Contracts: Admission to Oath Series

Question 1

What are the two different bodies/sources of contract law?

Answer 1

(1) Statutory Law (Article 2 of the UCC)

2) Common Law (Court opinions

Question 2

What is the Uniform Commercial Code (UCC)?

Answer 2

A comprehensive set of laws governing all commercial transactions in the United States.

Question 3

Describe Article 2 of the UCC.

Answer 3

• If your contract involves the sale of goods, you must apply Article 2 of the UCC.

Question 4

Per the UCC, what must you apply if your contract does NOT involve the sale of goods?

Answer 4

Common law.

Question 5

What are considered “goods”?

Answer 5

Anything moveable that is not fixed to land. (tangible items)

Question 6

What should be one’s first consideration when analyzing a contract?

Answer 6

If the contract involves the sale of goods.

Question 7

Approaching Your Contracts Course:

Answer 7

• Know your “elements”!
• Write an outline focused on the elements
• What are the elements for this claim or defense?

Question 8

What will I study in Contracts?

Answer 8

• Contract Formation (very detailed and specific)
• Contract Interpretation
• Defenses and Excuses
• Remedies (what am I going to get?)
• Third-party rights and duties

Question 9

What is the focus of Contracts Class?

Answer 9

Rules of Contract Law

Question 10

What are the three (3) Elements to Contract Formation?

Answer 10

(1) Offer
(2) Acceptance:
- Communication of the acceptance
(3) Consideration:
- Bargain for exchange

Question 11

What happens if you have two of the three elements to contract formation?

Answer 11

Then the contract is invalid.

You need all 3 elements for a contract to be valid.

Question 12

An important feature for a bargain for exchange is what?

Answer 12

Mutual inducement

• Each party’s promise or performance must induce the other’s promise or performance.

Question 13

Describe a bargain for exchange

Answer 13

Agreement in which each party furnishes a promise or performance in return for a promise or performance from the other.

(Something of value for something of value)

Question 14

State the theory that we no longer use which was commonly applied in the early 1800s?

Answer 14

Subjective Theory of Contract:

Meeting of the Minds

• This means you have an offer and acceptance
• The parties “intend” to enter into a contract.

Question 15

Describe Objective Theory of Contract

Answer 15

What a reasonable person would believe based upon what was presented to them or their “manifestation.”

Question 16

What is the main determinant in the validity of a contract?

Answer 16

The acts and performances of the parties.

NOT the internal state of mind, or “intent” of the parties, that exists when coming to an agreement.

Question 17

The Objective Theory of Contracts states that an agreement between two parties exists if _________ could judge the acts and behaviors of the parties enough to objectively construe agreement.

Answer 17

A reasonable person

Question 18

Define Objective

Answer 18

Not influenced by personal feelings or opinions in considering and representing facts.

Not influenced by emotion, surmise, or personal prejudice

Question 19

Define Surmise

Answer 19

Suppose that something is true without having evidence to confirm it.

Question 20

Define Subjective

Answer 20

Based on or influenced by personal feelings, tastes, or opinions.

Related to or based on beliefs, attitudes, and opinions instead of verifiable evidence.

Question 21

Define Face Value

Answer 21

As true or genuine without being questioned or doubted.

Question 22

Define Puffing

Answer 22

Means to convey an overstated/exaggerated belief about some good or service to a prospective buyer with the goal of making a sale of that good or service.

Question 23

Hubris

Answer 23

Excessive pride or self-confidence

Question 24

What essential to decipher in the

Carlill v. Carbolic Smoke Ball Co.?

Answer 24

Whether it was a unilateral or bilateral contract.

It was considered a unilateral contract

Question 25

Describe Unilateral Contract

Answer 25

There is an express offer that payment is made only by a party’s performance.

Question 26

Describe Bilateral Contract

Answer 26

Both parties exchange promises to perform.

Question 27

Which contracts meets the following conditions below:

• Not required to give official acceptance.
• Not seeking a commitment in advance.
• Does not need to provide notification to the offer before one performs the act.

Answer 27

Unilateral Contract

Question 28

When may one revoke the offer in a unilateral contract?

Answer 28

The offeror may revoke the offer before the offerree’s performance begins.

Question 29

When may one revoke the offer in a bilateral contract?

Answer 29

Before it is accepted

Question 30

Give an example of a unilateral contract.

Answer 30

$10,000 reward for finding a lost pet.

Question 31

Give an example of a bilateral contract?

Answer 31

Selling a car

Question 32

Brief Carlill v. Carbolic Smoke Ball Co.:

IRAC

Answer 32

I:

R:

A:

C:

Question 33

Brief Hawkins v. McGee

Answer 33

(Hairy Hand Case)

I:

R:

A:

C:

Question 34

Define: Damages awarded when a party breaches a contract that are intended to put the injured party in as good of a position as if the breaching party fully performed its contractual duties.

Answer 34

Expectation Damages