REG Chapter 6

Question 1

What elements are required to have a legally enforceable contract?

Answer 1

1. Offer & Acceptance (Agreement, “meeting of the minds”)
2. Exchange of Consideration
3. Lack of Defenses (no reason no to enforce it)

Question 2

What terms must be “definite and certain” to constitute a proper offer?

Answer 2

1. The identity of the offeree and the subject matter
2. Price
3. Time of performance
4. Quantity
5. Nature of the work to be performed

Question 3

Name the offers that are considered irrevocable under the law.

Answer 3

1. Option Contract “buying time”
2. Unilateral Contracts
3. Merchant’s Firm Offers

Question 4

What are the elements of consideration?

Answer 4

1. Something of legal value given by each party

2. Must be a bargained for exchange.

Question 5

Which defenses can make a contract void?

Answer 5

1. Fraud in the Execution
2. Duress by physical force
3. Nonexistence of Subject Matter
4. Illegality
5. No license to “protect the public” (Cpa, attorney)
6. Adjudicated (judicially declared) mentally incompetent

Question 6

What is needed to make a “promise not to compete” enforceable?

Answer 6

1. Must be reasonable needed
2. must be reasonable in duration
3. Must be reasonable as to distance

Question 7

Statute of Frauds

Answer 7

Six contracts that require a writing and must be signed by the defendant (mylegs):

1. Marriage (as consideration)
2. > Year (multi-year contracts)
3. Land
4. Executors (contracts by, pay estate debt out of personal funds)
5. Goods sales (> $500, can be oral if fan be done in 1 yr)
6. Surety (contracts that act as, pay the debt of another)

Question 8

Under UCC, what are the elements to qualify as a merchant’s firm offer? (irrevocable)

Answer 8

1. Seller must be a merchant
2. Offer must be in writing and signed by the merchant
3. Offer must give assurance that is will be open for a specified period of time (or 3 months)

Question 9

What are the exceptions to the goods provision of the Statute of Frauds under UCC?

Answer 9

Exceptions to MYLEGS: (SWAP)

1. Specially manufactured goods
2. Written confirmation from one merchant to another (must object within 10 days)
3. Admitted in court (contracts have been)
4. Performed contracts

Question 10

Elements of Negligence under UCC (Tort)

Answer 10

1. Duty of care
2. Breached duty of care
3. Damages
4. Causation

Question 11

Elements of Strict Product Liability (Tort)

Answer 11

Must prove:

1. Product was defective
2. Defect caused injury
3. Unreasonably dangerous
4. Seller was in business selling this product
5. No substantial changes in condition