Ch. 9 Intro. to Contracts

Question 0

Sale

Answer 0

The passing of title to goods from seller to buyer for a price

Question 1

Uniform Commercial Code

Answer 1

Governs the sale of personal property in all states except Louisiana

Question 2

Goods

Answer 2

Tangible personal property

Question 3

Personal Property

Answer 3

Any property other than real property (land)

Question 4

General Contract Law (common law)

Answer 4

Governs all contracts outside the scope of the Code

Question 5

Real Property

Answer 5

Land and anything attached to it, including buildings and any right, privilege, or power in the real property

Question 6

Promise

Answer 6

The intention to act or to refrain from acting in a specified manner

Question 7

Contract

Answer 7

A binding agreement that the courts enforce

Question 8

Breach

Answer 8

Failure to perform a contract

Question 9

All contracts are promises, but…

Answer 9

Not all promises are contracts.

Question 10

What are the 4 basic requirements of a Contract?

Answer 10

1. ) Mutual Assent
2. ) Consideration
3. ) Legality of Object
4. ) Capacity

Question 11

Mutual Assent

Answer 11

The parties must agree by words or conduct to enter into a contract.

Question 12

Consideration

Answer 12

Each party must intentionally exchange a legal benefit or detriment.

Question 13

Legality of Object

Answer 13

The purpose of the contract must NOT be criminal, tortious, or against public policy.

Question 14

Capacity

Answer 14

The parties must have contractual capacity (i.e. not incompetent, minor, or intoxicated)

Question 15

What are the standard classifications of Contracts?

Answer 15

1. ) Express or implied
2. ) Bilateral or unilateral
3. ) Valid, void, voidable, or unenforceable
4. ) Executed or executory

• NOT mutually exclusive

Question 16

Implied in Fact Contract

Answer 16

The parties manifest assent by action or conduct.

Question 17

Express Contract

Answer 17

The parties manifest assent in words.

Question 18

Bilateral Contract

Answer 18

Both parties make promises; each party is both a promisor and a promisee.

Question 19

Unilateral Contract

Answer 19

Only one party makes a promise.

Question 20

Valid Contract

Answer 20

Meets all the requirements of a binding contract; enforceable promise or agreement

Question 21

Void Contract

Answer 21

Does NOT meet the requirements of a contract, so NOT a contract; just a promise with no legal effect

Question 22

Voidable Contract

Answer 22

• Defective, but not wholly lacking in legal effect
• The manner in which the contract was formed was poor, or one of the parties lacked capacity to agree.
• IS a contract, but the law permits one or more of the parties to avoid the legal duties of the contract

Question 23

Unenforceable Contract

Answer 23

A contract that the law provides NO remedy for breaching

Question 24

Executed Contract

Answer 24

No longer a contract, because all of the duties under it have been performed

Question 25

Executory Contract

Answer 25

Contracts that are still partially or entirely unperformed by one or more of the parties

Question 26

Promissory Estoppel

Answer 26

Doctrine that the courts use to enforce noncontractual promises to avoid injustice

Question 27

Quasi Contract (or a contract implied in law)

Answer 27

An obligation imposed by law to avoid injustice

Question 28

3 elements required to impose a Quasi-Contractual obligation:

Answer 28

1. ) A BENEFIT conferred upon the defendant by the plaintiff
2. ) The defendant’s APPRECIATION or KNOWLEDGE of the benefit
3. ) ACCEPTANCE or RETENTION of the benefit by the defendant