Assess 1

Question 1

Contract

Answer 1

A promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty.

Question 2

Promise

Answer 2

A manifestation of intention to act or refrain from acting in a specified way, so made as to justify a promisee in understanding that a commitment has been made.

Question 3

Implied-in-Fact contract

Answer 3

Manifesting an Intention by Action

Question 4

Implied-in-Fact contract - 2 Elements

Answer 4

1) Mutual Agreement ~and~

2) Intent to Promise

Question 5

Quasi-Contract

(Unjust Enrichment) {Implied - in - Law}

Answer 5

• NO Promise but proceed as if there was one

Question 6

Quasi-Contract - 3 Elements

Answer 6

1) Benefit conferred on the Defendant by the Plaintiff ~and~
2) Appreciation by the defendant of such a benefit ~and~
3) Acceptance and Retention by the defendant

Question 7

Forward contracts -

Answer 7

1) Promise to sell in the future
2) Does not have to be written; can be oral

Ex: The cotton farmers Futures Contract

Question 8

If you do something without being asked then …?

Answer 8

it’s voluntary / a gift
and
no compensation is due

Question 9

Must First decide if ____ ?

Second decide if it _____ ?

Answer 9

1) there is a PROMISE !
a. No Promise than No Contract
b. What is the Promise ??

2) is ENFORCABLE
a. by consideration ?

Question 10

EXAM TIPS FOR CONSIDERATION/QUID PRO Quo ESSAY

a. ALWAYS SAY WHY … THERE IS_____ . BECAUSE…
- or-
b. THERE WAS NOT ____ BECAUSE…

c.. Is there past or current _________?
d. Or was it a _____ promise?
e,. Was there a benefit/detriment.
f. Promise and return promise?

Answer 10

a. CONSIDERATION
b. DETRIMENT

IF THERE IS A PLAUSIBLE ARGUMENT TO THE CONTRARY SAY IT!

c. consideration
d. gratuitous
e. yes / no - what was it?
f. what in exchange for what

Question 11

A Promise to give a Gift ….is it consideration?

Answer 11

NO, it’s Not Enough b/c it’s gratuitous

Question 12

Can you bargain for a pension after you are done working?

Answer 12

NO, Can’t bargain for something (like a service) in the past / Has to be at start of work

Question 13

Nominal consideration … does the court determine value?

Answer 13

The court does NOT generally get into determining value of consideration.

Question 14

Promissory Estoppel is because (a) and why is it used (b)?

Answer 14

a) Promise to do something in the future when there is no exchange or bargain
b) to stop an injustice

Question 15

Promissory Estoppel - 4 Elements

Answer 15

1) actual Reliance on the promise that induced action
2) The reliance was Foreseeable to the breaching party (promisor)
3) That it was clearly left the promisee worse off,
~and~
4) That Injustice can only be avoided by enforcement.

[is binding if injustice can be avoided by enforcement of the promise]
[damages are limited]

Question 16

Can you have a Non-Competition Agreement ?

Answer 16

Not AFTER he was already working b/c no consideration

BUT if condition of employment, a raise, duties, title, etc then there was consideration

Question 17

Can you give Up a VALID Legal Claim or Legal Right as Consideration

Answer 17

RULE: Does the person giving up the claim have a Good Faith Belief and Some reasonable basis for the validity of the claim?
Then it’s giving up a legal claim and OK

Question 18

Is a “Pre-Existing Duty” consideration ?

Answer 18

RULE: The performance or the promise to perform a pre-existing duty does not constitute consideration

Question 19

3 Elements required to enforce modification of Services contract not fully performed by either side

Answer 19

1) Not fully performed on either side 
~and~
2) Modification is fair and equitable 
~and~
3) The modification is prompted by circumstances that parties did NOT anticipate when they made the contract

Question 20

Illusory Promise

Answer 20

if one party commits BUT the other party has the ability to reduce their consideration to ZERO, then there is no consideration by that party
– If parties can breech or are restricted , then it’s not illusory

Question 21

Reviving a Stale Claim / Reviving a Pre-existing Duty or Obligation

Answer 21

• if there was a pre-existing legal obligation and
• it ceased b/c of the statute of limitations,
• then if there is a new promise to pay (all or part),
• • it will be binding **

Question 22

A consideration is ,….

Answer 22

… a bargained for exchange or Quid Pro Quo