Midterm Material

Question 1

True or False:

UCC governs personal service contracts.

Answer 1

False

Common Law governs personal service and real estate

Question 2

Intent to be bound is shown through ______ judged by ______ with a ________ of such intent to be bound.

Answer 2

Conduct

Reasonable person standard

manifestation

Question 3

Under common law Bilateral contract, the offer and acceptance must ______ each other in terms. Or else a _____ may be created instead of an acceptance.

Answer 3

mirror

counter offer

Question 4

A Bilateral contract creates ______ of obligation.

Answer 4

Mutuality

Question 5

An enforceable contract under common law requires _____, _____, and _______.

Answer 5

offer
acceptance
consideration

Question 6

The 3 elements of an offer under common law section 24 of restatement is:

Answer 6

1. Manifestation of offer (communication)
2. Essential terms present (certain and definite)
3. Intent to be Bound (words and actions)

Question 7

An offer under common law includes -_____ of assent, with intent to be ______, so made as to indicate ___________.

Answer 7

manifestation

bound

the negotiation is concluded if accepted.

Question 8

When an offer is made it creates the power of acceptance in the ______.

Answer 8

offeree

Question 9

Test for Offer:

1. Was there an expression of a _____?
2. ______ in terms?
3. _____ of 1 and 2 to offeree?

Answer 9

promise

certainty and definiteness

Communication

Question 10

What are the 6 ways to terminate an offer that is still revocable?

Answer 10

1. Rejection
2. Counter-offer made
3. Lapse
4. Revocation
5. Death or Incapacity
6. Non-compliance with conditions of acceptance

Question 11

True or False:

The offeror is required to communicate the revocation of the offer to the offeree in a bilateral contract.

Answer 11

True

Question 12

What are the 4 ways an offer can not be freely revoked?

Answer 12

1. Option Contract
2. Detrimental Reliance
3. Merchant Firm Offer(UCC)
4. Performance has begun

Question 13

For an Advertisement to become an offer, there must be what 4 things?

Answer 13

1. Intent to be bound
2. call for action without further negotiation
3. all essential terms
4. NO POSSIBILITY OF OVER-ACCEPTANCE

Question 14

In a bilateral contract a counter-offer will carry over the terms from the original offer when the original offer included a timeline for acceptance. True or False?

Answer 14

False! the counter offer is a rejection of the offer and removed the power of acceptance once rejected.
(see Normile v. Miller - house buying counter offer)

Question 15

Under common law what terms MUST be present in real estate to form a contract?

Answer 15

price and location

Question 16

Under UCC what must be present for a contract for sale of a good ?

Answer 16

Quantity (price can be determined later, i.e. time of delivery)

Question 17

Under the common law can the right of acceptance be assigned to another?

Answer 17

NO

Question 18

What are the 3 elements of acceptance under common law?

Answer 18

1. Unqualified manifestation of assent
2. Reasonable time
3. Effective upon dispatch unless prescribed otherwise

Question 19

If the Offeror does not prescribe a manner of acceptance, the mail box rule applies under common law where dispatch rules time of acceptance except in what situation?

Answer 19

Option contract exists- acceptance does not occur until the Offeror RECEIVES the acceptance

Question 20

Is the mail box rule applicable under UCC?

Answer 20

NO - only under common law contracts

Question 21

Consideration in a bilateral contract is considered a _______-____ exchange where the _______ induces the detriment and vice versa.

Answer 21

bargained-for

promise (induces the detriment)

Question 22

If the consideration is ______ _______ AND _____then the court will look at the value to determine if consideration is void.

Answer 22

Grossly inadequate

Unfair - one party has clear advantage

Question 23

In an offer to the public, reward offer, only the performance requested in offer will manifest acceptance at time of ______. Example: delivery of missing dog.

Answer 23

completion

Question 24

Agreement to Agree is when a term is missing and the parties have agreed upon a ______ ______ to later determine a term (price in sale of goods, etc.). This method must have _____ and ______.

Answer 24

Prescribed Method

certainty and definiteness

Question 25

A letter of intent can be considered a _____ contract _______.

Answer 25

formal contract contemplated

Question 26

To make a letter of intent binding, what must it contain to prevent it from being void:

Answer 26

1. essential terms
2. EXPRESS intent to be bound
3. no ambiguity (no ROR section on termination)

Question 27

Consideration in a bilateral contract must have reciprocal _______ of promise to _____ and vice versa.

Answer 27

reciprocal inducement

detriment

Question 28

If a court thinks the consideration is grossly inadequate, then they likely will review MORE Facts and assume it was _______.

Answer 28

Never bargained for - only ever a gift.

Question 29

True or False:

There needs to be actual bargaining in the bargained for exchange consideration test.

Answer 29

False - bargaining can be implied

Question 30

A gratuitous gift transaction can include a ______ to a gift that appears like consideration but is not a true detriment to promisee and benefit to promisor.

Answer 30

Condition

Question 31

What are 3 valid types of Consideration?

Answer 31

1. Bargained-For Exchange/Benefit detriment test
2. Promise for Future Act with benefit to promisor and act by promisee
3. Forebearance - giving up an otherwise legal activity

Question 32

What are not valid types of consideration?

Answer 32

1. Gratuitous gift
2. condition to a gift
3. Recital of Value
4. PAST CONSIDERATION
5. ILLUSORY PROMISE