Applicable Law/Types of Contracts

Question 1

Applicable Laws

Answer 1

1) UCC - Article 2 governs the sale of goods, with applicalbe rules also applying to merchants
2) Common Law - majority rules governing contracts other than the sale of goods
3) Mixed Contracts - are determined by the more important part of the deal, except divided contracts in which both UCC and common law rules may apply.

Question 2

Types of Contracts

Answer 2

Bilateral, Unilateral, Divisible, Option, Quasi, Ads

Question 3

Bilateral Contract

Answer 3

Promise for a promise. Acceptance by promise or start of performance

Question 4

Unilateral Contract

Answer 4

Contract in which the offeror requests performance rather than a promise. (ex. pay upon completion) Acceptance at beginning of performance

Question 5

Divisible Contract

Answer 5

Performance divided into 2 + parts under the contract; number of parts due from each party is the same. Performance between parties is equivalent .(ex. Construction of 10 homes marks completion, divisibility means they can recover the pro rata share of each out finished on the way to the completion of the 10)

Question 6

Option Contract

Answer 6

Agreement to leave open in exchange for consideration. Offeree gives consideration for a promise by the offeror not to revoke an outstanding offer

Question 7

Quasi-Contract

Answer 7

Equitable remedy when contract results are unfair. Prevents unjust enrichment. P can recover damages for his reliance on the quasi-contract

Question 8

Ads

Answer 8

Generally are invitation to offer unless specific terms are set including identifiable person, quantity, time, price, etc.

Question 9

Void Contract

Answer 9

One that is totally without any legal effect from the beginning. Cannot be enforced by either party (e.g. agreement to commit a crime)

Question 10

Voidable Contract

Answer 10

One that one or both parties may elect to avoid (e.g. by raising a defense that makes it voidable, such as infancy or mental illness)

Question 11

Unenforceable Contract

Answer 11

An agreement that is otherwise valid but which may not be enforceable due to various defenses extraneous to contract formation, such as the statute of limitations or statute of frauds

Question 12

Vague Agreement

Answer 12

May invalidate contract unless acceptance or part performance makes the vague term clear. Formation fails if an offer provides that a material term will be agreed on at a future date (agreement to agree)

Question 13

Reasonable Terms by Court

Answer 13

Certain missing terms may be supplied by the court if they are consistent with the parties’ intent. UCC can supply reasonably price and time for performance.