Class 1 - Introduction to US Contract Law

Question 1

What are the 3 types of primary sources contracts law is based upon?

Answer 1

Constitutions, Statutes, Case Law

Question 2

What are the 3 main authorities of contract law, and which of them are binding?

Answer 2

1: Precedent (Binding, dependant on jurisdiction), 2: Statute - the UCC (Binding), 3: Restatement of the UCC (not binding)

Question 3

True or false, a contract dispute may end up in the US Supreme Court?

Answer 3

False. Contract law is based solely upon State level statutes

Question 4

What are examples of a formal contract?

Answer 4

contracts under seal, the ercognazince, the negociatable instrument

Question 5

what are examples of informal contracts?

Answer 5

Bilateral, Unilateral agreemtns

Question 6

Elements of a contract?

Answer 6

Offer, Acceptance, Consideration, Consensus/Meeting of the Minds

Question 7

What is an express contract?

Answer 7

Formed by verbal communication. Assent is directly expressed either verbally or in writing

Question 8

An implied in law contract is…

Answer 8

This is a legal fiction created by the court in the absence of written or verbal assent in order to create an equitable result. Ex. When conduct implicates a contract, but the terms are indipute, an implied in law contract will be the courts resolution to that dispute.

Question 9

An implied in fact contract is…

Answer 9

When the surrounding circumstnaces, conduct, and decalrations of the parties demonstrate the existence of an agreement (Ex. Lottary winnings case of Step v Freeman)
- Can be summarized by “tacit understandings” between people”
- conduct makes contracts

Question 10

These parts of a contract must be communicated for a contract to be valid, and, which of those parts have exceptions? Which have no exceptions?

Answer 10

1. Offer – may have excepctions (inferred offer, public rewards excepction, rewards do not need to be known to be accepted, private offers must to communicated to offeree)
2. Acceptance – may have excepctions (Unilateral contracts has acceptance by performace, mailbox rule)
3. Revocation – may have excepctions (death and option contracts)
4. Rejection (no excepctions, rejection must always be communicated)

Question 11

An offer has these 3 elements

Answer 11

• Must be communicated to offeree, (not nessessarily by the offeror)
• Must have some kind of commitiment to the formation of a contract
• Must be definiate in its terms

Question 12

Are a professionals statements an offer?

Answer 12

typically do not rise to the level of an offer, unless the line of definiteness (specificity) and commitment has been objectively crossed

Question 13

Are advertisements offers?

Answer 13

Generally not offers – mere invitations to begin negociations. UNLESS they limit the number of people who can accept, and are definite, then they matbe an offer

Question 14

Are awards offers? What about private vs public awards?

Answer 14

: Rewaards are offers if they meet the elements. Private rewards must be communicated before acceptance, but public rewards do not need to be communicated before acceptance

Question 15

Private rewards must be ___ to be a valid offer. This is contrary to public rewards

Answer 15

Communicated

Question 16

If Johnny is drunk, offers to sell his car and the buyer accepts, the issue is…

Answer 16

Is Johnny too drunk to have the requisite intent to contract? The interior state of mind is not relevant, only the outwardly manifested behaviour is.

Question 17

In order for an implied in fact contract to be breached, the parties must…

Answer 17

Act outside their previously “tacitly understood” conduct in their relations with one another

Question 18

This is the determinative factor if an advertisement is an offer for offers, or an offer

Answer 18

When the offer is clear, explicit, and leaves nothing open to negociation