Contracts

Question 1

Valid contract

Answer 1

Must be mutual assent, consideration and no defenses to formation.

Question 2

*Valid contract

Answer 2

Must be mutual assent, consideration and no defenses to formation. Mutual assent consists of an offer and acceptance. An offer…….An acceptance is a manifestation of assent to the terms of an offer. Consideration includes a bargained for exchange for something of legal value.

Question 3

Termination of an offer

Answer 3

1) Lapse of time
2) Revocation
3) Rejection
4) Operation of Law

Question 4

Defenses to formation

Answer 4

1) Lack of capacity
2) Ambiguity/Misunderstanding
3) Mistake
4) Unconscionability
5) Duress
6) Statute of Frauds

Question 5

Statute of Frauds

Answer 5

Requires a writing signed by the party to be charged and is applicable to:

Marriage contracts
Year

Land
Executor
Goods priced at $500 or more
Surety

Question 6

Warranties

Answer 6

1) Express
2) Implied warranty of merchantability
3) Implied Warranty of Fitness for a Particular Purpose

Question 7

Damages

Answer 7

1) Expectation damages -
2) Reliance damages -
3) Consequential damages -
4) Incidental damages -
5) Punitive damage -
6) Nominal damages
7) Liquidated damages

Question 8

Intended beneficiary

Answer 8

beneficiary

1) is identified in the contract
2) receives performance directly from the promisor or
3) has some relationship with the promisee to indicate intent to benefit

Question 9

Creditor beneficiary

Answer 9

a person to whom a debt is owed by the promisee

Question 10

Donor beneficiary

Answer 10

a person whom the promisee intends to benefit gratuitously