Contracts

Question 1

When does UCC Article 2 govern a contract?

Answer 1

UCC Article 2 governs K that are for the sale of goods.

Question 2

What are goods?

Answer 2

Goods are all moveable things identifiable at the time of contracting.

Question 3

When are contracts for the sale of goods of $500 or more enforceable?

Answer 3

K for the sale of goods of $500 or more are enforceable only if they are in a writing that demonstrates the agreement and signed by the party agonist whom enforcement is sought.

Question 4

What is a writing?

Answer 4

A writing is any intentional reduction of information to tangible form, including print or typewriting.

Question 5

What if both parties are merchants? (Merchant Writing Confirmation)

Answer 5

If both parties to the K are merchants and one send a written confirmation of the K that satisfies the writing and signature requirements against the sender, that confirmation is enforceable against the recipient if he/she knows the writing’s contents and fails to object in writing within 10 days of receiving it.

Question 6

What is a merchant?

Answer 6

A merchant is a person who deals in the kind of goods that are relevant to the transaction or hold himself out as having knowledge or skill peculiar to the goods in the transaction.

Question 7

What are the exceptions of the statute of frauds?

Answer 7

1. Specially manufactured goods;
2. Admission in court proceedings that a K was made;
3. Partial or complete performance - goods where payment has been made and accepted or which have been received and accepted

Question 8

Are advertisements offers?

Answer 8

Advertisements are generally only invitations to received offers unless they are so clear, detailed, and explicit that leave nothing to negotiate.

Question 9

How can parties form a K?

Answer 9

Parties created a k by expressing mutual assent and providing consideration.

Question 10

What is mutual assent?

Answer 10

Mutual assent usually takes the form of an offer and acceptance.

Question 11

What is an offer?

Answer 11

An offer is a commitment communicated to an identified offeree in certain and definite terms.

Question 12

What if a K breach is material?

Answer 12

Damages are calculated according to the entire performance due to the injured party.

Question 13

What is a valid revocation?

Answer 13

A valid revocation is any act or communication terminating the offeree’s power of acceptance and is effective upon the offeree’s receipt. Revocation must occur before acceptance.

Question 14

How can an offeror revoke their offer?(Publication)

Answer 14

Offerors can revoke offers by publication, if the method of publication is comparable to that of the offer.

Question 15

How does an offer terminate?

Answer 15

An offer terminates according to their express terms or when the offeror validly revokes them.

Question 16

How is an offer accepted?

Answer 16

An offeree accepts an offer by manifesting agreement to its terms in a way the offer requires or allows.

Question 17

What is doctrine of detrimental reliance?

Answer 17

When a promisor can reasonably expect a promise to induce a promisee’s reliance, the promise is enforceable if the promisee reasonably and detrimentally relies on the promise.

Question 18

What is consideration?

Answer 18

Consideration is a bargained-for-exchange of legal value between parties.

Question 19

What if a party fails to perform?

Answer 19

When a party’s performance is due, any failure to perform is a breach and gives rise to a claim for damages.

Question 20

When is a breach material?

Answer 20

Depends on:
1. How much the breach deprived the injured party of the reasonably expected benefit;
2. How much can a court adequately compensate the injured party;
3. Whether the breaching party will suffer a forfeiture;
4. The likelihood that the breaching party will cure the breach;
5. Whether the breaching party’s actions are consistent with the duty of good faith and fair dealing.