Contract: Formation

Question 1

What makes contracts voidable

Answer 1

1) Fraud in the inducement (false representation of material fact intentionally made and relied upon to injure a party)
2) Unconscionability (one sided/unfair contract)
3) Undue influence (close relationship)
4) Duress (forced)

Question 2

a victim of innocent misrepretation

Answer 2

will be able to void the contract but not collect damages

Question 3

What emelents must be present in a contract

Answer 3

Agreement
Consideration
Legal Purpose
Competent Parties

Question 4

What are the 4 contract terms

Answer 4

1) Unilateral Contract (acceptance is given by performance)
2) Unjust Enrichment (One party has performed some act for benefit of another and should receive compensation in the name of Justice)
3) Public Policy (Common sense interpretation when no prior similar cases)
4) Quasi Contract (Courts will apply remedy when there was no formal offer or acceptance)

Question 5

Parol evidence rule

Answer 5

makes prior statements to the official contract inadmissible

Subsequent statements are fine

Question 6

A material mistake

Answer 6

would make a contract invalid unless the other party was aware of the mistake or trying to take advantage

Question 7

Mailbox Rule states

Answer 7

acceptance is effective when mailed

unless there are specific terms on proper acceptance

Question 8

Despite lack of consideration

Answer 8

promises made to a charity are legally binding especially if the charity relies on the promises