Contract Formation

Question 1

Contract Formula

Answer 1

K=MA (O+A) + C -D

Question 2

Contract definition

Answer 2

Enforceable agreement

Question 3

Quasi Contract

Answer 3

agreement is formed but no contract, party can get restitution if other party u justly enriched

Question 4

Bi lateral K

Answer 4

A promise in exchange for a promise
Accept in reasonable way

Question 5

Uni lateral K

Answer 5

Full performance to accept offer (eg public reward)

Question 6

2 laws that govern k

Answer 6

Ucc Art II - sales of goods
Common law -everything else

Question 7

Offer

Answer 7

Proposal to enter into K based on obj reasonable person standard

Question 8

Ads

Answer 8

Generally not offer but rather invitations to deal

Exception: ad has promise + definite terms + offered ID

Question 9

General offer elements

Answer 9

1. Price
2. Subject matter
3. Offerees name

Question 10

Land offers

Answer 10

Need price + description

Question 11

Sales of goods offer

Answer 11

Price + quantity (output/requirement K ok)

Question 12

Employment offer

Answer 12

Nature of the work

Question 13

3 ways an offer can terminate

Answer 13

1. Lapse in time
2. Revocation
3. Rejection

Question 14

Lapse in time

Answer 14

Failure to respond to offer in reasonable time

Question 15

Rejection

Answer 15

When rejects

• counter offer kills OG offer
•Mere bargaining Qs don’t kill offer
•conditional acceptance = kills OG offer + new counter offer

Question 16

Revocation

Answer 16

Offeror retracts before acceptance
(Can be direct or indirect)

Question 17

When is a revocation effective?

Answer 17

Upon receipt

Question 18

What offers can’t be revoked

Answer 18

1. Option K for consideration
2. Unilateral K
3. Merchants firm offer
4. Foreseeable reliance

Question 19

Option K

Answer 19

Person pays consideration to keep K open

Question 20

Merchants firm offer

Answer 20

Merchant signs to keep offer open
•merchant=anybody doing business
•signed=broad
Don’t need consideration

Question 21

Is mere preparation enough to constitute the star of performance in a unilateral K?

Answer 21

No

Question 22

Acceptance of unilateral K

Answer 22

By completing performance

Question 23

Acceptance of Bi lateral K

Answer 23

By promise or promise to begin performing

Question 24

Can silence ever be an acceptance?

Answer 24

Generally no unless custom/prior dealing

Question 25

Mirror image rule

Answer 25

Common law, acceptance must mirror terms of OG offer

Question 26

Battles of the Forms

Answer 26

Additional terms can be added if
•2 merchants
•terms won’t materially alter K
•offeror doesn’t obj

Question 27

Mailbox Rule

Answer 27

Offer accepted when placed in mail

Doesn’t apply if:
•offer =irrevocable
•offer says otherwise
•rejection before acceptance

Question 28

Consideration

Answer 28

Bargained for exchange for something of legal value

Question 29

Past consideration

Answer 29

Doesn’t count

Question 30

Pre existing duty rule

Answer 30

Common law —-need new consideration to modify K (can’t do something you were already gonna do)

Exception: fair in unforeseen circumstances or K w/new 3rd party

Question 31

Modification if sales of goods

Answer 31

UCC- just need good faith, no consideration

Question 32

Promissory Estoppel

Answer 32

Necessary to prevent an injustice when no K
1. Expected that person would rely on K
2. Casper person to rely

Question 33

Is a merchants firm offer revocable?

Answer 33

No! (For time in K or 3 months if no time stated)

Question 34

Mutual assent

Answer 34

Offer + acceptance

Objective standard (doesn’t matter what the parties subjectively thought)

Question 35

Bids

Answer 35

Create an option K because other party reasonably relies on it

Question 36

A creditor discharging debt = consideration?

Answer 36

Yes