Contracts

Question 1

What type of contracts involve both the sales of goods and providing services

Answer 1

Blended contracts

Question 2

What does the UCC apply to?

Answer 2

the sale of goods.

Question 3

What are the two types of contract law?

Answer 3

Common Law

Article 2 of Uniform Commercial Code (UCC)

Question 4

What does Common law apply to?

Answer 4

Service

Real estate contracts (including leases)

Question 5

Examples of service contracts

Answer 5

employment, agency agreements, law service contracts, car washes, medical care

Question 6

What is the contract for the sale of a mobile home by a manufacturer governed by?

Answer 6

UCC

Question 7

Express contract

Answer 7

a contract formed wholly by oral and/or written words

Question 8

Implied or implied in fact contract

Answer 8

a contract formed at least in part based on the conduct of the parties or based on the factual circumstances

Question 9

Quasi contract or implied in law contract

Answer 9

a contract imposed by the courts or by the law when some performance has gone forward, even though there is no express or implied contract. The law creates a quasi contract for the parties to prevent unjust enrichment of one party by the other

Question 10

Bilateral contract

Answer 10

both sides make a promise.

Question 11

Unilateral contract

Answer 11

one side makes a promise in exchange for an action or performance from the other side. Ex mowing yard - if you mow it then i will pay you

Question 12

Executed contract

Answer 12

a contract that has been fully performed by both parties to that contract

Question 13

Executory contract

Answer 13

one that has not yet been fully performed by the involved parties

Question 14

Partially executed contract

Answer 14

a contract that has been performed in part, one side has performed the contractual obligation.

Question 15

Void contract

Answer 15

one that lacks a legal purpose or is in violation of law. It cannot be enforced by the courts bc enforcement would violate public policy and encourage illegal conduct

Question 16

voidable contract

Answer 16

an other wise valid contract that can be set aside bc one party has protection under the law and the right, by choice, to be relieved of liability under the contract. Ex. fraud in formation or the protected party lacked the required capacity to form contracts

Question 17

unenforceable contract

Answer 17

other wise valid contract that cannot be enforced bc of a statutory or other legal defense. it is one that the courts will not enforce but an unenforceable contract can still be honored by the parties if they choose.

Question 18

What does the Statute of Frauds require?

Answer 18

for certain contracts to be in writing to be enforceable.

Question 19

What types of contracts must be writing due to the Statute of Frauds?

Answer 19

Guaranty of debt contracts
Contracts involving an interest in real property
Contracts impossible to perform within one year of formation
Contracts for the sale of goods priced at $500 or more
Promises of executors for personal liability for debts of the estate

Question 20

contracts that are longer than one year cannot be enforceable unless…

Answer 20

they are in writing

Question 21

What are the types of defenses that can be used to invalidate the formation of a contract?

Answer 21

Mistake
Fraud or misrepresentation
Duress
Undue influence
Illegality

Question 22

can ratification take place while a minor is still a minor?

Answer 22

no

Question 23

In a contract between an adult and a minor, who is allowed to disaffirm a contract>

Answer 23

only the minor

Question 24

If a person if adjudicated as mentally incompetent by a court, what does that make all future contracts with that person?

Answer 24

VOID

Question 25

What is novation?

Answer 25

A valid contract by which a new party is substituted for one of the original contracting parties, thereby terminating the substituted party’s liability

Question 26

What is a condition precedent?

Answer 26

Something that must take place before the duty to perform under a contract arises

Question 27

If someone dies before fulfilling contract can you sue their estate for breach of contract?

Answer 27

No

Question 28

In an action for breach of a construction contract, when would the statue of limitations time period be computed from?

Answer 28

From the date the contract is breached.

Question 29

What is the statute of limitations?

Answer 29

the period of time in which a plaintiff must file an action in an approp court to receive judicial remedies. Failure to file within the time period removes from the court the ability to grant a remedy. In a contract for the sale of goods, the statute of limitations period is four years but by agreement can be reduced to one year. The period of time limitation usually begins at the time the cause for action occurs

Question 30

What is a rescission?

Answer 30

The undoing of a contract. Both sides return to their original positions and the obligations on both sides are discharged.

Question 31

What is a release?

Answer 31

one party is let out of his or her contractual obligations. This does not necessarily return the parties to their previous positions and, in fact, is unlikely to do so unless the contract performance has not been started yet.

Question 32

When is a person an intended creditor?

Answer 32

when a party to a contract owes the creditor money and the contract was made to satisfy the debt.

Question 33

Promissory estoppel (def)

Answer 33

acts as a substitute for consideration and renders a promise enforceable

Question 34

promissory estoppel 3 elements

Answer 34

• detrimental reliance on a promise
• Reliance on the promise is reasonable and foreseeable
• damage results if the promise is not enforced