R6 - Contracts

Question 1

Contract law is governed by which two sources?

Answer 1

Common law and Uniform Commercial Code (UCC)

Question 2

What are the three requirements of a legally enforceable contract?

Answer 2

1. Offer and acceptance
2. Consideration
3. Lack of defenses

Question 3

What are the three requirements of a valid offer?

Answer 3

1. Intent to contract
2. Definiteness/certainty
3. Communication of the offer

Question 4

What pieces are included under common law?

Answer 4

RISE
Real estate
Insurance
Services
Employment

Question 5

When is the rejection of an offer effective?

Answer 5

When received

Question 6

When is the acceptance of an offer effective?

Answer 6

Upon dispatch (mailbox rule)

Question 7

What are the six types of contracts that must be written?

Answer 7

MY LEGS
Marriage
Year, more than one
Land
Executors
Goods over $500
Suretyship (cosigner)

Question 8

What is the difference between an “accord and satisfaction” and a “novation”?

Answer 8

An “accord and satisfaction” is a new agreement between the same parties and a “novation” is the same agreement between a substituted party

Question 9

T/F: Punitive damages are not available for breach of contract

Answer 9

True; only available for fraud

Question 10

If a person is induced to enter into a contract by another person because of the close relationship between the parties, the contract may be voidable under which defense?

Answer 10

Undue influence

Question 11

T/F: The statute of limitations for breach of contract usually begins to run on the occurrence of the breach

Answer 11

True

Question 12

T/F: Unless stated otherwise, contractual rights are generally assignable

Answer 12

True

Question 13

What are the exceptions under the Statute of Frauds?

Answer 13

SWAP
Specially manufactured
Written confirmation 
Admitted in court
Performed