Cram Law

Question 1

3 Sources of contract law-

Answer 1

Common law- court decision precedent (statute)
UCC- Uniform commercial code(series of statutes that varies from state to state) streamlines the process of making a contract.
Court decisions- in the state (non statute)

Question 2

UCC

Answer 2

UCC- Uniform commercial code(series of statutes that varies from state to state) streamlines the process of making a contract.

Question 3

objective theory of contracts

Answer 3

intention to enter into a contract is judged by outward, objective facts as interpreted by a reasonable person,

Question 4

Elements of a contract

Answer 4

Agreement. An agreement to form a contract includes an offer and an acceptance. One party must offer to enter into a legal agreement, and another party must accept the terms of the offer.
Consideration. Any promises made by the parties must be supported by legally sufficient and bargained-for consideration (something of value received or promised to convince a person to make a deal).
Contractual capacity. Both parties entering into the contract must have the contractual capacity to do so. The law must recognize them as possessing characteristics that qualify them as competent parties.
Legality. The contract’s purpose must be to accomplish some goal that is legal and not against public policy.

Question 5

Defenses to enforceability of a contract

Answer 5

Voluntary consent

proper legal form

Question 6

Unilateral contract

Bilateral contract

Answer 6

Unilateral contracts - promise money in the future, for an act in future (I hire lawn care service over a month and pay them at the end)- you agree by mowing my lawn for a month

Bilateral contracts- Promoce money in future for action in future (I pay you $10 for you to cut my lawn on monday)- You agree by making the promise (promise for promise) example one person agrees to buy another person’s automobile for a specified price. No performance, such as the payment of funds or delivery of goods, need take place for a bilateral contract to be formed. The contract comes into existence at the moment the promises are exchanged.

Question 7

Executed contract

Excretory contract

Answer 7

Executed contract completed contract

Executory contract contract still in effect

Question 8

Quasi contracts

Answer 8

Quasi contracts, or contracts implied in law, are not actual contracts. They are not true contracts because they do not arise from any agreement, express or implied, between the parties themselves. When the court imposes a quasi contract, a plaintiff may recover in quantum meruit, a Latin phrase meaning “as much as he or she deserves.”

Question 9

Agreement requirements of an offer

Answer 9

There must be a serious, objective intention by the offeror.
The terms of the offer must be reasonably certain, or definite, so that the parties and the court can ascertain the terms of the contract.
The offer must be communicated to the offeree.

Question 10

revocation

Answer 10

The offeror’s act of withdrawing an offer

Question 11

mirror image rule

Answer 11

requires that the offeree’s acceptance match the offeror’s offer exactly

Question 12

e-signature

Answer 12

has been defined as “an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.”

Question 13

Agreements that lack consideration

Answer 13

Illusory promice
preexisting duty
past consideration

Question 14

Promissory estoppel

Answer 14

the courts have some wiggle room to force people to keep promises in the interest of fairness

Question 15

Unilateral mistakes-

Answer 15

Burden on whoever made the error

Question 16

Contracts that must be in writeing

Answer 16

Selling land requires proof of ownership with writing and approval from the governing body

Any contract that cannot be completed in one year requires writing down

Collateral promises, “I promise eric is a good person he will pay back the car” requires written contract from the person voching for eric

Dowry and marriage requires writing

Question 17

promissory Estoppel

Answer 17

Judge has wiggle room int the interest of fairness.

Question 18

Conditions precedent-

Answer 18

You must be of sound health before the life insurance company will sell you insurance.

Question 19

Conditions subsequent-

Answer 19

A law firm hires Julia Darby, a recent law school graduate. Their contract provides that the firm’s obligation to continue employing Darby is discharged if she fails to pass the bar exam by her second attempt. -This type of condition is the most rare

Question 20

Concurrent conditions-

Answer 20

As long as you keep mowing my lawn every tuesday I will keep paying you. Either of us could stop the agreement at any time and the other would not have to complete theirs

Question 21

Substantial performance

Answer 21

arty who in good faith performs substantially all of the terms of a contract can enforce the contract against the other party

Question 22

Performance to satisfaction of another

Answer 22

performance that would satisfy a reasonable person

Question 23

mutual Resend

Answer 23

an agreement by both parties to end the contract

Question 24

Novation

Answer 24

Substitute one party in a contract for anouther

Question 25

Accord

Answer 25

parties mutualy agree to change the obligations of one party. I agree to let you mow my lawn on friday insted of the agreed tuesday. (If you fail to show friday I can sue you for breach of contract for not shoeing up tuesday.)

Question 26

What can discharge a contract by law

Answer 26

Statuet of limitations- can limit contracts, sets sentences for breach of contract and torts, can get you out of contracts.
Bankruptsy- federal process usses state laws to determine what a bankrupt person is allowed to own. In texas you can go throuh bankrupsty and keep a 12million dollar house. Long and painful procces for hard workers- can be abused by poor.

Impossibility of performance
When performances is impossible- your obligations are discharged but it better be completley impossible(like act of god or country).
Temporary Impossibility
Commercial Impractibility- The price on the lumber I was transporting increased I will now be at a loss intead of a gain for transporting it. The lumber is no longer consideration because it has negative value to me.
Frustration of purpose- contract can no longer acheive its purpose