Contractual law

Question 1

Contracts

Answer 1

Contracts are simply an agreement between parties to do or not do something.

Question 2

Promissory Estoppel

Answer 2

Instances in which an individual relied to their detriment on another’s promise

Question 3

Unconscionable Contracts

Answer 3

Refers to contracts that have grossly unfair terms and are thus unenforceable. Such a ruling is a rare occurrence, as courts believe that individuals should enter contracts responsibly

Question 4

Expectation Interest

Answer 4

the court will order the breaching party to pay as if everything went as it should have

Question 5

Reliance interest

Answer 5

reimbursment for loss cause by reliance upon contract; puts plaintiff in status quo ante

Question 6

status quo ante

Answer 6

the state of affairs that existed previously

Question 7

Restoration interest

Answer 7

restoring benefit conferred on another party

Question 8

Offer

Answer 8

One of the 3 elements of a contract; reasonable manifestation of willingness to enter a bargain. Made in a way that a reasonable person would understand

Question 9

Acceptance

Answer 9

Once a contract is accepted, it is valid.

Question 10

Consideration

Answer 10

A promise or performance given in exchange for a promise or performance

Question 11

Promissory note

Answer 11

not an enforceable “contract” due to the absence of consideration (or exchange)

Question 12

Duress

Answer 12

exercised threat to force someone to perform an act (in this case, sign a contract)

Question 13

Kukuska v. Home Mutual

Answer 13

Court ruled insurance company silently accepted the offer by accepting the check, thus they owed the plaintiff protection.

Question 14

Breach of contract

Answer 14

someone hasn’t adhered to promise or performance.

Question 15

Promises (nudum pactum)

Answer 15

naked truth; need an exchange of promises to have a contract

Question 16

Customary law

Answer 16

over the years, customs develop in a practice and they become so engrained in a practice that they become law

Question 17

statute of frauds

Answer 17

certain contracts must be written and signed by parties.
Promises to marry
real estate sales
contracts over $500 in value
contracts that will take over a year to perform
promises to pay the debt of another

Question 18

substantial performance

Answer 18

It allows a court to imply a term that allows a partial or substantially similar performance to stand in for the performance specified in the contract

Question 19

rejection or counter offer

Answer 19

a counter offer can function as a rejection because it voids the original offer and alters the terms of the agreement

Question 20

lapse of time

Answer 20

termination of offer as a result of the passage of time

Question 21

revocation by offeror

Answer 21

contract can be revoked as long as it has not been accepted