MEE Contracts

Question 1

UCC Contract Modification

Answer 1

Under UCC, contract modifications sought in good faith are binding without consideration

Question 2

Common Law Modificaiton

Answer 2

Some courts will allow a contract to be modified without additional consideration if the modification is viewed as fair and equitable in light of the circumstances not anticipated when the contract was made.

Question 3

Economic Duress

Answer 3

Something constitutes economic duress if: 1. the party threatens to commit a wrongful act that would seriosuly threaten the other contracting parties property or finances; and 2. there are no adequate means available to prevent the threatened loss

Question 4

Offer

Answer 4

An offer is a promise, undertaking, or commitment to enter into a contract that contain terms that are definite, certain, and communicated to the offeree

Question 5

Who is a Merchant

Answer 5

A merchant is one who regularly deals in goods of the kind sold or one who holds themselves out as having knowledge or skill peculiar tot eh practices or goods involved

Question 6

Merchant Firm Offer

Answer 6

If a merchant: 1. offer to sell goods in a signed writing; 2. the writing gives assurances that it will be held open; 3. then the offer is not revocable for lack of consideration during the time stated

Question 7

Contract

Answer 7

Requires offer, acceptance, and consideration and the absence of any defenses

Question 8

Acceptance

Answer 8

Acceptance is a manifestation of assent to the terms of the offer in the manner prescribed or authorized in the offer. Can be done verbally, orally, or through performance

Question 9

Demand for Assurances

Answer 9

If a party reasonably believes the other party will not perform they may demand assurances that the performance will be done. This demand must be in writing and upon receipt the other party must give adequate assurances within a reasonable time (less than 30 days)

Question 10

Repudiation

Answer 10

Repudiation leads to the following options: 1. treating it as a total breach and sue immediately; 2. suspending their own performance and waiting to sue until the performance date; 3. treating the repudiation as an offer to rescind and treating the contract as discharged; or 4. ignoring the repudiation and urging the promisee to perform

Question 11

Withdrawal of Repudiation

Answer 11

A repudiating party may at nay time before his perfromance is due withdraw their repudiation. Unless the other party: 1. Cancels the contract; 2. materially changed their position in reliance on the repudiation; 3. otherwise indicated that they consider the repudiation as final.

Question 12

Assignments

Answer 12

To assign a contract, a party to the contract must manifest an intent to transfer their rights under the contract to the assignee. Oral assignments are valid. Exceptions for assignments is if it expressly forbidden or it violates law, or would substantially change the obligor’s risk or duty

Question 13

Incidental Third party beneficiaries

Answer 13

Have no contract rights

Question 14

Assignment or Delegation liability

Answer 14

Unless there is a novation. When a party to a contract delegates a duty, the delegator becomes secondarily liable, as a surety, for performance of the duty if the delegate foes not perform

Question 15

Divisible Contract

Answer 15

If a contract is divisible, a party who has performed one or more party is entitled to collect the contract price for those parts even if it breaches the other parts.

For a contract to be divisible: 1. the performance of each party must be divided into two or more parts in the contract; 2. the number of parts due from each party must be the same; and 3. the performance of each part by one party is agreed on as the equivalent of the correpspoding part from the other party.