MBE Contracts Flashcards
Misses (11 cards)
Impracticality
Defense of Impracticality
The defense of impracticability is available when (1) an unanticipated event makes performance impracticable, (2) nonoccurrence of the event was a basic assumption of the contract, and (3) the party seeking discharge is not at fault. Non-extraordinary increases in the cost of performance do not make performance impracticable.
Mutual Assent
Revocation of a general offer
An advertisement is a general offer, not a mere invitation to negotiate, if it (1) specifies the subject matter, quantity, and price and (2) places a reasonable limit on who may accept the offer. A revocation of a general offer is only effective if it is publicized at least as heavily as the offer.
Timing of Conditions
Delay or Discharge of Performance based on condition
When performance under a contract is contingent upon the occurrence of a condition precedent, performance is not due until the condition occurs or its nonoccurrence is excused
Mailbox Rule
Mailing acceptance, then rejection
Where an offeree mails an acceptance and later mails a rejection, a contract is formed upon dispatch of the acceptance—regardless of which communication is received first.
Timing of Conditions
Difference between condition precedent and condition subsequent
Condition precedent* – delaysperformance until a specified event occurs and requires the plaintiffto prove that the event occurred to prevail
Condition subsequent – excusesperformance once a specified event occurs and requires the defendantto prove that the event occurred to avoid liability
Expectation
When are consequential damages available when special circumstances are involved?
Consequential damages arising from the nonbreaching party’s special circumstances are only recoverable if the breaching party (1) knew about the special circumstances or (2) could have reasonably foreseen the harm, in light of those circumstances, that would result from the breach.
Remedies
Specifically Identified Goods destroyed
When a contract deals with specifically identified goods, complete destruction of the goods excuses each party’s duty to perform if the destruction occurred (1) without fault of either party and (2) before the risk of loss passed to the buyer.
Employment
Employer breaching employment agreement remedies for employee
When an employer breaches an employment agreement, the employee can recover the unpaid salary under the contract. That recovery is reduced by the compensation the employee earned or could have earned by making reasonable efforts to secure comparable employment.
Offer to Satisfy Debt with Check
If a debt is disputed in good faith, then the debtor can offer to satisfy the debt by giving the creditor a check with a conspicuous “payment-in-full” notation. But if the debt is liquidated (ie, certain and undisputed in amount), then it cannot be satisfied by a check for a lesser amount—even if the creditor cashes the check.
UCC Remedies
Lost-volume seller remedy
has a practically inexhaustible inventory of the type of goods in question (eg, electronics store can buy more personal computers of the kind at issue than it can sell at retail) and
but for the breach, would have made two sales (and two profits) rather than one (eg, personal computer at issue is a popular product).
When a seller has a practically inexhaustible inventory of the goods and but for a buyer’s breach would have made two sales and two profits rather than one (ie, lost-volume seller), the seller is entitled to lost profit from the original sale plus incidental damages.
