Contracts _ Formation

Question 1

Contract Formation (3)

OFFER

Answer 1

1) Offer
2) Acceptance
3) Consideration

(and obviously no defenses apply, but you know that)

Question 2

Offer

OFFER

Answer 2

There is an offer when there is a manifestation of present intent to enter into a bargain stated in certain and definite terms communicated to an identifiable person that the offeree can reasonably understand that a contract would result if accepted.

Question 3

Ads

OFFER

Answer 3

• Not an Offer
• “Invitation to an Offer”

Question 4

Termination of an Offer (5)

OFFER

Answer 4

• Death
• Lapse of time
• Rejection
• Counteroffer
• Revocation

Question 5

Direct Revocation:

OFFER

Answer 5

• Retraction of an Offer by the offeror

Question 6

Indirect Revocation:

OFFER

Answer 6

• Person receiving Offer LEARNS another deal was made

Question 7

Revocable:

OFFER

Answer 7

• Offers are REVOCABLE
• Only three instances when an Offer is not revocable
• Option K; UCC Firm Offer; Unilateral K

Question 8

Irrevocable Offer

Option Contract:

OFFER

Answer 8

1) Promise to keep Offer open
2) Additional Consideration

Question 9

Irrevocable Offer

UCC Firm Offer + Time Limit

OFFER

Answer 9

1) Merchants
2) Signed writing by Merchant
3) Can only stay open for a MAXIMUM of 3 months

Question 10

Irrevocable Offer

Unilateral K v Bilateral K

OFFER

Answer 10

Unilateral K = Promise for an act
vs.
Bilateral K = Promise for a promise

Question 11

Common Law Mirror Image Rule

ACCEPTANCE

Answer 11

• Acceptance must mirror the Offer

Question 12

How to Accept an Offer (3 - 🤫 / 🏃 / ✉️ )

ACCEPTANCE

Answer 12

• Silence
• Performance
• Mail

Question 13

Common Law Mailbox Rule:

ACCEPTANCE

Answer 13

• Acceptance is effective when SENT
  Example:
  o If you mail Jon an acceptance on April 5, the acceptance is effective on April 5

Question 14

Mailbox Rule Exception:

ACCEPTANCE

Answer 14

• If a Rejection is sent first, then an Acceptance is sent, whichever arrives first wins

Question 15

UCC Acceptance:

ACCEPTANCE

Answer 15

• Acceptance is construed liberally
  (substantial performance)

Question 16

UCC Acceptance Exceptions
(kinda like battle of forms?)

ACCEPTANCE

Answer 16

• Material change the terms of contract
• Objection to the change of a term in a **reasonable amount of time **
• Offer limits the Acceptance

Question 17

Consideration:

CONSIDERATION

Answer 17

Bargained-for Exchange

Question 18

AdaptiTip
You will never have insufficient consideration because of . . . (finish the sentence; hint peeeeepercorn)

CONSIDERATION

Answer 18

You will never have insufficient consideration because of the amount, even a peppercorn is enough

Question 19

Illusory Promise:

CONSIDERATION

Answer 19

• Party making the Offer retains control

Question 20

Valid Consideration or Not

Gifts

CONSIDERATION

Answer 20

• Promise to give a gift is NOT valid Consideration
• Already given gift IS valid Consideration

Question 21

Valid Consideration or Not

Past or Moral Consideration:

CONSIDERATION

Answer 21

• Past or Moral Consideration Is NOT valid Consideration

Question 22

Valid Consideration or Not

Promise to pay debt barred by Statute of Limitations

CONSIDERATION

Answer 22

• Promise to pay debt barred by Statute of Limitations Is valid Consideration

Question 23

Valid Consideration or Not

Promise to pay debt discharged by bankruptcy:

CONSIDERATION

Answer 23

Promise to pay debt discharged by bankruptcy Is valid Consideration

Question 24

Valid Consideration or Not

Forbearance to sue:

CONSIDERATION

Answer 24

• Promise not to sue
  * Is valid Consideration

Question 25

Promissory Estoppel:

CONSIDERATION

Answer 25

• Detrimental Reliance

Question 26

Define Accord & Satisfaction

ACCORD & SATISFACTION

Answer 26

• accord and satisfaction (the parties agree to new or different
  consideration)

From OneSheets b/c AB worksheets no tiene

Question 27

When would a writing be construed against the drafter?

“Contra Proferentem” aka Canon of Construction

Answer 27

canon of construction known as contra proferentem-that a writing will be construed against the drafter-applies only as a last resort to address ambiguous language.

Question 28

Pre-Existing Duty

Answer 28

A promise to perform (or the actual performance of) an existing legal duty has no value and is not consideration.

Question 29

Exception to Pre-Existing Duty Rule - Additional Benefit

Answer 29

A promise not supported by consideration is enforceable when the promisee provides something in addition to what is already owed or varies their existing duty in some way.

Question 30

Exception to Pre-Existing Duty Rule - Voidable Contract

Answer 30

A promise not supported by consideration is enforceable when the promisee promises to perform a voidable obligation.

Question 31

Exception to Pre-Existing Duty Rule - Promise to a Third Party.

Answer 31

A promise not supported by consideration is enforceable when the promisee promises a third-party to periorm a pre-existing duty originally owed to a different person.

Question 32

Exception to Pre-Existing Duty Rule - Honest Dispute

Answer 32

A promise not supported by consideration is enforceable when the scope of pre-existing duty owe is subject to an honest dispute.

Question 33

Exception to Pre-Existing Duty Rule - Unanticipated Changed Circumstances*

Answer 33

Modification fair and equitable in view of circumstances not anticipated by the parties when the contract was made.

Question 34

Exception to Pre-Existing Duty Rule - UCC Good Faith Modification

Answer 34

Under the UCC, a modification to a contract does not require consideration so long as the modification was made in good faith.

Question 35

When does an illusory promise become binding?

Answer 35

An illusory promise can become binding if the illusory component goes away

(e.g., I retain a right to revoke until September 1 - the consideration is illusory until September 1 and then after September 1, it is no longer illusory and there is a binding contract so long as there was mutual assent.