Exam 2 (Chapter 9,10,11,12)

Question 1

Sources of Contract Law

Answer 1

Common Law- Deals with servies
Uniform Commercial Code (UCC)- Deals with goods and tangible items

Question 2

For a contract to exist there must be..

Answer 2

Agreement: offer and acceptance (meeting of the minds)
Consideration: quid pro quo
Voluntary: no duress
Capacity: Can’t be a minor or have mental impairment
Lawful Objective: Only legal behaviour or acts

Question 3

Types of Contracts

Answer 3

Unilateral- reward
Bilateral- both parties make a promise
Void- can not be enforced, illegal agreement
Voidable- One or both parties may cancel (i.e. minors)

Question 4

Quasi Contract

Answer 4

A legal fiction created by the court to avoid injustice
Ex: cutting wrong lawn

Question 5

Promissory Estoppel

Answer 5

Enforce good faith promises to prevent injustice even if there is no contract that meets legal rules
Ex: Promising something

Question 6

Advertisements

Answer 6

Ads for sale of goods are an invitation to negotiate; not an offer (same rule for catalogs, price lists, goods displayed in stores)

Question 7

Rewards/Auction/Bids

Answer 7

Rewards- are offers; unilateral
Auctions- Sellers are making an invitation to offer
Bids- People who submit bids are treated as offerors

Question 8

How long do offers last?

Answer 8

Terms of offer may limit its life if not stated, reasonable time depending on circumstances

Question 9

Mailbox Rule

Answer 9

An acceptance is usually considered effective when dispatched

Question 10

What is Consideration?

Answer 10

Legal value, bargained for and given in exchange for an act or a promise

Question 11

Legal value

Answer 11

Valuable acts to do something or agree not to do something

Question 12

Contracts lacking consideration

Answer 12

Illegal Consideration
Illusory Promise
Moral Obligation
Preexisting Duty
Past Consideration