blaw

Question 1

Contract Law

Answer 1

Agreement supported by consideration between 2 or more persons with competent capacity for legal purpose

Question 2

Sources of Contract Law

Answer 2

Article 2 of UCC (SALES)

Common LAW

Question 3

Distinctions between UCC and Common Law

Answer 3

2 sources govern different types of contract subject matter:
UCC is codified as statutory form and common law is developed in judicial decisions
Common law requires more details and percision for formation, terms and damages
UCC requires less detail from parties to a contract and terms that apply if parties fail to agree on those terms.

Question 4

UCC

Answer 4

article 2 applies to contracts that involve sale of goods— tangible personal property
can have blended contracts–sale of goods and providing servies- have to look at primary purpose
Common law applies to service and real estate contracts-

Question 5

Express Contract

Answer 5

contract formed wholly by oral or written words

Question 6

Implied or implied in fact contract

Answer 6

formed at least in part based on conduct of parties or factual circumstances.

–doctors- not all costs are up front and clear

Question 7

quasi contract or implied in law contract

Answer 7

imposed by courts or by law when some performance has gone forward, even though there is no express or implied contract. prevents unjust enrichment of one party by the other.

Question 8

bilateral contract

Answer 8

both sides make a promise- offer to sell car in exchange for monthly payments

Question 9

unilateral contract

Answer 9

one side makes promise in exchange for action or performance by the other
mow my yard and i’ll pay $50 bucks

Question 10

executed contract

Answer 10

fully performed contract by both parties

Question 11

executory contract

Answer 11

not yet fully performed by involved parties

Question 12

partially executed contract

Answer 12

performed in part. one side has performed

Question 13

Valid contract

Answer 13

legally formed and meets necessary requirements for formation

Question 14

void contract

Answer 14

lacks legal purpose or is in violation of law. cannot be enforced by courts bc enforcement would violate public policy

Question 15

voidable contract

Answer 15

otherwise valid contract that can be set aside because one party has protection under the law and right by choice to be relieved of liability under contract.

Question 16

unenforceable contract

Answer 16

cannot be enforced because of statutory or legal defence- still can be honored if both parties choose.

Question 17

Requirements of a contract

Answer 17

1. offer
2. acceptance
3. consideration
4. no defenses

Question 18

Requirements of a valid offer

Answer 18

1. Present intent- offer must be made with serious intent
   - –advertisements are not offers but an invitation to make an offer—unilateral offer
   - $50 if you find my dog–this is valid contract
2. Definite terms– must be definite enough to cover minimum formation for legal purposes
   - –common law require identification of parties, price time and subject matter
   - –UCC relaxed on requirements-subject matter identification only
3. Communication of offer- communicated to offeror and received by offeree

Question 19

Termination of Offers

Answer 19

Revocation-an offer can be revoked at any time prior to acceptance

• -effective when received so must be communicated.
• -must be RECEIVED prior to acceptance by offeree

Revocation of irrevocable offers- option and merchant’s firm offers

Rejection- offer is terminated at any time prior to acceptance by oferee saying no thanks,

• -inquiry is not a rejection
• –effective when received

Counteroffer- made at any time prior to acceptance is form of rejection. when changed the terms.
–can be considered new offer too

Question 20

Termination

Answer 20

through lapse of time

through operation of law- death or insanity, destruction of subject matter or illegality of subject matter

Question 21

Acceptance- bilateral

Answer 21

Language of acceptance
-common law and mirror image rule- any deviation is counted as a counteroffer for real property and services

UCC language-
-merchants and nonmerchants definite expression of acceptance that does not change any terms resuts in a contract
-for nonmerchants- if additional terms are added its still acceptance but without the additional terms
-for merchants if definite statement and additional terms
unless they are material, offer specificallly states or offeror rejects within a reasonable time.

Question 22

Acceptance- unilateral

Answer 22

acceptance takes place upon completion of act required b offer. no notice is required unless required by law

Question 23

Consideration

Answer 23

required along with acceptance for formation of contract-

Question 24

Preexisting duty and consideration

Answer 24

one that exists under valid contract or perhaps by law. enforceable obligation.
police officer cant get paid extra to arrest someone.

Question 25

Exceptions to preexisting duty`

Answer 25

mutual recission and new contract UCC modification for contracts for sale of goods- permitted to modify the contract even without additional consideration on both sides unforeseen hardship-

Question 26

Past Consideration-- unenforceable

Answer 26

Promise to pay for an act already completed is without consideration.

Question 27

Exceptions for consideration requirement

Answer 27

estoppel- legal principle that bars a party from denying a certain fact owing to that party's previous conduct or denial. promissory estoppel-induces another party to rely on promise and results in party materialy changing their position,

Question 28

Statute of Limitations

Answer 28

4 years- UCC

Question 29

Statute of Frauds

Answer 29

requires certain types of contracts to be in writing to be enforceable. 1. guaranty of debt contracts 2. contracts involving an interest in real property 3. contracts impossible to complete within a year 4. contracts for sale of GOODS over $500 5. promises of executors for personal liability of debts of estates

Question 30

Contracts that promise to pay a debt of another

Answer 30

must be in writing promisor to pay is not the original person who borrowed in the first place- think guaranteer of debt or collateral -

Question 31

Contracts involving real property

Answer 31

real property purchase contracts LEASES of real property (more than one year) real property mortgages easements creation of any other real property interest real estate broker contracts -exception to writing contract- parties have behaved in a way and provided evidence beyond their own words that there was some kind of contract relationship between them... partial payment, buyer is in posession of land or buyer has made valuable improvements

Question 32

Contracts that cannot be performed within a year

Answer 32

- any contract objectively impossible to perform within ON year from date of contract formation must be in wrting - if it COULD be performed in less than a year, it doesn't have to be in writing. date of acceptance to completed performance date

Question 33

Contracts on sale of goods

Answer 33

UCC- contract of goods for MORE than $500 must be in writing - exception between merchants if oral agreement is followed by written documentation and not rejected within 10 days after receipt. - special order goods must be in writing

Question 34

Parol Evidence

Answer 34

ambiguous terms- can be introduced only to clean up ambiguity. or obvious clerical error incomplete contracts- cannot be admitted to fill in gaps of contract terms fully integrated (non ambiguous, complete and without defenses) cannot be contridicted varied or altered by evidence of parties prior to negotiations, prior agreements, contemporaneous oral agreements.

Question 35

Five defenses to formation

Answer 35

1. mistake 2. fraud 3. duress 4. undue influence 5. illegailty

Question 36

types of capacity required for formation

Answer 36

1. must be of legal age 18 | 2. each party has to have metal capacity to enter into contract

Question 37

Ratification

Answer 37

express- minor notifies other party that the intend to honor the contract after reaching age of majority implied- continues to perform on the contract

Question 38

Requirement for mental capacity

Answer 38

1. mental incompetent persons- void-adjucated mentally inable voidable- not adjudicated mentally inable 2. intoxicated persons- can avoid any contract made while intoxicated

Question 39

bilateral mistake

Answer 39

both parties are misstaken then contract cannot be enforced

Question 40

unilateral mistake is enforceable unless

Answer 40

obvious math error | taking advantage

Question 41

Fraud in the formation

Answer 41

can claim punitive damages

Question 42

Undue influence

Answer 42

special relationship like pastor taking advantage of old lady

Question 43

Duress

Answer 43

physical force or threats threats to disclose private information economic pressure (ruin biz or something )