Contracts

Question 1

Formation of Contract

Answer 1

A valid contract is formed when there is:
1) mutual assent (offer and acceptance)
2) consideration
3) no defenses to formation

Question 2

An Offer Is

Answer 2

1) manifestation of intent to contract by one party,
2) with definite or reasonably certain terms,
3) that is communicated to an identified offeree.

Question 3

Statute of Frauds - Types of K required for

Answer 3

1) Marriage Contracts
2) Suretyships
3) Land Sale Contracts
4) Contracts that cannot be fully performed within 1 year
5) Contracts involving more than $500

Question 4

Parol Evidence Rule

Answer 4

Four exceptions where Parol Evidence is Allowed:
1) to correct a clerical error or typo;
2) to establish a defense against formation;
3) to interpret vague or ambiguous terms (using plain meaning)
4) to supplement a partially integrated writing

Partially Integrated = Does not contain a complete statement of all terms parties agreed to.

Question 5

Anticipatory Repudiation

Answer 5

Occurs when a party unequivocally communicates that he is unable or unwilling to perform.

May retract repudiation and restore contract unless other party has already
a) cancelled;
b) materially changed position
c) indicated they consider the repudiation final.

Question 6

Defenses to Formation

Answer 6

1) Incapacity;
2) Unconscionability;
3) Mutual/Unilateral Mistake;
4) No Statute of Frauds;

Question 7

Statute of Frauds - Exceptions

Question 8

Statute of Frauds - Exceptions

Question 9

Statute of Frauds - Requirements

Answer 9

1) signed by or on behalf of the party to be charged;
2) reasonably identify the subject matter
3) indicate that a contract has been made by the parties
AND
4) state the essential terms with reasonable certainty.

Question 10

Statute of Frauds - Requirements

Answer 10

1) signed by or on behalf of the party to be charged;
2) reasonably identify the subject matter
3) indicate that a contract has been made by the parties
AND
4) state the essential terms with reasonable certainty.

Question 10

Statute of Frauds - Exceptions

Question 11

Statute of Frauds - Requirements

Answer 11

1) signed by or on behalf of the party to be charged;
2) reasonably identify the subject matter
3) indicate that a contract has been made by the parties
AND
4) state the essential terms with reasonable certainty.

Question 12

Statute of Frauds - Exceptions

Answer 12

A contract that violates the statute of frauds may still be enforceable in the following situations:
1) Full Performance
2) Judicial Acknowledgement (party admits in pleadings/testimony)
3) Estoppel - reasonable and foreseeable detrimental reliance