Contracts

Question 1

contract formation

Answer 1

Requires an offer acceptance and consideration

Question 2

offer

Answer 2

An offer is the objective manifestation of the offeror’s willingness to enter into agreement with the offeree that creates in offeree the power of acceptance.

manifestation of intent to enter into a contract. intent, essential terms and communication must be present. Essential terms are:
identification of offeree, price (for real estate contracts), and quantity (for UCC contracts

Question 3

Ways to terminate an offer

Answer 3

1. Rejection - counter offer is considered a rejection
2. revocation -an offer can generally be revoked before it is accepted unless an exception applies.

Question 4

F.O.U.R

What exceptions apply to revocation of an offer

Answer 4

1) firm offer (UCC)
2) Options
3) begining performance on unilateral contract
4) Reasonable foreseeable reliance.

Question 5

did the offeror revoke the offer?

Answer 5

a.To revoke an offer, two things need to happen:
i. the offeror needs to act inconsistent with the intent to make the offer; and

ii. offeree needs to recieve true reliable information that this happened.

Question 6

What is consideration

Answer 6

consideration is the value provided in the contract

Question 7

what are expections to consideration?

Answer 7

1. promissory estoppel- promise, justifiable reliance, enforcement necessary to avoid injustice.
2. material benefit

Question 8

What is needed to modify a contract.

Answer 8

UCC= Good faith
common law= consideration

Question 9

anticipatory repudiation

Answer 9

This occurs when there is an unequivocal manifestation by one party to the other that the first party cannot or will not perform its obligations under the contract before that party’s performance is due. (Note: a mere expression of doubt is not
enough!)

other party may sue, suspend perfomance, treat contract as discharged, urge other party to perform.

chance to retract repudaition unless other party already acted.

Question 10

prospective inability to perform

Answer 10

a party has reasonable gorunds for insecurity that hte other party is unable or unwilling to perform. (doubt) and can ask for reassurances in writing (response in 30 days or reasonble time) –if not given= repudiation

Question 11

MY LEGS

Statute of Frauds

Answer 11

contracts that fall within the Statute of Frauds need to be in a writing with essential terms quantity, signed by the party charged.
1. year- impossible to complete within one year
2. land- interest in land that last over a year
3. executor- promise by an excutor or administrator to pay debt of the estate from his own funds
4. sale of goods from $500 or more
5. surety/ debt of another- promise to pay anothers debt

Question 12

General Damages for breach of contract

Answer 12

1) Expectation Damages- arise from breach
2) incidental damages- damages that are related to avoiding loss from the breach (e.g., storing, receiving, returning, and reselling goods).
3) consequential damages: damages a reasonable person would have foreseen at the time of entry into the contract.

Question 13

Restitution

Answer 13

restitution means the plaintiff recovers the value of the benefit conferred.
a) This may be sought when the contract is breached (but a party has received a benefit),when the contract is unenforceable

Question 14

what is a firm offer

Answer 14

An offer is irrevocable if the parties create a firm offer, which is created when a merchant signs a writing agreeing not to revoke an offer for the specified amount of time, but no longer than 90 days.

Question 15

who is considered a merchant?

Answer 15

A merchant is an entity who is in the business of selling a certain type of goods.

Question 16

Output Contracts

Answer 16

A contract must contain the essential terms. Under the UCC, the essential terms of a contract are identified buyers and quantity, but not price. Output contracts, which require a seller to sell all that it produces to the buyer, are sufficient to specify a quantity under the UCC.

Question 17

FIRM SCAN

Ways to discharge DUTY of contractual obligations

Answer 17