Test 3

Question 1

Bi-Lateral Contract

Answer 1

Both parties make a promise

Question 2

Unilateral Contract

Answer 2

One party makes a promise that can only be fulfilled by actually doing something

Question 3

Promisory Estoppel

Answer 3

In a case with NO CONTRACT, this is a possible remedy if a plaintiff can prove:

1) promise
2) reasonable reliance
3) injustice

even if there is no consideration for the other party

Question 4

Rescission

Answer 4

Equitable remedy to put the parties back to their previous position, as if there was never a contract to begin with

Question 5

Revocation

Answer 5

Done by the offeror, they decide they don’t want to do the deal

Question 6

Injunction

Answer 6

A court order requiring a person to do or cease doing a specific action

Question 7

Parol Evidence

Answer 7

Anything said, done, or written before signing the contract

Question 8

Integrated Contract

Answer 8

A contract that is written to the final and complete expression of their final agreement

Integrated = No PE
Not integrated = PE

If integrated contract has an ambiguous term, was written under duress, fraud, or misrepresentation, then court may allow specific PE

Question 9

Force Majeure Clause

Answer 9

Terms of contract that allows cancellation of contract in case of extraordinary & unexpected events
“in the event of act of God, labor disputes, accidents, or transportation difficulties”

Question 10

Equitable Remedies

Answer 10

Specific Performance, Reformation, Promissory Estoppel, Quasi-Contracts, Rescission

Question 11

Specific Performance

Answer 11

It is injunction, it is a court order that will require a party to complete their contractual obligation
usually requires a unique item (such as land)

Question 12

Reformation

Answer 12

Court will rewrite a part of the contract, often used in cases of non-compete clauses

Question 13

Substantial Performance

Answer 13

Fulfilling enough of obligation to warrant recognition or compensation & remedy the minor losses

Question 14

Commercial Impracticability (& frustration of purpose)

Answer 14

Neither party could have anticipates, truly unexpected future event
Financial burden to require party to fulfill promise due to event, has no value for one party

Question 15

Express Contract

Answer 15

Conditions are clear from the words in the contract

Question 16

Implied Contract

Answer 16

Clear from agreement that parties implied a condition

Ex: if there was a contract to mow someone’s lawn for four weeks, but on the fourth week the person comes back to mow the lawn, the other party doesn’t stop them. So, they must pay for the weeks their lawn was mowed, even though the contract was only for four weeks.

Question 17

Quasi-Contract

Answer 17

Remedy when there is NO CONTRACT
Injured plaintiff can show that the defendant benefitted, a reasonable expectation of consideration of the benefit, thus defendant would be unjustly enriched if the court does not step in

Full-performance by seller
Partial-performance by buyer (partial payment + entered or improved)

Question 18

Quantum Meriut

Answer 18

“as much as one deserves”

The court can remedy

Question 19

6+ Elements

Answer 19

Offer
Acceptance
Consideration
Legality
Consent
Capacity
+ In Writing (SOF)

Question 20

Primary purpose of a contract

Answer 20

To make matters predictable & help the court determine damages upon breach

If in writing, it is to provide the court with the best evidence of parties’ intentions

Question 21

Void or Voidable: Fraud

Answer 21

Voidable

Question 22

Void or Voidable: Intoxication

Answer 22

Voidable

Question 23

Void or Voidable: Gambling unauthorized by statute

Answer 23

Void

Question 24

Void or Voidable: Usury

Answer 24

Void

Question 25

Usury

Answer 25

Contracts that charge exuberant/ too much interest

Question 26

Void Contracts

Answer 26

1. Does it violate a statue? 2. Bad public policy Ex: Wagers Insurance Licensing Usury

Question 27

Requirements for an enforceable written contract

Answer 27

Defendant's signature Subject matter (if goods, quantity needed)

Question 28

Mailbox rule

Answer 28

Acceptance is effective when acceptance is sent Termination effective upon receipt of termination letter Ex: Day 1 - Offer made A Day 3 - Offer rec'd B 4 - Offer rescinded A 5 - Acceptance sent B 6 - Rescission rec'd B = A valid contract Ex 2: Day 1 - Offer made A Day 3 - Offer rec'd B Day 4 - Offer rescinded A 5 - Rescission rec'd B 6 - Acceptance sent B = Not a valid contract

Question 29

Rejection

Answer 29

Done by the offeree If they offer a counter-offer, this is rejection + a new offer, leaving the first one dead and rejected

Question 30

Statute of Frauds

Answer 30

Contracts that must be in writing 1. any transfer of interest in land for >1 year 2. any contract that cannot be performed in <1 year 3. any agreement to pay the debt of another (like a cosigner) 4. in consideration of marriage 5. for sale of goods >$500 total

Question 31

What needs to happen before a party becomes obliged under the contract?

Answer 31

Conditions

Question 32

Consideration

Answer 32

1. both must get something of measurable value in contract 2. promise to give something of value 3. must have bargained for consideration An act or forbearance can be consideration

Question 33

Peppercorn Rule

Answer 33

Court won't consider value of deal, if bargained exchange has value, there is consideration

Question 34

Act (consideration)

Answer 34

Any act not legally required to do in first place

Question 35

Forbearance

Answer 35

Restraining from doing something that one had a legal right to do

Question 36

Not considered consideration

Answer 36

Illusory promise - no actual commitment Preexisting duty - something party already required to do Past consideration - completed act cannot be consideration (unless there is additional work/modification added on)

Question 37

Exculpatory Clause

Answer 37

Contract provision that attempts to release one party from liability in event of negligence or harm (like a ski resort) during performance of the contract

Question 38

Reliance Interest

Answer 38

Can’t show actual losses, but can prove money spent relying on other party promise

Question 39

Restitution Interest

Answer 39

Can’t show expectation or actual losses, but can show other party has benefitted (court will place value on benefit)