Policy of K

Question 1

Policies of Contracts

Answer 1

• Freedom of K
• Morality of Promising
• Reliance
• Promotion of commerce/judicial efficiency

Question 2

What are the types of law that govern contracts?

Answer 2

1. Common Law: employment contracts, personal service contracts
2. UCC Article II: anything moveable; tangible personal property
3. Mixed: When the contract deals with both services and good, predominant purpose of the contract reigns

HOW TO FIGURE OUT?

1. PREDOMINANT PURPOSE TEST: looks at the general thrust of the exchange rather than each individual component
2. GRAVAMEN TEST: Under the test each component of the sale is isolated and individually determined to be either a good or a service.

Question 3

What are defenses to contract formation and enforceability?

Answer 3

1. IMPROPER BARGAINING
   
   1. Misrepresentation
   2. Duress
   3. Unconscionability
   4. Undue Influence
   5. Illegality/Public Policy/Freedom of K
2. STATUTE OF FRAUDS
3. MISUNDERSTANDING [part of interpretation]
4. MISTAKE
5. Incapacity [didn’t really study this]

Question 4

What are defenses to make K voidable?

Answer 4

1. IMPROPER BARGAINING
   
   1. Misrepresentation
   2. Duress
   3. Undue Influence
   4. Mutual Mistake
   5. Unilateral Mistake, if
      
      • (1) material mistake; and
      • (2) adversely affected party did not bear risk

Question 5

What are defenses to make K void?

Answer 5

• Illegality/Public Policy/Freedom of K
• Impossibility
• Bilateral Mistake/Uncertain Terms
• Incapacity/Incompetent [didn’t really study this]