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20. A is a professional portrait painter famous for her work. A undertakes to paint a portrait of B. The contract is the typical "personal services" contract with no provision in it allowing anyone else to perform painting B's portrait instead of A. However, before A can begin the painting, she dies unexpectedly. The contract by B hiring A to paint B's portrait is: A. Is discharged (considered ended) by A's death. B. Becomes voidable. C. Becomes voidable at the option of the legal representatives of A. D. Will have to be performed by the legal representatives of A. 21. Bonds wrote McGuire, "I will sell you my house and lot at 419 West Lombard Street, San Francisco, California for $950,000 payable upon merchantable deed, deal to be completed within 60 days of the date of your acceptance." Assuming that Bonds' letter contains terms which are deemed sufficiently certain and definite, which of the following statements is correct? a. Bonds' letter is not an offer unless Bonds intended it to be an offer. b. Bonds' letter is not an offer unless McGuire thought Bonds intended to make an offer. c. Bonds' letter, under the objective theory of contract law, is an offer if a reasonable person with full knowledge of the circumstances would be justified in thinking it was intended as an offer. d. Bonds' letter is not an offer unless both Bonds and McGuire considered it as an offer. 23. Stein promised to give his 19-year old nephew $3,000.00 on his 22nd birthday. The nephew was most pleased to hear this from Stein and as a courtesy invited him to his graduation Hudson County Community College. This is an example of: a. A legal contract and demonstrates a gift promise as consideration. 11 b. An invalid/unenforceable contract for it lacks consideration. A gratuitous promise does not require any legal benefit be received by the promisor and therefore is said not to support or be valid consideration for a contract. c. Unenforceable because it should have been in writing under the Statute of Frauds. d. None of the above. 24. On April 1. Al Nextbestplayerinbaseball, sends a letter to the New York Yankees offering to play for them for $500,000.00 per season for the first 3 seasons. The offer states that the team has to accept the offer by April 11th. It does not specify any particular mode/manner/method of accepting nor when the acceptance will be considered effective. The Yankees receive the offer by regular mail on April 4. On April 10, the Yankees send Al an acceptance by U.S. mail. Al receives the acceptance on April 15th. The likely result under the mailbox rule is: a. Although Al received the acceptance 4 days past the deadline for acceptance, a valid contract has been formed because the Yankees dispatched their acceptance by sending it by U.S. mail on April 10th and under the mailbox rule, such an acceptance is effective when placed into the control of the U.S. Postal system. b. Although Al received the acceptance 4 days past the deadline for acceptance, a valid contract has not been formed because the Yankees dispatched their acceptance after the stated time period within which the acceptance was required to be sent. c. The acceptance is late because it was received by Al past the deadline and under the mailbox rule this would invalidate the acceptance so no valid contract can be considered formed. d. The acceptance should have been sent by a faster method of communication to be effective under the mailbox rule, thus no valid contract can be considered formed. 25. The legal significance of stating that the four (4) main elements to a contract: (1) agreement; (2) capacity to contract; (3) consideration; and (4) lawful purpose are "essential" elements is: a. They are equally important b. They belong together. c. They are all required to exist for there to be a valid enforceable contract. If any one or more are not present, then there can be no valid enforceable contract. d. As long as there are a majority of the elements, then common law contract law provides that there is still a valid enforceable contract. 22. On May 1, 2005, Eckerly Realty Inc. mailed a written offer to Masse for the sale of an office building. The offer included an express term that it would expire on June 30, 2005 if the acceptance was not delivered into the hands of the offeror by the expiration date. On June 30, 2005 at 8:00 a.m., Masse sent a written acceptance to Eckerly via Masse's personal messenger. However, the messenger was not able to deliver the acceptance until July 1, 2005. On July 2, 2005, Eckerly contacted Masse, informing him that the acceptance had been delivered one day late. As a result, Eckerly refused to honor the acceptance. Which of the following is the most correct statement? a. There is no contract between Eckerly and Masse. However, if Masse would have mailed the acceptance on June 30, 2005, a contract would have been created. b. There is a contract between Eckerly and Masse. The moment that Masse gave the acceptance to the messenger, a contract was formed because acceptances are valid immediately upon dispatch under the "mailbox rule" when placed in the U.S. Postal System or in the possession of a special courier/messenger. c. There is no contract between Eckerly and Masse. The fact that the acceptance arrived only one day late is of no significance