Contracts

Question 1

Does an assignment need to be in writing?

Answer 1

No (generally)

Question 2

Is consideration required to create an assignment?

Answer 2

No

Question 3

How do you differentiate between Inquiry and Counteroffer?

Answer 3

Ask: Whether a reasonable person would believe the offer was being rejected.

Question 4

Anticipatory Repudiation requires

Answer 4

That the promisor UNEQUIVOCALLY indicates that they cannot or will not perform when the time comes to perform…OR they act in a manner rendering him unable to perform.

Question 5

What can the other party in a K do when there is Anticipatory Repudiation?

Answer 5

They MAY treat the AR as Total Breach and sue immediately.

Question 6

Performance in a UCC contract is excused only if

Answer 6

the is an extremely and unreasonable difficulty in performing due to an UNANTICIPATED and extraordinary event, the nonoccurence of which was a basic assumption of the K.

Question 7

What is a surety?

Answer 7

promise to pay another’s debt, need not have additional consideration. Must be in writing (SOF MYLEG”S”)

Question 8

What is an accord?

Answer 8

A new agreement between parties who are already under contract to each other. There must be a new type of performance or obligation and then it is effective even if the new consideration is less than the earlier consideration.

Question 9

What is the majority view regarding consideration requirements for partial enforcement?

Answer 9

Consideration is not required to make agreements at least partially enforceable where the facts indicate the promise should be estopped from non-performance. Detrimental Reliance

Question 10

A promise is enforceable to the extent necessary to prevent injustice if:

Answer 10

the promisor should reasonably expect the promise to induce action or forbearance and such action or forbearance is in fact induced

Question 11

A Third Party Beneficiary Vests when:

Answer 11

1. manifests assent
2. or brings suit to enforce promise
3. or justifiably relies / estoppel

Question 12

Past consideration is

Answer 12

NOT consideration

Question 13

What is the first thing to look at when viewing an MBE question?

Answer 13

Ask yourself what the topic is and what issue they are testing you on.

Question 14

Will the death of an offeror terminate a unilateral K?

Answer 14

No

Question 15

What is necessary to prove a unilateral contract?

Answer 15

The start of performance

Question 16

If a UCC buyer chooses to accept non-conforming goods, can they still get damages?

Answer 16

Yes, warranty damages. Difference between value of desired goods and non-conforming goods.

Question 17

How to calculate damages under Lost Profits Doctrine

Answer 17

Lost profits minus buyer’s down payment

Question 18

What is the Main Purpose Rule?

Answer 18

An exception to Surety’s SOF. If promisor’s main purpose for acting as surety is to secure her own economic advantage, then agreement is NOT bound by the SOF writing requirement.

Question 19

Does unilateral mistake prevent contract formation?

Answer 19

No (generally) still enforceable.