Modification

Question 1

Does a price increase serve as a consideration for a contract?

Answer 1

No

Question 2

IGNORE

Answer 2

IGNORE

Question 3

Define the legal theory of modification

Answer 3

As a general rule, modification requires consideration unless an exception applies.

Question 4

Define frustration of purpose

Answer 4

An event frustrates the purpose the party entered into the K in the first place. Performance is not made harder by an event. It just doesn’t make sense to perform.

Question 5

Define the legal theory of mistake

Answer 5

A belief not in accordance with the facts

Question 6

What is the GR for no oral modification clause?

Answer 6

At CL, modification clauses must be in writing are are not enforceable unless in writing.
At ML, no oral modification clauses are enforceable.

Question 7

Define the legal theory of the doctrine of impracticability (4 parts)

Answer 7

1. an event makes performance, as agreed upon, impracticable,
2. the nonoccurrence of the event was a basic assumption on which the contract was made,
3. the party was not at fault in causing the event, and
4. the party did not assume an obligation greater than that imposed by law.

Question 8

What is the GR for no oral modification clause under common law?

Answer 8

No oral modification clauses are generally unenforceable.

Question 9

What is the GR for no oral modification clause under the UCC?

Answer 9

A no oral provision clause is enforceable

Question 10

Define the legal theory of the duress

Answer 10

Duress exists where a wrongful or improper act by one party to the contract leaves the other party with no reasonable alternative but to acquiesce. In this context, wrongful means unlawful, and improper means unethical or immoral.

Question 11

Define the legal theory of the preexisting duty rule

Answer 11

The pre-existing duty rule states that a promise to do that which one is already legally obligated to do is not consideration for a return promise.

Question 12

As it relates to unforeseeable events, how do courts view price fluctuations?

Answer 12

Generally, courts do not view price fluctuations in the marketplace as unforeseeable events.

Question 13

What are some facts you can raise to support your duress argument?

Answer 13

Embarrassment

Question 14

What is the exception to the duty to disclose rule?

Answer 14

Although the general rule is that there is no duty to disclose, one exception to this rule applies when there is a fiduciary relationship between the parties.

Question 15

Deifne fidicuiary relationship

Answer 15

The court recognizes a fiduciary relationship between husbands and wives, parents and children, and other parties where there is a likelihood that one party would place trust and confidence in the other.

Question 16

In deciding whether the covenant protects a legitimate interest of the employer, what will the court will consider?

Answer 16

The court will consider the time restrictions, the geographical restrictions and the nature of the restrictions to determine whether the covenant exceeds what is necessary to protect the legitimate interest of the employer.

Question 17

Under what circumstances are courts generally willing to enforce an ancillary covenant?
(employer/employee/public)

Answer 17

1. if it protects the legitimate interest of the employer

2. if it does not place an undue hardship on the employee and 3. if it is not injurious to the public.

Question 18

What type of employer/employee restriction is unenforceable?

Answer 18

Any restrictions beyond what is necessary to protect the employer’s legitimate interest is against the public policy in favor of free trade and will be unenforceable.

Question 19

Define “The Blue Pencil Rule”

Answer 19

Under the “Blue Pencil Rule,” the court could rewrite any of the restrictions determined to be overly broad in order to make them more reasonabl

Question 20

As it relates to The Blue Pencil Rule, courts are generally _____ to go beyond lining through overly broad provisions.

Answer 20

Unwilling

Question 21

Under the UCC, what is the GR for consideration of modifications?

Answer 21

Under the UCC, a modification needs no consideration in order to be effective.

Question 22

Under the UCC, what is the GR for consideration of modifications?

Answer 22

Under the UCC, a modification needs no consideration in order to be effective.

Question 23

Even though under the UCC, modification needs no consideration, what does it need?

Answer 23

The modification must be by the agreement of the parties and it must be made in good faith.