Chapter 9: Contracts

Question 1

Sources of Contract law

Answer 1

Common law for all contracts except sales and leases

Question 2

Source for sales and lease contract law

Answer 2

Uniform Commercial Code

Question 3

The function of contracts is to

Answer 3

Provides stability and predictability for commerce

Question 4

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

Answer 4

Contract

Question 5

The elements of a contract are

Answer 5

Agreement
Consideration
Contractual Capacity
Legality

Question 6

An agreement consists of

Answer 6

An offer and acceptance

Question 7

A consideration is

Answer 7

bargained for exchanged

Question 8

Legality of a contract

Answer 8

Purpose of contract must be legal at the time of execution

Question 9

Defenses to enforceability of a contract

Answer 9

Voluntary consent

Form

Question 10

Offeree must only promise to perform

Answer 10

Formation of Bilateral Contract

Question 11

Offeree can accept the offer only by completing the contract performance

Answer 11

Formation of Unilateral contract

Question 12

Offer cannot be revoked once substantial performance has begun

Answer 12

Irrevocable

Question 13

These contracts must be in writing to be enforceable

Answer 13

Formal Contracts

Question 14

These contracts do not necessarily need to be in writing

Answer 14

Informal Contract

Question 15

Words, oral or written, in a contract

Answer 15

Expressed Contracts

Question 16

Conduct creates and defines the terms of the contract

Answer 16

Implied in fact contracts

Question 17

Requirements for an implied contract

Answer 17

Plaintiff furnished goods or services
Plaintiff expected to be paid
Defendant had the chance to reject and did not

Question 18

A contract that has been fully performed on both sides

Answer 18

Executed Contract

Question 19

A contract that has not been fully performed on either side

Answer 19

Executory Contracy

Question 20

Agreement, consideration, contractual capacity, and legality

Answer 20

Valid Contract

Question 21

No contract at all

Answer 21

Void Contract

Question 22

Unenforceable Contract

Answer 22

Voidable contract

Question 23

Courts will enforce contract whose meaning are clear from the face of the instrument

Answer 23

Plain Meaning Rule

Question 24

If terms are clear and unambiguous, the courts will not admit this

Answer 24

Extrinsic testimony or evidence

Question 25

If terms are ambiguous, courts may admit this

Answer 25

Extrinsic testimony or evidence