Chapter 6- Contracts

Question 1

Uniform Commercial Code

Answer 1

UCC, is the body of rules designed to render commercial consistency across the 50 states. Only 49 adopted, Louisiana partial
Made by NCCUSL and ALI

Question 2

Article 2 (UCC)

Answer 2

Sales

Question 3

Section 2-105 (UCC)

Answer 3

Defines goods as tangible, movable things like cars, clothing, and appliances.
Not included are Real Estate, Stocks, Bonds and Money

Question 4

Lease

Answer 4

Contract for the possession or use of land or other property.
Goods on one side Rent on the other

Question 5

Consideration

Answer 5

The bargained for legal value that one party agrees to pay or provide to secure the promise of another

Question 6

Capacity

Answer 6

The parties must have the legal ability to enter the contract
Sane, Sober or Legal of Age

Question 7

Genuineness of Consent

Answer 7

The parties must knowingly agree to the same thing.
If there is no meeting due to a mistake or fraud, the contract doesn’t exist because there is no assent

Question 8

Legality of Purpose

Answer 8

The object of the contract must not violate the law of public policy

Question 9

Bilateral Contract

Answer 9

A promise for a promise

Question 10

Unilateral Contract

Answer 10

A promise for an act

Question 11

Express Contract

Answer 11

Explicitly stated in writing or orally

Question 12

Implied in fact contract

Answer 12

Inferred from the conduct or parties

Question 13

Quasi Contract

Answer 13

Implied contract created by a court to prevent unjust enrichment

Question 14

Executory Contract

Answer 14

Not yet fully preformed

Question 15

Executed

Answer 15

Fully preformed by all parties

Question 16

Valid Contract

Answer 16

Includes all the necessary ingredients of a binding contract

Question 17

Unenforceable Contract

Answer 17

Contract exists, but a legal defense presents enforcement

Question 18

Void Contract

Answer 18

No enforceable contract

Question 19

Voidable Contract

Answer 19

One party has the option of either enforcing or voiding the contract

Question 20

Option Contract

Answer 20

Separate contract in which an offeror agrees not to revoke the offer for a stated period in exchange for some valuable consideration

Question 21

Firm Offer

Answer 21

UCC, signed written offer by a merchant containing assurances, held open, not revocable

Question 22

Acceptance

Answer 22

Actual or implied receipt or retention

Question 23

Express Authorization

Answer 23

The offeror specifies a means of communication by which the offeree can accept

Question 24

Implied Authorization

Answer 24

Offerors’ behavior or previous dealings suggest an agreeable means of communicating acceptance

Question 25

Legal Detriment

Answer 25

Any act or forbearance by a promise

Question 26

Duress

Answer 26

Overpowering the will of a person by force or fear

Question 27

Promissory Estoppel

Answer 27

Protects those who foreseeably and reasonably rely on the promises of others

Question 28

Ratify

Answer 28

Adopting or affirming a prior nonbinding contract

Question 29

Unilateral Mistake

Answer 29

One party made a error

Question 30

Blue Laws

Answer 30

Laws forbidding business on sundays

Question 31

Usury

Answer 31

Charing the interest rate exceeding legally permissible maximum

Question 32

Exculpatory Clause

Answer 32

Seeks to relieve one of the parties from any liability ( Limited Liability )

Question 33

Conditions Precedent

Answer 33

Event must occur before the parties to the contract are obliged to preform

Question 34

Conditions Concurrent

Answer 34

At the same time

Question 35

Implied in fact conditions

Answer 35

Not explicitly stated, derived by the conduct of the parties

Question 36

Implied in Law Conditions

Answer 36

Conditions imposed by the court to avoid unfairness

Question 37

Accord and Satisfaction

Answer 37

Binding agreement to settle a disputed claim