Contracts

Question 1

Contract

Answer 1

a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty

Question 2

Offer

Answer 2

valid until accepted (offeror is the master of the offer –> can revoke until offeree accepts)

Question 3

option contracts

Answer 3

offeree pays to have time to think to keep the contract open

Question 4

statutory irrevocability

Answer 4

if you enter a certain contract, certain statutes say you can’t revoke it

Question 5

bilateral contract

Answer 5

promise of a promise

Question 6

unilateral contract

Answer 6

promise for an act

Question 7

promissory estoppel

Answer 7

when offeror makes a promise upon which the offeree relies to his/her detriment and the offeror is aware of this reliance

Question 8

benefit

Answer 8

something you aren’t legally entitled to but you get it anyways

Question 9

detriment

Answer 9

something the promissee or promissor was previously under no legal obligation to do/refrain from doing something

Question 10

contract implied in fact

Answer 10

contracts formed by the parties’ conduct which implies they have reached an agreement

Question 11

quasi-contract (contracts implied in law)

Answer 11

obligations created by LAW to prevent unjust enrichment of one party or another based on equity

Question 12

mutual/bilateral mistake (voidable)

Answer 12

any party can get out of the contract/void it because they have a common mistaken belief
ex: farmer had Rosy the cow and found out she was infertile so sold her for a cheap amount to Ben. Ben comes to buy her and she is pregnant.

Question 13

unilateral mistake (enforced)

Answer 13

exceptions:
1) the other party knew/had reason to know that the other party made a mistake
2) if the mistake was so serious that the contract is unconscionable/atrocious (i.e. wrote 50k instead of 50m)

Question 14

minor breach

Answer 14

a partial/immaterial breach or where there has been substantial performance

Question 15

material breach

Answer 15

any failure to perform that permits the other party to the contract to either compel performance, or collect damages because of the breach

Question 16

anticipatory breach

Answer 16

an unequivocal indication that the party will not perform when performance is due, or a situation in which future non-performance is inevitable

Question 17

exculpatory clauses

Answer 17

agree not to sue in case of damages in the contract unless injury isn’t perceivable

Question 18

indemnification clause

Answer 18

an agreement to shift the losses to one of the contracting parties regardless of fault

Question 19

limitation of liability clause

Answer 19

“if you sue us, we are only responsible for x amount of money”

Question 20

contracts of adhesion - e commerce

Answer 20

a binding agreement between two parties, in which one party has all the bargaining power and uses it to write the contract primarily to her advantage

Question 21

unconscionable adhesion agreements

Answer 21

an agreement that is so unfair to the weaker party that a court will refuse to enforce them

Question 22

the parol evidence rule

Answer 22

a court won’t admit evidence of the parties’ prior negotiations, prior oral or written agreements, or contemporaneous oral agreements if that evidence contradicts of varies the terms of a written contract

Question 23

merger clause

Answer 23

provides that the written contract is the final and complete agreement and any prior or contemporaneous agreements between the parties is superseded by the written contract

Question 24

Involuntary bailment

Answer 24

when Bailee takes possession of someone’s property knowingly but involuntarily

Question 25

special bailments

Answer 25

strict liability - liability that doesn’t depend on actual negligence or the intent to harm

Question 26

real property

Answer 26

a lore more meaning, a lot more old laws to protect it (due process rights)

Question 27

freehold

Answer 27

you own property and can do anything you want with it (as long as you follow conditions if there are any)

Question 28

non-freehold

Answer 28

when you share the land

Question 29

eminent domain

Answer 29

the government can take private property for public use with just compensation