Contract Law

Question 1

Merchant

Answer 1

1. A person who deals with goods 2. occupation 3. someone who has an agent

Question 2

Predominant Purpose Test

Answer 2

is having both transactions to services and real property like Common Law and having transactions of goods like UCC and seeing which one applies more.

Question 3

The objective theory of contracts

Answer 3

intent is determined by looking at external or objective appearance of the parties intentions as manifested by their actions.

Question 4

Intent to be legally bound

Answer 4

1. Promise to agree at a Later Date:
   a. Traditional Common law
   b. any missing term or a term that promises to agree at a later date is not an enforceable promise.
2. Missing Terms:
   a. Modern Common Law
   b. Agreement with missing term may be enforced if the missing terms can be implied with reasonable certainty.

Question 5

The Objective Theory of Contracts

Answer 5

Intent is determined by looking to the external or objective appearance of the parties’ intentions as manifested by their actions. What would a reasonable person understand the parties’ manifestations to mean?

Question 6

Offer

Answer 6

is the manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will concluded it

Question 7

Elements of offer

Answer 7

1. commitment language
2. contains definite and certain terms,
   a. Quantity
   b. Time for performance
   c. Identity of the parties
   d. Price
   e. Subject matter
3. Communicated to an identified offeree.

Question 8

Lapse

Answer 8

Acceptance must occur within the time stated in the offer. If the offer does not state a time, then acceptance must be communicated in reasonable time.

Question 9

Indirect Revocation

Answer 9

An offeree’s power of acceptance is terminated when the offeror takes definite action inconsistent with an intention to enter the proposed contract and the offeree acquires reliable information to that effect

Question 10

Counteroffer

Answer 10

The normal effect of a counter-offer is to reject the original offer, i.e., it terminates the original power of acceptance in the offeree who is now a counter-offeror unless the offer itself expressly indicates its continuance notwithstanding one or more counter offers.

Question 11

Death or Incapacity

Answer 11

Death or incapacity revokes an offer.
There is no requirement that the fact of death be communicated to the offeree to constitute an effective termination of the offer

Question 12

Option Contract

Answer 12

is a separate contract with only one purpose: to make an offer irrevocable. Death of the optioner will not revoke the offer

Question 13

Reliance in Construction Contracts

Answer 13

An offer by subcontractor that was used by a general contractor to compute bid submitted for a construction job may not be revoked

Question 14

Firm offer

Answer 14

UCC CONTRACT
if 1. a merchant makes a 2. written offer 3. giving assurances that offer will be held open and irrevocable, 4 and is signed, 5 makes the offer irrevocable for a reasonable time not to exceed three months

Question 15

Part performance

Answer 15

unless the offeror manifests a contrary intention, an offeree who learns of an offer after he has rendered part of the performance requested by the offer may accept by completing the requested performance

Question 16

Rejection

Answer 16

An offer is terminated by rejection when the offeree a manifestation of a refusal of the term of the offer

Question 17

Mail box rule

Answer 17

only applies when it is being accepted not denied. The acceptance of an offer is binding from the moment an oferee deposits a properly addressed letter of acceptance in the mailbox.

Question 18

Direct Revocation

Answer 18

where the offeror tells the offeree the offer is dead. This can only happen if the offer has not been accepted.

Question 19

Counteroffer

Answer 19

The normal effect of a counter-offer is to reject the original offer

Question 20

Acceptance

Answer 20

is a manifestation of assent to the terms of the offer.

a. communicated to the offeree while the offer is still alive,
b. it must be made by an invited offeree, and
c. it must be made in the manner required by the offer.

Question 21

Applicable Law

Answer 21

Common Law is the transaction of services, employment, and real property. Uniform Commercial Code is the transaction of goods. Goods is something tangible (touchable), movable, and identifiable object.

Question 22

Missing terms under the UCC

Answer 22

even though 1 or 2 terms are left open there is no problem implying missing terms. A contract for sale of goods does not fail for indefiniteness if the parties have intended to make a contract and there is a reasonable certain basis for giving an appropriate remedy.

Question 23

Offer: Advertisement

Answer 23

generally not binding contracts, unless they invite acceptance without further negotiations in clear, definite, express, and conditional language.

Question 24

Has the offer died before acceptance?

Answer 24

1. Lapse: Acceptance must occur within the time stated in the offer.

Question 25

Consideration

Answer 25

1. Bargain-for-exchange:
   a. the benefit and detriment must be given for the other.
2. Legal Value:
   a. is somebody giving up something

Question 26

Sufficiency of Consideration

Answer 26

courts will not weigh consideration