Chapter 11

Question 1

what is chapter 11 about

Answer 1

nature and terminology

Question 2

promise

Answer 2

declaration by a person to do or not to do a certain act

Question 3

what are generally governed by the common law of contracts

Answer 3

relating to services, real estate, employment, insurance

Question 4

what is the UCC

Answer 4

Uniform Commercial Code

Question 5

sale and lease of goods

Answer 5

governed by UCC

Question 6

promisor

Answer 6

person making the promise

Question 7

promisee

Answer 7

person to whom the promise is made

Question 8

objective theory of contracts

Answer 8

states that an agreement between two parties exists if a reasonable person could judge the acts and behaviors of the parties enough to objectively construe agreement.

Question 9

objective facts by reasonable person

Answer 9

what the party said when entering into a contract/
how the party acted or appeared/
the circumstances surrounding the transaction

Question 10

four requirements of valid contract

Answer 10

agreement, consideration, contractual capacity, legality

Question 11

defenses to valid contract

Answer 11

voluntary consent, form

Question 12

three classifications of contracts

Answer 12

bilateral, unilateral, revocation of offers for unilateral contracts

Question 13

offeror

Answer 13

party making offer

Question 14

offeree

Answer 14

party to whom the offer is made

Question 15

bilateral contract

Answer 15

if the offer can accept simply by promising to perform; promise for a promise

Question 16

unilateral contract

Answer 16

if the offer is phrased so that the offer can accept the offer only by completing the contract performance; promise for an act

Question 17

formal contracts

Answer 17

contracts that require a special form or method of creation to be enforceable; negotiable instruments (checks, drafts, promissory notes, bills of exchange)

Question 18

letters of credit

Answer 18

another type of formal contract; agreements to pay contingent on the purchases receipt of invoice and bills of lading

Question 19

bills of lading

Answer 19

documents evidencing receipt of, and title to, goods shipped

Question 20

informal contracts

Answer 20

(simple contracts) include all other contracts

Question 21

express contracts

Answer 21

the terms of the agreement are fully and explicitly stated in words, oral or written

Question 22

implied contract

Answer 22

contract that is implied from the conduct of the parties

Question 23

requirements for implied contracts

Answer 23

plaintiff furnished some service or property/
plaintiff expected to be paid for that service and defendant payments were expected/
defendant had a change to reject the services or property and did not

Question 24

executed contract

Answer 24

been fully performed on both sides

Question 25

executory contract

Answer 25

contract that has not been fully performed by the parties

Question 26

valid contract

Answer 26

has the elements necessary to entitle at least on of the parties to enforce it in court

Question 27

elements of valid contract

Answer 27

an agreement, supported by legally sufficient consideration, made by parties who have the legal capacity to enter into the contract, legal purpose

Question 28

voidable contracts

Answer 28

a valid contract but one that can be avoided at the option of one or both of the parties

Question 29

ratify

Answer 29

make valid

Question 30

accepted voidable

Answer 30

made by minors, mentally incompetent, intoxicated persons; fraudulent conditions

Question 31

unenforceable contract

Answer 31

one that cannot be enforced because of certain legal defenses against it; valid contract rendered unenforceable by some statute or law

Question 32

void contracts

Answer 32

no contact at all; no legal obligations if contract is void

Question 33

Quasi contracts

Answer 33

contracts implied in law; not actual contracts

Question 34

what does quasi mean

Answer 34

latin for "as if"; courts impose on the parties like they had entered a real contract; equitable other than legal

Question 35

quantum meruit

Answer 35

latin phrase meaning, "as much as he or she deserves"; describes the event of compensation owed under a contract implied in law

Question 36

when can't quasi contracts be used

Answer 36

when there is an actual contract that covers the matter in a controversy

Question 37

limitations of quasi contracts

Answer 37

the party obtaining the enrichment is not held liable in some situations

Question 38

face of the instrument

Answer 38

from the written document

Question 39

ambiguous

Answer 39

unclear

Question 40

extrinsic evidence

Answer 40

evidence outside contract