Simple Contracts Answers

The following statement is from the contract Peter signed with his Homeowners' Association (HOA). "Overnight parking on community streets is prohibited. For the purpose of this contract, 'overnight' will be defined as the hours between 11:00 p.m. and 4:00 a.m. The HOA will monitor overnight parking not less than once every calendar week with nightly patrols by community security. "In the event a car is found parked on community streets overnight and that ownership of the offending car can accurately be verified as a community homeowner, the homeowner will receive one (1) written warning asking him or her to correct the situation. A second and third infraction by the same homeowner, whether or not it is with the same car, will result in a monetary fine as permitted by CC&R guidelines and HOA bylaws. Further infractions (past 3) will result in monetary fines in addition to the towing of the car at the homeowner's expense."After parking his car at 12:30 a.m. last night, Peter was approached by the on-duty neighborhood security guard. The guard told Peter that it was against established HOA rules to park overnight on community streets and reminded Peter that he had signed the contract agreeing to adhere to those rules. He then asked Peter to move the car onto his driveway and warned him that a second offense would result in a monetary fine.Which of the following facts invalidates the contract between Peter and the HOA?a.12:30 a.m. is not considered "overnight."b.The guard did not give Peter a written warning.c.Peter did not read that part of the contract before he signed it.d.Peter parked in the street even though his driveway was empty.

The following section is a statement from the rental agreement Tim signed when he rented his car this past weekend."Upon checkout, the fuel level of the vehicle will be determined by turning the vehicle on and visually inspecting the fuel gauge. The approximate fuel level will be recorded on the Check-Out sheet and verified with initials by the vehicle Renter. One copy of the Check-Out sheet will be given to the customer. Another copy will be kept with the on-site records of the vehicle. "The rented vehicle must be returned with a minimum fuel level the same as that indicated on the Check-Out sheet. A vehicle returned with a fuel level less than the approximate level indicated on the Check-Out sheet will be completely refueled with on-site pumps. The price of the fuel used to refuel the vehicle will be added to the Renter's total charge at a cost of $4.50 per gallon plus a $5.00 refueling charge."Tim is running extremely late and has just 5 minutes to return his rental car to the agency. The fuel tank in the car is half empty. It was full when he picked it up. (The car has a 12-gallon fuel tank.) He doesn't think he can get gas and get to the agency to return the car in time. Returning the car a day late will result in an extra daily rental charge of $32.00 and refueling the car on his own will cost $2.59 per gallon at the local gas station. Which of the following statements is true?

The following section is a statement from the rental agreement at a local auto rental agency. “Upon checkout, the fuel level of the vehicle will be determined by turning the vehicle on and visually inspecting the fuel gauge. The approximate fuel level will be recorded on the Check-Out sheet and verified with initials by the vehicle Renter. One copy of the Check-Out sheet will be given to the customer. Another copy will be kept with the on-site records of the vehicle. The rented vehicle must be returned with a minimum fuel level the same as that indicated on the Check-Out sheet. A vehicle returned with a fuel level less than the approximate level indicated on the Check-Out sheet will be completely refueled with on-site pumps. The price of the fuel used to refuel the vehicle will be added to the Renter’s total charge at a cost of $4.50 per gallon plus a $5.00 re-fueling charge.”According to the rental agreement, which is not a responsibility of the rental agency representative?

The paragraph below comes from the rental agreement Susan signed when she opened her account at Super Video.“All rentals are due back by midnight of the due date as printed on the transaction receipt. Any rental not received by midnight on the day it is due is subject to a late charge of $1.50 for each day it is late. Any rental not returned by the fifth day after the due date will be transferred to a sale. The Customer will then be required to pay the purchase price of the item in addition to five (5) days of late fees. The Customer will not be required to return the product once the total balance is paid.”Susan went into her local Super Video to rent a movie last week. When she had made her choice, she approached the checkout counter where the clerk asked for her ID, scanned her movies and asked for $5.83. Susan gave her a $10 bill and the clerk gave her $4.17 as change as she said, “Thank you, have a good day!”. Which of the following events invalidates the contract Susan signed with Super Video?

The following section is a statement from the rental agreement Tim signed when he rented his car this past weekend.“Upon checkout, the fuel level of the vehicle will be determined by turning the vehicle on and visually inspecting the fuel gauge. The approximate fuel level will be recorded on the Check-Out sheet and verified with initials by the vehicle Renter. One copy of the Check-Out sheet will be given to the customer. Another copy will be kept with the on-site records of the vehicle. The rented vehicle must be returned with a minimum fuel level the same as that indicated on the Check-Out sheet. A vehicle returned with a fuel level less than the approximate level indicated on the Check-Out sheet will be completely refueled with on-site pumps. The price of the fuel used to refuel the vehicle will be added to the Renter’s total charge at a cost of $4.50 per gallon plus a $5.00 re-fueling charge.”As a part of the check-out process, it is customary for a car rental agency to look over the car with the customer and fill out the Check-Out sheet together. As Tim was walking around the car looking for damages that he didn’t want to be held responsible for, the agency representative turned on the car, took note of the fuel level, and indicated it on the Check-Out sheet. Since Tim didn’t have any questions, the clerk handed him the keys and a copy of the Check-Out sheet and wished him well.Which action invalidates the contract Tim signed with the rental agency?

Below is an excerpt from the home loan contract Kyle signed with his bank. “The sum of the principal of the loan and all applicable interest will be divided into 360 monthly payments according to the amortization schedule. The Buyer shall make each monthly payment by the first day of the month it is due. A payment not received by the first day of the month it is due will be considered delinquent. A payment not received by the fifteenth day of the month it is due will be subject to a late charge of $75.00. If a payment is not received by the last day of the month it is due, the Buyer and transaction shall be reported to the appropriate credit agencies. In the event of delinquency, the Buyer may divide any payment not received into not more than three equal installments to be included on the next consecutive monthly payments. Notification of the Buyer’s intent to do so must be made by written letter or phone call to the phone number and address listed below within one business week of delinquency.” Kyle failed to make his payment for this month. He decided to split the missing payment into three installments to be paid over the next three months as described in the contract. Without calling the bank, Kyle sent a check for $1,600 for each of his next three monthly payments. Which action invalidates the contract Kyle signed?

The following section is a statement from the rental agreement at a local auto rental agency. “Upon checkout, the fuel level of the vehicle will be determined by turning the vehicle on and visually inspecting the fuel gauge. The approximate fuel level will be recorded on the Check-Out sheet and verified with initials by the vehicle Renter. One copy of the Check-Out sheet will be given to the customer. Another copy will be kept with the on-site records of the vehicle. The rented vehicle must be returned with a minimum fuel level the same as that indicated on the Check-Out sheet. A vehicle returned with a fuel level less than the approximate level indicated on the Check-Out sheet will be completely refueled with on-site pumps. The price of the fuel used to refuel the vehicle will be added to the Renter’s total charge at a cost of $4.50 per gallon plus a $5.00 re-fueling charge.”According to the rental agreement, which is not a responsibility of the rental agency representative?

Which of the following is not a recommended action to perform before signing a contract?

The following statement is from the contract Peter signed with his Homeowners' Association (HOA). "Overnight parking on community streets is prohibited. For the purpose of this contract, 'overnight' will be defined as the hours between 11:00 p.m. and 4:00 a.m. The HOA will monitor overnight parking not less than once every calendar week with nightly patrols by community security. "In the event a car is found parked on community streets overnight and that ownership of the offending car can accurately be verified as a community homeowner, the homeowner will receive one (1) written warning asking him or her to correct the situation. A second and third infraction by the same homeowner, whether or not it is with the same car, will result in a monetary fine as permitted by CC&R guidelines and HOA bylaws. Further infractions (past 3) will result in monetary fines in addition to the towing of the car at the homeowner's expense."Peter just received a written warning from the HOA concerning the parking of his car overnight on a community street. Which of the following statements is true?a.Parking in the street overnight tonight may get Peter fined.b.Parking in the street overnight tonight may get Peter's car towed.c.Parking in the street overnight tonight may get Peter fined and his car towed.d.Parking in the street overnight tonight will probably just get Peter another warning.

The paragraph below comes from the rental agreement Susan signed when she opened her account at Super Video.“All rentals are due back by midnight of the due date as printed on the transaction receipt. Any rental not received by midnight on the day it is due is subject to a late charge of $1.50 for each day it is late. Any rental not returned by the fifth day after the due date will be transferred to a sale. The Customer will then be required to pay the purchase price of the item in addition to five (5) days of late fees. The Customer will not be required to return the product once the total balance is paid.”Both of Susan’s movies are three days late. According to her receipt, the purchase price of one of her movies is $12.00 while the purchase price for the other movie is $15.00. If she turns both of them in today, how much will Susan owe Super Video?