Defenses

Question 1

What are the formation defenses?

Answer 1

1) mistake
2) misunderstanding
3) misrepresentation
4) incapacity to contract
5) duress
6) undue influence

Question 2

Enforcement defenses

Answer 2

1) illegality
2) unconcionability
3) public policy

Question 3

Miscellaneous defenses

Answer 3

Lack of consideration and statute of frauds

Question 4

There are many ways to discharge a contractual duty. Some are obvious, such as performance. What are some tricky ones?

Answer 4

Illegality after the contract made
Lapse
Modification
Release not to sue
Novation
Substituted contract

Question 5

An agreement to accept something in lieu of performance

Answer 5

Accord

Question 6

Performance of an accord contract

Answer 6

Satisfaction

Question 7

Elements of impossibility defense

Answer 7

1) objective impossibility of performance
2) arises after contract is entered into
3) each party is excused
4) event was unforeseeable and non-occurrence was a basic assumption of the parties

Question 8

True or false: temporary impossibility is an excuse for contractual obligations

Answer 8

False. It is only an excuse so long as the impossibility exists and ceases once it is not longer an issue

Question 9

Elements of Impracticability defense

Answer 9

1) extreme and unreasonably difficulty and/or expense
2) non-occurrence was basic assumption of the parties

Question 10

True or False: impractibility is available as a defense only if the change in expense is well beyond the normal range

Answer 10

True. A mere change in degree of expense will not render a contract impracticable-it must be such an extreme change as to be outside the bounds of what is normal or foreseeable