Contracts Flashcards
WHAT would be considered a condition for voiding a contract?
Duress
e.g. threat of potential physical harm intended to coerce a person to enter a contract
WHEN does the period of time for a statute involving legal action for breach of contract begin?
FROM the time of the breach of contract or the date when the breach reasonably should have been discovered
WHAT are the laws for “Contracts” involving minors?
THEY are protected by permitting them to void or “disaffirm” contracts made with adults
Note: Courts may apply the principle of quasi contract to an agreement disaffirmed by a minor to avoid unjust enrichment
WHO may a debtor collect from?
The assignee (i.e. party entitled to payment)
Note: Debtor is entitled to a “notice of the assignment” so they know whom to pay
WHAT circumstance would cause (i.e. allow for) the discharge of a party’s duties, under a personal services contract?
Illegality of the services to be performed
e.g. if, after formation, a contract becomes objectively impossible to perform
WHAT is “Novation?”
AN agreement among all parties that cancels an existing contract and replaces it with a new contract
i.e. one party to the canceled contract is usually replaced by another who was not a party to it
True or False.
Minors are liable for necessaries.
TRUE.
Minors are liable for necessaries.
E.g. food, clothing, shelter, medicine, and tools of a trade
Note: In such event, a minor will be liable in quasi-contract for the reasonable value of the necessaries, NOT the contract price
True or False.
A person who performs services without obtaining a statutorily required license may recover only if the statute is solely a revenue measure.
TRUE.
Note: If legislative intent was to protect public from incompetent work (i.e. unqualified persons), the statute is regulatory and the contract is “unenforceable”
True or False.
Auctioning property is an invitation to negotiate.
TRUE.
A bid is ONLY an offer, meaning NO contract is formed
WHAT type of agreement is “unenforceable” due to indefiniteness?
A seller agreeing to supply a quantity of (Product) dependent upon the “buyer’s will”
This is considered a “requirements” contracts which is unenforceable because they are too indefinite
Fill in The Blank
The doctrines of impossibility and impracticability _A__.
A. excuse performance only if a supervening circumstance was not reasonably foreseeable
WHAT are the four essential elements of a contract?
(1) Agreement (offer and acceptance)
(2) Consideration
(3) Legal capacity of the parties to contract
(4) Legal objective or purpose
WHAT must a Plaintiff prove in order to prevail in a contract suit based on “innocent misrepresentation?”
(1) That there was a representation of a fact that was material and false
(2) that the representation was intended to induce reliance; and
(3) induced reliance that was reasonable and detrimental
True or False.
The statute of frauds requires certain kinds of contracts to be in writing.
TRUE.
Note: The contract must be signed by the parties against whom enforcement is sought (NOT both parties)
True or False.
A secondary promise to pay (the debt of another)does not need to be in writing?
FALSE.
A secondary promise, which is one to answer for the debt or default of another, must be in writing under the statute of frauds
