Mixed Review

Question 1

A condition precedent delays performance until:

Answer 1

a specified event occurs and requires the P to prove that the event occurred to prevail.

Question 2

A condition subsequent excuses performance once:

Answer 2

A specified event occurs and requires the D to prove that the vent occurred to void liability…

Question 3

When performance under a contract is contingent upon the occurrence of a condition precedent:

Answer 3

Performance is not due until the condition occurs or it nonoccurrence is excused.

Question 4

Payment in full check

Answer 4

If creditor deposits check the debtors duty to pay will be discharged.

Question 5

Promissory estoppel applies when: (4)

Answer 5

1. the promisor reasonably expected to induce reliance on the promise
2. the enforcing party reasonably relied on that promise,
3. the enforcing party suffered substantial detriment as a result,

And

4. injustice can only be avoided by enforcing the promise.

Example: the man tells his son that the farm is his if he works it, and then leaves the farm to another son. The son who worked the farm expected to receive the farm and relied on the promise.

Question 6

If a lender breaches a loan agreement, the borrower can recover what?

Answer 6

Expectation damages equal to the different between the interest cost of the original loan (contract price) and the interest cost of a substitute loan (market price).

Question 7

How do you form a unilateral contract?

Answer 7

An offeror must invite the offeree to accept an offer by performing a specified act.

Stand in line for 5 min and win $25.

Question 8

In a unilateral K when does the offer become irrecoverable?

Answer 8

Once performance has begun.

This creates an option contract - ie an agreement under which an offer will remain open and irrevocable for a period of time.

The offer is accepted once the offeree completes the requested performance, ie wait in line for 5 min win 25$. and a binding unilateral K is formed.

Question 9

Preexisting duty rule, CL and Modern Exception

Answer 9

CL Rule: Promise to perform, or performance of, preexisting duty does not constitute consideration.

Modern exception: Consideration exists if preexisting duty owed to 3rd person (ie, nonparty to k)

IE: Investigator owed his company a preexisting duty to find painting, but the company would be considered a 3rd party to the investigators agreement with the owner to find the painting.

So there is consideration and likely enforceable.