Formation

Question 1

What is a contract?

Answer 1

A contract is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty. R § 1

Question 2

What is a unilateral contract?

Answer 2

A contract in which the offer requests performance

Question 3

What is a bilateral contract?

Answer 3

A contract in which each party promises a performance, so that each party is an obligor on that party’s own promise and an oblige on the other’s promise

Question 4

What are the elements of a contract?

Answer 4

1. Mutual Assent;
2. Bargain for Exchange of Consideration; and
3. Statute of Frauds

Question 5

What is mutual assent element?

Answer 5

Manifestation of mutual assent to an exchange requires that each party either make a promise or begin or render a performance. R § 18

Question 6

What must mutual assent be?

Answer 6

It must be sufficiently certain so the intention of the parties may be discovered, the nature and extent of their obligations ascertained, and their rights determined.

Question 7

What are the three ways manifestation of assent can be shown?

Answer 7

1. Offer and acceptance
2. Writing; or
3. Conduct

Question 8

Under MOMA, what must an offer and acceptance show?

Answer 8

The offer and acceptance must be clear, definite, and explicit and leaves nothing open for negotiation (See Lefkowitz)

Question 9

Under MOMA, what must writing show?

Answer 9

Writing must be sufficiently certain to be able to ascertain the obligation of the parties (See Freeman v. Stepp)

Question 10

Under MOMA, what must the conduct show?

Answer 10

The conduct must be sufficiently certain so the nature and extent of their obligations may be ascertained

Question 11

What is a bargain for exchange for consideration element?

Answer 11

(1) The formation of a contract requires a bargain in which there is a manifestation of mutual assent to the exchange and a consideration.”

Question 12

What is the statute of frauds element?

Answer 12

If the statute of frauds requires it, the contract must be in writing (writing signed by the party against whom we are seeking to enforce a contract)

Question 13

What are the classes of contracts that must be in writing?

Answer 13

1. Marriage
2. Year of more from making
3. Land sale
4. Executorships
5. Goods $500 or more
6. Suretyships (agreeing to pay the debt for another)

Question 14

What is an offer?

Answer 14

An offer is the manifestation of willingness to enter into a bargain, so made as to justify another person in understanding that his assent to that bargain is invited and will conclude it. R § 24

Question 15

What is consideration?

Answer 15

Any act or promise which is of benefit to one party or disadvantage to the other

Question 16

What is the objective theory of assent?

Answer 16

If a person does not truly show his proper intentions when entering into a contract with another, but one’s conduct and words would warrant a reasonable person in believing that he intended a real agreement, the contract is thus valid and enforceable

Question 17

What is an advertisement considered?

Answer 17

A newspaper advertisement that is sent to all person in interest will be construed as an invitation to enter into a bargain, and is not an offer (See Craft v. Elder)

Question 18

What does an offer need in order to constitute an offer as stated in Lefkowitz?

Answer 18

Where the offer is clear, definite, and explicit, and leave nothing open for negotiation, it constitutes an offer, acceptance of which will complete the contract