Contracts Rules of Law

Question 1

Contract

Answer 1

objective manifestation to be bound by a promise or set of promises for which the law provides a remedy for breach

Question 2

Contract Formation

Answer 2

offer, acceptance, consideration, and lack of formation defenses, e.g., SoF, PER, etc.

Question 3

Mutual Assent

Answer 3

offer plus acceptance; an agreement with an intent to be bound

Question 4

Offer

Answer 4

a manifestation of a willingness to enter into a bargain; so made as to justify another person in understanding that their assent to the bargain is invited and will conclude it.

Question 5

Acceptance

Answer 5

assent to the terms of an offer with a intent to be bound; at CL acceptance must mirror offer while the UCC requires acceptance to be seasonable and definite by may include different terms and conditions and still be a valid acceptance.

Question 6

Consideration

Answer 6

a bargained for exchange in which one party incurs a legal benefit and the other a legal deficit.

Question 7

Objective Theory of Contract

Answer 7

the existence of a binding K using the ‘reasonable person standard’ that would conclude that there was assent by the parties to be bound by the terms therein.

Question 8

Revocation

Answer 8

a withdrawal of an offer that has not been accepted.

Question 9

Rejection

Answer 9

the refusal of an offer either by failing to accept it via mirror image rule or seasonably and by reasonable communication methods.M

Question 10

Mailbox Rule

Answer 10

An acceptance is effective upon dispatched, of properly addressed and posted, while a rejection is effective upon delivery

Question 11

UCC 2-205

Answer 11

“firm offer rule” - signed writing from a merchant; irrevocable for time offered, or reasonable time if none stated, but for no longer than 90 days without separate consideration.

Question 12

Mirror Image Rule

Answer 12

at common law, an acceptance must mirror the terms of the offer exactly otherwise it is a rejection of the offer,

Question 13

UCC 2-206

Answer 13

“perfect tender rule” - offer to buy buyer goods for prompt shipment invites acceptance by either prompt promise to ship or by prompt shipping of conforming or nonconforming goods; the NCG are not an acceptance if the seller notifies the buyer that they are an accommodation; the buyer can accept the NCG or reject the NCG while accepting conforming goods.

Question 14

UCC 2-207

Answer 14

“battle of forms” - definite and seasonable assent is valid even though it states additional or different terms from those offered or agreed upon, unless acceptance is expressly made conditional upon acceptance of the additional or differing terms, the additional terms are proposals, which become part of the K, unless:

1. the offer expressly limits acceptance to terms of the offer;
2. the new terms materially alter the K; or
3. notification of objection to the additional terms is given prior or within a reasonable amount of time after receipt of the new terms, and conduct by both parties which recognizes the existence of a K, that K includes terms not in dispute.

Question 15

Common Law Modification

Answer 15

Modifying a contract Requires new consideration, I.e., they bargained for exchange.

Question 16

UCC Contract Modification

Answer 16

Separate consideration is not required for UC see contract modification as long as the modification is made in good faith.

Question 17

Statute of frauds

Answer 17

Requirement that certain contracts be in writing and signed by the parties to be enforceable, these contracts are:
One contract in the consideration for marriage, two contracts that cannot buy their terms be completed within one year, three contracts for the sale lease or mortgage every property, For contracts involving an estate executor paying in a state personally, five contracts involving the sale of goods more than $500, and six contracts for surety.

Question 18

Parol Evidence Rule

Answer 18

Terms found within a writing meant to be the parties final written expression cannot be contradicted by evidence any prior verbal or written agreements but it may be explained or supplemented unless the writing is a full integration of the parties agreement.

Question 19

Fraud -Defense to Formation

Answer 19

the D knowingly made a misrepresentation of material terms and had the intent to defraud the other party and the party bringing the claim must have detrimentally relied on the misrepresentation