Essay Points

Question 1

Issue: Does the UCC or Common Law govern the transaction?

Answer 1

Rules:
UCC governs transactions involving the sale of goods.
UC defines goods as all things movable.
Leasehold interests and interest in money (although movable) are not covered by the UCC.

Question 2

ISSUE:

Was there an Offer?

Answer 2

RULE:
In order for an offer to exist, the offeror must objectively manifest the intent to enter into a binding contract in such a way that a reasonable person in the offeree’s position would understand that his /her assent would complete the contract.

RULE:
An offer must contain words of commitment and essential terms (which can vary according to the contract, but include the parties, price, date, subject matter, and time for performance.)

Question 3

Issue: If Offer, then Acceptance?

Answer 3

Rule:
- If the offer proscribes the manner of acceptance in its terms the offeree must abide by them or there is no contract, but if an offer simply suggests a time, place and manner of acceptance, other methods used by the offeree are not excluded.

Question 4

Bilateral or Unilateral Contract

When in doubt.

Answer 4

Offers can be either bilateral (seeking promissory acceptance), or unilateral (seeking performance as acceptance).

When the language of an offer creates doubt as to the appropriate method of acceptance, an offeree is permited to accept by either promise or return performance.

Question 5

What if No Manner Of Acceptance is Prescribed?

Answer 5

An offer that does not prescribe the manner may be accepted in any manner that is reasonable under the circumstances, and
- acceptance that takes the same form of the offer are generally deemed reasonable.

Question 6

Terms of Acceptance

Answer 6

Acceptance must be unequivocal and unqualified and cannot add or change essential terms (if it does, it becomes a counter offer).

Question 7

Was Consideration Present? Classical Test

Answer 7

Classical Test:
Under the classical test the majority of courts require a benefit to the offeror and a detriment to the offeree (Some require both benefit to offeror and detriment to offeree).

Question 8

Was Consideration present ?

Modern Test

Answer 8

The modern test, under R71, requires a bargained for exchange with mutual inducement, a promise inducing another promise to act, or forebear.

Question 9

Illegal Contracts

Answer 9

Unenforceable