Final Exam

Question 1

Hawkins v. McGee

Answer 1

Expectation Damages: purpose is to put the plaintiff in as good a position as he would have been in had the defendant kept his contract
Rule helps to avoid litigation

Question 2

Problem of the Day
Hawkins v. McGee
Oil

Answer 2

1,000 barrels of oil @ $50
$44 buyer refuses to go through with the transaction
- 50-44 6 x 1,000=$6,000
He should go through with the sale and take the loss

Question 3

Hamer v. Sidway

Answer 3

Promises to Make a Gift

Rule: In general a waiver of any legal right at the request of another is sufficient consideration for a promise

Question 4

Consideration

Answer 4

-Something of legal value in —Exchange for a promise

necessary for existence of contract

Question 5

Consideration consists of two elements

Answer 5

• something of legal value must be given

- must be a bargained for exchange

Question 6

test for Legal Value

Answer 6

Promisee suffers a legal detriment

Promisor receives a legal benefit

Question 7

test for bargained for exchange

Answer 7

Process of bargaining or inducement that leads to an enforceable contract
- naturally present in most commercial transactions

Question 8

Illegal Act

Answer 8

Promise to refrain from doing an illegal act is not enforceable
Reason: a promise to refrain from doing an illegal act does not constitute a legal detriment

Question 9

Kirksey

Answer 9

Dear Atillico and Brother in Law moved family on a promise

Question 10

Batsakis

Answer 10

Rule: courts do not inquire into the adequacy or sufficiency of consideration, drachmae

Question 11

According to the legal experts in contract law, if I say to you if you go over to the bookstore there you may purchase a sweatshirt on my credit

Answer 11

It is often difficult to determine whether words of condition in a promise indicate a request for consideration, mere condition in a gratuitous promise

Question 12

Gratuitous Promises

Answer 12

Contract law has a problem with promises that are freely given and not induced by a promise of some benefit
-unenforceable due to lack of consideration

Question 13

Promises to Make a Gift

Answer 13

Promises made of sense of moral obligation lack consideration
completed gift promise is not revocable

Question 14

Free Market Principle in Am Contract Law

Answer 14

Parties to contract free to place whatever value they desire on a particular bargain

Question 15

Adequacy of Consideration

Answer 15

Non-equivalence of consideration may be the evidence of fraud, duress, undue influence or mistake

Question 16

Feinberg v. Pfeiffer Co.

Answer 16

Rule: A promise which the promisor should reasonably expect to induce action or forbearance on the part of the promisee and which does induce such action or forbearance is binding if injustice can be avoided only be enforcement of the promise

Question 17

Past Consideration

Answer 17

prior act or performance that does not support a new contract

Question 18

Promissory estoppel

Answer 18

An equitable doctrine that prevents the withdrawal of a promise by a promisor if it will adversely affect a promisee who has adjusted his or her position in justifiable reliance on the promise

Question 19

Think Red Owl promissory estoppel, Feinberg

Answer 19

promise in which the promisor should reasonably expect to induce action or forbearance on part of the promisee

Question 20

Elements of promissory estoppel

Answer 20

promisee reasonably relies on the promise by promisor
promisor is aware promissee relied on promise
promissee suffers detriment or forbearance due to reliance
Injustice occurs as a result

Question 21

Wood v. Lucy Duff Gordon

Answer 21

Issue: Was wood’s promise illusory and therefore not supported by consideration

Question 22

Lucy v. Zehmer

Answer 22

When a person’s words and actions, judged under a reasonable standard, demonstrate an intent to agree to a contract, his/her unexpressed subjective state of mind is irrelevant.