7.2 & 7.3 & 7.4 - Contracts Flashcards
A pro is that the law will enforce:
Contract
What are the 5 methods of contract formation?
- Express contracts
- Implied-in-fact contract
- Implied-in-law or Quasi Contract
- Unilateral contract
- Bilateral contact
A contract formed by language, oral or written:
Express contract
A contract formed by language, oral or written:
Express contract
A contract formed by conduct:
Implied-in-fact contract
A remedy that allows a plaintiff to recover a benefit unjustly conferred upon the defendant - a remedy to prevent unjust enrichment:
Implied-in-law contract or Quasi contract
A contract where there is one promise which is given in exchange for performance. A contract is not formed until performance is completed.
Unilateral contract
Ann promises to give barb $10 if barb will wash Ann’s car is an example of what type of contract?
Unilateral contract
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.
Bilateral contract
Ann promises to give Barb $10 is Barb promises to wash Anns car. What type of contract is this?
Bilateral contract
Contracts involving real estate, insurance services, and employment (RISE) are governed by:
Common law
The uniform commercial code (UCC) sales article governs:
Contracts for the sale of goods
What are the 3 requirements for a legally enforceable contract?
- An agreement made up of an offer and an acceptance
- Exchange of consideration
- Lack of defenses
Agreeing to the same bargain at the same time or a meeting of the minds is referred to as the:
Mutual assent or agreement of the contract
Widely distributed statements such as advertisements are considered:
Not offers but only invitations to seek offers
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:
An offer
An offer for the sale of goods (UCC) generally only need to include:
Quantity term (100 widgets, etc.)
An offer to create a contract under common law (real estate, insurance services, employment) must include:
Identity of the offeree
Price
Time of performance
Quantity involved
Nature of work to be performed
To create a contract, an offer must be accepted before:
It is terminated
An offer can be terminated in a number of ways by either party, what are those ways?
Revocation by offer or
Rejection by offeree
Termination by operation of law
A counteroffer is considered to be:
A rejection and an offer
If either party dies or becomes incompetent prior to acceptance, the offer is terminated. What is the exception to this?
If it is an option contract, it is not terminated by death of a party
What is the mailbox rule?
Acceptances are generally effective when they are dispatched (mailed, emailed, faxed, etc.)
What are the two elements of consideration?
- There must be something of legal value given by each party
- There must b a bargained-for-exchange
Something is of legal value if it:
Constitutes either a detriment to the promise or a benefit to the promissor
This can make a contract unenforceable:
Defenses
A contracting arty can establish the defense of fraud if they can prove:
- Misrepresentation of material fact by defrauding party
- Scienter (intent to deceive)
- Intent to induce reliance
- Reasonable reliance
- Damages
Occurs when a party is deceived into signing something that does not look like a contract:
Fraud in the execution
Occurs when a defrauded party is aware they are making a contract, but the terms are materially misrepresented:
Fraud in the inducement
Which is void and which is voidable:
Fraud in the execution
Fraud in the inducement
Fraud in the execution: void
Fraud in the inducement: voidable
An innocent misrepresentation has all the elements of fraud except:
Scienter
Is innocent misrepresentation void or voidable?
Voidable by the party who relied on the misrepresentation
This arises when a party;s free will to contract is overcome by an unlawful use of a threat of harm:
Duress
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?
- Void
- Voidable
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:
Undue influence
Undue influence makes a contract void or voidable?
Voidable
A mutual mistake makes a contract void or voidable?
Voidable
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?
The contract is void
Generally, a unilateral mistake (mistake made by one party) is or is not a defense in court?
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