10

Question 1

what’s a contract

Answer 1

a promise for the breach where the law provides a remedy

Question 2

the common law generally governs _____

Answer 2

all contracts

Question 3

what does the Uniform Commercial Code (UCC) govern ?

Answer 3

contracts for the sale and lease of goods

Question 4

(An Overview Of Contract Law) Objective Facts Include “The ___ “and if it’s unclear they consider these when getting into the contract;

Answer 4

-The “Express Terms Of The Contract” ( #1 or only factor when judging terms of contract)
If unclear:
-what a party said when entering a contract
-How the party acted or appeared
-circumstances surrounding the transaction

Question 5

what state uses objective theory of transaction

Answer 5

california

Question 6

What’s important in regards terms of contract

Answer 6

-the lawyers wording, “and” and “or” have different affects
-if a detail is important to you it should be put on contract (only if contract is unclear)

ex: her ex bf signed a contract that didn’t include what the company verbally offered him, he never got was was promised as it wasn’t written

Actual Words On Contract Is What Relied On

Question 7

What are the 4 elements of a Valid Contract

Answer 7

1. Agreement:
   2.Consideration
2. Contractual Capacity
   4.Legality

Even if all elements of the contract are met, a contract may not be enforceable

Question 8

Agreement

Answer 8

1st element of Value Contract
- an offer and an acceptance

Question 9

Consideration

Answer 9

2nd element of Valid Contract
-something of value must be received or promised by all parties

-all parties of contract must give smth of value

Question 10

Contractual Capacity

Answer 10

3rd element of a valid contract
-both parties must be competent to enter a contract

Question 11

Legality

Answer 11

4th element a Valid contract
-the contracts purpose must be legal

Question 12

offeror

Answer 12

the one who makes the offer

Question 13

offeree

Answer 13

the one to whom the offer is made (person receiving offer)

Question 14

What are the requirements of giving an offer (4)

Answer 14

-there’s actual Intention to create a contract (joking or sarcasm takes intention away of a offer)

-there are Reasonable certain terms in the offer (what exactly are they proposing to give themselves,don’t know what you want in return,don’t know terms)

-offer versus invitation to offer (general advertisement arent offers,open to public and no one specific,they’re inviting to make offers(grocery stores would take it to not annoy customers)

-communication of the offer to the offeree using reasonable means (offer actually reached intended person thru call text email) ( if someone finds ur lost puppy u don’t owe them anything if money wasn’t directly offered to them)

Question 15

what are the 2 types of contract

Answer 15

-Bilateral contract
-unilateral contract

• one of the 1st thing to do is determine if it’s unilateral or bilateral ,tells u what consideration ,if not rest of analysis
  *determines a lot about contract

Question 16

bilateral contract

Answer 16

the offeree accepts by promising to perform the contract ( promises going two ways) ( promise exchange for promise)

Question 17

unilateral contract

Answer 17

*one way, one direction, you do promise smth that isn’t another promise

-the offeree can accept only by performing the terms of the contract
-if the offeree has substantially completed the terms, the contract can’t be revoked (painting example; if offeree promises contract can’t be revoked ,especially if they finish 75% of painting job. if they bought supplied but didn’t finish, offeror owes the costs offeree paid)

Question 18

20k is given for tesla
vs a promise to give money for tesla ( what’s uni and bi )

Answer 18

20k is given for tesla -uni
promise to give money for tesla- bi

*with promises you can revoke offer

Question 19

How can Termination look like for offers in regards to contract /how parties can revoke an offer (5)

Answer 19

Parties can revoke a offer:
- express repudiation (rejection) of the offer ( offeror tells offeree they take it back or change their mind)

-performance of acts inconsistent with the offer( 20k was was offered for item but was also offered to another person ,actions show ur not interested in the deal)

-rejecting the offer(offeree rejects offer,says no thank you)

-offering counteroffer ( which is a rejection & new offer ,terminates old offer & may lose original offer)

-some offers can’t be revoked
-option contract
-unilateral contracts that have been substantially performed (house painting example having 75% done)

Question 20

option contract

Answer 20

hold the offer open for a specific period of time in exchange for consideration ( u give additional consideration in exchange for holding offer open,u give $50 for additional time to think)

Question 21

The following events can terminate an offer by operation of law(part of agreement):(4)

Answer 21

-lapse of time ( unreasonable time passed, yrs go by so it doesn’t count anymore
-destruction of the subject matter of the offer ( car gets destroyed before offer completion )
-death of incompetence of other party(if offeree dies or offeror dies before accepting offer )
-the proposed contract becomes illegal (rare, if substance turns to be illegal it’s terminated )

Question 22

how does acceptance have to look like for contract to work(3)

Answer 22

-must be certain unequivocal (no doubt) and acceptance must be communicated to the offeror
-“mirror image rule” (counter offer or not? )( terms of acceptance must match terms of offer,be careful of new terms added )

-acceptance must be done in a timely matter and (traditionally) occurs when it is send (the “mailbox rule”) unless the offeree doesn’t follow the requested manner of communication (when follow rules,when was it sent .If not follow rules when does it get seen)

Question 23

what’s “mail box rule” * in specifics,which contract type does it apply to

Answer 23

-can get tricky
- baseline rule is that acceptance is effective if it’s sent, not received.
-only applies to bilateral contracts,not uni
- Text was over chat because it was sent first
Trickier part:
-1st person to email gets contract, whoever follows instructions first theirs is effective 1st. Other sent the other way is effective until seen .If chat is seen before email instructions, chat wins

Question 24

what are e-contracts

Answer 24

-digital contracts

Question 25

What are the online acceptances

Answer 25

1. Click on agreement: a binding contract can be created by checking a box “ I agree” or “I accept” for an offer (most digital contracts)
2. shrink wrap agreement: the terms are expressed in the box which packages the goods( small piece of paper,indicate acceptance by ripping open package)

Question 26

How do Electronic Signatures work ,how do ppl feel abt it,when is it not preferred,when can they be used,how much power does it have compared to paper signatures

Answer 26

• According to the E-sign and UETA Acts, says that using an electronic signature is as enforceable as one on paper

-The parties must have agreed to use electronic signatures
-E-Sign and UETA don’t apply to all types of documents (wills for example)

*wills and promissory notes have to have wet signatures,but most contracts E-contracts are fine,contracts are still squeamish about it

Question 27

What are some of the elements of Consideration, what agreement is being done,bilateral & unilateral ways,considerations,

Answer 27

2nd element of a Valid Contract

-something that’s legally valued is given in a bargained- for exchanged

within bilateral contract:
-a promise to do smth that one has no prior legal duty to do
-a promise not to do smth that one is otherwise legally able to do

within unilateral contract:
-performing an action that wasn’t a prior obligation
-the refraining from taking an action that one has a legal right to undertake (called a forbearance)

-nominal consideration?- we don’t usually judge sufficiency (doesn’t have to be equal value, person can sell for cheaper than face value)

-a bargained for exchange (terms actually what two parties negotiated and agreed to)

Question 28

What are agreements that lack consideration(things that don’t count as consideration) (2)

Answer 28

-preexisting duties (already had been obligated to do it, police can’t ask for 20 cuz it’s their job anyways)

-past consideration: bargaining for events that have already occurred (ex:can’t use past events for consideration, if friend already got the check and say u got next bill doesn’t count. it’s consideration if the bill promise is made before friend pays)

Question 29

contractual capacity

Answer 29

3rd element of a valid contract

-it’s basically if someone is capable to be under contract
-courts generally presume that people have the capacity to form contracts
-(mental ability to understand what you’re getting into)
-(baseline assumption is that everyone has capacity)
-there are circumstances where one shouldn’t be in contracts

Question 30

who are and aren’t considered to have capacity to be under contract (part of contractual capacity)

Answer 30

3rd element

-age of majority for a contract is 18
-disaffirmance ; minors can enter contracts but they’re voidable at minors request even after they already got benefit(when minors can disaffirm the contract and get the money from payments back)
-intoxication (cuz it messes with mental or contract capacity,safest bet is not to enter a contract with someone who’s intoxicated,tipsy isn’t lack of contract capacity)
-mental incompetence(legal incompetence): by legal standards , not just dumb. judge says person needs a guardian for it (ex: britney spears has her parents in charge of her)

Question 31

Legality

Answer 31

4th element of a valid contract
(determining the legality of a contract)
-contracts contrary to statute
-contracts contrary to public policy

Question 32

In what circumstances are Contracts Contrary to Statutes (under Legality 4th element) (4)

Answer 32

any contract to commit a crime

-illegal cuz they violate states or established law, illegal but not obvious

-Contracts to commit a crime (common sense)
-Usury: charging an illegal interest rate(found in finance industry,lenders,charging an illegal interest rate ,be aware of states cao of interest rate )
-Gambling (legal in certain areas but everywhere else may have gambling banned)
-licensing statutes ( professions require license;it’s illegal to charge fees for the profession so sent to jail. OR barbers can’t legally charge money for their work) ppl aren’t required to pay them under the licensing statute

Question 33

Contracts Contrary to Public Policy (part of Legality 4th element) (3)/how does this differ to contracts contrary to statutes

Answer 33

(in contrast this doesn’t violate statutes,illegal but not obvious. if it results in a breach of law, harms citizens, or causes injury to the state)

-contracts in resistant to trade
-unconscionable contracts: enforcement would be unduly unfair
-Exculpatory clauses( usually seen as a type of unconscionable contract.ex: u put smth on contract in hopes that other party doesn’t read and agree to pays for ur losses, courts don’t enforce this)

Question 34

Types of Contracts ; what is Express vs Implied,what are 3 ex where implied contract counts

Answer 34

Express Contract:the terms are fully stated, whether written or orally (terms and expectations have been talked about.written/orally agreed on by both parties and fully discussed

Implied Contract:the conduct of the parties determines the terms (conduct of parties deterred the terms)

requirements:
(1)the plaintiff furnished some service or property
(2)the plaintiff expected to be paid for that service or property,& the defendant knew or should have known that payment was expected
(3)the defendant had a choice to reject the services or property and didn’t ( ex: lady walked dog and saw painters going to her home but she didn’t stop them.she owes them money compared to if they painted while she was at work)

Question 35

Formal contract vs Informal contract (Contract Forms,under types of contract)

Answer 35

formal contract: must be in a specified format to be enforceable( basic is writing, or some are notarized or use of wet ink or witness)

informal contract: no special formal is required ( it could be oral or a back of napkin)( most contracts are informal but it’s best to have in writing to prove ur stance in the contract)

Question 36

Form; Under the Statute of Frauds,list the type of contracts that must be Written if it falls in any of these:(5)

Answer 36

(this is not actually a statute btw)
-Contracts invoking land (buying/selling/lease/any contract that has to do with land)
- contracts that can’t be performed with 1 yr signature (TRICKY, physically impossible to finish in a year.ex: give a cookie a day for 400 days)
-contracts to answer the debts of another (not the same as co-signer)
-promises in consideration of marriage (pre-naps have to be in writing)
-Contracts for the sale of goods $500 or more ( it has to be BOTH sale of goods and over $500 for it to apply, service doesn’t count. ex: selling 500 cookies for $600)
(TRICKY QUESTION: hiring a lawyer for $1000 has to be written as well)

Question 37

Bilateral v Unilateral (contract formation

Answer 37

bi: A promise for a promise

uni: a promise for an act

Question 38

Formal v Informal (contract formation)

Answer 38

formal: requires a special form for creation

informal: requires no special form for creation

Question 39

Express v Implied ( contract formation)

Answer 39

express: formed by words
implied: formed by the conduct of the parties

Question 40

what’s a Valid Contract

Answer 40

A contract that has the necessary contractual elements; agreement,consideration, legal capacity of the parties and legal purpose

Question 41

enforceable contract

Answer 41

a valid contract that can be enforced because there are no legal defenses against it

Question 42

voidable contract

Answer 42

a party has the option of avoiding or enforcing the contractual obligation

Question 43

unenforceable contract

Answer 43

a contract exists, but it can’t be enforced because of legal defense

Question 44

void contract

Answer 44

no contract exists, or there is a contract without legal obligations( didn’t succeed into the contract in the first place)

Question 45

what’s a forbearance ?

Answer 45

-the refraining from taking an action that one has a legal right to undertake

within unilateral contract

Question 46

what’s a nominal consideration

Answer 46

we don’t usually judge sufficiency (it suffices as good enough for contract ,doesn’t have to be equal value, person can sell for cheaper than face value)

within unilateral contract