common law grok

Question 1

What governs contracts for services under common law?

Answer 1

Common law governs contracts for services, while UCC Article 2 applies to goods.

For mixed contracts, courts apply the “predominant purpose” test.

Question 2

What is an offer in contract law?

Answer 2

An offer is a clear promise to enter a deal, showing intent to be bound.

It is distinct from negotiations, price quotes, requests for information, solicitations, jokes, opinions, and social invitations.

Question 3

What constitutes acceptance of an offer?

Answer 3

Acceptance is agreement to the offer’s terms, in the manner requested, and must be a ‘mirror image’ of the offer.

Acceptance can be verbal, written, or through conduct.

Question 4

What are the ways the power to accept an offer can be terminated?

Answer 4

• Lapse
• Death
• Revocation
• Rejection
• Option Contracts

Each of these events can end the ability to accept an offer.

Question 5

What is consideration in contract law?

Answer 5

Consideration is something of value exchanged between parties.

It cannot be a moral obligation or a promise to do what’s already owed.

Question 6

What is promissory estoppel?

Answer 6

Promissory estoppel enforces a promise if it induces reasonable reliance, causes detriment, and avoids injustice.

It may apply if there is no consideration.

Question 7

What does it mean for a contract to be definite enough to be enforced?

Answer 7

Contracts need sufficient certainty in essential terms, such as parties, subject, and price.

Courts may imply reasonable terms if gaps exist.

Question 8

What are the recovery options if there is no contract?

Answer 8

• Reliance
• Quasi-Contract

Recovery may involve costs incurred acting on a promise or the value of benefits unjustly received.

Question 9

What does the Statute of Frauds require?

Answer 9

Certain contracts must be in writing to be enforceable.

This includes contracts not performable within one year.

Question 10

Who lacks capacity to contract?

Answer 10

Minors and individuals with mental incapacity can lack capacity to contract.

Contracts made by minors are voidable.

Question 11

What can void a contract due to pressure?

Answer 11

• Duress
• Undue Influence

Coercion or unfair pressure can make a contract voidable.

Question 12

What is a mutual mistake in contract law?

Answer 12

A mutual mistake occurs when both parties err about a basic assumption regarding the contract.

This can void the contract.

Question 13

What can void a contract due to misrepresentation?

Answer 13

Fraudulent or material misrepresentations can void contracts.

Concealment of facts may also lead to voiding the contract.

Question 14

What types of contracts are considered void?

Answer 14

• Unfair contracts
• Illegal contracts

Contracts that harm public policy or have unconscionable terms are unenforceable.

Question 15

What does the parol evidence rule state?

Answer 15

The parol evidence rule bars prior or contemporaneous agreements that contradict a written contract.

It does allow for consistent terms to add to partially integrated writings.

Question 16

What methods can resolve ambiguity in contract terms?

Answer 16

• Plain Meaning
• Contract Context
• Course of Dealing/Performance
• Trade Usage
• Contra Proferentem
• Extrinsic Evidence

Various methods can clarify ambiguous terms based on context and usage.

Question 17

What are implied terms in a contract?

Answer 17

Implied terms fill gaps in a contract based on good faith, trade usage, or course of dealing.

They help ensure fairness and reasonableness in contract performance.

Question 18

What do implied terms do in a contract?

Answer 18

Fill gaps in the contract

Implied terms are based on honesty and reasonableness.

Question 19

What is the concept of Good Faith according to Restatement § 205?

Answer 19

Honesty and reasonableness

Good faith requires parties to act fairly and honestly in contract performance.

Question 20

What are the three elements that define Trade Usage, Course of Dealing, and Course of Performance?

Answer 20

• Industry norms
• Prior dealings
• Contract actions

These elements help interpret the intentions of the parties in a contract.

Question 21

What is the hypothetical scenario involving Dave and Carla about?

Answer 21

Carla uses non-toxic cleaners based on past performance

This illustrates how implied terms work in practice.

Question 22

What triggers duties in a contract according to Restatement § 224?

Answer 22

Conditions

Conditions can be express or constructive.

Question 23

What are Express Conditions as defined by Restatement § 226?

Answer 23

Strict compliance required

An example is ‘payment upon approval’.

Question 24

What are Constructive Conditions as per Restatement § 234?

Answer 24

Substantial performance required

This means that not every detail needs to be fulfilled perfectly.

Question 25

What is a Divisible Contract according to Restatement § 240?

Answer 25

Pay for completed parts ## Footnote This allows for partial performance to be compensated.

Question 26

In the hypothetical scenario, what is the express condition in Carla's contract?

Answer 26

Approval of plans ## Footnote This must be satisfied for the contract to proceed.

Question 27

What does Waiver mean according to Restatement § 84?

Answer 27

Voluntary relinquishment of a condition ## Footnote This can occur if one party does not enforce a condition.

Question 28

What is Estoppel as defined in Restatement § 90?

Answer 28

Reliance prevents enforcing the condition ## Footnote This protects parties from unfair consequences of reliance on a promise.

Question 29

What is a Material Breach according to Restatement § 241?

Answer 29

Defeats the contract's purpose, excusing the other party ## Footnote Options include canceling, suing, or continuing the contract.

Question 30

What is Repudiation as defined in Restatement § 250?

Answer 30

Clear refusal to perform ## Footnote This gives the other party options to cancel or sue.

Question 31

What does Impracticability mean under Restatement § 261?

Answer 31

Extreme difficulty from unforeseen events excuses performance ## Footnote An example is a lockdown preventing work.

Question 32

What is Frustration of Purpose according to Restatement § 265?

Answer 32

Contract's purpose is destroyed, excusing performance ## Footnote This can occur if the main reason for the contract is no longer viable.

Question 33

What is the Expectation Remedy available under Restatement §§ 347, 357?

Answer 33

Damages cover costs to complete/fix, plus losses ## Footnote Specific performance can also be ordered for unique services.

Question 34

What is Restitution as per Restatement § 370?

Answer 34

Recover value of benefits given ## Footnote This applies only for unjust enrichment.

Question 35

What is the Duty to Mitigate according to Restatement § 350?

Answer 35

Minimize damages ## Footnote Parties must take reasonable steps to limit their losses.

Question 36

What is the concept of Liquidated Damages in Restatement § 356?

Answer 36

Enforceable if reasonable, not a penalty ## Footnote This sets a predetermined amount for damages in case of breach.

Question 37

What are Third-Party Beneficiaries as per Restatement §§ 302, 304?

Answer 37

Intended beneficiaries can enforce contracts; incidental cannot ## Footnote This distinguishes between those who have rights under a contract and those who do not.

Question 38

What is the concept of Delegation according to Restatement § 318?

Answer 38

Duties are delegable unless the service is personal ## Footnote Rights are assignable unless prohibited.