Quimbee Outline Cards

Question 1

A contract is:

Answer 1

a legally enforceable exchange of promises between two or more parties

Question 2

Contracts involving the sale of goods are governed by a specialized body of law contained in the:

Answer 2

UCC

Question 3

What are the four elements of contracts?

Answer 3

offer, acceptance, intent, and consideration

Question 4

What type of contract consists of a metal exchange of promises?

Answer 4

bilateral contract

Question 5

A unilateral contract exists when:

Answer 5

an offeror makes a promise and conditions acceptance of that promise on full performance by the offeree

Question 6

What is an offer?

Answer 6

manifestation of willingness to enter into a bargain

Question 7

To form a contract, the offer must be:

Answer 7

valid, communicated to the offer, and must not have terminated prior to acceptance

Question 8

A valid offer contains:

Answer 8

reasonably certain terms from which a reasonable person is able to conclude that an offer has been made

Question 9

Typically an offer is reasonable if it:

Answer 9

identifies the parties, describes the subject of the agreement, and includes some sort of price term (additional terms might be required depending on the type of contract)

Question 10

Jokes, preliminary offers, and advertisements are examples of:

Answer 10

invalid offers

Question 11

An offer made in jest is invalid only if:

Answer 11

the offer knows or has reason to know that the offer is a joke

Question 12

A preliminary offer (which is generally not a valid offer) is:

Answer 12

some kind of invitation to negotiate (such as an invitation to bid, a negotiation of terms, a price quotation, or a proposal of terms)

Question 13

An advertisement is not considered a valid offer unless:

Answer 13

the language makes an express promise to adhere to specific terms

Question 14

“_____ _____” in an advertisement that cannot be taken seriously by a reasonable person is not a valid offer. An example of this is the Pepsi commercial with the jet

Answer 14

Mere Puffery

Question 15

An offer may be terminated before acceptance by:

Answer 15

rejection or counteroffer, lapse of time, revocation, or death or incapacity

Question 16

A ________ offer may no longer be accepted by the offeree

Answer 16

terminated

Question 17

An offer terminates when a reasonable or specified amount of time has lapsed without ________

Answer 17

acceptance

Question 18

An _____ ______ guarantee, in exchange for something of value, that an offer will not be revoked for a specified amount of time

Answer 18

option contract

Question 19

Revocation become effective to terminate an offer when:

Answer 19

the offeror notifies the offer that the offer has been revoked

Question 20

A firm offer guarantees that:

Answer 20

a merchant will not revoke an offer to sell goods for a specified amount of time (only offers to buy or sell goods contained in a signed writing will be deemed firm offers)

Question 21

How is a firm offer different from an option contract?

Answer 21

In a firm offer, the offeree is not required to provide anything of value

Question 22

The offeror of a unilateral contract may not revoke the offer after:

Answer 22

the offeree has begun performance

Question 23

In a unilateral contract, once the offeree has begun performance, she is entitled to a reasonable time for completion before:

Answer 23

the offeror may revoke

Question 24

When an offeree may change positions or do something in preparation for performance inn detrimental reliance on the offer remaining open, the offeror may not

Answer 24

revoke the offer until a reasonable period of time has passed

Question 25

acceptance is the:

Answer 25

manifestation of assent to the terms by an intended offeree with knowledge of the offer

Question 26

An acceptance by a promise communicated to the offeree forms a:

Answer 26

bilateral contract

Question 27

If the offeror conditioned acceptance of the contract on full performance, acceptance by performance forms a:

Answer 27

unilateral contract

Question 28

What is the Mirror Image Rule?

Answer 28

The common law rule that an acceptance must unconditionally agree to the exact terms of the offer (must be mirror image of offer and may not add or remove any terms) DOES NOT APPLY TO SALE OF GOODS

Question 29

What is the Mailbox Rule?

Answer 29

an acceptance by promise is effective upon proper dispatch (when the offer is sent), regardless of whether the offeror receives the acceptance

Question 30

An acceptance may be effective upon improper dispatch only if (mailbox rule):

Answer 30

received by the offeror within a reasonable amount of time

Question 31

If an offeree were to send acceptance at the same time that the offeror sent a rejection, would a contract be formed?

Answer 31

Yes because acceptance becomes effective when mailed

Question 32

When an offeree accepts or rejects an offer but then changes her mind, is there a contract?

Answer 32

Yes at the time of proper dispatch

Question 33

If the offeree first mails a rejection and then attempts to accept, is there a contract?

Answer 33

If the acceptance is received by the offeror first

Question 34

An acceptance generally may not consist of silence, unless one of these four exceptions applies:

Answer 34

Benefit of Services
Exercise of Dominion
Prior Dealings
Implied-in-Fact Contract

Question 35

Silence constitutes acceptance if the offeree receives the benefit of offered services, despite the ______ ______ to reject those serves, and the offeree knows that compensation is expected.

Answer 35

reasonable opportunity

Question 36

Silence constitutes acceptance if the offeree exercises dominion over offered property by ______ ______ with the offeror’s ownership of that property

Answer 36

acting inconsistently

Question 37

An uncle sends a tuxedo to his nephew, saying, “If you wish to buy my tuxedo, send me $100 within one week of receipt. Otherwise, I will pick up the tuxedo in two weeks.” Without sending $100, the nephew wears the tuxedo to a friend’s wedding, thereby acting inconsistently with the uncle’s ownership of the tuxedo. What is this an example of?

Answer 37

acceptance by silence through exercise of dominion

Question 38

Silence constitutes acceptance if the offeror has indicated that the offeree may accept by:

Answer 38

silence or inaction (the offeree must intend to accept the offer by remaining silent or inactive)

Question 39

A composer writes a letter to a pianist, saying, “You have been borrowing my grand piano for quite a while, so I offer to sell you the grand piano for $5,000. As you are a busy man, you do not need to write back. I will assume that your silence operates as acceptance if you do not respond.” If the pianist does not respond to the composer’s offer, is there a contract?

Answer 39

Only if the pianist intends to accept by remaining silent. There is no contract otherwise, even if the pianist never informs the composer that his silence does not constitute acceptance.

Question 40

The parties to a contract must intend to be:

Answer 40

legally bound by the terms

Question 41

The manifestation of intent not to be _____ _____ may prevent the formation of a contract

Answer 41

legally bound

Question 42

A dentist informs an uninsured patient that a root canal procedure will cost $750. The patient says, “All right, I’ll agree to $750 for a root canal.” Both the dentist and the patient intend to be legally bound by the terms. Is there a contract?

Answer 42

Yes

Question 43

A dentist informs an uninsured patient that a root canal procedure will cost $750. The patient says, “All right, I’ll agree to $750 for a root canal.” The patient then says, “But first, I’m going to get Tha second opinion and make sure that the procedure is necessary.”
Is there a contract?

Answer 43

No, because there was a manifestation of intent not to be legally bound and this prevents formation

Question 44

A manifestation of _____ is not required for formation (only intent to be legally bound), but a manifestation of intent _______ would prevent formation.

Answer 44

intent; not to be legally bound

Question 45

What does consideration require?

Answer 45

the promisor (offeror) to make a promise to the promisee (offeree) in exchange for a return promise or performance (an act or forbearance) that is given by the promisee (or third person) to the promisor (or third person)

Question 46

An exchange of value is generally sufficient for adequate ________.

Answer 46

consideration

Question 47

A _____ ______ consideration that “shocks the conscience” may support a defense against enforceability.

Answer 47

gross inadequacy [would be sufficient consideration, but could be used to support a defense against enforceability]

Question 48

________ or ________ cannot support a contract if the promisor makes a promise in recognition of a benefit already conferred by the promisee

Answer 48

Past consideration; moral obligation