Contracts

Question 1

a bilateral contract is satisfied by

Answer 1

exchange of mutual promise - a promise for a promise

Question 2

MY LEGS

Answer 2

Marriage
Year (more than one)
Land
Executor
Goods (for $500 more)
Surety

Question 3

when is a unilateral mistake a defense?

Answer 3

when the nonmistaken party knew or should’ve known of the mistake

Question 4

Damages for when a buyer accepts goods that breach seller’s warranties

Answer 4

Difference btw the value of the goods as delivered and the value of goods as warranted

Question 5

Damages when a buyer covers after seller sends nonconforming goods

Answer 5

Difference btw K price and cover price

Question 6

T/F: Parol evidence is allowed to show a condition precedent to the existence of a K

Answer 6

T

Question 7

an illusory K is

Answer 7

one without consideration on either side

Question 8

Can a gifter revoke a gift?

Answer 8

Yes, unless there is detrimental reliance

Question 9

Output Ks

Answer 9

an agreement to buy or sell all of what you can

Question 10

In output Ks is there an assumption that parties will act in good faith?

Answer 10

Yes

Question 11

Under common law what does an option K need?

Answer 11

consideration

Question 12

Under UCC what does an option K need

Answer 12

merchant’s firm offer rule - a signed writing that the offer will remain open for time stated (no longer than 3 months)

Question 13

Under UCC what are material changes?

Answer 13

Any change affecting
- money
- liability
- remedy for breach

Question 14

Accord =

Answer 14

an agreement where one party to the existing K agrees to accept some different future performance

Question 15

Satisfaction =

Answer 15

performance of the accord agreement and it discharges the original K and the accord K

Question 16

T/F: Delegation excused original party’s duties

Answer 16

F

Question 17

When can you cancel an installment K

Answer 17

when nonconforming goods substantially impair the value of the entire K

Question 18

Revocation is effective upon

Answer 18

receipt by offerree

Question 19

Acceptance is effective upon

Answer 19

dispatch - mailbox rule

Question 20

A release requires

Answer 20

1. additional consideration
2. a signed writing
3. OR detrimental reliance by offeror

Question 21

What is reformation?

Answer 21

the remedy to reflect the expressed intent of the parties – where the writing setting forth the agreement btw the parties is changed so that it conforms to the original intent of the parties

Question 22

What is restitution?

Answer 22

A monetary remedy designed to prevent unjust enrichment

Question 23

When can a party receive consequential damages?

Answer 23

The P must show that the breaching party knew or had reason to know that breach would give rise to damages due to the special circumstances

Question 24

bilateral contracts can be accepted …

Answer 24

in any reasonable way

Question 25

unilateral contract =

Answer 25

acceptance by performance -- offeror requests performance rather than promise - offeror promises to pay at the completion of the act

Question 26

Where parties agree to modify their contract, consideration is usually found to exist where...

Answer 26

The obligations of both parties varied - immaterial how slight the change is because courts don't like invoking the preexisting duty rule

Question 27

A repudiation =

Answer 27

An unequivocal statement of inability or unwillingness to perform

Question 28

Under the UCC, when either party to a contract for the sale of goods repudiates the contract with respect to a future performance that will substantially affect the value of that performance, what can the non-repudiating party do?

Answer 28

May await performance for a commercially reasonable time or immediately resort to any appropriate remedy for breach - cannot recover damages that she might have mitigated with reasonable effort

Question 29

Under the UCC, is consideration required for a waiver?

Answer 29

No

Question 30

Does the parol evidence rule apply to promises made after the adoption of a final written contract?

Answer 30

No

Question 31

A repudiating party is free to retract its repudiation unless:

Answer 31

Non-repudiating party has relied on it or otherwise indicated that he considers the repudiation final

Question 32

Are contracts delegable?

Answer 32

Yes, contractual duties may be delegated to another unless the other party to the K has a substantial interest in having the original obligor perform - personal services involving aethetic taste

Question 33

T/F - the mailbox rule does not apply where the offer states that acceptance will not be effective until received

Answer 33

T