MidTerm

Question 1

What are the 4 elements of a contract and their definitions?

Answer 1

Agreement (Offer & Acceptance)
Consideration - Bargained for Exchange
Capacity- (Contractual) Ability to enter a contract
Lawful Object- Object of contract must be legal

Question 2

Who are the parties to a contract?

Answer 2

The Offeror and Offeree - There must be 2 parties to a contract in order for it to be valid.

Question 3

What is a bilateral contract?

Answer 3

A contract that is a “promise for a promise”

Question 4

What is a unilateral contract?

Answer 4

A contract that is “one promise for one act” The offeror’s offer can only be accepted by performance of an act by the offeree.

Question 5

What is the objective theory of contracts is judged by what standard?

Answer 5

The reasonable person standard.

Question 6

What are Quasi-contracts or Implied in Law Contracts?

Answer 6

Both are terms for the same situation in which is an obligation created by the law to prevent unjust enrichment where no contract actually existed.

Question 7

As long as any party has not performed, the contract remains what?

Answer 7

Executory

Question 8

Effectiveness of an offer is based on what usually?

Answer 8

Communication to the offeree - The offeree has the power to create a contract by accepting the offer.

Question 9

Ads, catalogs are NOT treated as what?

Answer 9

Valid Offers

Question 10

Reward Offers fall into what contract category?

Answer 10

UNILATERAL Contracts

Question 11

What is it called when the offeror tells the offeree they want to TAKE BACK the offer?

Answer 11

REVOCATION

Question 12

When is a rejection of an offer effective?

Answer 12

When it is RECEIVED

Question 13

When is a revocation of an offer effective?

Answer 13

Any time before the offeree accepts.

Question 14

When is an acceptance effective with a bilateral contract?

Answer 14

Upon dispatch (i.e the Mailbox rule - Still valid even if lost in transit)

Question 15

What is an enforceable contract?

Answer 15

One that can be enforced by the courts if one party fails to uphold or perform their contractual obligations or terms

Question 16

Common Law of Contracts is what?

Answer 16

Judge made case law (state case law)

Question 17

What is the Uniform Commercial Code?

Answer 17

A uniform commercial code system among the 50 states that can but does not HAVE to be adopted- It is for the sale & lease of goods ONLY - no services!

Question 18

What are 3 defenses to the Enforcement of a Contract?

Answer 18

1 Genuineness of Assent - Genuine agreement; no coercion or undue influence, voluntary

2 Writing & Form - A particular contract that must be in writing or in a special form.

3 Objective Theory of Contracts - Intent was express or implied based on objective reasonableness.

Question 19

Implied in Fact contract is based on what?

Answer 19

The conduct of the parties

Question 20

What makes a contract valid?

Answer 20

If all contract elements are met and it is enforceable by at least one party.

Question 21

What makes a contract void?

Answer 21

If it missing any of the contract elements (not really a contract at all) or if one party can void, avoid, or enforce the contract it is VOIDABLE.

Question 22

If a contract has been fully performed by both parties it is called what?

Answer 22

Executed

Question 23

What is considered BOTH a rejection and a new offer?

Answer 23

A counteroffer

Question 24

Who determines the manner in which an offer is accepted?

Answer 24

The OFFEROR

Question 25

UOA - the mode of acceptance is

Answer 25

ANY REASONABLE MODE

Question 26

What is common forms of consideration?

Answer 26

Money or property

Question 27

Which contracts are PRESUMED to be supported by consideration by the law?

Answer 27

Written Contracts

Question 28

A contract in which a SELLER agrees to sell all of its production to ONE buyer is called what?

Answer 28

An OUTPUT contract

Question 29

A mutual mistake ALLOWS either party to do what?

Answer 29

Rescind the contract - Peerless contract

Question 30

A mistake involving the cost or rarity of something is called what?

Answer 30

A mistake of value (painting) does not void a contract usually

Question 31

What is the definition of undue influence?

Answer 31

The persuasion of a dominant party with a confidential or fiduciary relationship overcoming the freewill of the innocent party.

Question 32

What are the elements of a duress claim?

Answer 32

Threatening, physical harm, extortion, threat to bring or drop a CRIMINAL lawsuit -

Question 33

What are 7 things that can terminate an offer?

Answer 33

1. RRCDDSL - Revocation by the Offeror, Rejection by the Offeree, Counteroffer, Death (either party), Destruction of Subject Matter, Supervening Illegality, Lapse of Time

Question 34

What is Fraud in the inception?

Answer 34

When a person does not know what they are signing due to deception (not really a contract - Void)

Question 35

What is Fraud in the Inducement?

Answer 35

A person understands what they are signing but were lied to - voidable by innocent party

Question 36

What is Fraud by Concealment?

Answer 36

One party takes specific action to conceal a material fact from the other party.

Question 37

Mis-Stating the law either intentionally or unintentionally is called what?

Answer 37

Mis-Representation of the law - not actionable as fraud and cannot rescind the contract.

Question 38

What is In Pari Delicto?

Answer 38

Equally Culpable or criminal - equal fault

Question 39

What is an Exculpatory Clause?

Answer 39

A clause relieving one or both parties from tort liability for ordinary negligence (Soccer Club)

Question 40

What is a requirments contract?

Answer 40

When a purchaser agrees to buy all of its needs OF A SPECIFIC ITEM (firestone tires & Ford) and the seller agrees to fill all the purchasers needs for a specific amount of time.

Question 41

What is Supervening Illegality?

Answer 41

The enactment of a statute or regulation making the object of an offer illegal.

Question 42

What is lapse of time?

Answer 42

The stated time period expiration of an offer or the reasonable amount of time if unstated.

Question 43

What is Usary Law?

Answer 43

A law that sets an upper limit on the interest rate that can be charged on certain types of loans.varies state to state - designed to protect from loansharks.

Question 43

The idea that an offeree accepts an offer as stated is called what?

Answer 43

The mirror image rule.

Question 44

What is ratification?

Answer 44

When a minor accepts a contract after they reach majority age but entered into originally as a minor.

Question 45

What are unconscionable contracts?

Answer 45

Otherwise lawful contract is grossly oppressive or unfair that it is unjust & unenforceable. A contract of adhesion falls under this category- a standardized form w/ a take it or leave it basis- seller has all the power offering buyer no real bargaining in terms.

Question 46

What is disaffirmance & infancy doctrine?0

Answer 46

The act of a minor to rescind a contract (under infancy doctrine) which is a law protecting minors from contracts entered into w/ adults.

Question 47

What are the 5 possible reasons for rescission?

Answer 47

``` Material Breach of contract Fraud Duress Undue influence Mistake ```