Article 2 applies not only to contracts for the sale of familiar items of personal
property, such as automobiles or chairs, but also to the transfer of commodities, such as
oil, gasoline, milk, and grain.
Accountants are equally liable to interlopers and rightful third parties.
A partner admitted as a partner into an existing partnership has unlimited liability for all
obligations of the partnership arising before such admission.
The habitual drunkenness of a partner is a sufficient cause for judicial dissolution of a
partnership.
A provision in a contract that gives what the court believes is too much of an advantage
over a buyer may be held void as unconscionable.
Instruments are always negotiable.
Express warranties may be made before, during, but not after the sale of goods.
A condominium and a cooperative are essentially the same.
A buyer may sue the seller for damages caused by the seller’s fraud even if the buyer is
barred by the UCC from suing for damages for breach of warranty.
Under the UCC, a negotiation is not effective when it is made by a minor or any other
person lacking capacity.
The Internet has facilitated access to capital markets.
A person who substantially performs a contract is liable for damages to the other party.
Equal employment opportunity laws provide protection for minorities and women, but
the disabled are not within the protection of the laws.
An ordinary bailment can arise without an agreement between the parties.
A “right to control” test determines whether an individual is an agent, an employee, or
an independent contractor.
Contracts for the International Sale of Goods (CISG) sets forth uniform rules to govern
international sales contracts.
Under the employment-at-will doctrine, the employer has historically been allowed to
terminate the employment contract at any time for any reason or for no reason.
A contract is essentially an agreement that creates an obligation.