I. What is a Contract

Question 1

Definition of a Contract

Answer 1

A promise or set of promises for the breach of which the law gives a remedy or the profeormice of which the law recognizes as a duty

Question 2

Common Law v. Article 2 Sale of Goods

Answer 2

• For sale of goods, UCC Article 2 applies.
  
  • similar but UCC controsl where different

Question 3

UCC Goods

Answer 3

all things movable at the time they are identified as goods to be sold under contract.

Does not apply to real estate, services (membership), intangibles (patent), or construction contracts

Question 4

Merchants v. Nonmerchants

Answer 4

• Merchant: one who regularly deals in goods or who otherwise holds himself out as having special knowledge of the goods
  
  • gneeral business practices, almost anyone a merchant
  • some are narrower and require them to be merchant of the subject

Question 5

Types of Contracts

Answer 5

• As to Formation
  
  • Express
  • Implied in Fact
  • Quasi-Contract or Implied in Law
• As to Acceptance
  
  • Bilateral
  • Unilateral
• As to Validity
  
  • Void
  • Voidable
  • Unenforceable

Question 6

Express Contract

Answer 6

• formed by language, oral or written

Question 7

Implied in Fact

Answer 7

formed by manifestations of assent other than oral or written language (conduct)

Question 8

Quasi-Contract or IMplied in Law Contract

Answer 8

• not contracts
• constructed by couts to avoid unuust enrichment by permitting plaintiff to bring an action in restitution to recover the amount of the benefit conferred on D
  *

Question 9

Bilateral Contracts–Exchange of Mutal Promises

Answer 9

• a promise for a promise in which both party is a promisor and promisee

Question 10

Unilateral Contracts–Acceptance by Performance

Answer 10

• where the offeror requests performance rather than a promise.
• Offero offers to pay upon completion of requested act, which once performed, creates a contract

Question 11

Modern view–most contracts are bilateral

Answer 11

• UCC and rest. both say unilateral contract occurs only
  
  • 1) when offeror clearly indicates the completion of performance is only method for acceptance; and
  • 2) where there is an offer to the public (e.g .reward)

Question 12

Void Contract

Answer 12

• one totally without any legal effect from the beginning
• Cannot be enforced by either party

Question 13

Voidable Contract

Answer 13

• one that one or both parties may elect to avoid (raising defense that makes it voidable)
• means that it could still be enforced

Question 14

Uneforceable Contract

Answer 14

• agreement that is otherwise valid but which may not be enforceable due to a defense extraneous to contract formation, such as statute of limitation or Frauds