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MBE Topics > Contracts > Flashcards

Contracts Flashcards

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MBE flashcards
1
Q

An offer is ___

A

an invitation to enter into a K

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2
Q

Offers are revocable (until accepted), unless it is an:

A

Option K, Firm offer, Unilateral K

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3
Q

An option K is

A

promise to keep K open for a period of time

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4
Q

You need _____ for an option K

A

additional consideration

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5
Q

Option K’s are between ___ not merchants

A

laypeople

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6
Q

Firm offers are

A

A promise to keep an offer open but there must be a signed writing by the seller. Firm offers are between merchants

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7
Q

Unilateral K is

A

a promise for performance or action.

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8
Q

For a unilateral K, the moment you begin performance, the offer is __-

A

irrevocable

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9
Q

The two ways to revoke an offer are:

A
  • direct- call/tell the other person nvm

- indirect- you learn from another source that the person has made a deal with someone else

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10
Q

Acceptance is

A

manifestation of intent to accept

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11
Q

Mailbox rule

A

as soon as you drop your acceptance in the mailbox the K is formed

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12
Q

Mailbox rule exception

A

If the first response is a rejection and it is followed by an acceptance, whichever communication arrives first wins

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13
Q

Consideration is

A

a bargained for exchange

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14
Q

A promise to give a gift is not ___

A

enforceable.

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15
Q

Giving of a gift is not ___

A

revocable

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16
Q

Third party beneficiary is when

A

two parties make a K and a third party benefits

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17
Q

Two types of beneficiaries:

A

intended and incidental

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18
Q

Intended beneficiaries

A

Original parties expressed their intent to benefit them, and they may have rights if they have vested

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19
Q

Incidental beneficiaries never have

A

rights

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20
Q

Rights vest when

A

1) one or both original parties inform the beneficiary that he is being benefited or 2) when he learns of the benefit and begins to rely

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21
Q

Assignment is when

A

one party assigns away their rights in the K

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22
Q

Delegation is when

A

one party delegates their duty under the K

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23
Q

If new party does not show up or breaches, who can you sue?

A

both the original party and the new party unless there is a novation

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24
Q

A novation is a

A

release of liability

25
Q

Can the new party change the terms of the K?

A

No. they only acquire rights and obligations that were in the original K

26
Q

If someone has unique/special skill or expertise, you cannot

A

give the job to someone else, even if they have the same skill

27
Q

If parties agree against assignment and you assign it anyways ____

A

the assignment is still valid and effective BUT you can sue for damages for breaching the promise

28
Q

If K says no delegation is allowed ___

A

then it is strictly construed and you CANNOT do it

29
Q

Contracts that need to be in writing based on the statute of frauds are ___

A 
M= marriage
Y= K that cannot be performed in less than 1 year
L= land
E= executor – when you name someone executor of an estate
G= Guarantor/surety K- guaranteeing the debt of someone else
S= sale of goods of 500 or more
30
Q

Parole evidence is when ____

A

After a contract is formed, one party tries to admit oral evidence in the contract (things we talked about beforehand). Q will say x goes to court and asks court to admit the evidence.

31
Q

if K is final ___

A

nothing will be admitted, except to clear up ambiguity. THEY WILL TELL YOU IF ITS FINAL

32
Q

If K is partially integrated ___

A

parole evidence is admitted, unless it is a material alteration or it contradicts material terms

33
Q

Parole evidence will always come in to ____

A

prevent fraud or duress, to prove the existence of a condition preceding, in sale of goods to show trade or custom

34
Q

Conditions are when ___

A

something happens which relieves or requires party of duty to perform. Sometimes they test on when condition needs to occur.

35
Q

The three different conditions:

A

Precedent (before K day), Subsequent (after K day), Concurrent (on K day)

36
Q

Waiver of condition is when you

A

say not to worry about the condition that was in the K, therefore eliminating the requirement

37
Q

Two types of remedies

A

legal or equitable

38
Q

Expectation damages are

A

default legal remedy. Puts victim in position they would have been had the K been performed

39
Q

Liquidated damages

A

damages calculated at the time we enter the K bc if we wait until a party breaches the damages would be too difficult to calculate – they are valid and enforceable as long as they are reasonable and not acting like a penalty – 10% or less of the value of the K it is going to be reasonable, anything higher is more penalty

40
Q

Specific performance

A

Someone has to perform/do what they were supposed to = k is UNIQUE (LAND)

41
Q

Injunction

A

Stop someone from performing

42
Q

Recission

A

put parties in position there were PRIOR to the contract – no meeting of the minds: court will grant Recission

43
Q

Modification means

A

changing a material term of K aka K is already made.

44
Q

At common law, for a modification you needed ___

A

additional consideration

45
Q

Under the UCC, for modifications, no _____

A

additional consideration is needed, only good faith

46
Q

If goods are non conforming you may ___

A

reject, accept, accept in part, reject in part

47
Q

if non conforming goods are delivered before the day of the K you must ___

A

give the opportunity to cure

48
Q

If you deliver non-conforming goods on K day but seller had reasonable belief buyer would accept anyways

A

they must again be given opportunity to cure as long as they can do so in reasonable amount of time

49
Q

Anticipatory repudiation is when

A

prior to the K day, one party UNEQUIVOCALLY refuses to perform. Has to be absolute “I’m out” “I am not doing it”

50
Q

If there is anticipatory repudiation, you can ____ OR ___

A

sue immediately for total breach OR you can wait till the date and see if the K will be performed

51
Q

Words that someone is nervous or insecure is NOT repudiation BUT _____

A

you may demand assurances from the person

52
Q

Promissory estoppel is a

A

promise or statement that induces detrimental reliance

53
Q

Detrimental reliance is what makes the promise ___

A

enforceable

54
Q

Impossibility means that

A

no one can perform the K (objective standard)

55
Q

Impracticability means

A

due to unforeseen circumstances, performance, though possible, has now become too difficult unfair or expensive (too expensive is commonly tested)

56
Q

Impossibility and impracticability are ___ to performance

A

defenses

57
Q

Unilateral mistake is when

A

one party is mistaken and it is not a defense to performance

58
Q

Mutual mistake is when

A

both parties are mistaken about a basic assumption of the K and it is a defense

MBE Topics (8 decks)

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