Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

FL Topics > Contracts > Flashcards

Contracts Flashcards

1
Q

The two bodies of law in contracts are

A

Common law and the UCC

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

The UCC applies to contracts that involve ___

A

the sale of goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are goods?

A

Movable things - not just goods in excesss of 500

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

____ is not goods and ____ are never merchants

A

Real property and real estate brokers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Common law applies to

A

anything other than goods

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Mostly see common law contracts involving

A

real property and service contracts

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

An offer is __

A

an invitation to enter into a contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Acceptance is ___

A

manifestation of intent to be bound to a contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

A counter offer is ___

A

rejection of the original offer and creation of a new offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Consideration is ___

A

a bargained for exchange where one party receives a legal benefit or experiences a legal detriment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

You should organize your contracts essay by ___

A

communication instead of category (ie. May 7 email)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Mailbox rule:

A

everything is effective when received EXCEPT acceptance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Acceptance is effective upon __

A

dispatch (when placed in mailbox)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Offers are revocable ___

A

at any time until acceptance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Option contracts:

A

A promise was made to keep the offer open for a certain period of time in exchange for valuable consideration

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

You cannot revoke a Merchant firm offer, which is:

A

If offer is governed by the UCC and the offeror is a merchant, his mere promise is sufficient to keep the offer open

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

You cannot revoke an offer if there is detrimental reliance, which happens when

A

the offeree takes reasonable foreseeable actions in reliance upon the offer and experiences a detriment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

You cannot revoke an offer when it is a unilateral contract and ___

A

the offeree begins to perform

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Mirror image rule (common law)

A

the offer and acceptance must match exactly in every respect. If the acceptance does not mirror the offer, it is treated as a counter offer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Mirror image rule (UCC)

A

UCC abolished the mirror image rule and the acceptance does not need to match the offer to form a contract

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Modification occurs when

A

the parties have formed a valid contract and then attempt to change the terms before performance is complete

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Pre-Existing Duty Rule

A

Contract modifications will generally be void because the new deal lacks consideration.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Modifications are acceptable if

A

new/different consideration is given OR if it is a contract for the sale of goods under the UCC and the reasonable modification is sought in good faith

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Bilateral mistake

A

Mutual mistake where both parties mess up

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Bilateral mistakes will be void if

A

the mistake concerns a basic assumption on which the contract is made, the mistake has a material adverse effect on the agreed upon exchange, and the adversely affected party didn’t assume the risk of the mistake

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Unilateral mistake

A

one party messed up

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Unilateral mistake is not a defense to the formation of a contract unless

A

the other party knew or should have known of the mistake

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

Misrepresentation or fraud IS ___

A

a defense to contract formation and will have similar fact patterns to unilateral mistake

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

SOF Acronym (FL)

A

MY LEGS Never Hurt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

K is within the SOF when:

A
  • Marriage is the consideration
  • Contracts that cannot be performed within one year
  • Land and real estate
  • Executor’s promise to personally pay debts of an estate
  • Goods of $500 or more
  • Surety’s promise to pay another person’s debts
  • Newspaper or magazine subscriptions
  • Healthcare provider’s guarantee of outcome
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

SOF is satisfied when K is:

A
  • Memorialized in writing
  • Signed by party to be charged with the breach
  • Contain the essential terms
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

For property, essential terms are:

A

PPP

Names of the parties, description of the property, and the price

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Two categories of remedies:

A

legal and equitable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

Legal remedies always use ___ to compensate non-breaching party for his loss

A

money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Equitable remedies may involve ____ or may involve ____

A

money or forcing a party to take an action

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

Specific performance is an ____ remedy

A

equitable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

Specific performance is

A

an equitable remedy that compels the breaching party to perform under a contract. It is available when monetary damages are not adequate (e.g. for unique assets that cannot be replaced with money, like real property)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Look for situations where ___

A

there is no form of adequate money damages

39
Q

All real property is

A

unique

40
Q

Can never obtain specific performance on a ____ K

A

service

41
Q

Can use SP to

A

enforce restrictions on employment, known as non-compete clauses

42
Q

Non-compete clauses in FL will only be enforced if the terms are

A

reasonable - in time and geography

43
Q

Discuss reformation when

A

K fails to reflect the intent of the parties

44
Q

Reformation is an ___ remedy

A

equitable

45
Q

Reformation is different from mistake because

A

the contract is just wrong. Parties knew what they wanted but the contract turned out wrong.

46
Q

Remedies for fraud

A

Recission, constructive trust, and or equitable lien

47
Q

If court applies recission then K is ___

A

voided and the parties must then restore any gains on the basis of the fraudulent K via restitution

48
Q

Under a constructive trust __

A

the fraudulent party is deemed to hold the property in trust for the benefit of the injured party. He must then execute the trust and convey the property back to the rightful owner

49
Q

equitable lien is when ___

A

the court imposes a lien on the property for the value of the judgment. the lien can potentially be foreclosed to satisfy the judgment.

50
Q

When a court uses money to solve a contract dispute, the goal is to ___

A

compensate the plaintiff

51
Q

Damages to compensate the plaintiff are called

A

compensatory damages

52
Q

___ damages are not available for breach of K, but they are for torts

A

Punitive

53
Q

Types of money damages

A
  • Expectation
  • Restitution
  • Reliance
  • Incidental
  • Consequential
  • Liquidated
54
Q

Acronym for types of money damages

A

Every Road Rage Incident Causes Liability

55
Q

Expectation damages are

A

the standard measure of contract damages. These are sufficient damages for the non-breaching party to buy a substitute performance.

56
Q

The purpose of expectation damages (legal remedy) is to put the plaintiff in the ____

A

same economic position as if the contract was performed

57
Q

The amount of expectation damages will always be based on

A

the plaintiffs loss

58
Q

One approach to expectation damages is based on ___

A

market value - we value the plaintiffs loss based on a market price

59
Q

The other approach to expectation damages is ___

A

substitution cost - value the plaintiffs loss based on the cost to replace or repair the subject matter of the K

60
Q

With substitution cost you may be talking about the market price to fix/replace OR

A

the actual cost to fix/replace

61
Q

Restitution is ___

A

a remedy used to correct unjust enrichment

62
Q

Restitution is not a form of ___

A

damages

63
Q

The law is unclear about whether restitution is a ____ remedy

A

legal or equitable

64
Q

Unjust enrichment is the basis of ___ restitution

A

all

65
Q

Unjust enrichment means that

A

a party received a benefit as a result of someone else’s misfortune

66
Q

Restitution fixes the unjust enrichment by

A

forcing the defendant to pay money to the plaintiff

67
Q

Restitution is measured by ____ not the plaintiffs loss

A

defendants gains

68
Q

You cannot get both

A

expectation damages and restitution

69
Q

First scenario where restitution is used is:

A

Have a promise that cannot be enforced as a contract for some reason, but one party was unjustly enriched

70
Q

Second scenario where restitution is used is:

A

Have a valid contract and restitution is awarded as an alternative to legal damages, where the amount of legal damages is too difficult to ascertain or insufficient

71
Q

Restitution is not about making the plaintiff whole, but rather ___

A

taking away unjust gains and making things right

72
Q

Reliance damages are an ___ remedy

A

equitable

73
Q

Definition of reliance damages

A

Reliance damages are an equitable remedy used to compensate the non-breaching party for reasonable foreseeable costs that he incurred in reliance upon the promise

74
Q

We typically see reliance damages when

A

a party incurs out of pocket expenses in preparation for the agreed-upon performance OR when a party worsens his situation in reliance upon the promise in a way the promissor could have foreseen

75
Q

Reliance damages put the plaintiff in the position she would have been in ____

A

had the K never been performed

76
Q

For reliance damages, the damages spent by the P must be ___

A

reasonable

77
Q

First scenario where reliance damages is used:

A

Have a promise that cannot be enforced due to some defect in formation, and we used promissory estoppel to seek reliance damages

78
Q

Second scenario where reliance damages is used:

A

have a valid K and we cannot ascertain the amount of the legal remedy, or the legal remedy is insufficient.

79
Q

We can use restitution or reliance when

A

legal damages are not available or not ascertainable

80
Q

We can use restitution instead of legal damages when

A

it will result in larger compensation for the plaintiff

81
Q

We can get both __

A

restitution and reliance damages

82
Q

Incidental damages are a __

A

legal remedy

83
Q

Definition of incidental damages:

A

incidental damages are the expenses that the non-breaching party incurs in finding replacement performance.

84
Q

Incidental damages can also apply in some situations involving ___

A

the sale of goods

85
Q

Consequential damages are ___

A

a legal remedy

86
Q

Consequential damages are ___ easy to get

A

NOT

87
Q

Consequential damages rule:

A

Consequential damages are special damages and reflect losses over and above standard expectation damages. They are recoverable only if, at the time the K was made, a reasonable person would have foreseen the damage as a probable result of the breach.

88
Q

For consequential damages, D must:

A
  • know or reasonably be able to foresee
  • that breach would cause special harm to P
  • outside the scope of the party relationship
  • and that harm would not be wholly rectified by ordinary damages
89
Q

Scenarios for consequential damages involve

A

lost profits from third parties

90
Q

D’s first counter argument to consequential damages:

A

the special loss was not foreseeable

91
Q

D’s second counter argument to consequential damages:

A

the amount of damages are too speculative.

92
Q

Liquidated damages are a ___

A

legal remedy

93
Q

Liquidated damages rule:

A

For liquidated damages, the parties to a K agree to the damages to be paid in the event of a breach. Typically, the amount of liquidated damages is stated in the K itself.

94
Q

To obtain liquidated damages in FL

A

the amount of liquidated damages must be reasonably related to actual damages AND they must not be used as a penalty

FL Topics (9 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions