Contracts

Question 1

Offer

Answer 1

An offer is an expression of willingness to enter into a bargain, with certain and definite terms, communicated to the offeree. It should be made in a way that the other party could reasonably believe that he could conclude the bargain by accepting.

Question 2

Acceptance

Answer 2

An acceptance is a manifestation of assent to the terms of the offer.

Question 3

Consideration

Answer 3

Consideration is a bargained-for exchange of legal value. An agreement is not enforceable unless there is consideration on both sides (i.e., the promises must be mutually obligatory)

Question 4

PER

Answer 4

The terms of a fully integrated contract cannot be altered by evidence of a prior or contemporaneous oral statement or prior written statement.

Question 5

When do a third party beneficiary’s rights vest?

Answer 5

3PB’s rights have vested if the 3PB:
1) Manifested assent to the promise in manner invited/requested by parties
2) Brought suit to enforce promise, or
3) Materially changed position in justifiable reliance

Question 6

Merchant’s confirmatory memo

Answer 6

Both parties must be merchants

If, within a reasonable time after the merchants have made an oral agreement, one merchant sends ** signed written confirmation** of their oral agreement including the quantity of goods, it will bind the signing merchant immediately. And if the recipient merchant does not object to the contents of the memo w/in 10 days of receipt, they are bound too.

Question 7

Promissory estoppel

Answer 7

A promise is enforceable even without consideration, where
1. The promisor should reasonably expect to induce detrimental reliance
2. The promisee does detrimentally rely
3. Necessary to prevent injustice

Question 8

Goods

Answer 8

Goods are all things moveable at the time they are identified to be sold under the contract.