Contracts Subset

Question 1

How can an offer be accepted in a bilateral contract

Answer 1

in any reasonable way

Question 2

how can an offer be accepted in a unilateral contract

Answer 2

only by performing

Question 3

define offer

Answer 3

a manifestation of an intention to be bound; standard: reasonable person/objective

Question 4

What are the 4 ways to terminate a contract?

Answer 4

1. lapse of time
2. revocation
3. rejection
4. death

Question 5

Terminating a contract: define lapse of time

Answer 5

an offer lapses after a stated term or after a reasonable time has lapsed

Question 6

Terminating a contract: Revocation

Answer 6

an offer terminates when the offeror revokes the offer

Question 7

When can an offer be revoked?

Answer 7

any time before acceptance

Question 8

Direct Revocation

Answer 8

the offeror indicates directly to the offeree that he has change dhis mind about entering the deal

Question 9

indirect revocation

Answer 9

the offeror engages in conduct that indicates shes changed her mind and the offeree is aware of the conduct

Question 10

What are the 4 exceptions where an offer cannot be revoked

Answer 10

1. option
2. firm offer (article 2)
3. foreseeable reliance
4. starting to perform a unilateral contract

Question 11

Firm offer: in a sale of goods, if a merchant promises to keep an offer open, the offer is _________

Answer 11

irrevocable

Question 12

Timing of revocation: a revocation is effective ________

Answer 12

on receipt (no mailbox rule)

Question 13

What do you need for a firm offer

Answer 13

a merchant promising to keep an offer open in writing

Question 14

When does an offer terminate?

Answer 14

when the offeree rejects it

Question 15

What are the ways someone can reject/terminate an offer

Answer 15

counter offer, conditional acceptance, acceptance but adding terms (in common law)

Question 16

Mirror image rule

Answer 16

acceptance must mirror the offer; common law

Question 17

Under Article 2 is adding terms to an offer a rejection

Answer 17

No. but offerees terms are included only if 1. both parties are merchants, 2. its not a material change and 3. no objection to it within a reasonable time.

Question 18

death of either party before acceptance terminates what kind of offer

Answer 18

a revocable offer

Question 19

starting performance is considered an acceptance in a bilateral contract true or false

Answer 19

true

Question 20

starting performance is considered an acceptance in unilateral contract true or false

Answer 20

false. only full performance is acceptance

Question 21

Mailbox Rule

Answer 21

Acceptance is effective when mailed

Question 22

does the mailbox rule apply to an irrevocable offer

Answer 22

no. acceptance must be recieved by the deadline

Question 23

Name the elements of economic duress

Answer 23

1. bad guy makes an improper threat

2. vulnerable guy has no reasonable alternative but to accept

Question 24

statute of frauds; which type of contracts need to fall w/in sof

Answer 24

certain contracts need to be in writing. these need to be in writing in order to be enforced, if they are not, evidence of the agmt. can be barred from being introduced into evidence.

M-marriage 
Y- years; one or more 
L- land
E- executor 
G- Goods 500$+
S- surety

Question 25

Under the SOF, an Article 2 sale of goods contract must contain

Answer 25

a quantity and be signed by the party to be changed w/ breach.

Question 26

Under the SOF, a common law contract must contain

Answer 26

all material terms and be signed by the defendant to be enforced

Question 27

Exceptions to the SOF

Answer 27

1. leases of one year or less and 2. part performance of real estate sale K

Question 28

Part performance of real estate sale contract exception to statute of frauds: need 2 out of what three occurences

Answer 28

1. some payment, 2. possession and/or 3. improvements

Question 29

___________performance of a service contract satisfies the SOF but ___________ performance does not

Answer 29

full; part

Question 30

for custom made goods party needs to show _______ to satisfy the SOF

Answer 30

substantial beginning

Question 31

one party can use its own signed writing (confirmatory memo) to satisfy the SOF against the other party if:

Answer 31

1. both parties are merchants, 2. writing claims agmt. and has quanity and 3. theres no written objection w/in 10 days

Question 32

Parol Evidence Rule

Answer 32

Keeps out evidence of a prior or contemporaneous agreement (either oral or written) that contradicts a later writing.

Question 33

Implied Warranty of Merchantability

Answer 33

the goods are fit for their ordinary purpose; key fact: seller is a merchant who deals in goods of the kind

Question 34

Implied Warranty of Fitness for a Particular Purpose

Answer 34

the goods are fit for buyers particular purchase; key facts: seller knows buyer has a special purpose and is relying on seller to select suitable goods.

Question 35

A seller can disclaim ________ warranties but not ________ warranties

Answer 35

implied; express

Question 36

Risk of loss: Non-carrier delivery; seller is merchant

Answer 36

seller bears the risk of loss until buyer takes possession of the goods IF the seller is a merchant

Question 37

Risk of loss: non carrier delivery; seller is not merchant

Answer 37

buyer bears risk of loss once seller tenders the goods (makes them available to buyer)

Question 38

Risk of loss: delivery by common carrier; shipment contract

Answer 38

seller must get the goods to a common carrier, make delivery arrangements and notify the buyer

Question 39

Risk of loss: delivery by common carrier; destination contract

Answer 39

seller must get the goods all the way to the destination

Question 40

Perfect Tender Rule

Answer 40

Seller must deliver perfect goods in the right place at the right time; if goods arent perfect buyer has right to reject them