Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

MBE FLAP > CONTRACTS > Flashcards

CONTRACTS Flashcards

1
Q

Offers

A
  • specific terms
  • offers default = revocable
  • Revoking: by person who made offer
  • Rejecting: by person who received offer
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

when an offer is IRREVOCABLE

A
  • option contract
  • firm offer
  • unilateral contract
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Option Contract

A

i. A promise to keep offer open for a period of time
ii. Are between lay (normal) people
iii. Needs additional consideration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Firm Offer

A

i. A promise to keep offer open for a period of time
ii. Between merchants
iii. Has to be in writing
iv. If there’s at least 1 merchant & other party is lay person = firm offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Unilateral Contracts

A

i. A promise for performance
ii. The moment you begin performance –> offer is irrevocable
iii. $ isn’t owed until performance is complete

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Direct Revocation

A

you tell someone the offer is revoked
- effective upon notice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Indirect Revocation

A

person offer was made to (offeree) learns that offeror sold it to someone else = indirectly revoked because offeree loses power of acceptance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Acceptance

A

Requires a manifestation of intent to accept

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Ways to Accept

A

any reasonable means (words, actions, etc) as long as you manifest your intent to accept
- unless manner of acceptance is specified. in that case, must accept in manner specified

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Mailbox Rule

A
  • only apply to MAIL
  • ACCEPTANCE IS EFFECTIVE WHEN MAILED
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Mailbox Rule Exception

A

if you first mail a letter of rejection, but follow it by mailing a letter of acceptance, the letter that ARRIVES FIRST PREVAILS.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Consideration - Rule

A

a bargained for exchange; each party is giving something up

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Consideration - Gifts

A
  • promise to give a gift = unenforceable
  • giving the gift = enforceable consideration
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Consideration - Past/Moral

A

after you do something, they promise you consideration = unenforceable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Third Party Beneficiary

A

Two people make a contract & someone else benefits aka 3rd party
- usually 3 parties involved in the question

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Intended 3rd Party Beneficiary

A

Contracting parties express their interest for 3rd party benefit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Incidental 3rd Party Beneficiary

A

someone is claiming to have a benefit but contracting parties never expressed their intent to benefit the 3rd party
- never had any rights

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Rights Vesting

A

an intended 3rd party beneficiary doesn’t have any rights until the rights VEST

Rights vest when:
- 3rd party is informed of the benefit; OR
- 3rd party learns about the benefit and starts to rely on it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

what is an Assignment

A

one party assigns away their rights in the contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

what is a Delegation

A

one party delegates their duty under the contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Default Rule for Assignments/Delegations

A

you can freely assign/delegate whenever and to whoever

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Specific Rules re Assignments/Delegations

A

a. Other party must accept the new person to perform
b. If new person breaches, nonbreaching party can sue both new & og
- Unless: novation is executed releasing og – never infer or assume a novation
c. New person cannot unilaterally change the terms of the original contract
d. Contract includes / parties agree not to assign & one party assigns -> assignment valid (but non-breaching party can sue for damages)
e. Cannot assign when the contract is for a personal service/special skill/unique service or expertise
- Cannot give it to someone of the same level of expertise either

23
Q

SOF as a Defense

A

Can be used as a defense if it’s one of the applicable contracts (MYLEGS) and it’s BEFORE having to perform (aka an excuse not to perform)

once both parties perform, SOF can no longer be used as a defense

24
Q

Types of Contracts under SOF

A

M: Marriage
Y: contracts that cannot be performed in less than 1 Year
L: Land
E: Executor
G: Garantor aka asurity Ks (guaranteeing the debt of another)
S: Sale of Good of $500 or more

25
Exceptions to SOF requirements
if there's part performance: - writing requirement is removed Land contracts: make some payment & take possession or make improvements to land Sale of Goods: part payment & part delivery (i.e. down payment given & 1/3 of goods delivered)
26
Promissory Estoppel
i. There is NO CONTRACT ii. One party makes a statement or promise iii. That statement or promise causes a party rely to their detriment - Because that party relied to their detriment, the statement/promise is now enforceable - Detrimental Reliance: you reacted because of what was said
27
Non-Conforming Goods - default
If buyer receives non-conforming goods on the DAY OF DELIVERY, buyer may reject; accept; or accept in part & reject in part
28
Non-Conforming Goods means
not what the buyer ordered doesn't have to be broken or defective
29
Installment Contracts
Series of deliveries - 1 non-conforming installment is not a total breach, UNLESS it substantially impairs the value of the whole contract
30
Non-Conforming Goods - Prior to Date of Delivery
if prior to date of delivery: if seller proves he can, seller must be given opportunity to cure by delivery date
31
Non-Conforming Goods - On Day of Delivery with Reasonable Belief
if on day of delivery & seller had "reasonable belief" that buyer would accept: seller must be given opportunity to cure within a reasonable time
32
Modifications under Common Law
- additional consideration needed - services or land
33
Modifications under the UCC
no consideration need - only good faith - sale of goods
34
Conditions generally
conditions = an event - If it happens --> have to perform - if it doesn’t happen --> discharged - “only if;” “unless;” “but for”
35
Condition Precedent
condition will happen before K performance
36
Condition Subsequent
condition happens after K performance
37
Concurrent Condition
condition happens on day of contract performance
38
Waiver of Condition
can be waived "forget about it;" "don't worry about it;" "do it anyway"
39
what is parol evidence
After a contract is formed, one party tries to admit oral evidence in the contract - Prior to or contemporaneous with the contract
40
when Parol Evidence is *always* allowed
a. To prevent fraud or duress; b. To prove existence of condition precedent; c. In a sale of goods hypo to show course of dealing (how parties have conducted biz between each other) OR trade / custom (custom in biz/industry)
41
Partial K
- consistent, additional terms admitted - terms that materially alter OR contradict material terms = NOT admitted *PARTIAL K = DEFAULT, unless they tell you it's final*
42
Final K
- NOTHING admitted - parol evidence is INADMISSIBLE - evidence only admitted if to clear up an ambiguity *NEVER ASSUME K IS FINAL UNLESS THEY TELL YOU*
43
Types of remedies
legal ($) & equitable
44
Legal Remedies - Money
$ = expectation damages - Expectation: to put the non-breaching party in a position had the contract been performed default expectation damages formula: contract price -- market value = expectation damages
45
Legal Remedies - Liquidated Damages
Usually a clause in a contract - predetermined when you enter a contract - enforceable if reasonable (generally 10% or less of k) and not acting like a penalty / punishment ex: late fines/penalties; down payment
46
Equitable Remedies
No adequate remedy at law aka money won't help you (a) Specific Performance: Someone has to perform = K is unique (land is always unique) (b) Injunction: stop someone from performing (prevent irreparable harm) (c) Recission: to rescind; go back; put parties in a position prior to K - usually when there's not meeting of the minds - ex: mistake; misrepresentation
47
Anticipatory Repudiation - Default
Prior to contract date, one party unequivocally refuses to perform *has to be an absolute refusal to perform*
48
Anticipatory Repudiation Options/"Remedies"
Non-Breaching Party may: - hold in total breach; OR - wait until day of contract, and/or - begin looking for new party
49
Anticipatory Repudiation - Not Repudiation but in Doubt
if puts other party in doubt about ability to perform, though not repudiation, can demand assurances. Party which assurances are demanded from must respond in a reasonable amount of time. - if party responds in reasonable amount of time: must wait - if party doesn't respond in reasonable amount of time: you can sue
50
Impossibility
objectively, nobody could perform ex: subject-matter of contract was destroyed; performance becomes illegal
51
Impracticability
due to unforeseen circumstances, performance, though possible, has now become too difficult - too unfair to make someone perform Ex: too expensive (requires drastic change in cost; some fluctuation in market is foreseeable)
52
Unilateral Mistake
1 party - Not a defense to performance, UNLESS the other party knew of the mistake
53
Mutual Mistake
if BOTH parties were mistaken about a basic assumption of the contract, mutual mistake is ALWAYS A DEFENSE - Remedy is usually recession

MBE FLAP (7 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions