Lecture 4

Question 1

what is a contract?

Answer 1

an enforceable agreement to act or refrain from acting in a specified manner (creates legal right to “trust” another person)

Question 2

desirable characteristics of a contract

Answer 2

freely and easily made

effectively sanctioned if breached

Question 3

elements necessary to have an enforceable contract

Answer 3

• offer/acceptance
• competent parties
• consideration
• legal subject matter or object

Question 4

offer/acceptance

Answer 4

the parties must reach an agreement with respect to the subject matter of the contract-essetially what each party is to do under the terms of the contract

Question 5

competent parties

Answer 5

the parties must have the mental capacity/ability to understand the consequences of contracting and the terms/conditions of the contracts that has been entered into

Question 6

consideration

Answer 6

legal value must be exchanged btw the parties

Question 7

legal subject matter or object

Answer 7

subject matter, object, or purpose of the contract must not violate a rule of law or good public policy-contract should not be used to further an illegal purpose

Question 8

express

Answer 8

terms of the contract manifested through use of words

Question 9

implied

Answer 9

terms of the contract manifested through actions of parties

Question 10

quasi contract

Answer 10

not a contract at all

• an equitable remedy
• law infers a contract-like promise on a party to compensate another party for a benefit received even though there exists no contract obligation to do so

Question 11

elements of a quasi contract

Answer 11

• a benefit was conferred by one party to another
• appreciation/knowledge of benefit by person receiving the benefit
• acceptance or retention of benefit under the circumstances would be unjust (subjective test)

Question 12

void contract

Answer 12

no contract -subject matter is illegal - not an enforceable agreement

Question 13

voidable contract

Answer 13

where one or both parties may avoid legal duties created by the contract (entered into as a result of one party’s fraud)

Question 14

bilateral contract

Answer 14

where the consideration for the contract is the exchange of premises by the parties-ex: your lease involves the exchange of your promise to pay rent for the land lord’s promise to allow you to occupy the unit

Question 15

unilateral contract

Answer 15

consideration for the contract is the exchange of a promise by one party in exchange for an act or forbearance to act by the other party

Question 16

executed contract

Answer 16

a fully performed contract (past leases)

Question 17

executory contract

Answer 17

partially or entirely unperformed by one or more contracting parties (current lease)

Question 18

plain meaning rule

Answer 18

when a written contract is clear and unequivocal, a court will enforce it according to its obvious terms and the court will not consider extrinsic evidence (evidence not written in the contract will not be considered-emails, calls, etc)

Question 19

unclear or ambuguous terms

Answer 19

evidence outside the written contract is permitted to clarify meaning of the contract-court interprets it consistent with the parties’ intent as expressed in their contract (considered this if a reasonable person could interpret it differently)