1L2S - CONTRACTS FINAL

Question 1

how is modification viewed in contracts?

Answer 1

• generally unenforceable without new consideration

Question 2

exceptions that allow for modification

Answer 2

1. alteration of duties: both parties alter
2. unforeseen circumstances: fair and equitable in light of circumstances that were unforeseen
3. sale of goods: one party alteration okay, as long as it is good faith

Question 3

void vs. voidable contracts

Answer 3

• void: unenforceable
• voidable: ratify or disaffirm

Question 4

defenses to enforceability?

Answer 4

1. lack of capacity
2. duress
3. undue influence
4. misrepresentation
5. illegality
6. public policy
7. unconscionability

Question 5

three types of lack of capacity?

Answer 5

1. infancy
2. mental illness
3. intoxication

Question 6

infancy in depth

Answer 6

1. under 18
2. voidable
3. ratify or disaffirm before turning 18 or reasonable time after
4. exception: necesseties, misrepresentation of age, tortious conduct
5. majority view: only return what is in possession
6. minority/modern view: pay for depreciation

Question 7

mental illness in depth

Answer 7

1. cognitive (traditional): unable to reasonably understand the nature and consequences of the transaction OR
2. volitional (modern): act in a reasonable manner concerning the transaction (other party has reason to know of the mental illness)
3. voidable, UNLESS previous adjudication that someone is mentally ill then void
4. exception: lucid intervals

Question 8

intoxication in depth

Answer 8

1. unable to reasonably understand the nature and consequences of the transaction OR
2. act reasonably concerning the transaction AND
3. other party has reason to know this
4. voidable

Question 9

duress

Answer 9

induced by an improper threat leaving no reasonable alternative but to assent

Question 10

physical duress?

Answer 10

• physical compulsion
• void

Question 11

duress by threat (includes economic duress)

Answer 11

• voidable

Question 12

factors indicating duress?

Answer 12

1. acts with no legit business purpose
2. greatly unequal bargaining power
3. unnaturally large gain for one party
4. financial distress to one party
5. timing

Question 13

elements of duress

Answer 13

1. show victim of wrongful or unlawful act or threat AND
2. no reasonable alternative

Question 14

undue influence

Answer 14

arises if the party’s assent is the product of unfair or excessive persuasion by someone who EITHER..
1. dominates the party
2. unfair persuasion
2. shares a special relationship of trust and confidence with the party
- voidable