Contract Law Final Flashcards
contracts for services are governed by
law of the state you reside
contracts for goods are governed by
Uniform Commercial Code
all things moveable
a good
“goods” do not appl to land sale contracts because
land cannot move
do all contracts have to be written?
nope, can be oral
requirement that a contract be in writing
statute of frauds
how to enforce an oral contract
prove that a contract existed in the first place
prove what the terms were
3 elements of a contract
offer
acceptance
consideration
demonstration of the willingness of a party to enter into a bargain
an offer
express act or implication by conduct that manifests assent to the terms of an offer in a manner invited or required by the offer so that a binding contract is formed
acceptance
exists when the parties exchange a promise for a promise
bilateral contract
exists when the parties exchange a promise for performance
unilateral contract
method of analyzing whether a contract exists is to
ask if the parties have bargained for a legal detriment
consist of undertaking something a party was not previously bound to do
legal detriment
what is legal capacity to contract absent
infancy
infirmity
intoxication
illegality
whatre the exceptions for minors in contract
necessities
reaching the age of majority without attempting to void
using a sword rather than a shield
does the party understand the meaning and effect of the words in the contract?
cognitive
is the party able to behave in a reasonable manner and did the other party have reason to know of the condition?
affective
is the party capable of deciding whether or not to enter the contract?
motivational
three tests for mental incapacity
cognitive
affective
motivational
do people who are voluntarily intoxicated have the capacity to enter into contracts
yesq
sale of expired goods
res exincta
purchase of goods that are already possessed
res sua
material characteristic
quality
mutual mistake
both parties are mistaken as to the contracts purpose
one party is materially mistaken in terms or identity
unilateral mistake
a contract is not made in person and one is mistaken as to the identity of the other and the other party knows this, the contract is void
inter absentes
a contract IS made in person, there is a presumption that the mistaken party intends to deal with the person present. In order to void the agreement, the mistaken party must prove:
inter praesentes
occurs when unlawful pressure is exerted upon a person in order to coerce him or her into entering a contract he or she would otherwise not sign
duress
exerted by a fiduciary
undue influence
fiduciary
one who occupies a position of trust or confidence in regard to the influenced party
When a contract is found to be so oppressive to the party of inferior bargaining power that it “shocks the conscience,” the court may find it unconscionable and refuse to enforce.
unconsciounability
elements of unconcionability
uneven bargaining power
unfair substantive terms
absence of meaningful choice for the disadvantaged party
occurs when unexpected events arise which make the contract impossible to perform
commercial frustration aka frustration of purpose
excuses performance where it cannot physically be performed
impossibility(objective)
impractibility excuses performance when it becomes unduly and unfeasibly burdensome
subjective test
always decided against the drafter or the party with superior power
ambiguities
one method of analyzing whether a contract exists to ask if the parties have bargained for a legal detriment
bargained for legal exchange
