Quiz 6 Flashcards
R2 §71: Requirement of Exchange; Types of Exchange
(1) To constitute consideration, a performance or a return promise must be bargained for
(2) A performance or return promise is bargained for if it is sought by promisor in exchange for his promise and is given by the promisee in exchange for that promise.
(3) The performance may consist of:
(a) act other than promise
(b) forbearance
(c) creation, modification or destruction of legal relation
(4) performance/return promise may be given to promisor or to some other person. It may be given by the promisee or by some other person.
R2 §86: Promise for Benefit Received
(1) Promise made in recognition of a benefit previously received` by the promisor from the promisee is binding the to extent necessary to prevent injustice
(2) Promise not binding under Subsection (1)
(a) if promisee conferred the benefit as gift or other reasons the promisor has not been unjustly enriched
OR
(b) to extent that its value is disproportionate to benefit
R2 §90: Promise Reasonably Inducing Action or Forbearance
(1) Promise which promisor should reasonably expect to induce action or forbearance on the part of the promisee or 3rd person and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of the promise.
(2) Charitable subscription or marriage settlement is binding under (1) w/o proof that promise induced action or forbearance.
R2 §87(2): Option K
(2) An offer which the offeror should reasonably expect to induce action or forbearance of substantial character on the part of offeree before acceptance and which does induce such action or forbearance is binding as option K to the extent necessary to avoid injustice.
R2 §110: Classes of Contracts Covered (under the Statute of Frauds)
Following classes of K are subject to statute, commonly called the Statute of Frauds, forbidding enforcement unless there is written memorandum or an applicable exception:
(a) K of executor or administrator to answer for the duty of his decedent (executor administrator provision)
(b) K to answer for duty of another (suretyship provision)
(c) K made upon consideration of marriage (marriage provision)
(d) K for sale of interest in land (land-contract provision)
(e) K that is not to be performed within one year from the making thereof (1-year provision)
(5) Subject to requirement of a writing
R2 §131: General Requisites of Memorandum
Unless additional requirements are prescribed by the particular statute, a K within Statute of Frauds is enforceable if it is evidenced by any writing, signed by or on behalf of the party to be charged, which
(a) reasonably identifies the subject matter of the contract, (b) is sufficient to indicate that a contract with respect thereto has been made between the parties or offered by the signer to the other party, and (c) states with reasonable certainty the essential terms of the unperformed promises in the contract.
R2 §132: Several Writings
Memorandum may consist of several writing if 1 of the writings is signed and the writings in the circumstances clearly indicate that they relate to same transaction.
R2 §133: Memorandum Not Made As Such
Except in the case of writing evidencing a K upon consideration of marriage, that Statute may be satisfied by a signed writing not made as memorandum of a K.
R2 §134: Signature (of Memorandum)
Signature to a memorandum may be any symbol made or adopted with intention, actual or apparent, to authenticate the writing is that of the signer.
R2 §135: Who Must Sign (Memo of K)
Where memorandum of K within Statute is signed by fewer than all parties to K and the Statute is not otherwise satisfied, the K is enforceable against the signer but not against the others.
R2 §136: Time of Memorandum
A memorandum sufficient to satisfy the Statute may be made or signed at any time before or after the formation of a K.
R2 137: Loss or Destruction of a Memorandum
Loss or destruction of a memo does not deprive it off its effect under the Statute.
R2 §375: Restitution When K is Within Statute of Frauds
A party who would otherwise have a claim in restitution under K is not barred from restitution for the reason that the K is unenforceable by him b/c of the Statute of Frauds unless the Statute provides otherwise or its purpose would be frustrated by allowing restitution.
UCC §2-201: Formal Requirements; Statute of Frauds
(1) Except as otherwise provided in this section a contract for the sale of goods for the price of $500 or more is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a K for sale has been made between the parties and signed by the party against whom enforcement is sought or by his authorized agent or broker. A writing is not insufficient b/c it omits or incorrectly states a term agreed upon but the contract is not enforceable under this paragraph beyond the quantity of goods shown in such writing.
(2) Between merchants if within a reasonable time a writing in confirmation of the contract and sufficient against the sender is received and the party receiving it has reason to know its contents, it satisfies the requirements of subsection (1) against such party unless written notice of objection to its contents is given within 10 days after it is received.
(3) A K which does not satisfy the requirements of subsection (1) but which is valid in other respects is enforceable:
(a) if the goods are to be specially manufactured for the buyer and are not suitable for sale to others in the ordinary course of the seller's business and the seller, before notice of repudiation is received and under circumstances which reasonably indicate that the goods are for the buyer, has made either a substantial beginning of their manufacture or commitments for their procurement; or (b) if the party against whom enforcement is sought admits in his pleading, testimony or otherwise in court that a contract for sale was made, but the contract is not enforceable under this provision beyond the quantity of goods admitted; or (c) with respect to goods for which payment has been made/ accepted or which have been received and accepted.
