Contract Formation

Question 1

Define Contract

Answer 1

Agreement
Between 2+ parties
Creating reciprocal obligations
Enforceable at law
(ABC_E)

Question 2

Elements of a contract

Answer 2

Mutual assent (offer and acceptance)
Consideration

Question 3

Bilateral Contract

Answer 3

K where offeror sought acceptance in the form of a promise

promise for promise

Question 4

Unilateral Contract

Answer 4

K where the offeror sought acceptance by the offeree undertaking specific performance or forbearance
(promise for a future act)

Question 5

When is unilateral contract created?

Answer 5

when offeree begins performance of action sought by offeror (not mere preparation)

Question 6

When is unilateral contract ONLY satisfied by full performance?

Answer 6

when clearly indicates in offer; or

an offer to the public (such as reward)

Question 7

Sources of K Law

Answer 7

Common law or

UCC governs transactions in moveable goods

Question 8

Define goods

Answer 8

all things moveable at teh time of identification to the contract for sale

Question 9

Offer

Answer 9

Display of willingness to
Enter into a contract
on Specified terms
made in a way that would lead a RPP to understand that,acceptance having been sought, would result in binding K
(DESK)

Question 10

Option

Answer 10

something of value given to hold offer open

Question 11

Offer Misc.

Answer 11

Offeror is master of the offer;
can revoke at an time prior to acceptance
stays open for reasonable amount of time w/ exception for partial performance
offer gives power of acceptance to offeree

Question 12

Advertisement

Answer 12

never an offer; an invitation or solicitation of an offer (except in certain circumstances if RPP would understand intent to be offer).
Izadi . Machado Ford

Question 13

Acceptance

Answer 13

Agreement,
either Express or implied
to the Terms of an offer
so that a Binding K is formed
(AET at BK)

Question 14

Mailbbox Rule

Answer 14

only applies to acceptance.

once written communication is put i mailbox, acceptance becomes effective “at moment of dispatch”

Question 15

Mailbox Rule Exceptions

Answer 15

if K expressly states otherwise; or

not reasonable under circumstances

Question 16

Conditional Acceptance

Answer 16

if acceptance conditioned on new terms, is a Rejection/Counteroffer

Question 17

Mirror Image Rule

Answer 17

acceptance must be mirror image of offer to become binding K

Question 18

Last Shot Rule

Answer 18

party firing last doc going to provide offer which is accepted

Question 19

Counteroffer

Answer 19

offeree’s new offer that
Varies the terms of original offer
is a rejection of original offer

Question 20

Defective Acceptance

Answer 20

is a counter offer

Ellefson v Megadeth

Question 21

Objective Rule of Ks

Answer 21

one having the capacity t understand a written document who signs without reading is bound by signature; intent is immaterial (Ray v. Eurice & Bros.)

Question 22

Termination of Offer

Answer 22

Revocation terminates offeree’s power of acceptance when communicated:
directly or indirectly (RPP would understand)
effective when received.
“received” is when it comes into the “possession” or deposited in authorized place; need not be read by recipient to be effective

Question 23

Limitations on Offeror’s Power to Revoke

Answer 23

Option K;
Detrimental Reliance
Particl Performance (unilateral Ks)

Question 24

Consideration

Answer 24

something of Value
(performance, forbearance or a return promise)
Received by a promisor from a promisee
in eXchange for something of value
Given by the proimisor to the promisee
(Virgin Runs XXX Guns)

Question 25

Quid pro Quo

Answer 25

Something for something

Question 26

Bargained-for Theory of Consideration

Answer 26

Must have reciprocal inducement:
promise induces another promise
something given in exchange for a promise

Question 27

Gratuitous Promise

Answer 27

No altrusim in Ks; gift not consideration

Question 28

Nominal Consideration

Answer 28

consideration has to occur as a “matter of fact”; can’t be a gift or sham

Question 29

Peppercorn Rule

Answer 29

can’t weigh consideration

Question 30

Token Consideration

Answer 30

if consideration is devoid of value wll usually be considered a gift

Question 31

Past Consideration

Answer 31

if something already performed or given, does not satisfy bargain requirement

Question 32

3 functions of consideration

Answer 32

Evidentiary
Cautionary
Channeling

Question 33

Breach of K Remedy

Answer 33

Expectation damages: difference between what you got and what you would have gotten if K was fulfilled