Requrment that no defenses exist

Question 1

No defense requirement

Answer 1

Even if an agreement is supported by valuable consideration or a substitute, K rights may still be unenforcable if there is a defense

Question 2

Legal incapacity to K rule and list of defenses

Answer 2

Defendants without capacity can disaffirm K (but don’t have to)

1) Minors (usually anyone under 18)
2) Mental incapacity
3) Intoxicated persons (if other party had reason to know of the intoxication)

Question 3

What if incapacitated party retains benefits after gaining capacity?

Answer 3

implied affirmation of k

Question 4

Incapacity “necessaries” exception

Answer 4

An incapacitated party is still liable for necessaries, like food, shelter, clothing, medical care. BUT NOT a K obligation, just reasonable value.

Question 5

Duress Hypo Example

Answer 5

Usually economic duress, not physical. Two parties in K. One says he won’t fulfill his side of the bargain unless X. Innocent party has no choice.

Question 6

Economic Duress Elements

Answer 6

1) the party threateens to commit a wrongful act that would seriously threaten the other contracting party’s property or finances

2) there are no adequate means available to prevent the threatened loss

Question 7

Undue influence elements

Answer 7

1) undue susceptibility to pressure by one party; and
2) excessive pressure by the other party

Question 8

Ambigiuity/misunderstanding defense

Answer 8

If neither party aware of ambiguitiy: no K unless both parties intended the same meaning

If both parties aware: No k unless “”””

If one party aware: binding k based on what the ignorant party reasoanbly believe to be the meaning of the ambiguity

Question 9

Mutual Mistake defense

Answer 9

If both parties mistaken about existying facts relating to the agreement, K may be voidable by the adverserly affected party if:

1) concerns a basic assumption (subject matter, not value)
2) has a material effect
3) Party seeking avoidance didn’t assume the risk of mistake

Question 10

Unilateral Mistake Defense

Answer 10

Mistake will generally not prevent formation of K.

BUT if the nonimstaken party knew or had reason to know of the mistake, K is voidable.

Question 11

Unconscionability

Answer 11

Allows court to refuse to enforce all or part of K.

(tested at time of contract formation)
1) Unfair suprise and
2) oppressive terms

Question 12

Fraud defense

Answer 12

K voidable by innocentp arty if they jutifiably relied on it.

Question 13

Misrepresentation Defense

Answer 13

Even if not fraud- K is voidable by innocent party if (1) justifiably relied on (2) material misrepresentation.

Material if:
1) it would induce a reasonable person to agree; OR
2) the maker knows that it is likeley to induce the particular person to agree

Question 14

Illegality of defense

Answer 14

If subject matter is illegal, K is void.

Question 15

Statute of Frauds issue

Answer 15

When is writing required/oral K not enough? When it falls within SoF

Question 16

Statute of Frauds Categories

Answer 16

MYLEGS
Marriage
Year
Land Sales
Executors
Goods for 500+
Sureties

Question 17

SOF Marraige

Answer 17

K where marriage is consideration

NOT promises to marry

Question 18

SOF Year

Answer 18

K IMPOSSIBLE to complete in 1 year

time of actual perfroamnce doesn’t matter

DOESN”T INCLUDE lifetime Ks. Could die in less than a year.

Doesn’t matter how long actual performance is. (Concert example)

Question 18

SOF Executor

Answer 18

A promise by an executor or administrator to pay the estate’s debts out of their own funds needs writing

Question 19

SOF Sureties

Answer 19

Promises to pay debt of another. Party must actually owe you.

Question 20

SOF and contract modifications

Answer 20

Modifications must be in writing ONLY if contract as MODIFIED is within statute

Question 21

CLauses prohibiting oral modification

Answer 21

UNenforcable in common law Ks

Enforcable in UCC

Question 22

SOF Land Sale Exceptions

Answer 22

1) Leases of 1 year or less
2) Part performance of real estate Ks
-Payments, possession, improvment (need 2 of 3)

Question 23

SOF Service COntract exception

Answer 23

FUll perfroamnce of contract satisfies SOF

But partial performance of does not

Question 24

SOF Sale of Goods K Exceptions

Answer 24

Part performance takes a sale of goods K out of SOF WHen:
1) Goods accepted OR
2) Goods paid for OR
3) Goods specially manufactured (substantial beginning from seller )

If partially paid for or accepted, K is enforceable only to extent of the partial payment or acceptance.

BUT if good can’t be divided (one boat), still SOF

Question 25

SOF Judicial Admissions Exception

Answer 25

Agreement admitted to under oath are enforceable wihtout writing

Question 26

Merchants Confirmatory Memo Exception

Answer 26

1) Merchants
2) Agree to K
3) One party sends signed writing containing quantity terms
4) No objection by recipient within 10 days

Question 27

SOF writing requirement for Goods 500+

Answer 27

1) Quantity Term
2) Defendant’s signature

Question 28

SOF Writing requirement for common law Ks

Answer 28

1) All material Items (who, what, price)
2) D’s signature