NY BAR REVIEW CONTRACTS 3

Question 1

defenses to avoid performing obligation

Answer 1

mutual mistake

Question 2

mutual mistake

Answer 2

was there an agreement at all
both parties misunderstood the contract 
agreement didnt make sense
no meeting of the minds = no contract
allocate risk of information

Question 3

no meeting of the minds

Answer 3

no contract

Question 4

mutual mistake of fact contract is ________ and subject to __________ or __________

Answer 4

voidable
rescission
reformation

NOT automatically void, but one side may have a defense

Question 5

mistake

Answer 5

MUST be so material that MUST refer to foundation of material and of which contract was entered into about

Question 6

unilateral mistake

Answer 6

generally WONT excuse obligation of a contract
so long as nobody lied
generally insufficient basis for voiding a contract

Question 7

if 4 requirements are met, then VOID

Answer 7

1. enforcement would be unconscionable
2. mistake must have been material and made notwithstanding the fact that party exercised ordinary care and due diligence in entering the contract
3. party erring had NO knowledge of the error
4. can fix it and return parties to status quo ante. NO significance of reliance of other party to the contract.

Question 8

policy based DEFENSES to contract

Answer 8

1. infancy; VOIDABLE, minor

2. unconscionability

Question 9

age of majority

Answer 9

18

Question 10

voidable

Answer 10

one party CAN disaffirm its obligation / release itself

Question 11

minor held liable

Answer 11

if benefits them / is in their best interests

Question 12

exception to VOIDABILITY of contract by an infant

Answer 12

1. contract for necessaries; food
2. loan with the bank

pretty clearly can see infant received a benefit

Question 13

voidable

Answer 13

unless to do so will result in unjust enrichment of infant

Question 14

unconscionability

Answer 14

enforce would shock the conscience, and court will not do it

Question 15

observed in unconscionability

Answer 15

procedures followed
content / terms of contract

term put on back page where cant see it, shark practice, pressure by seller to act quickly without reading it, term sufficiently bad that will upset one
(fraud, mistake, illegality)

Question 16

VOID as against public policy / illegal

Answer 16

1. defense of fraud if was product of :
   general obligations law sec 349 - deceptive trade practices in conduct of business
2. gambling debt unenforceable
3. usury contracts / lending at excessive interests. higher than the standard 16% (v. credit cards)

Question 17

contract v. tort

Answer 17

obligations in absence of contract / due care / yes in tort, unless party specifically allocates risk of negligence

Question 18

landlord

Answer 18

impermissible to exempt itself in the operation of a business / tenant

Question 19

negligence non-waivable

Answer 19

in certain general obligations law sections