Contracts - Basics Flashcards
What are the three important questions to ask when a contracts question is presented?
1) Has an enforceable contract been formed?
2) Has the contract been performed (or is there an excuse for breach?)
3) What are the remedies for breach?
What is a contract?
A contract is a legally enforceable agreement
What are the two things to look for to determine if a contract exists?
1) An agreement
2) special legal basis for enforcing the promise
You say, “I promise to give you $1000 next week.” I say, “I accept.”
Is there a contract?
NO, this is a gift and there is no consideration
In what “universe” do we apply CL principles to contracts?
We are in this universe whenever a contract deals with real estate or services
When does the UCC govern contract law?
The UCC applies to transactions in goods. Goods are moveable. ___ are/is movable. Thus, UCC applies.
Does the UCC govern for non-merchants?
YES, the UCC governs all parties who enter into goods contracts
What does the All-Or-Nothing rule say? When does it apply?
You cannot be in two universes at the same time, so mixed contracts must fall into one universe or the other.
This applies with mixed contracts (goods and services/land)
Are there any exceptions to the all or nothing rule?
YES
Divisible contracts – agreement is divided into two mini contracts.
What is the predominant purpose rule? When does it apply?
Does a good or a service play a bigger role?
This applies to mixed contracts.
You commission the famous artist Andy Warhol to paint your portrait for $1 million. Does the UCC apply?
No because Andy Warhol’s services play a more predominant role than the portrait itself.
You commission my mother-in-law, Mickey, to paint your portrait for $10. Does the UCC apply?
Yes because the only thing of value is the portrait (not Mickey’s talent).
All Contracts Don’t Stink = ?
Has an enforceable contract been created?
Agreement
Consideration
Defenses
Statute of Frauds
Pizza With Crawling Escargot = ?
Has the contract been performed?
Parol Evidence
Warranties
Conditions
Excuses
When are objective and subjective standards each used to determine whether a condition is satisfied?
The preferred method is an objective standard based upon whether a reasonable person would be satisfied.
However, when the aesthetic taste of a party determines whether the other party’s performance is satisfactory, satisfaction is determined under a subjective standard.
