Defenses

Question 1

Lack of capacity— a minor can disaffirm a contract in part before reaching the age of majority. T/F

Answer 1

False— the minor must disaffirm in whole AND must return anything they received under the contract that still remains at the time of disaffirmance

Question 2

Do minors have the capacity to enter contracts that bind themselves?

Answer 2

Generally no. But adults are bound on their contracts with minors

Question 3

Necessaries: minor may disaffirm a contract for necessaries but will be _____ for the ______.

Answer 3

Liable in restitution; value of benefits received

Question 4

Affirmance upon age of majority can be made either ____ or ____, which requires ____.

Answer 4

Expressly; by conduct; failing to affirm or disaffirm within a reasonable period after reaching 18

Question 5

Contracts induced by duress or undue influence are ____.

Answer 5

Voidable— can be rescinded as long as they’re not affirmed

Question 6

When neither party is aware of ambiguity OR both parties are aware, _____.

Answer 6

No contract unless both parties intended same meaning

Question 7

When one party is aware of ambiguity, _____.

Answer 7

Binding contract based on what ignorant party reasonably believed to be the meaning of ambiguous words

Question 8

Mutual mistake about existing facts may cause the contract to be voidable by the adversely affects party if:

Answer 8

Mistake is on a basic assumption

Has a material effect on the exchange

Party seeking avoidance didn’t assume the risk of the mistake

Question 9

Unilateral mistake [will/will not] prevent the formation of a contract.

Answer 9

Will NOT.

But if the non mistaken party knew or had reason to know of the mistake by the other party, contract is voidable by the mistaken party

Question 10

Unconscionability requires ____ and _____, tested [when/after] the contract was formed.

Answer 10

Unfair surprise; oppressive terms

When the contract was formed

Question 11

6 covered categories for the Statute of Frauds:

Answer 11

MYLEGS

Marriage
Year
Land sales
Executors
Goods over $500
Sureties

Question 12

A contract measured by a lifetime (e.g. a promise to work “until I die”)— is this within the SoF?

Answer 12

No. Person can die at any time

Question 13

A musician is hired in May 2021 to play a 2-hr concert in August 2022. SoF?

Answer 13

Yes

Question 14

Interests in land must be evidenced by a writing. Not only real property but also: (at least 3)

Answer 14

Leases for more than 1 year 
Easements for more than 1 year
Mortgages
Fixtures 
Minerals or structures to be severed by the buyer

Question 15

Authorization for an agent to sell land that’s under the SoF does not have to be in writing. T/F

Answer 15

False, given the equal dignity rule, because the underlying deal is a land sale.

Question 16

When can a contract be out of the SoF and no longer require a writing signed by the party to be charged?

(4, mnemonic)

Answer 16

SWAP

Specially made goods
Written confirmation by a merchant
Admission in court
Performance

Question 17

Suretyship is the promise to _____.

If the main purpose of the promisor is to ____, the contract is not within the SoF.

Answer 17

Pay the debt of another

Serve a pecuniary interest of his own

Question 18

Modifications must be in writing only if____.

Answer 18

The modified contract would be within the SoF

Question 19

Clauses prohibiting oral modification are generally ____ in common law contracts, and _____ in Article 2 contracts.

Answer 19

Unenforceable (CL)

Enforceable (Art 2)

Question 20

A buyer’s part performance on land sale contracts require ___ of the following: _____. This allows the buyer to enforce an oral land sale and takes the contract out of SoF.

Answer 20

At least two; payment (in whole or in part), possession, and/or valuable improvements

Question 21

____ performance of service contracts allows the contract to get out from under the SoF, while ____ performance does not.

Answer 21

Full (no SoF);

Partial (SoF still)

Question 22

Sale of goods exception to SoF means that the contract for goods a buyer has already accepted and paid for does not need to be in writing. T/F

Answer 22

True. And remember that the other goods, if more than $500, still must be in writing or the contract is not enforceable

Question 23

If a person pays $1000 out of $5000 for a sofa on an oral contract, does this take it out of SoF (and therefore means that the buyer can enforce the contract if the seller then backs out)?

Answer 23

Yes because the sofa is an indivisible object

Question 24

Seller can enforce an oral contract without a writing even when it should fall under SoF if the goods were to be _____ and the seller made a ______.

Answer 24

Specially manufactured; substantial beginning in manufacture or commitments for the purchase

Question 25

Merchant’s confirmatory memo: merchant can use its own signed writing to confirm the understanding if the recipient 1) ____ and 2) ____.

Answer 25

Has reason to know of the confirmation’s contents; does not object in writing within 10 days of receipt

Question 26

SoF requires a formal written contract. T/F

Answer 26

False. Can be receipt, letter, etc.

Only requires: reasonable ID of subject matter, indicates a contract was made between the parties, and stating with reasonable certainty the essential terms

Question 27

SoF generally requires signature of the party being charged with breach. T/F

Answer 27

True

Question 28

Common law contracts must contain all material terms and defendant’s signature. This is [more/less] than Article 2.

Answer 28

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