Chapter 13

Question 1

Contract

Answer 1

a legally enforceable promise

Question 2

Covenant not to compete

Answer 2

An agreement not to compete against a party for a set time within a designated geographic area

Question 2

Elements of a contract

Answer 2

Agreement, Consideration, Capacity, Legality

Question 3

What does the agreement consist of?

Answer 3

an offer by one party to enter into a contract and an acceptance of the terms

Question 4

Consideration

Answer 4

the bargained-for exchange; what each party gets in exchange for their promise under a contract

Question 5

Capacity

Answer 5

the legal ability to enter into a binding agreement

Question 6

Who does not have capacity?

Answer 6

those who are under age, suffering from mental illness, and intoxicated persons

Question 7

Legality

Answer 7

to be enforceable the contract cannot be illegal or against public policy

Question 8

Lack of genuine assent

Answer 8

duress, fraud, undue influence, misrepresentation

Question 9

Genuine assent

Answer 9

parties entered contract freely

Question 10

2 defenses to the enforcement of a contract

Answer 10

lack of genuine assent, lack of proper form

Question 11

The objective theory of contracts

Answer 11

we base the existence of a contract on the parties’ intent and base its interpretation on how a reasonable person would interpret it

Question 12

UCC

Answer 12

Uniform Commercial Code: contract law that is applicable to transactions involving the sale of goods

Question 13

What does the UCC govern?

Answer 13

contracts for the sale (exchnage for a price) of goods (tangible, moveable okjects) and contracts for the lease of goods

Question 14

Bilateral Contract

Answer 14

promise for a promise

Question 15

Unilateral Contract

Answer 15

a promise for an act

Question 16

Express Contracts

Answer 16

clearly set forth in either written or spoken words

Question 17

Implied Contracts

Answer 17

a contract that arises not from words of agreement but from the conduct of the parties

Question 18

What 3 things must happen for an implied contract

Answer 18

1) the plaintiff provide property/service to the defendant 2) the plaintiff expected to be paid for property/service and a reasonable person who expected to be paid 3) the defendant had an opportunity to reject the property/service, but did not

Question 19

Quasi-contracts

Answer 19

not actually contracts… a court-imposed contractual obligation to prevent unjust enrichment

Question 20

Plain-meaning rule

Answer 20

words in a contract should be given their ordinary meaning