Contracts Distinctions

Question 1

Test for Consideration

Answer 1

Requires benefit to promisor or detriment to promisee.

Question 2

Is promissory estoppel an exception to SOF?

Answer 2

No! Cannot make a contract enforceable via promissory estoppel.

Question 3

Explain a minor’s capacity to contract.

Answer 3

A minor can disaffirm contracts, even if he lost or squandered the property received.

EXCEPTION: contract for purchase of necessaries.

Question 4

Test for enforcing contract with minor for necessaries:

Answer 4

Enforced if the transaction is:

1. fair and reasonable;
2. made in good faith by plaintiff; and
3. made without knowledge of minor’s lack of capacity to contract.

Question 5

What does the CSPA prohibit?

Answer 5

Supplier may not commit unconscionable act or practice at any point during a consumer transaction.

Question 6

When will court enforce covenant not to compete?

Answer 6

Ohio favors “rule of reasonableness”

Court can enforce a covenant–even if it has unreasonable provisions–to the extent necessary to protect employer’s legitimate interests.

Question 7

Privity requirement for suits against attorneys:

Answer 7

Attorney will not be liable to third party unless the third party is in privity with the attorney.

Can only override privity requirement if fraud, bad faith, collusion, or malice.