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Question 1

Express contract

Answer 1

formed by language, oral, or written

Question 2

Implied in fact contract

Answer 2

a contract formed by conduct is an implied in fact contract

Question 3

Implied in law contract or Quasi

Answer 3

a quasi contract is NOT a contract at all. It is a remedy that allows a plaintiff to recover a benefit unjustly conferred upon the defendant

Question 4

What are the 2 sources of contract law?

Answer 4

1. common law: derived from courts. RISE real estate, insurance, services, employment
2. Unicorm commercial code (UCC) sales article. Governs contracts for the sale of goods (moveable things).

Question 5

What are the three requirements of a legally enforceable contract?

Answer 5

1. an agreement made up of an offer and an acceptance
2. an exchange of consideration (something of legal value)
3. a lack of defenses

Question 6

Are advertisements offers?

Answer 6

No

Question 7

What are the contents of an offer?

Answer 7

-intent to make a contract
-terms must be definite and certain

Question 8

Mailbox rules

Answer 8

Unlike revocations, acceptances are generally effective when they are dispatched. It is irrelevant if a properly addressed acceptance is lost or delayed

Question 9

What are the two elements of consideration?

Answer 9

-something of legal value given by each party
-there must be a bargained-for exchange

Question 10

Something is of legal value if it constitutes either a…

Answer 10

detriment to the promisee or a benefit to the promisor

Question 11

A contracting party can establish the defense of fraud if they can prove:

Answer 11

-misrepresentation of material fact by defrauding party
-scienter (intent to deceive)
-intent to induce reliance
-reasonable reliance
-damages

Question 12

What is fraud in the execution?

Answer 12

Occurs when a party is deceived into signing something that does not look like a contract. MAKES A CONTRACT VOID
-no voidable bc there is “no meeting of minds”

Question 13

What is fraud in inducement?

Answer 13

the defrauded party is aware she is making a contract, but the terms are materially misrepresented. This is voidable

Question 14

What is innocent misrepresentation?

Answer 14

has all the elements of fraud except scienter

Question 15

When is a unilateral mistake a defense?

Answer 15

When a unilateral mistake as to a material fact is a defense if the other party knew or should have known the mistake.

Question 16

Which six contracts require writing? MYLEGS

Answer 16

-Marriage
-YEAR Contracts that by their terms cannot be performed within a year
-LAND interests in land
-EXECUTORS contracts by executors or similar representatives to pay estate debts out of personal funds
-GOODS contracts for the sale of goods for $500 or more
-SURETY contracts to act as surety (to pay the debt of another)

Question 17

What is Accord and Satisfaction and Substituted Contract?

Answer 17

An accord is an agreement to substitute one performance for another, and satisfaction is the execution of the accord. Accord and satisfaction discharge the original duty. Until the accord is satisfied a party may sue ender the original contract or the accord.

Question 18

What is novation?

Answer 18

available as a defense to a party who has been released from a contract. It occurs when a new contract substitutes a new party for an old party in an existing contract. All parties must agree to the release

Question 19

Parol Evidence Rule

Answer 19

Prohibits a party in a lawsuit involving a written contract from introducing evidence at the trial of:
-statements made prior to the written contract or oral statements made with the written contract
-that seek to vary the terms of the written contract

Question 20

What is the goal of contract remedies?

Answer 20

they are intended to put the non-breaching party in as good as a position as he would have been had there been no breach

Question 21

Are punitive damages available for breach of contract?

Answer 21

No they are for fraud

Question 22

Foreseeability

Answer 22

Consequential damages are awarded only for those damages that at the time the contract was performed a party could reasonably foresee would result from a breach

Question 23

Mitigation (reasonable efforts to avoid damages)

Answer 23

Under contract law, a nonbreaching party cannot recover for damages that could have been reasonably avoided. The party must mitigate damages

Question 24

What does ratification mean

Answer 24

refers to the process by which a minor by his/her action or “inaction” legally accepts an entire contract after he/she reaches the age of majority.

Question 25

In a substituted contract, the original parties are

Answer 25

both released from the original agreement but are both bound by a new agreement.

Question 26

To cancel a contract and to restore the parties to their original positions before the contract, the parties should execute a:

Answer 26

A rescission “undoes” a contract and restores the parties to the positions they would have been in if no contract were made.

Question 27

What items are excluded for the Sales Article?

Answer 27

-contracts for personal services and real estate
-contracts for intangible personal property, such as stock or patent rights
-contracts for fixtures - things attached to the land

Question 28

How to qualify as a merchant firm offer:

Answer 28

-seller must be a merchant
-offer must be in writing and signed by the merchant
-offer must give assurance that it will be kept open for a certain time

Question 29

What is a merchant firm offer?

Answer 29

they are irrevocable offers for the time stated, or if no time is stated, for a reasonable time, but in no event longer than 3 months

Question 30

The UCC Sales Article applies to

Answer 30

the sale of goods which is defined as all thing movable

Question 31

What are the exceptions to the Statute of Frauds for goods? SWAP

Answer 31

-Specially manufactured goods
-Written merchant confirmatory memo
-Admission in court
-Performance