Requirement that No Defenses Exist

Question 1

The following persons have legal incapacity to contract:

Answer 1

1. Minors;
2. Mentally incapacitated persons;
3. Intoxicated persons.

Question 2

Elements of undue influence are…

Answer 2

(1) undue susceptibility to pressure by one party, and
(2) excessive pressure by the other party.

Question 3

Contracts induced by duress or undue influence are…

Answer 3

voidable and may be rescinded as long as they are not affirmed.

Question 4

If a contract incudes a term with at least two possible meanings and neither party is aware of the ambiguity…

Answer 4

there is no contract, unless the parties intended the same meaning.

Question 5

If a contract incudes a term with at least two possible meanings and both parties are aware of the ambiguity…

Answer 5

there is no contract unless both parties intended the same meaning.

Question 6

If a contract includes a term with at least two possible meanings and only one party knew (or should have known) of the ambiguity…

Answer 6

there is a binding contract based on what the ignorant party reasonably believed to be the meaning of the ambiguous words.

Question 7

If both parties entering into a contract are mistaken about existing facts relating to the agreement, the contract may be voidable by the adversely affected party if:

Answer 7

(1) The mistake concerns a basic assumption on which the contract is made;
(2) The mistake has a material effect on the agreed-upon exchange; AND
(3) The party seeking avoidance did not assume the risk of the mistake.

(look for the existence of the subject matter – not the value)

Question 8

If only one party is mistaken about the facts relating to the agreement (unilateral mistake), the mistake will not prevent formation of a contract, unless…

Answer 8

the nonmistaken party knew or had reason to know of the mistake.

Question 9

Unconscionability is a defense to contract formation which occurs when…

Answer 9

there is an unfair surprise and oppressive terms in the bargaining process.

Question 10

In Virginia, unconscionability applies only to the formation of contracts, where as the obligation of…

Answer 10

good faith applies only to the performance or enforcement of contracts.

Question 11

The statute of frauds applies to contracts involving…

Answer 11

1. Marriage (M)
2. Contracts to be performed within 1 year (Y)
3. Land Contracts (L)
4. Executor or administrator contracts (E)
5. Goods for $500 or more (G)
6. Surety Contracts (S)

Question 12

Executor or administrator contracts are contracts to…

Answer 12

pay an estate’s debts out of their own funds.

Question 13

Suretyship promises are…

Answer 13

promises to answer for the debt or default of another.

(does NOT apply if the main purpose of the contract is to serve a pecuniary interest of the promisor)

Question 14

Contracts for the sale of goods for $500 or more do NOT fall under the statute of frauds if:

Answer 14

1. The goods are specially made (S);
2. There is a written confirmation by a merchant (W);
3. Admission in court/testimony (A);
4. Performance has already occurred (paid made & accepted or received & accepted) (P).

Question 15

In Virginia, a contract to devise real property or leave all one’s property by will to another in exchange for services (is/is not) within the Statute of Frauds.

Answer 15

IS

Question 16

In Virginia, if one wants to enforce an oral contract to devise real property or leave all one’s property to another in exhange for goods, the oral devise will be enforceable only if:

Answer 16

(1) The agreement is certain & definite in its terms;
(2) The acts done in part performance were done pursuant to the agreement; and
(3) The contract was so far executed that a refusal to enforce would operate as fraud upon the party rendering services.

Question 17

Are lifetime contracts subject to the SoF?

Answer 17

No – they COULD be completed within a year.

Question 18

A promise creating an interest in land must be evidenced by writing. This includes agreements for the sale of real property as well as:

Answer 18

1. Leases for 1+ year;
2. Easements for 1+ year;
3. Mortgages & security liens;
4. Fixtures;
5. Minerals or structures if they are to be severed by the buyer.

Question 19

Construction contracts (do/do not) generally fall within the statute of frauds.

Answer 19

do not

Question 20

Noncompliance with the Statute of Frauds renders the contract…

Answer 20

unenforceable at the option of the party to be charged.

Question 21

The common law rule is that even if a written contract expressly provides that it may by modified only by a writing, the parties…

Answer 21

can orally modify the contract.

Question 22

Under the UCC, if a contract explicitly provides that it may not be modified or rescinded except by a signed writing, that provision is…

Answer 22

given effect.

However – if the contract is between a merchant and nonmerchant, the provision requires the nonmerchant’s separate signature.

Question 23

If a seller conveys property to the buyer (full performance), the seller (can/can not) enforce the buyer’s oral promise to pay.

Answer 23

Can

Question 24

If a buyer seeks to enforce an oral land sale contract, under the doctrine of part performance, the buyer must have:

Answer 24

2/3 of the following:
1. Possession;
2. Payment (in whole or part); or
3. Valuable improvements.

Question 25

In contracts between merchants, a written confirmatory memo will satisfy the SoF and bind the recipient if:

Answer 25

(1) the recipient has reason to know of the confirmation’s contents; and
(2) the recipient does not object in writing within 10 days of receipt.

Question 26

Writings evidencing land sale contracts must contain…

Answer 26

(1) a description of the land, and
(2) the price.

Question 27

Writings for employment contracts must state…

Answer 27

the length of employment.

Question 28

Merchant writings evidencing sales of goods contracts under the UCC must indicate…

Answer 28

(1) that a contract has been made, and
(2) specify the quantity term.

Question 29

Article II requires that contracts for the sale of goods $500+ must contain…

Answer 29

(1) a quantity term; and
(2) Defendant’s signature.

Question 30

To satisfy the SoF in Virginia, the writing need not conclusively establish the existence of a contract as long as it…

Answer 30

provides a basis for believing that the offered evidence rests on a real transaction.

Question 31

If a contract violates the SoF, a party can sue for…

Answer 31

1. The reasonable value of the services or part-performance rendered, or
2. The restitution of any other benefit that has been conferred.

Question 32

If part-performance takes a contract out of the SoF, the performing party has the option of suing…

Answer 32

on the contract for expectation damages rather than merely in restitution for the value of the benefit conferred.