Chapter 11: Nature and Terminology

Question 1

Sources of Contract Law

Answer 1

Common law governs all contracts except sales and leases.

+ Sale and lease contracts are governed by the Uniform Commercial Code (UCC).

Question 2

Function of Contract Law

Answer 2

To assure the parties to private agreements that the promises they make will be enforceable (agreements for promise)

Question 3

Promise

Answer 3

A person’s declaration that he will perform or refrain from performing some present or future act. (refrain: ngưng)
+ The promisor makes the promise
+ The promisee is the person to whom the promisor made the promise

Question 4

Contract:

Answer 4

An agreement formed by two or more parties who agree to a promise (or set of promises).
+ Contracts can be enforced in court.

Question 5

Objective Theory of Contacts

Answer 5

The circumstances that determine the intent of the parties. (circumstances -> intent)

Objective facts include:
+ What a party said when entering into the contract.
+ How the party acted or appeared.
+ The circumstances surrounding the transaction.
(said, acted, circumstances)

Question 6

Requirements of a Valid Contract

Answer 6

Agreement (Offer and acceptance).

Consideration (Legally sufficient and bargained-for).

Contractual Capacity (All parties must be competent). (competent: đủ năng lực)

Legal (Purpose of contract must be legal at time of execution). (legal: hợp pháp)

Question 7

Defenses to Enforceability (Các biện pháp bảo vệ để có thể thực thi)

Answer 7

• Voluntary Consent: All parties must voluntarily consent to the contract. (consent: đồng ý)
• Form: Some types of contracts must be in writing.

Question 8

Types of contracts

Answer 8

1. Bilateral versus
   Unilateral Contracts
2. Formal versus Informal Contracts
3. Express versus Implied Contracts

Question 9

Types of contracts

Answer 9

1. Bilateral versus
   Unilateral Contracts
2. Formal versus Informal Contracts
3. Express versus Implied Contracts

Question 10

Bilateral versus Unilateral Contracts

song phương, đơn phương

Answer 10

• Bilateral: Offeree must only promise to perform (“promise for a promise”).
  eg. : buy a house. I am obligated to pay and other party must give me the house
• Unilateral: Offeree can accept the offer only by completing the contract performance (“a promise for an act”).
  eg.: message in newspaper offering $ for a lost pet. person who placed ad is only person with an obligation
  + Irrevocable: Offer cannot be revoked once performance has begun