R2d Terminology

Question 1

What is a Contract?

What does the Contract Clause in the U.S. Constitution say?

Why did the framers put that in there? (4 reasons)

Answer 1

A contract is a promise the law will enforce.

Art. 1, s. 10, clause 1: No STATE shall…pass any law imparing the obligation of contracts

1) Framers valued private autonomy. 2) Framers believed in rule of law. 3) Framers valued limited government and the separation of powers (judicial role to determine whether a promise is enforceable).

Framers also wanted to prevent a State Legislature from forbidding an out-of-state creditor from collecting on a state citizen. (new country, wanted to make good on promises)

Question 2

nudum pactum

Answer 2

mere promise w/o the “glue” of consideration

Question 3

Home Bldg and Loan v. Blaisdell (1934)

Answer 3

The judgment of the state supreme court, which found that the Minnesota Mortgage Moratorium Law did not violate the Contracts Clause of the federal constitution (nor the 14th Amendment Equal Protection clause), was affirmed because the law was enacted pursuant to the state’s police power, was temporary in duration, and conditions imposed by the law were reasonable.

Question 4

UCC Governs/Goods - GUM

Answer 4

growing crops, unbord animals, moveable tangible property (including removeable fixtures)