Contracts: Admission to Oath Series Flashcards
(34 cards)
What are the two different bodies/sources of contract law?
(1) Statutory Law (Article 2 of the UCC)
2) Common Law (Court opinions
What is the Uniform Commercial Code (UCC)?
A comprehensive set of laws governing all commercial transactions in the United States.
Describe Article 2 of the UCC.
- If your contract involves the sale of goods, you must apply Article 2 of the UCC.
Per the UCC, what must you apply if your contract does NOT involve the sale of goods?
Common law.
What are considered “goods”?
Anything moveable that is not fixed to land. (tangible items)
What should be one’s first consideration when analyzing a contract?
If the contract involves the sale of goods.
Approaching Your Contracts Course:
- Know your “elements”!
- Write an outline focused on the elements
- What are the elements for this claim or defense?
What will I study in Contracts?
- Contract Formation (very detailed and specific)
- Contract Interpretation
- Defenses and Excuses
- Remedies (what am I going to get?)
- Third-party rights and duties
What is the focus of Contracts Class?
Rules of Contract Law
What are the three (3) Elements to Contract Formation?
(1) Offer
(2) Acceptance:
- Communication of the acceptance
(3) Consideration:
- Bargain for exchange
What happens if you have two of the three elements to contract formation?
Then the contract is invalid.
You need all 3 elements for a contract to be valid.
An important feature for a bargain for exchange is what?
Mutual inducement
- Each party’s promise or performance must induce the other’s promise or performance.
Describe a bargain for exchange
Agreement in which each party furnishes a promise or performance in return for a promise or performance from the other.
(Something of value for something of value)
State the theory that we no longer use which was commonly applied in the early 1800s?
Subjective Theory of Contract:
Meeting of the Minds
- This means you have an offer and acceptance
- The parties “intend” to enter into a contract.
Describe Objective Theory of Contract
What a reasonable person would believe based upon what was presented to them or their “manifestation.”
What is the main determinant in the validity of a contract?
The acts and performances of the parties.
NOT the internal state of mind, or “intent” of the parties, that exists when coming to an agreement.
The Objective Theory of Contracts states that an agreement between two parties exists if _________ could judge the acts and behaviors of the parties enough to objectively construe agreement.
A reasonable person
Define Objective
Not influenced by personal feelings or opinions in considering and representing facts.
Not influenced by emotion, surmise, or personal prejudice
Define Surmise
Suppose that something is true without having evidence to confirm it.
Define Subjective
Based on or influenced by personal feelings, tastes, or opinions.
Related to or based on beliefs, attitudes, and opinions instead of verifiable evidence.
Define Face Value
As true or genuine without being questioned or doubted.
Define Puffing
Means to convey an overstated/exaggerated belief about some good or service to a prospective buyer with the goal of making a sale of that good or service.
Hubris
Excessive pride or self-confidence
What essential to decipher in the
Carlill v. Carbolic Smoke Ball Co.?
Whether it was a unilateral or bilateral contract.
It was considered a unilateral contract
