SOLVED

[Car Trouble] Jennifer wants to sell her car and Timmy agrees to purchase it. Jennifer and Timmy become involved in an over-the-phone negotiation and settle on a price of $1,000. Jennifer lives three hours from Timmy but agrees to deliver the car to him in his home state and take the bus back, provided Timmy promises to purchase the vehicle. She drives three hours. Upon arrival, Timmy says he will not purchase the vehicle unless Jennifer agrees to go to the dealer, get a second set of $500 SmartKeys, and mail the keys to Timmy within three weeks. Having driven all that way, Jennifer agrees. Timmy gives Jennifer the $1,000, using money he borrowed from Joe and promised to repay. Jennifer accepts the money and leaves. Jennifer never sends Timmy the second set of keys. Timmy later decides the car is worth only $500. He decides not to pay Joe and instead gives the vehicle to Joe, explaining his plan. Joe accepts the car and drives away, secretly planning to sue Timmy for the rest of the money. When Timmy is sued by Joe, he makes a claim against Jennifer and claims she should have to compensate him for losses because they never had a valid contract since the car was not worth the $1,000 Jennifer claimed it was. 81) Did Jennifer and Timmy have a valid contract? A) No because the car was not worth what Timmy paid for it. B) Yes because there was a bargained-for exchange and a mutual exchange of promises. C) No because Jennifer did not send the second set of keys back to Timmy. D) Yes because of promissory estoppel. E) Yes because of the UCC. 82) Does Timmy have a breach of contract claim against Jennifer because Jennifer failed to send the second set of keys? A) No because Timmy made an illusory promise. B) No because Jennifer made an illusory promise. C) Yes because Jennifer said she would send the keys. D) No because there was no consideration. E) Yes because Tim relied on Jennifer’s promise in agreeing to purchase the car. 83) Was Timmy’s debt to Joe liquidated or Unliquidated debt after Timmy bought the car and subsequently decided it was worth less than what he had borrowed to pay for it? A) Liquidated debt because the debt was not supported by consideration. B) Unliquidated debt because the debtor offered different performance. C) Liquidated debt because there was no dispute that he owed money or how much. D) Unliquidated debt because there was disagreement about the car’s value. E) Unliquidated .debt because there as a dispute over how much was owed. 84) Can Joe successfully sue Timmy for the rest of the money owed? A) Yes, because the car which Joe accepted was worth less than the debt owed. B) Yes, because the debt is Unliquidated debt. C) No but Joe can sue Jennifer for selling Timmy a car with inadequate consideration. D) Yes, because the debt is a liquidated debt. E) No, because there is an exception to the rule regarding unliquidated debt when the debtor offers different performance. 85) If the car is really worth only $500, what is the effect of this lower vehicle value on the contract between Jennifer and Timmy? A) The contract is voided because an illusory promise was made by Jennifer based on the illusion that the car was worth more. B) Promissory estoppel results in the contract being voided because Timmy’s promise was based on inaccurate information. C) There is no effect, because the court does not determine if a good or bad deal was made. D) The court may award Timmy damages because Jennifer entered into a contract under false pretenses and cost him money. E) The effect of the lower vehicle value will depend upon whether the court determines if Timmy entered into a bad or good deal. Â Â