Contracts Flashcards
What does a valid contract require?
(1) Offer, (2) Acceptance, (3) Consideration.
What is the mailbox rule?
An acceptance is valid when placed in the mail.
Explain consideration:
The receiving party must suffer a legal detriment. Ex: A gift is NOT valid consideration.
What is Promissory Estoppel?
Promissory estoppel is a consideration substitute. A promise may be enforceable without consideration if the following conditions are met: (1) promisor should reasonably expect the promise to induce action or forbearance, (2) the promise actually induces action or forbearance, and (3) injustice can be avoided only be enforcement of the promise.
What are some contract defenses?
Contract defenses include (1) Mistake, including mutual and unilateral, (2) Fraudulent Misrepresentation, (3) Undue Influence, (4) Duress, (5) Lack of Capacity, (6) Statute of Frauds, (7) Illegality, and (8) Unconscionability.
When does the Statute of Frauds apply?
SOF applies to contracts involving Marriage, Suretyship, Contracts that cannot be performed within one year, sale of goods over $500, and real property.
How much performance is owed under the contract to recover under Common Law? UCC?
Under Common Law, a party must SUBSTANTIALLY PERFORM to recover on contract. Under the UCC, there must be a PERFECT TENDER of goods.
When may a duty to perform be discharged?
Discharge of duty to perform: (1) Impracticability, (2) Impossibility, and (3) Frustration of Purpose.
What are possible damages in contract? (5)
(1) Expectation Damages, (2) Consequential Damages, (3) Reliance Damages, (4) Incidental Damages, (5) Mitigating Damages
What are Expectation Damages?
Expectation damages are damages intended to put the injured party in the same position as if the contract was performed. Must be foreseeable and reasonably calculated.
What are Consequential Damages?
Consequential damages are reasonably foreseeable damages other than expectation damages that are related to the breach of the contract. (Ex: Loss of profit) Must prove (1) foreseeability, (2) causation, and (3) certainty.
What are some equitable remedies in contract?
Restitution (unjust enrichment), Quasi-contract, and Specific Performance.
What are reliance damages?
Reliance damages put the party in the same position as if the contract were never formed.
Can a party seek reliance damages and expectation damages?
No. Must choose one.
