Contracts Flashcards
a bilateral contract is satisfied by
exchange of mutual promise - a promise for a promise
MY LEGS
Marriage
Year (more than one)
Land
Executor
Goods (for $500 more)
Surety
when is a unilateral mistake a defense?
when the nonmistaken party knew or should’ve known of the mistake
Damages for when a buyer accepts goods that breach seller’s warranties
Difference btw the value of the goods as delivered and the value of goods as warranted
Damages when a buyer covers after seller sends nonconforming goods
Difference btw K price and cover price
T/F: Parol evidence is allowed to show a condition precedent to the existence of a K
T
an illusory K is
one without consideration on either side
Can a gifter revoke a gift?
Yes, unless there is detrimental reliance
Output Ks
an agreement to buy or sell all of what you can
In output Ks is there an assumption that parties will act in good faith?
Yes
Under common law what does an option K need?
consideration
Under UCC what does an option K need
merchant’s firm offer rule - a signed writing that the offer will remain open for time stated (no longer than 3 months)
Under UCC what are material changes?
Any change affecting
- money
- liability
- remedy for breach
Accord =
an agreement where one party to the existing K agrees to accept some different future performance
Satisfaction =
performance of the accord agreement and it discharges the original K and the accord K
T/F: Delegation excused original party’s duties
F
When can you cancel an installment K
when nonconforming goods substantially impair the value of the entire K
Revocation is effective upon
receipt by offerree
Acceptance is effective upon
dispatch - mailbox rule
A release requires
- additional consideration
- a signed writing
- OR detrimental reliance by offeror
What is reformation?
the remedy to reflect the expressed intent of the parties – where the writing setting forth the agreement btw the parties is changed so that it conforms to the original intent of the parties
What is restitution?
A monetary remedy designed to prevent unjust enrichment
When can a party receive consequential damages?
The P must show that the breaching party knew or had reason to know that breach would give rise to damages due to the special circumstances
bilateral contracts can be accepted …
in any reasonable way
unilateral contract =
acceptance by performance – offeror requests performance rather than promise
- offeror promises to pay at the completion of the act
Where parties agree to modify their contract, consideration is usually found to exist where…
The obligations of both parties varied - immaterial how slight the change is because courts don’t like invoking the preexisting duty rule
A repudiation =
An unequivocal statement of inability or unwillingness to perform
Under the UCC, when either party to a contract for the sale of goods repudiates the contract with respect to a future performance that will substantially affect the value of that performance, what can the non-repudiating party do?
May await performance for a commercially reasonable time or immediately resort to any appropriate remedy for breach
- cannot recover damages that she might have mitigated with reasonable effort
Under the UCC, is consideration required for a waiver?
No
Does the parol evidence rule apply to promises made after the adoption of a final written contract?
No
A repudiating party is free to retract its repudiation unless:
Non-repudiating party has relied on it or otherwise indicated that he considers the repudiation final
Are contracts delegable?
Yes, contractual duties may be delegated to another unless the other party to the K has a substantial interest in having the original obligor perform
- personal services involving aethetic taste
T/F - the mailbox rule does not apply where the offer states that acceptance will not be effective until received
T
