Exam 2 (6-11)

Question 1

What is a contract

Answer 1

An agreement the court is willing to enforce

Question 2

What are the elements of a contract

Answer 2

Agreement
Consideration
Capacity
Legality

It does not have to be in writing

Question 3

Can one party cancel a contract without the consent of the other or is a deal a deal

Answer 3

Under common law a deal is a deal

Question 4

Sources of contract law

Answer 4

Common law of contracts
Restatement of contracts
Uniform commercial code

Question 5

What is the restatement of contracts

Answer 5

Summarizes the common law of contracts

Not binding on judges

Not actual law

Question 6

Uniform commercial code

Answer 6

State statutory law

All states adopted

Relates to contracts through article two that refers to sale of property

Question 7

What are bilateral contracts

Answer 7

Two components to the contract

A promise for a promise

Question 8

What is a unilateral contract

Answer 8

Promise for an act

You accept the contract when you perform act

Question 9

What is an expressed contract

And what what is an implied

Answer 9

Terms are explicitly said

While others is

Implied

Question 10

What is an executory contract

And what is an executed

Answer 10

An executory means it isn’t done yet

While the executed means it is complete

Question 11

What is a void contracts and what is a voidable contract

Answer 11

Void means not valid

Voidable means valid at first but can be canceled

Question 12

What is the offer

Answer 12

The expression of a willingness to enter into a legally binding agreement

Question 13

What are the three requirements of an offer

Answer 13

Intent 
 Legal intent 
Communicated 
  Parties are informed 
Definite 
  Cannot be unclear

Question 14

Lucy v zehmer

Answer 14

A person if judged by the outward manifestation of content not by any secret intent or any unstated intent

Question 15

Are advertisements offers

Answer 15

No

Question 16

What are the different terminations of an offer

Answer 16

Communicate revocation to the offeree

Rejection by the offeree

Counter offer by offeree (terminate original offer)

Lapse time (expiration of offer)

Question 17

What if there is a promise to keep the offer open,

Can the offeror communicate the revocation

Answer 17

Yes he can revoke anytime

A promise to hold an offer open is not legally binding

Question 18

Rules considering acceptance of offer

Answer 18

Unequivocal-Mirror image rule - no new conditions/cannot change terms

Has to be communicated: mailbox rule- it is accepted once it is mailed

Question 19

Pre existing duty rule

Answer 19

It is not considered if you merely promise to do something that you were already obligated to do

Question 20

The past consideration rule

Answer 20

If you already saved their life

Question 21

What is a consideration

Answer 21

The price a person charges for promise

Doesn’t have to be fair or adequate just has to be bargained for

Question 22

Liquidated debt

Answer 22

The amount is known, there is no consideration, there is no dispute

Question 23

Unliquidated debt

Answer 23

Not sure how much is owed, agree on a random amount, there is a dispute

Question 24

Promissory estoppel

Answer 24

Exception: if A makes a promise, knowing it I’ll be relied upon, then there is a legal obligation to enforced

Question 25

Minors capacity for contacts

Answer 25

Contracts for minors can be voidable until they become legal ages

Question 26

Capacity for contact for insanity

Answer 26

Possible to make voidable but it is a very hard defense

Question 27

Capacity for intoxication good defense

Answer 27

Sobriety test is only for driving, not for contracting only for driving

Question 28

Legality contracts to commit crime

Answer 28

Sale of illegal goods Illegal payments to a public official Payments to a “hit man”

Question 29

Gambling contracts

Answer 29

Gambling contracts are not enforceable by way of action or defense The court will leave the parties where it finds them In pari delicto — equally at fault

Question 30

Fantasy football legal?

Answer 30

On a state to stay basis

Question 31

Failure to obtain a license required by law: only if regulatory

Answer 31

Regulatory If you don’t have the license you cannot collect fees

Question 32

Excultpatory clauses (waiver/disclaimer)

Answer 32

You are at your own risk | Maybe legally enforceable

Question 33

Non compete clause Covenant not to compete

Answer 33

Means they are claiming you cannot go and work for a competitor for a certain amount of time Basic rules: it is limited Limited to amount of time Limited to area Does not go further to where the competition is

Question 34

Non compete clause is invalid when

Answer 34

Too broad Or area of contract is changed by court Blue penciled

Question 35

Statute of frauds

Answer 35

Sale or mortgage writing is required Contract that cannot be completed in a year (impossible) Promise to stand behind debt of another (co-sign) Sale of things greater than 500 (not service) must be in writing

Question 36

Satisfy a statute of frauds

Answer 36

What terms must be in writing - only enforceable to person signed it Who must sign it The parol evidence rule - all writing in control no verbal agreement acknowledge

Question 37

Voluntary consent considering mistake: unilateral v bilateral

Answer 37

Has to be a mutual mistake to make it void

Question 38

Voluntary consent regarding fraud

Answer 38

Fraud - deliberate statement that is false No general duty to speak

Question 39

Who has duty to speak

Answer 39

If you are the seller of the house and you are selling it yourself (you don’t have duty to speak) If you are realtor you have a disclosure form where you answer questions from

Question 40

Voluntary consent regarding misrepresentation

Answer 40

They get their money back but more then that

Question 41

Voluntary consent in regarding to undue influence

Answer 41

One person has taken advantage of another in a contract

Question 42

Voluntary consent regarding Duress

Answer 42

A threat of force | Cause a person to be unable to engage in fee will