Contracts

Question 1

Condition

Answer 1

1. An event or state of the world that must occur OR fail to occur before a party has a duty to perform under a K; or
2. An occurrence OR nonoccurrence of an event or state of the world that releases a party from its duty to perform under a K

Question 2

Condition Precedent

Answer 2

One that must occur before an absolute duty of immediate performance arises in the other party

Question 3

Conditions concurrent

Answer 3

Conditions that can occur together with both parties bound to perform at the same time. Each condition acts as a condition precedent to the other

Question 4

Condition subsequent

Answer 4

One that cuts off an existing duty to perform when it occurs

Question 5

UCC quantity term

Answer 5

Contract that is measured by the output of the seller such means such actual output may occur in good faith

Question 6

Mutual Mistake

Answer 6

Based on a mistake made by both parties.

i. The mistake must concern a basic assumption on which the K was made
ii. The mistake must have a material effect on the agreed exchange of performances; and
iii. the party seeking avoidance did not assume the risk of the mistake

Question 7

Goods

Answer 7

Are identified to the K when the seller ships, marks, or otherwise designates them as goods to which the K refers (UCC 2-501)

Question 8

Expectation Damages

Answer 8

default damages for breach of K and aim to give non-breaching party the benefit of the bargain they entered into.

Question 9

Incidental Damages

Answer 9

allowed by the UCC (this is a K for goods) & include commercially reasonable expenses incurred by non-breaching party

Question 10

American Rule

Answer 10

each party has to bear burden of their own attorney’s fees. Only if there is a fee shifting statute or a K clause

Question 11

Gratuitous assignment irrevocable if:

Answer 11

1 Assignee materially changes her position in reasonable reliance on the assignment;

2. The assignee receives performance from the obligor; or
3. The assignor puts the assignment into writing and delivers it to the assignee

Question 12

Assignment

Answer 12

transfer of rights under an existing contract

Question 13

Intended beneficiary

Answer 13

Even if gratuitous, need not supply consideration in order to enforce a right to recover

Question 14

Parole Evidence rule

Answer 14

PURPOSE TO PREVENT A PA

Question 15

Constructive Condition

Answer 15

one not agreed on by the parties even by implication, but which courts imposed as a matter of law in order to ensure fairness. Only require substantial compliance to be satisfied

Bilateral K principal use

Question 15

Constructive Condition

Answer 15

one not agreed on by the parties even by implication, but which courts imposed as a matter of law in order to ensure fairness. Only require substantial compliance to be satisfied

Bilateral K principal use

Question 16

Bilateral K

Question 17

Restitution for benefits

Answer 17

P Conferred direct benefit on D with a reasonable expectation of payment

Question 18

Compromise

Answer 18

P supplied consideration for the D’s promise to pay P. Bc P’s forbearance to assert a claim against the D’s estate qualifies as consideration so long as P had good faith belief in his right to make such a claim.

Question 19

Implied in Fact K

Answer 19

enforceable K based on tactic rather than an express promise

May be inferred from parties’ conduct or from their statements when interpreted in the context of broader circumstances

Question 20

Mutual Assent

Answer 20

an enforceable K requires mutual assent as well as determined by the parties’ objective (its raining) rather than subjective (i love the rain) manifestations of assent