7.2 & 7.3 & 7.4 - Contracts Flashcards

1
Q

A pro is that the law will enforce:

A

Contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the 5 methods of contract formation?

A
  1. Express contracts
  2. Implied-in-fact contract
  3. Implied-in-law or Quasi Contract
  4. Unilateral contract
  5. Bilateral contact
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

A contract formed by language, oral or written:

A

Express contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

A contract formed by language, oral or written:

A

Express contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

A contract formed by conduct:

A

Implied-in-fact contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

A remedy that allows a plaintiff to recover a benefit unjustly conferred upon the defendant - a remedy to prevent unjust enrichment:

A

Implied-in-law contract or Quasi contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

A contract where there is one promise which is given in exchange for performance. A contract is not formed until performance is completed.

A

Unilateral contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Ann promises to give barb $10 if barb will wash Ann’s car is an example of what type of contract?

A

Unilateral contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

A contract where there are two promises - a promise is exchanged for another promise. A contract is formed as soon as the promises are exchanged.

A

Bilateral contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Ann promises to give Barb $10 is Barb promises to wash Anns car. What type of contract is this?

A

Bilateral contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Contracts involving real estate, insurance services, and employment (RISE) are governed by:

A

Common law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

The uniform commercial code (UCC) sales article governs:

A

Contracts for the sale of goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the 3 requirements for a legally enforceable contract?

A
  1. An agreement made up of an offer and an acceptance
  2. Exchange of consideration
  3. Lack of defenses
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Agreeing to the same bargain at the same time or a meeting of the minds is referred to as the:

A

Mutual assent or agreement of the contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Widely distributed statements such as advertisements are considered:

A

Not offers but only invitations to seek offers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Advertisements that limits the scope of the persons who can accept such as “first 5 customers can buy coffee makers for $1” are considered to be:

A

An offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

An offer for the sale of goods (UCC) generally only need to include:

A

Quantity term (100 widgets, etc.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

An offer to create a contract under common law (real estate, insurance services, employment) must include:

A

Identity of the offeree
Price
Time of performance
Quantity involved
Nature of work to be performed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

To create a contract, an offer must be accepted before:

A

It is terminated

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

An offer can be terminated in a number of ways by either party, what are those ways?

A

Revocation by offer or
Rejection by offeree
Termination by operation of law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

A counteroffer is considered to be:

A

A rejection and an offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

If either party dies or becomes incompetent prior to acceptance, the offer is terminated. What is the exception to this?

A

If it is an option contract, it is not terminated by death of a party

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is the mailbox rule?

A

Acceptances are generally effective when they are dispatched (mailed, emailed, faxed, etc.)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What are the two elements of consideration?

A
  1. There must be something of legal value given by each party
  2. There must b a bargained-for-exchange
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Something is of legal value if it:

A

Constitutes either a detriment to the promise or a benefit to the promissor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

This can make a contract unenforceable:

A

Defenses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

A contracting arty can establish the defense of fraud if they can prove:

A
  1. Misrepresentation of material fact by defrauding party
  2. Scienter (intent to deceive)
  3. Intent to induce reliance
  4. Reasonable reliance
  5. Damages
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Occurs when a party is deceived into signing something that does not look like a contract:

A

Fraud in the execution

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Occurs when a defrauded party is aware they are making a contract, but the terms are materially misrepresented:

A

Fraud in the inducement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

Which is void and which is voidable:
Fraud in the execution
Fraud in the inducement

A

Fraud in the execution: void
Fraud in the inducement: voidable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

An innocent misrepresentation has all the elements of fraud except:

A

Scienter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Is innocent misrepresentation void or voidable?

A

Voidable by the party who relied on the misrepresentation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

This arises when a party;s free will to contract is overcome by an unlawful use of a threat of harm:

A

Duress

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

If the harm threatened to sign a contract is physical force, the contract is void or voidable?
If the harm threatened to sign a contract I economic or social, the contract if void or voidable?

A
  1. Void
  2. Voidable
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

This is when a party’s free will to contract is overcome by the defendants abuse of a position of trust or confidence. The person in the position of trust or confidence uses the position to take advantage of the other’s weakness, infirmity, or distress:

A

Undue influence

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Undue influence makes a contract void or voidable?

A

Voidable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

A mutual mistake makes a contract void or voidable?

A

Voidable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Ann enters into a contract with barb to purchase barbs car for $1,000. Unbeknown to either party, the car was destroyed by a fire what happens to the contract?

A

The contract is void

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Generally, a unilateral mistake (mistake made by one party) is or is not a defense in court?

A

Is a defense
Exception: unilateral mistake as to material fact is a defense if the other party knew or should have known of the mistake

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

Failure to have a license required to protect the public (CPA, attorney, doctors, etc.) makes a contract void or voidable?
Failure to have a license but the license is required merely to raise revenue (all vendors at a fair pay a $25 license fee), makes a contract void or voidable?

A

Void
Neither, its enforceable

40
Q

A person can become bound on the contracts they enter into as a minor upon reaching the age of majority by ratifying the contract. A contract may be ratified by:

A
  1. Failing to disaffirm within a reasonable time after reaching majority
  2. Expressly ratifying the entire contract orally or in writing
  3. Retaining or accepting the benefits
41
Q

Which types of defenses make a contract void?

A
  1. Fraud in the execution
  2. Duress (physical)
  3. Illegality
  4. Adjudicated mental incompetency
42
Q

This provides that legal action must be commenced within a certain period of time:

A

Statute of limitations

43
Q

Although contracts statues of limitations vary, what is the typical length of time?

A

4 to 6 years measured from the time of breach

44
Q

Although the general rule is that contracts need not be in writing, size contracts require some type of writing to be enforceable with the party trying to void the contract needing to have signed it. Those contracts include (MYLEGS):

A
  1. Contracts regarding the consideration of Margie
  2. Contracts which cannot be performed within 1 year
  3. Contracts involving interest in land
  4. Contracts by executors or similar representatives to pay estate debts out of personal funds
  5. Contracts for the sale of goods for $500 or more
  6. Contracts to act as surety (pay of the debt of another)
45
Q

If a sales contract has been modified, does the original contract or the modified contract determine whether writing is required?

A

The modified contract

46
Q

If after the parties enter into a contract an event occurs that will make performance of the contract objectively impossible (impossible for ANYONE to perform), what happens?

A

Impossibility is an available defense

47
Q

An agreement to substitute one contract for another, and satisfaction is the execution:

A

An accord

48
Q

Available as a defense to a party who has been released from a contract. It occurs when a new contract substitutes a new party for an old party in an existing contract.

A

Notation

49
Q

A condition that must occur before the other party must perform:
A condition that must occur simultaneously:
A condition that will occur after a party’ duty to perform h arisen and will cut off that duty:

A

Condition precedent
Conditions concurrent
Condition subsequent

50
Q

If one party prevents the other from performing contract duties, what has occurred?

A

A material breach and the non reaching party is excused from performance

51
Q

Prohibits a party in a lawsuit involving a fully integrated written contract from introducing evidence at a trial

A

Parol evidence rule

52
Q

A clause in a contract that specifies what damages will be if there is a breach:

A

Liquidated damages

53
Q

Punitive damages are available for what? And not available for what?

A

Available for fraud
Not available for breach of contract

54
Q

This cancels the contract and restores the parties to their former position:

A

Rescission or cancelation

55
Q

Under this, a party cannot rescind or cancel if a contract has been substantially performed. The non-breaching party;s only remedy is monetary damages for the minor breach.

A

Under the common law

56
Q

Applies only to the sales of goods:

A

Sales Article of the UCC

57
Q

The following are excluded from the sales article and are covered by common law contracts:

A

Personal services
Real estate
Intangible personal property (stocks, patents)
Fixtures - things attached to the land

58
Q

One who deals in goods of the kind sold or who has special knowledge regarding the goods being sold:

A

Merchant

59
Q

To qualify as a merchant’s firm offer what three things must be?

A
  1. Seller must be a merchant
  2. Offer must be in writing and signed by the merchant
  3. Offer must not stay open for longer than 3 months
60
Q

The general rule is that under the UCC, a shipment of non conforming goods is:

A

Both an acceptance and a breach of contract

61
Q

An exception to the GR that shipment of non conforming goods is that: if the seller reasonable notifies the buyer that nonconforming goods are shipped only as an accommodation to the buyer, the shipment is:

A

Not an acceptance and is a counteroffer

62
Q

During auctions, the bid is the what? And the fall of the hammer is the what?

A

Bid = offer
Hammer = acceptance

63
Q

All auctions are with reserve, which means:

A

The seller does not have to sell unless an adequate bid is made

64
Q

Under UCC, a modicfication of a contract for the sale of goods is what?

A

Enforceable even without consideration as long as the modification is sought in good faith

65
Q

Under common law, a modification of a contract Is what?

A

Not enforceable unless consideration is given

66
Q

Under the UCC, the statue of limitations is how long?

A

4 years from the time of breach

67
Q

Contracts for the sale of goods for $500 or more must be evidenced by a writing signed by the party being sued. What are the 4 exception?

A
  1. Contracts for specially manufactured goods
  2. Merchant sends another merchant a written confirmation
  3. Contracts parties have admitted in court
  4. Contracts that have been performed to the extent that the performance has been accepted
68
Q

Under the sales article, a contract will be discharged for objective impossibility to perform or just for mere impracticability?

A

For mere impracticability it not need to be impossible

69
Q

As a general rule, the sellers basic duty is to:

A

Hold conforming goods for the buyer and give the buyer reasonable notice to enable the buyer to take delivery

70
Q

If goods are damaged or destroyed after risk of loss has passed to the buyer:

A

The buyer is not discharged from the contract, rather the buyer must still pay the contract price

71
Q

Title and risk of loss cannot pass until the goods are:

A

Identified

72
Q

Goods are identified when they:

A

Are marked, segregated, or in some manner identified as goods for a specific buyer

73
Q

In this case, a buyer usually picks up the goods at the sellers place of business:
In this case, the parties contemplate a common carrier will be used to ship the goods:

A
  1. Non carrier cases
  2. Carrier cases
74
Q

Under a non carrier case, risk of loss passes to the buyer upon the seller’s tender of delivery of the goods to the buyer if the seller is or is not a merchant?

A

Seller is not a merchant

75
Q

Under a non carrier case, risk of loss passes to the buyer only upon actual delivery to the buyer if the seller is or is not a merchant?

A

Seller is a merchant

76
Q

Under a carrier case, risk of loss passes to the buyer when goods are delivered to the carrier with shipment contracts or with destination contracts?

A

With shipment contracts

77
Q

Under a carrier case, risk of loss passes to the buyer when goods reach the destination and the seller tenders delivery with shipment contracts or with destination contracts?

A

Destination contracts

78
Q

This is a shipment contract. The seller must get the goods to the carrier for risk of loss to pass.

A

FOB the sellers place

79
Q

This is a destination contract. The seller must get the goods to the destination and tender delivery for risk of loss to pass.

A

FOB buyers place

80
Q

If the seller sends nonconforming goods, the risk of loss:

A

Remains with the seller regardless of the shipping terms unless the buyer accepts the defective goods

81
Q

The UCC, provides for 2 types of non final sales:

A

Sale on approval
Sale or return

82
Q

The sale is not final until the buyer gives approval. Title and risk of loss remain with the seller until the buyer approves:

A

Sale on approval

83
Q

The sale is completed on delivery, but the buyer has the right to return the goods. Risk remains with the buyer until the olds are completely returned to the seller:

A

Sale or return

84
Q

If there is no agreement as to when title will pass, title passes when:

A

The seller completes their delivery requirements

85
Q

What are the four types of warranties that would make a perfect tender (goods and delivery conform exactly to the contract without any defects):

A
  1. Express warranties
  2. Implied warranty of title
  3. Implied warranty of merchantability
  4. Implied warranty of fitness for a particular purpose
86
Q

Will arise from any statement of fact or promise made by the seller, any description of the goods made by the seller, or any sample or model shown by the seller. The goods will conform to the statement of fact, to the description, or to the sample or model:

A

Express warranties

87
Q

The seller has good title and the right to transfer that title. There are no unstated encumbrances. The goods do not infringe on any patent or trademark:

A

Implied warranty of title

88
Q

The implied warranty of title can only be disclaimed by:

A

Specific language or by circumstances that indicate the seller is not guaranteeing he has title. A general disclaimer cannot disclaim the title (merchandise is sold as is, its all faults, etc.)

89
Q

Can an express warranty be disclaimed?

A

No

90
Q

A warranty that the goods are fit for ordinary purposes. Is made only on sales by merchants:

A

Implied warranty of merchantability

91
Q

Implied warranty of merchantability can be disclaimed by:

A

A statement that the goods are sol “as is” or “with all faults”

92
Q

This warranty arises when the buyer relies on any seller to select goods suitable for the buyer’s particular purpose. The seller must know of the particular purpose and that the buyer is relying on him or her to select the goods:

A

Implied warranty of fitness for particular purpose

93
Q

Fitness of merchantability can be disclaimed by:

A

Selling the goods “as is” or “with all faults”

94
Q

Occurs when either the buyer or seller indicates in advance of performance that he will not perform:

A

Anticipatory repudiation

95
Q

The buyer usually has the right to inspect goods prior to payment however, the buyer may not inspect prior to payment in what case?

A

A cash on delivery sale (COD)

96
Q

The right to recover goods wrongfully in the hands of the seller:

A

Replevin

97
Q

If the buyer has paid part r all of the price and the seller is insolvent:

A

The buyer may recover the goods from the seller if the goods are identified

98
Q

If the owner of goods entrusts them to a merchant who deals in goods of the kind sold, and the merchant sells them in the ordinary course of business to a bond ride purchases for value, the purchaser:

A

Gets title to the goods even though the merchant did not have good title