Contracts

Question 1

Contract: GENERAL

Answer 1

Legally enforceable agreement that contains one or more promises.
· A promise or a set of promises for the breach of which the law gives a remedy.

Question 2

Contract: ELEMENTS

Answer 2

1. Offer;
2. Acceptance;
3. Intent; AND
4. Consideration.

Question 3

Contract: MUTUAL ASSENT

Answer 3

Parties to a K must MUTALLY ASSENT to the formation and understand that they are entering into a K.
· The first two elements (offer and acceptance) can be used to prove mutual assent OR A MEETING OF THE MINDS.

Question 4

Contract: OFFER

Answer 4

The manifestation of willingness to enter into a bargain that justifies another person in understanding that assent to that bargain is invited.

Question 5

Contract: ACCEPTANCE

Answer 5

An expression of assent to an offer.
· Typically takes the form of a PROMISE OR PERFORMANCE

Question 6

Contract: INTENT

Answer 6

Requires both parties to intend to be legally bound by the K.
· Neither party has to actually manifest the intent to be legally bound
–> It does NOT need to be apparent OR explicit

Question 7

Contract: CONSIDERATION

Answer 7

Requires that something of V be exchanged in the K
· Does NOT have to be monetary; AND
· Can include anything from property, to a promise, to an act or even forbearance.

Question 8

Contract: TWO TYPES OF K

Answer 8

1. Bilateral; OR
2. Unilateral

Question 9

Bilateral K

Answer 9

Agreement b/w parties in which the OFFEROR makes a promise and the OFEREE also makes a promise.

Question 10

Unilateral K

Answer 10

An agreement b/w 2 parties, in which the OFFEROR makes a promise AND the OFFEREE renders performance.

Question 11

Valid Offers

Answer 11

An offer is valid when it contains REASONABLY CERTAIN TERMS that offer to exchange something of V.
· a REASONABLE PERSON should therefore be able to conclude that AN OFFER HAS BEEN MADE
· Vague terms? = Probably NOT an OFFER

Question 12

Invalid Offers: TYPES

Answer 12

· Jokes;
· Preliminary negotiations; or
· Advertisements.

Question 13

Advertisements

Answer 13

Considered an INVALID OFFER
· UNLESS it contains a REASONABLY CERTAIN promise that LEAVES NO ROOM FOR NEGOTITATION.

Question 14

Termination of a Valid Offer

Answer 14

A valid offer MAY be terminated BEFORE acceptance
· T4: The offeree no longer has the power to accept the offer.

Question 15

Way to Terminate Offer

Answer 15

1. Rejection -OR- Counteroffer;
2. Lapse of time;
3. Death -OR- Incapacity; OR
4. Revocation.

Question 16

Termination of Offer: REJECTION

Answer 16

Can be outright rejection OR a COUNTEROFFER.

Question 17

Counteroffer

Answer 17

An offer, made by the offeree to the offeror, that proposes different terms relation to the same matter as the initial offer.

Question 18

Termination of Offer: LAPSE OF TIME

Answer 18

May be specified OR unspecified.
· If UNSPECIFIED: Must be REASONABLE based on the circumstances surrounding the offer and attempted acceptance.

Question 19

Termination of Offer: INCAPACITY

Answer 19

Same standard for LEGAL incapacity.

Question 20

Types of IRREVOCABLE OFFERS

Answer 20

1. Option Ks; OR
2. Firm offers.

Question 21

Irrevocable Offers: OPTION Ks

Answer 21

Created when the offeror KEEPS AN OFFER OPEN for a LIMITED amount of time IN EXCHANGE FOR the offeree’s CONSIDERATION.

Question 22

Option Ks: UNILATERAL K

Answer 22

A unilateral K WILL FORM an irrevocable option K when the offeree BEGINS PERFORMANCE
· b/c PARTIAL PERFORMANCE will serve as CONSIDERATION.