REG mod 26a

Question 1

Name a common example of a unilateral contract.

Answer 1

A reward. For example, $500 reward for returning a lost dog.

Question 2

If a contract for goods, under the UCC, does not contain a specific price or specific quantity, is it possible that a valid contract still exists?

Answer 2

Yes. When the price is not included a reasonable price may be determined by the court. The quantity under contract is not required, unless the sale of goods is for more than $500, in which case the contract is required to be in writing (this is per the Statute of Frauds).

Question 3

Name the required elements of a valid secured interest agreement.

Answer 3

Writing- the agreement must be written (exception: the creditor takes physical possession of the collateral – think pawn shop)
Signed by the debtor
Description of the collateral

Question 4

What information must be included in a contract that is evidenced by a writing?

Answer 4

Identity of the parties
Subject matter
Signature of the party being held liable under the contract

Question 5

Name the elements of a contract.

Answer 5

Offer (written or oral)
Acceptance
Consideration
Legal Capacity
Legal Purpose

Question 6

A contract with a minor is void. True / False

Answer 6

False. A contract with a minor is voidable at the discretion of the minor.

Question 7

What is the Parole Evidence Rule?

Answer 7

A rule that written contracts are considered to be final and complete. If other matters are discussed, but not represented in the contract, the other representations are not considered to be part of the contract.

Question 8

What types of contracts are required to be evidenced by writing under the Statute of Frauds?

Answer 8

Real estate contracts, agreements that cannot be performed within one year of the agreement, contracts where one person guarantees the debt of another and the sale of goods for $500 or more (UCC)

Question 9

An advertisement is considered to be an offer. True / False

Answer 9

False.

Question 10

What are the requirements of being a holder in due course?

Answer 10

Be a holder of the instrument
Give value to obtain the instrument
Take the instrument in good faith
The instrument was accepted as payment, in good faith, after having given value to obtain the instrument. The holder believed the instrument was a good instrument.

Question 11

What circumstances would dictate a remedy of specific performance?

Answer 11

When the contract’s subject matter is unique. For example, real estate contracts may use specific performance to compel the sale because real estate is unique.

Question 12

Is a contract that is illegal in nature, void or voidable?

Answer 12

Void

Question 13

Offers may be terminated by the parties of the contract, or by operation of law. Describe the circumstances that would terminate a contract by operation of law.

Answer 13

Death of the offeror or offereee
Incapacity of the offerror or offeree
Destruction of the subject matter
Contract becomes illegal

Question 14

Describe fraud in the execution.

Answer 14

This is when an individual is not aware that they are signing a contract. The resulting ‘contract’ is void.

Question 15

What is the most common type of remedy under contract law?

Answer 15

Monetary damages are the most common. Please note that punitive damages are generally not a remedy for contract law.