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2022 PA Bar > PA Contract Distinctions > Flashcards

PA Contract Distinctions Flashcards

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1
Q

When is a non-compete clause enforceable in PA?

A
  1. Relates to employment relationship
  2. Adequate consideration
  3. Reasonably necessary to protect employer
  4. Reasonably limited in duration and geography
  5. Not unreasonably burdensome on employee or public
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2
Q

What is generally required for consideration under PA law?

A

A legal detriment

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3
Q

When does an accord discharge the original obligation?

A

Upon satisfaction of the accord

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4
Q

When is a contract enforceable without consideration?

A
  1. An express written statement that the signer intends to be bound, unless the parties contemplated the exchange of consideration that was ultimately not given.
  2. a seal, except for sale of goods contracts
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5
Q

When may a party seek relief from a contract for mistake?

A

NOT unilateral. If mutual,

  1. Relates to basis of bargain
  2. Materially affects performance, and
  3. Risk not borne by injured party
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6
Q

In PA, when is someone old enough to enter into a contract?

A

18

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7
Q

How should you assess a minor disaffirming a contract?

A
  1. Did they disaffirm within a reasonable time?

2. Did they receive “necessaries” that are enforceable against them?

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8
Q

In PA, what is an unconscionable contract?

A
  1. Provides no Meaningful choice.

2. Unreasonably favors party asserting it

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9
Q

In PA, what remedies are available for an unconscionable contract?

A
  1. Recission
  2. Severance
  3. Limit application of unconscionable part
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10
Q

In PA, how is the validity of an exculpatory clause assessed?

A
  1. Strictly construed language
  2. Parties’ intentions must be detailed
  3. Ambiguities construed against party seeking immunity
  4. Burden of immunity on party seeking it
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11
Q

In PA, is a buyer required to prove reliance on an express warranty to prove breach?

A

No

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12
Q

In PA, can a party disclaim an implied warranty of fitness for a particular purpose?

A

Only if in writing and conspicuously

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13
Q

In PA, what are the elements of a frustration of purpose defense?

A
  1. Principal purpose
  2. substantially frustrated
  3. non-occurrence was a basic assumption
  4. and not due to the party claiming frustration
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14
Q

In PA, when is a beneficiary intended?

A
  1. Intention of the parties

2. Performance satisfies the promisee’s obligation to pay or perform

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15
Q

In PA, what are the requirements for a novation?

A
  1. Displacement and termination
  2. Substitution with valid new contract between same parties (or plus debtor/creditor)
  3. Consideration
  4. Mutual consent
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16
Q

What are the four types of contracts within the PA SOF?

A
  1. Suretyships
  2. UCC for sales of $500 or more, or lease of goods for $1000 or more
  3. Real property , or lease for more than 3 years
  4. Promise by testator

NB: NO one-year-performance requirement

17
Q

What is the leading object exception to the suretyship requirement under the SOF?

A

If for the surety’s economic advantage, not within SOF. Fact question.

18
Q

What interests fall within the real property requirement under the SOF?

A
  1. Mortgages
  2. easements
  3. Land contracts
  4. Coal or surface rights
  5. rights of support
  6. leases of more than 3 years
19
Q

What is the standard for anticipatory repudiation in PA?

A

Absolute and unequivocal refusal to perform

20
Q

In PA, what are the narrow exceptions to the unavailability of emotional distress damages in contract actions?

A
  1. Accompanied by bodily harm, or

2. Breach would likely result in serious emotional disturbance

21
Q

Does PA require showing damages for breach of contract?

A

No; nominal damages are adequate

22
Q

When are lost profits available as damages?

A
  1. Reasonably certain
  2. Proximate consequence, and
  3. foreseeable
23
Q

What does the Pennsylvania Uniform Written Obligations Act do?

A

An additional, express written statement that the signed intends to be legally bound is valid and enforceable, even without consideration.

24
Q

Are Pennsylvania employment contracts presumptively at will?

A

Yes, but the presumption may be rebutted

2022 PA Bar (19 decks)

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