9/25/13

Question 1

What is a contract?

Answer 1

A voluntary agreement between 2 or more parties where those parties agree to perform a particular act or service (or agree to refrain from doing s.th). The agreement is supported by consideration, making it enforceable by law.

Question 2

What happens if one of the parties breaches the contract (fails to perform)?

Answer 2

The non-breaching party can seek damages or remedy where money damages will not suffice

Question 3

Which types of formation can a contract take?

Answer 3

Unilateral or bilateral K

Question 4

What is a unilateral K?

Answer 4

An invitation by the offeror to the offeree to perform a particular act or refrain from doing s.th; no formal acceptance, rather the full completion of the act that constitutes acceptance and full execution of the contract

Question 5

What is a bilateral K?

Answer 5

Both parties exchange mutuality of promises (detrimental reliance)

Question 6

Which form do contracts take?

Answer 6

Can be either written or oral, but if there’s a breach, you have the burden of proof

Question 7

How can a contract be formed?

Answer 7

Express K or Implied K

Question 8

What is an express K?

Answer 8

By means of language (oral or writing), must be contained in words

Question 9

What is an implied in fact K?

Answer 9

Contract will arise as a result of the conduct or actions of the parties or may be custom or practise in a given business/industry/trade

Question 10

What is an implied in law K?

Answer 10

Legal fiction (court is going to impose financial quasi-contract to protect injured party)

Question 11

What must be proven for an implied in law K?

Answer 11

1) plaintiff: performed service or conferred some benefit upon defendant
2) plaintiff: performed that service with the expectation of being paid/compensated

Question 12

What would allowing the defendant to walk away without justly compensating the plaintiff amount to in an implied in law K?

Answer 12

Unjust enrichment

Question 13

What are the 5 key elements necessary for a contract?

Answer 13

1) valid offer
2) valid acceptance
3) legal capacity (legally competent)
4) proper consideration
5) Satisfy some lawful purpose

Question 14

What is a valid offer?

Answer 14

Proposal by offeror to offeree to perform a particular act

Question 15

What must the offeror demonstrate in a valid offer?

Answer 15

Some serious intent that he/she will be bound on acceptance by the offeree

Question 16

What has to be clearly identified in a valid offer?

Answer 16

Parties to the contract

Question 17

What has to be specified in a valid offer?

Answer 17

Consideration being exchanged by the parties; time; manner of performance

Question 18

What must a valid offer be done?

Answer 18

Directly communicated to the offeree or his/her designated agent

Question 19

When can you revoke an offer?

Answer 19

1) prior to acceptance by the offeree
2) where there is a time frame set for accpetance
3) where there is death or destruction of subject matter
4) where there is death or incompetence of one of the parties (particularly offeror)
5) counter-offer by the offeree

Question 20

When does a revocation become effective?

Answer 20

When it is received by the offeree

Question 21

How does the offeree accept an offer?

Answer 21

1) must accept very mirror-image terms of offer

2) communicate acceptance to offeror

Question 22

When does acceptance become effective?

Answer 22

Upon dispatch; if offeree uses a method of acceptance other than specified by offeror: upon receipt