Contracts

Question 1

Minors

Answer 1

the K is binding as to the adult and voidable as to the minor because they lack capacity to enter into a K binding on themselves

Question 2

Confirmatory Memo

Answer 2

Exception rule, which allows a K to be enforceable without a writing signed by the party to be bound (recipient of the memo). In K between merchants, if 1 party, within a reasonable time after an oral agreement has been made, sends to another party a written confirmation of the understanding that is sufficient under SOF to bind send, it will also bind the recipient if he has reason to know of the confirmation’s contents and doesn’t object to it in writing within 10 days of receipt

Question 3

Common Law Material Breach

Answer 3

if the breach is material, the aggrieved party may treat the K as at an end, and their duty of performance will be discharged. Aggreived party will then have an immediate right to all remedies for breach of the entire K, including total damages. Breach is deemed material if, as a result of the breach, the obligee doesn’t recieve the substantial benefit of their bargain

Question 4

Minor Breach

Answer 4

Gives rise to a cause of action for damages for the breach but doesn’t exvcuse the other party’s duty to perform. If coupled with anticipatory repudiation, however, then the aggrieved party may treat it as a material breach

Question 5

UCC Seller Performance

Answer 5

Seller’s performance must be perfect, thus most breaches by the seller, even minor ones, relieve the buyer of his duty of performance

Question 6

Parol Evidence

Answer 6

Evidence is admissible to show oral conditions and terms

Question 7

**In general, if there is no evidence of the parties’ intention, K will be construed (blank), and ambiguities in the K will be (blank) **

Answer 7

As a whole, construed against the party drafting the K.
Specific clauses are subordinated to the K’s general intent. Ambiguities in a K are construed against the party preparing the K absent evidence of intention of parties

Question 8

Liqudated Damages

Answer 8

Liquidated damages must be in an amount that is reasonable in view of the actual or anticipated harm caused by the breach. They are enforceable if
* damages for contractual breach are difficult to estimate or ascertain at the time the K was formed and
* the amount agreed on was a reasonable forecast of compensatory damages in the case of a breach