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Contracts COPY Flashcards

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1
Q

Offer

A

An objective manifestation by the offeror of a willingness to enter into a bargain creating the power of acceptance in the offeree

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2
Q

When an “offer” is sent to multiple people and not all can accept?

A

NOT AN OFFER - it’s an invitation to BID. An announcement. Usually - the more widespread the audience, the less likely it’s an offer. Ad in the paper - invitation to bid.

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3
Q

Acceptance

A

An objective manifestation by the offeree to be bound by the terms of the offer

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4
Q

When does an offer terminate?

A

-Death of the offeror -Revocation (from the offeror) -Rejection -Counteroffer (terminates the offeree’s power of acceptance) -Lapse of time

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5
Q

Rejection vs. Inquiry

A

Rejection terminates the offeree’s power of acceptance Inquiry does NOT terminate the offeree’s power of acceptance. Offeror can renew offer in the face of a rejection.

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6
Q

The offeror

A

The master of the bargain. They set the time

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7
Q

Face-to-face conversation rule

A

When an offeror makes an offer during the course of a face-to-face conversation, the offer lapses at the end of the conversation.

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8
Q

Does an inquiry terminate an offeree’s power of acceptance?

A

NOPE.

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9
Q

What can an offeror do with a offer?

A

Can revoke

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10
Q

What can an offeree do with an offer?

A

Accept, Reject, Counteroffer, Inquiry

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11
Q

UCC 2-206: Non-Conforming Goods

A

If non-conforming goods are shipped, the shipment serves as an acceptance and at the same time a breach Is NOT a partial acceptance

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12
Q

Unilateral Contract

A

Offeror makes an offer that calls for performance Looking for ACTION Example: wanted poster for lost dog promising reward.

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13
Q

Bilateral contract

A

Offeror and offeree exchange mutual promises Looking for PROMISE Ex. A promises her car to B, B accepts by promising to pay A money for the car.

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14
Q

UCC 2-205: Firm Offer Rule

A

A signed writing by a merchant which by its terms gives assurances that it will be held open is not revocable for lack of consideration for the stated period of time not to exceed three months Here - can’t revoke the offer (terminate it) early. ONLY for merchants. If private person, then this doesn’t apply.

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15
Q

Consideration

A

Bargained for legal detriment

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16
Q

Consideration considerations

A
  1. Look for a valid contract -is there a bargain the court MUST enforce? -bargained for exchange -forbearance to sue 2. Look for a substitute for consideration -is there a bargain the court SHOULD enforce?
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17
Q

Implied in Law contracts

A

A quasi-contract is not an actual contract, rather a legal substitute for a contract formed to impose equity between to parties -A contract SHOULD have been formed, even though in actuality it was not. -Used when a court faces a situation of injustice to enforce the agreement to ensure fairness Ex. when a doctor tries to save the guy’s life and the guy dies anyway there IS an implied quasi-contract.

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18
Q

Can an offeror terminate an offer at any time before acceptance by revoking it?

A

YEP. UNLESS they’re a merchant and the UCC 2-205 applies.

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19
Q

When is revocation effective?

A

Direct revocation - upon communication (ex. call them, write them and tell them the offer has been revoked) Indirect revocation - ex. reading the paper, that the stamp collection that you were going to buy has been sold to someone else.

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20
Q

Generally, as an answer, is “past” or “moral” consideration sufficient to form a contract?

A

NOPE.

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21
Q

Modification

A

A subsequent agreement that alters or changes the parties’ duties and obligations under the terms of their original contract.

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22
Q

Modification - UCC

A

Good faith No consideration required

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23
Q

Modification - Common Law

A

Pre-existing duty rule New consideration required

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24
Q

Pre-existing duty rule

A

Performance of an act by which a party is already contractually bound to perform does NOT constitute valid consideration for a new promise. At common law.

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25
Q

Mutual MIstake

A

BOTH parties are mistaken as to a material element that goes to the HEART or ESSENCE of the bargain. Remedy: Rescission

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26
Q

Unilateral Mistake

A

Contract ENFORCEABLE against mistaken party UNLESS non-mistaken party knew or should have known of the other’s mistake.

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27
Q

Anti-Assignment Clause

A

-The assignor need not consult the other party to the contract. -An assignment cannot have any effect on the duties of the other party to the contract, nor can it reduce the possibility of the other party receiving full performance of the same quality. -Certain kinds of performance, therefore CANNOT be assigned, bc they create a unique relationship between the parties to the contract

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28
Q

Implied in Law contract

A

Legal substitute for a contract formed to impose equity between two parties. A contract SHOULD have been formed, even though it actually was not.

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29
Q

Implied in Fact contract

A

An agreement founded upon a meeting of the minds, which, although not embodied in an express contract, is inferred from the conduct of the parties. Ex. the guy who contracts with the golf pro for $1000 for lessons for his son, and the pro lets the daughter also participate in all the lessons, he’s entitled to another $1000 for her lessons too.

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30
Q

Remedies - law

A

Money damages

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31
Q

Remedies - equity

A

Injunction Specific performance Rescission Reformation Quiet title actions Partition proceedings

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32
Q

F.O.B.

A

“free on board” Tells us where the risk of loss passes. Ex. “F.O.B. seller’s place of business” - during transit, the risk of loss is on the buyer once it leaves the seller’s place of business.

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33
Q

Specific Performance

A

A remedy used to enforce a contract for the sale of unique item of personal property or real property

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34
Q

Condition Precedent

A

An act or an event (other than the lapse of time) that must occur FIRST BEFORE a party is under a duty to perform.

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35
Q

Are minors regarded as having sufficient capacity to comprehend questions involving contractual rights?

A

NOPE.

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36
Q

Contract with Minors

A

A person dealing with a minor does so at his or her peril and subject to the right of the minor to avoid the contract. Minors are regarded as NOT having sufficient capacity to comprehend questions involving contractual rights.

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37
Q

What kind of contracts with minors CANNOT be voided?

A

Taxes Penalties Bank regulations Military Necessities (reasonable rates - can’t collect on additional excessive rates)

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38
Q

Statute of Frauds (types of contracts under)

A

Marriage Year (1+) Land Executor Guarantee (or suretyship) Sale of goods ($500+) MY LEGS To be enforceable - NEEDS to be in writing.

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39
Q

Main Purpose Rule

A

An oral promise to answer for the debt of another is enforceable if the promisor’s main purpose is to further his own economic advantage.

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40
Q

Parol Evidence Rule

A

Once the parties have reduced their agreement to a writing, evidence of any prior oral or written or contemporaneous oral agreements is INADMISSIBLE to alter, vary, or contradict the terms of the writing.

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41
Q

Exceptions to Parol Evidence Rule

A

Fraud Mistake Illegality Duress Partial Integration Conditions precedent

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42
Q

Can a personal service be assigned?

A

NO. If you contract with a person because their unique skill, can’t assign it. Would reduce the possibility of the other party receiving full performance of the same quality. Personal service contracts are NON-DELEGABLE.

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43
Q

EXCEPTION TO LAND - STATUTE OF FRAUDS

A

PART PERFORMANCE - if you moved in, made payments, made improvements on the land. Usually, just ONE is enough. Will enforce the agreement outside of the statute of frauds.

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44
Q

GUARANTEE/SURETYSHIP - Statute of Frauds - when it does NOT need to be in writing

A

MAIN PURPOSE RULE If the main purpose behind someone promising to take on the debt of another is to benefit the person promising, then does NOT need to be in writing to be enforceable.

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45
Q

When can you bring in prior oral, written, or contemporaneous evidence to a contract that’s not in the actual written agreement?

A

For purposes OTHER than proving that it’s part of the contract itself - like clarification.

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46
Q

Can an oral condition precedent be brought in to show that a written agreement was subject to it?

A

YES. This is an EXCEPTION to the Parol Evidence Rule.

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47
Q

UCC Coverage Areas

A

Merchant Specific Rules (Confirmatory Memo, Firm Offer Rule) Defenses Damages Requirements Contracts Installment Contracts Battle of the Forms

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48
Q

Third Party Beneficiaries - Coverage Areas

A

Intended Incidental Assignment and delegation

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49
Q

UCC 2-205: Firm Offer Rule

A

A signed writing by a merchant which by its terms gives assurances that it will be held open is NOT revocable for lack of consideration for the stated period of time not to exceed three months.

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50
Q

Requirements Contract

A

A contract in which one party agrees to supply as much of a good or service as is required by the other party, and in exchange the other party expressly or implicitly promises that it will obtain its goods or services exclusively from the first party.

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51
Q

UCC 2-712: Cover by Buyer

A

After covering (getting substitute goods) aggrieved buyer may recover: (Price to cover - contract price), PLUS Incidental and consequential damages. Price to cover is always going to be higher than the contract rate.

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52
Q

UCC 2-615: Impracticability

A

Delay in delivery OR non-delivery by a seller is NOT a breach of the seller’s performance is made impracticable by a contingency whose non-occurrence was a basic assumption on which the contract was made.

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53
Q

Impossibility - subjective (defense)

A

Impossibility will NOT excuse duties of performance under a contract Ex. aphids all over the corn.

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54
Q

Impossibility - objective (defense)

A

Impossibility WILL excuse duties of performance under a contract Ex. if the removal of asbestos from buildings was suddenly illegal.

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55
Q

3rd Party Beneficiary Analysis

A
  1. Identify 3rd party beneficiary contract 2. Intent to benefit test (could beneficiary step into the shoes of the contracting party?) -Is 3rd party incidental - if yes, incidental, then no rights -Is 3rd party intended - then step 3 3. Has third party vested? -learned of the contract and assented to it? or -changed positions in reliance on the contract?
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56
Q

UCC 2-601: Non-Conforming Goods

A

Buyer has three options: 1. Can accept the whole shipment 2. Can reject the whole shipment 3. Can accept any commercial unit or units and reject the rest

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57
Q

Free on Board (FOB)

A

Indicates that the seller is responsible for getting the goods to a shipper designed by the buyer. At this point, the risk of loss passes from the seller to the buyer.

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58
Q

Incidental Damages

A

Expenses incurred by the injured party as a result of the other party’s breach of a contract -expenses for inspection, receipt, transportation -storage of rejected goods or services -expenses associated with buying replacement goods or services, AND -any other expense related to delay in delivery or non-delivery

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59
Q

Consequential Damages

A

Damages which do not derive directly from the breach, but from the results of the breach, they are more INDIRECT in nature. Ex. losses buyer incurs which the supplier had reason to know at the time of contracting and which buyer could not reasonably have prevented.

60
Q

UCC 2-609: Right to Adequate Assurances

A

When REASONABLE grounds for insecurity arise, one party MAY (in writing) demand adequate assurances from the other that the performance will occur. Talking about when parties want to back out before they actually perform or have to perform. Assurances must be provided within a reasonable time (no more than 30 days)

61
Q

What happens if you fail to provide assurances?

A

Repudiation of the contract.

62
Q

What is a non-conforming good under UCC 2-601?

A

Something that’s not what you ordered - like a vase that arrives broken.

63
Q

How to get incidental or consequential damages??

A

THE DAMAGE MUST BE FORESEEABLE! Foreseeable: based on what the breaching party knew at the beginning of the contract.

64
Q

Frustration of Purpose (defense)

A

The reason why you entered into the contract has changed. Ex. I am no longer in the business of selling corn, I am no longer a performer so I don’t need to rent the theater, etc.

65
Q

Under UCC - when a merchant is specifically advised of the use of a product, will they be liable for all foreseeable damages?

A

YES. Including consequential damages suffered by the buyer. Ex. the data-center company seeking protection from lightning strikes from the contractor, the contractor will be responsible for all the foreseeable damages incurred by the data-center if/when lightning strikes and destroys all their data.

66
Q

Force majure

A

A common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of the parties, such as war, strike, riot, crime, or act of nature (flooding, earthquake, volcano), prevents one or both parties from fulfilling their obligations under the contract. NOT to excuse the negligence or malfeasance of a party.

67
Q

Does parol evidence rule bar admission of terms that are orally agreed upon after the execution of a written contract?

A

NO. So if you orally modify a contract after the written execution of an agreement, evidence of the modification is admissible.

68
Q

In hybrid cases, that involve both the sale of a good and a service, how do you determine the predominant purpose of the K?

A

3 factors: 1. The language of the K 2. Nature of the supplier’s business 3. Relative value of the good vs. service

69
Q

Majority rule for hybrid cases (involving sale of a good and a service)

A

Look at the predominant purpose of the K

70
Q

Minority rule for hybrid cases (involving sale of a good and service)

A

UCC applies to sale of the good, common law to the service.

71
Q

Majority rule for computer software and other electronic information

A

Treated as good governed by the UCC

72
Q

Implied-in-fact contractual obligations

A

Agreements formed by conduct rather than words. Ex. Homeowner hires a plumber to fix a leak, but due to the urgency of the situation, doesn’t discuss price of the work. When work is complete, homeowner has an implied-in-fact obligation to pay the plumber the reasonable value of his work.

73
Q

Implied-in-law contractual obligations

A

One party bestows a benefit on another, and it’s unjust for the recipient to retain the benefits without paying. Quasi-contract, unjust enrichment. Ex. a surgeon who performed emergency surgery on an unconscious patient creates an implied-in-law obligation to the patient; a merchant who mistakenly delivers goods to the wrong party.

74
Q

Quantum Meruit

A

The cause of action for an implied-in-fact K, brought to recover the reasonable value of the benefits provided. Applies in implied-in-law claims, as well.

75
Q

Are electronic signatures legally effective?

A

YES.

76
Q

Are emails sufficient to satisfy the writing requirements of contract law?

A

Yep.

77
Q

Signed writing requirements

A

A number of rules in contract law require a signed writing in order to be legally enforceable. Ex. statute of frauds, firm offers.

78
Q

Key question in the formation of a K, in the course of the volley:

A

At what point do the parties have a legally enforceable K?

79
Q

The manifestation of an offer can be:

A

oral written or made via conduct

80
Q

An offer is NOT about

A

Inward thoughts or subjective intentions - IRRELEVANT unless they are reasonably apparent to the other party. Ex. a seemingly serious offer to sell a piece of property made secretly in jest will be an actual offer.

81
Q

Preliminary negotiation

A

A generic term that applies to the give-and-take that occurs during bargaining. Does NOT constitute an offer

82
Q

An invitation for an offer

A

Does not constitute an offer. An advanced state of preliminary negotiation, where the communicating party is closing in on a deal but wants the other party to commit first.

83
Q

Self-limiting rewards

A

Reward offers that indicate the task to be rewarded can be performed only once. Ex. “will pay $100 for finding my lost dog”

84
Q

Open-field rewards

A

Reward offers that indicate the task to be performed can be performed by multiple parties (potentially) Ex. Carbonic Smoke Ball case, where they promised to pay $100 to anyone who used their product and still got the flu. EXCEPTION: language in the offer that specifies a limitation on how many can accept it.

85
Q

General rule - auctions

A

The auctioneers are inviting offers, and the responsive bids are the offers

86
Q

Exception to the general rule of auctions:

A

If the auction is held “without reserve”, then the auctioneer is making an offer to sell to the highest bidder.

87
Q

For an offer to be terminated via revocation, the revocation must:

A
  1. occur prior to acceptance AND 2. be effectively communicated.
88
Q

An indirect revocation will terminate the offeree’s power of acceptance so long as:

A
  1. the offeror has taken definite action inconsistent with the intention to enter the proposed contract AND 2. the offeree acquires reliable information of the offeror’s inconsistent action
89
Q

Functional equivalents rule

A

When an offer is made by advertisement in a newspaper or magazine (or some sort of public notification), the power of acceptance is terminated when the notice of revocation is communicated by advertisement or other general notification equivalent to that used for the offer and no better means of communication is reasonable. So, if you offer via newspaper ad, you can revoke the offer via newspaper ad. A particular offeree loses the POA even if he is completely unaware of the revocation

90
Q

Can an offeror revoke an offer any time before acceptance, even if they promised to hold it open?

A

YES. Dickenson v. Dodds. Even if he expressly promised to hold it open, can revoke at any time.

91
Q

How to prevent revocation of an offer:

A
  1. common law option contract 2. firm offer under UCC
92
Q

Three elements to form an enforceable options contract

A
  1. an offer 2. a subsidiary promise to keep the option open 3. some valid mechanism for securing enforcement of the subsidiary promise (consideration)
93
Q

General rule - construction contracts

A

Where a general contractor uses a particular subcontractor’s bid to formulate his own, an implied option contract is created via promissory estoppel; prevents the subcontractor form revoking the bid

94
Q

UCC “Firm Offer” Rule

A

A merchant can make a firm offer (irrevocable offer) to either buy or sell goods WITHOUT consideration so long as: 1. the offer is made by a merchant 2. the offer is made in a writing signed by the merchant, AND 3. the offer expressly states by its terms that it will be held open If these requirements met, offer is irrevocable either for stated period of time in the firm offer, or for a reasonable time if no time is specified.

95
Q

A merchant (UCC)

A

Defined in terms of their special knowledge or skill with respect to the practices or goods involved in a transaction. A person may be considered a merchant even if he only has knowledge of the goods, or knowledge of the practices.

96
Q

Shelf life of a firm offer

A

3 MONTHS. Any firm offers that state they will be held open longer than 3 months will become revocable after the first 3 months.

97
Q

How to establish an irrevocable offer for longer than 3 months?

A

Create a common law option contract. So need a promise to hold it open, plus some form of consideration.

98
Q

Mirror image rule

A

At common law, requires that acceptance must mirror the terms of the offer, and ANY variation results in a counteroffer and rejection of the initial offer.

99
Q

Mirror image rule in UCC?

A

NOPE - recognizes a binding contract despite the presence of a nonconforming acceptance in two circumstances: 1. shipment of nonconforming goods 2. battle of the forms

100
Q

When is an offeror bound under a unilateral contract?

A
  1. Only when the offeree COMPLETES performance in accordance with the terms of the offer
101
Q

Is an offeree bound by a unilateral contract?

A

NO. The offeree is NEVER bound to perform bc he has never promised to perform.

102
Q

Revocation of the Offer in a unilateral contract - common law

A

Offeror free to revoke the unilateral offer up until the moment when the offeree completes performance. Unless stated, apply modern rule on MBE, not this.

103
Q

Revocation of the Offer in a unilateral contract - modern rule

A

Once the offeree begins performance, an option contract is created and the offeror may not revoke. HOWEVER - the offeree still needs to complete the performance in order for the offeror to be bound, and offeree could walk away at any time still.

104
Q

Mere preparations - modern rule of unilateral offer revocation

A

An offeror may revoke under the modern rule where the offeree is engaged in “mere preparations” to perform rather than the performance itself.

105
Q

Can a contract leave a price to be fixed by the seller at a later date?

A

YES. UCC 2-305(2) permits a contract to leave the price term to be fixed by the seller at a later date, but requires the price to be set in good faith. if the price is NOT set in good faith - the buyer may himself set a reasonable price - UCC 2-305(3)

106
Q

When only one party is mistaken as to a material aspect of the transaction, is that a defense to formation of the contract?

A

NO. Unless the non-mistaken party knew or should have known of the mistake.

107
Q

Sale of “specialty goods” - exception to the Statute of Frauds

A

If the goods are to be specially manufactured for the buyer and are not suitable for sale to others in the normal course of the seller’s business, no writing is required.

108
Q

Is parol evidence of collateral agreements admissible?

A

Yes.

109
Q

Part performance of a land contract

A

Taking possession of the land and paying at least part of the purchase price. Is an exception to the Statute of frauds. As long as someone took possession and paid part of the purchase price for land, don’t need a written agreement in order to have an enforceable contract.

110
Q

Does the mailbox rule apply to unilateral contracts?

A

NO. Just bilateral contracts

111
Q

Requirements for acceptance under common law

A
  1. the acceptance must mirror the terms of the offer (mirror image rule), AND 2. the acceptance must be communicated to the offeror
112
Q

How does an offeree communicate acceptance of the offer?

A

If the offer is silent as to the means of communication, the offeree is free to use any reasonable means of transmission

113
Q

A means of transmission (of the offeree’s acceptance) is reasonable if it is:

A
  1. the means used by the offeror 2. the means customarily used in similar transactions, OR 3. a means of communication that is equivalent in expeditiousness and reliability to the means used by the offeror
114
Q

Three instances where the requirement that acceptance be communicated may not apply:

A
  1. Acceptance by silence 2. Acceptance by performance 3. Acceptance by mail or other correspondence.
115
Q

Acceptance by silence

A

Generally, CANNOT constitute acceptance. Exceptions: 1. where the offeree takes the benefit of the offer’s services with a reasonable opportunity to reject them and with reason to know the offeror’s intention 2. where the offeror has given the offeree reason to understand that acceptance may be communicated by silence, in which case the offeree’s silence will operate as acceptance if he intends as such, AND 3. where, bc of previous dealings or other circumstances, it is reasonable that the offeree should notify the offeror if he does not intend to accept, in which case his silence will operate as acceptance

116
Q

Acceptance by performance

A

In a unilateral contract, acceptance is effective upon the offeree’s completion of the requested performance whether or not the offeree notifies the offeror

117
Q

Mailbox Rule

A

Acceptance by mail is effective upon DISPATCH so long as the acceptance is properly posted, with the correct address and postage amount. Once it’s sent - creates a binding contract. Offeree cannot withdraw acceptance. ONLY applies to ACCEPTANCES - not offers.

118
Q

In the mail - acceptance is effective when?

A

Upon DISPATCH so long as the acceptance is properly posted with the correct address and postage amount

119
Q

In the mail - offers, revocations, rejections, and counteroffers are effective when?

A

ONLY upon RECEIPT by the other party.

120
Q

Can a party request assurance of due performance and suspend its own performance when there are reasonable grounds for insecurity, and withhold performance pending receipt of assurances of performance by the other party?

A

YES - under UCC 2-702. Would be a justifiable suspension of performance.

121
Q

Can a seller, upon discovering the buyer’s insolvency, withhold delivery except for cash?

A

YES.

122
Q

Difference between impossibility and impracticability

A

Impossibility - objective, CANNOT do it anymore. Impracticability - could still do it, but going to be much more burdensome, more costly than anticipated. Usually need more than just cost - like severe shortages of raw materials caused by an embargo or war or something of that nature.

123
Q

When a contract calls for the satisfaction of a third party:

A

The third party must function in a strictly neutral fashion, and must determine satisfaction based ONLY on the grounds set forth in the contract.

124
Q

When does a contingency that frustrates the purpose of the contract NOT excuse the party from contractual obligation?

A

When the contingency was FORESEEABLE, and the receiving party did not include language in the contract discharging its duties if the contingency occurred. Would be deemed to have accepted the risk, and will be liable under the contract.

125
Q

When does the doctrine of impossibility not excuse both parties from performance?

A

When performance under the contract is only TEMPORARILY impossible - because then the parties’ obligations are only suspended until the impossibility ends. So, if only a temporary impossibility, the contract is just put on pause.

126
Q

Are the parents liable when a minor fails to complete a bargained for exchange? (designer jeans, pays with check, insufficient funds)

A

NOPE. In fact, the store cannot recover from the minor either. Too bad.

127
Q

Contracts involving a minor that are NOT void:

A

Contracts involving the provision of necessities: food clothing shelter

128
Q

If the contract doesn’t specifically state the payment terms, will the court impose a constructive term?

A

Yes, they will. Courts will allow payment in the form of cash or check, unless a different course of dealing has already been established.

129
Q

If the agreement is silent about the order of performance, when is payment due?

A

Upon completion of the work.

130
Q

If one party to a contract has been unjustly enriched at the expense of the other party, the latter party may seek:

A

Quasi-contractual relief.

131
Q

Can you make changes to a requirements contract that has already been acted upon, but is not complete?

A

Yes, the offeree may change the terms if the change is reasonable and made in good faith.

132
Q

Conditional acceptance

A

A condition precedent to acceptance - so no contract will be validly formed unless and until the condition is satisfied. Ex. the wine sent to the restaurant, where the restaurant owner said they were interested in the wine, but his chief wine steward would have to approve it before any payment would be forthcoming to the wine people. The steward’s approval was a condition subsequent to acceptance, and without his approval, there was no contract.

133
Q

6 defenses, available to a party in both common law and UCC cases

A
  1. Incapacity 2. Misrepresentation 3. Duress 4. Undue Influence 5. Unconscionability 6. Public Policy/Illegality
134
Q

Incapacity includes

A

Infancy/minors AND Mental incompetence

135
Q

Modern rule for minors:

A

Minors may enter into a K, but the K is voidable at the option of the minor. Adult can’t void a K with a minor, only minor can.

136
Q

For minors who are married/emancipated - MAJORITY

A

Still enjoy the power of avoidance EVEN IF they are married or emancipated.

137
Q

For minors who are married/emancipated - MINORITY

A

DO NOT enjoy the power of avoidance - marriage or emancipation eliminates that

138
Q

When a minor exercises the power of avoidance, do they have to give back any goods received under the K?

A

YES

139
Q

Majority rule - minors and power of avoidance

A

The minor must return the goods if they are in his possession when he disaffirms the K, BUT he is NOT liable for damage, wear and tear, or any other depreciative value of the goods

140
Q

Minors and power of avoidance - for something that cannot be returned

A

When the minor exercises right to disaffirm the K, the minor is under NO further obligation to compensate the other party. Ex. yoga lessons

141
Q

Minority rule - minors and power of avoidance

A

Minor can only disaffirm a K by making the other party whole. So, minor would be liable for depreciation, damages, as well as compensating the other party for services received.

142
Q

Infancy - Ratification

A

Once minors turn 18, they may expressly or impliedly ratify Ks entered during minority and this bind themselves

143
Q

How to impliedly ratify a K - infancy

A

if you keep using the service/product into the age of majority, you’ve impliedly ratified the K

144
Q

A minor’s K for necessaries - voidable?

A

It’s still voidable BUT the merchant has a quasi-K to recover the reasonable value of the goods and services

145
Q

What qualifies as “necessaries” for minors?

A

Food, clothing, shelter, and medical care

146
Q

What if a minor misrepresents their age? And says that they are 19 when they are actually 15?

A

in a MINORITY of jdx, the minor would be equitably estopped form invoking the defense of infancy to the K.

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