Definitions

Question 1

Bilateral Contract

Answer 1

both parties make at least one promise in exchange for a promise or promises made by the other.

Question 2

Unilateral Contract

Answer 2

only one party makes a promise or promises, in exchange for a performance or in exchange for a forbearance form acting by the other, not in exchange for a promise by the other to act or forbear.

Question 3

Terms

Answer 3

may be expressed in language, oral, or written, or may be implied form non-verbal behavior or circumstance.

Question 4

Promise

Answer 4

R.2d Contracts 2 :
a manifestation of intent to act or refrain from acting in a specified way, so made as to justify a promisee in understanding that a commitment has been made.

Question 5

Obligation

Answer 5

Duty

Question 6

Third-Party Beneficiary

Answer 6

When the performance of the party will benefit someone other than the parties involved.

Question 7

Term

Answer 7

portion of an agreement that relates to a particular matter.

Question 8

Restitution

Answer 8

Theory of obligation

Question 9

Consideration

Answer 9

An exchange or bargained for promises between two or more parties. Must be legal and bargained for. Both parties must place value on the contract prior to execution.

Question 10

Consideration - Legally Sufficient Value

Answer 10

Cannot promise to do something where there is already a legal obligation to do so

Question 11

Bargain

Answer 11

an exchange of promise and something of value where both parties gain an reward and received detriment.

Question 12

Past Consideration

Answer 12

one party makes a promise in recognition of a benefit previously received from the other party

Question 13

Gratuitous Promise

Answer 13

a promise that is made without consideration and is usually unenforceable. No bargaining for return promise or performance.

Question 14

Rachel promises her friend Stephanie to split her lottery winnings 50/50 if she wins. Is it enforceable?

Answer 14

No, there is no consideration. This is a gratuitous promise.

Question 15

Promissory Estopple

Answer 15

treats the promisee’s reliance as an independent and sufficient basis for enforcement.

A promisee can obtain enforcement even though consideration is lacking.

Restatement 90

Question 16

Promissory Estopple - source

Answer 16

Restatement §90: A promise which the promisor should reasonably expect to induce action or forbearance on the part of the promisee or a third person and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of the promise. The remedy granted for breach may be limited as justice requires.

Question 17

Contract

Answer 17

Restatement §17 requires a bargain and a consideration except where special rules apply.

Question 18

Hamer v. Sidway

Answer 18

Forbearance proves consideration

Question 19

A promises to pay B $10,000 if she quits her job as a bartender and goes to law school. Payment to be made on graduation day. A is a lawyer.

Answer 19

Enforceable, Hamer v. Sidway, there was a bargain, and consideration - B quitting her job to go to law school. She would not have done so without the promise from A.

Question 20

B wants to quit bartending and go to law school, but will have to take out massive loans. To help B, A offers to pay $10,000 of her loans

Answer 20

Enforceable, Ricketts v. Scothorn, A’s promise induced B to act. Proving consideration, B would not have acted without A’s promise.

Question 21

B wants to go to law school. A promises to give B $10,000 after she graduates

Answer 21

Unenforceable, Gratuitous Promise, No consideration.

Question 22

Inducement

Answer 22

the inducement is a pledge or promise that causes an individual to enter into a particular agreement.

Question 23

Ricketts v. Scothorn

Answer 23

promises that are relied upon by the donee to her detriment will be enforced on that ground even though consideration is lacking.

Question 24

Executed Gift

Answer 24

One cannot reclaim a gift once it has been given.

Question 25

Stephanie arranges an interview for Rachel with Stephanie’s boss, or placed Rachel’s resume on Stephanie’s boss’s desk, Rachel promised to split her lottery winnings with Stephanie to show gratitude.

Answer 25

Not Enforceable, Past Consideration. Passante v. MacWilliams

Question 26

Stephanie arranges an interview for Rachel with Stephanie’s boss, or placed Rachel’s resume on Stephanie’s boss’s desk, Rachel promised to split her lottery winnings with Stephanie to show gratitude.

Answer 26

Not Enforceable, Past Consideration. Passante v. MacWilliams

Question 27

Common Cases of Promissory Estopple

Answer 27

Charitable Subscriptions, Cases involving gratuitous bailments in which the bailee undertakes to preserve or insure the property delivered to her care, oral promises for land on which the promisee makes improvements, family gifts.

Question 28

Action

Answer 28

UCC ARTICLE 1 201
Judicial proceeding: includes recoupment, counterclaim, set-off, suit in equity, and any other proceeding in which rights are determined.

Question 29

Principle exception to the standard requirement of Consideration

Answer 29

Promissory Estoppel

Question 30

Reliance based enforcement

Answer 30

Promissory Estoppel

Question 31

Mutuality

Answer 31

Refers to the reciprocal understanding or agreement between parties.

Question 32

This is an essential ingredient in the creation of a legally enforceable contract. An important part of a contract is mutuality, which states that both parties should be bound or neither should be.

Answer 32

Mutuality