3.3 - Law of Contract

Question 1

what is an offer?

Answer 1

a promise made to a specific person/group

Question 2

what are 2 exceptions to an offer?

Answer 2

standing offer - open to many, can be accepted by anyone
invitation to treat - less than a legal offer, request for offers

Question 3

if a party dies or goes insane, what happens to an offer?

Answer 3

it gets released/expired

Question 4

if there’s a counter offer, what happens to the original offer?

Answer 4

it’s terminated

Question 5

if the offer specifies how it should be made, how should the offeree accept?

Answer 5

by the method specified

Question 6

if the offer doesn’t specify how it should be made, how should the offeree accept?

Answer 6

by the same method offer was given

Question 7

can you accept an offer orally?

Answer 7

yes

Question 8

when is an offer’s acceptance considered effective?

Answer 8

when communicated, not received

Question 9

how/when can you accept an offer by mail?

Answer 9

yes, accepted when placed in mailbox

Question 10

if a contract is executed under seal, do you have to have a consideration

Answer 10

no

Question 11

what is a consideration?

Answer 11

when offeror and offeree exchange something to make contract enforceable
doesn’t have to be money

Question 12

is past consideration, consideration?

Answer 12

no

Question 13

can revocation be made prior to or after acceptance?

Answer 13

no

Question 14

unless consideration is paid to keep an offer open for a specific time, can revocation be made at any time prior to acceptance?

Answer 14

yes

Question 15

can you promise to do something in the future for consideration?

Answer 15

yes

Question 16

is consideration an option agreement?

Answer 16

no, options agreement is a separate consideration to keep the offer open

Question 17

what is a legal object?

Answer 17

a legal idea/contract

Question 18

what is considered an infant?

Answer 18

someone under 19

Question 18

what is a legal intention?

Answer 18

serious intention to create a contract

Question 19

if a contract that was signed when a person was an infant is still performed when that person is older, is it still enforceable?

Answer 19

yes as long as both parties are still performing it

Question 20

what is duress?

Answer 20

an actual physical act where the party to the contract has been robbed of their free will

Question 21

what is undue influence?

Answer 21

any improper or wrongful constraint, manipulation, or persuasion whereby the will of a person is overpowered and he is induced to do or refrains from doing an act which he would not do or would do if left to act freely

Question 22

what is a latent defect?

Answer 22

can’t be discovered upon reasonable inspection
must be disclosed, in a disclosure must be separate from any agreement of purchase and sale

Question 23

what is a patent defect?

Answer 23

should be discovered upon reasonable inspection
buyer beware (caveat emptor)
doesn’t have to be disclosed

Question 24

what is the main difference between a defect and a stigma?

Answer 24

defect’s impact can be objectively determined (through appraisals)
stigma’s effect depends on an individual’s subjective consideration (i.e. murder house)

Question 25

what is a common mistake?

Answer 25

when both parties make the same mistake about the fundamental term of a contract

Question 26

what is a mutual mistake?

Answer 26

both parties each make a different mistake (innocent)

Question 27

what is a unilateral mistake?

Answer 27

one party is mistaken, the other party is aware but does nothing (deceit)

Question 28

what is the doctrine of privity?

Answer 28

only the parties to a contract have the right to sue or be sued

Question 29

what can & can’t a person assign under a contract?

Answer 29

can assign benefits, can’t assign liabilities

Question 30

what is the correct order: contract, frustration, mistake

Answer 30

mistake -> contract -> frustration

Question 31

what are the 2 types of assignment?

Answer 31

statutory & equitable

Question 32

what is the remedy for common law for breach of contract?

Answer 32

damages (but the injured party does have a duty to mitigate damages - keep losses at a minimum)

Question 33

what are the legal requirements for a statutory assignment?

Answer 33

in writing
for the whole amount
given to promissor

Question 34

can equitable law be used to remedy is damages are awarded?

Answer 34

no

Question 35

what are the 4 remedies under equitable law?

Answer 35

specific performance (if property is unique/has no substitutes or contract breached, has to complete an act/contract)
injunction
mandatory injunction
quantum merit (pay reasonable sum)

Question 36

does an assignment terminate the original contract between the assign and the third party?

Answer 36

no

Question 37

exception to doctrine of proivity?

Answer 37

assignment