Rule statements

Question 1

Contract

Answer 1

A promise for the breach of which the law provides a remedy or recognizes a duty

Question 2

Offer

Answer 2

A presentation for someone to accept or reject as desired

Question 3

Acceptance

Answer 3

The offeree’s manifestation of assent to the terms and conditions made by the offeror, the offeree agrees to the terms

Question 4

Consideration

Answer 4

A bargain for exchange, what is given up

Question 5

Specific performance

Answer 5

An order by the court to get what was promised initially

Question 6

Termination

Answer 6

a) Non-occurrence of any condition or acceptance under the terms
b) Revocation by the offeror
c) Lapse of time
d) Death or incapacity
e) Rejection or counteroffer by the offeree, not an inquiry

Question 7

Quasi-contract

Answer 7

Not an actual contract, legal fiction created to effect equitable results

Question 8

Promissory estoppel

Answer 8

The doctrine that a party may recover based on a promise made when the party’s reliance on that promise was reasonable, and the party attempting to recover detrimentally relied on the promise
a) A promise on which there is a foreseeable reliance
b) The promisee relies on that promise to their detriment
c) Injustice can be avoided by enforcement of the promise

Question 9

Damages

Answer 9

Has to be proven with clear and convincing evidence

Question 10

Expectation damages

Answer 10

Puts a party in the position they would have been in had the contract been fully completed with no breach

Question 11

Reliance damages

Answer 11

Puts a party in the position they would have been in had the contract never been agreed to

Question 12

Restitution damages

Answer 12

Awards a party damages based on the value a benefit conferred to the breaching party; courts use a great deal of discretion

Question 13

Consequential damages

Answer 13

The expenses or other losses that the plaintiff would never have incurred but for the defendant’s breach

Question 14

Incidental damages

Answer 14

Incurred in ascertaining and trying to prevent breach or avoid damages

Question 15

Lost profits

Answer 15

An estimate, the standard to uphold awards is to be substantial evidence

Question 16

Loss of goodwill

Answer 16

The reputation the person/business had built over time is reflected by the return of customers

Question 17

Equitable remedies

Answer 17

Considers specific performance, injunctions, and declaratory judgment actions

Question 18

Britton Rule

Answer 18

When a non-breaching party receives value, takes and uses the materials, or has an advantage from the labor, they are still liable to pay the reasonable worth of what was received

Question 19

Mutual mistake

Answer 19

A contract may be found voidable under these circumstances
a) The mistake concerns a basic assumption on which the contract was made
b) The mistake has a material effect on the agreed exchange of performances
c) The adversely affected party who is seeking avoidance does not bear the risk of a mistake

Question 20

A party bears the risk of a mistake when

Answer 20

a) The risk is allocated to them by agreement
b) They are aware, at the time the contract was made, that they have only limited knowledge of the facts to which the mistake relates but treat their limited knowledge as sufficient
c) The risk is allocated to them by the court because it is reasonable in the circumstances to do so

Question 21

Misunderstanding

Answer 21

When both parties’ reasonable faith beliefs are objectively factually correct but different
a) No mutual assent if both parties know they have different meanings or they don’t know
b) If one party knows and the other doesn’t, the meaning will be attributed to the party who didn’t know’s belief

Question 22

Unilateral mistake

Answer 22

The effect of the mistake would make enforcement of the contract unconscionable, or the other party had reason to know of the mistake or caused the mistake

Question 23

Misrepresentation

Answer 23

Must prove an assertion not by the facts - fact and not opinion – a belief without certainty as to a fact; or a judgment of quality, value, etc.

Question 24

Duress

Answer 24

If a party’s assent is induced by an improper threat by the other party or by a third party, leaving them with no reasonable alternative, the contract is voidable unless the other party acted in good faith and had no reason to know of the party was acting under duress

Question 25

Undue influence

Answer 25

Coercive persuasion overcoming the will without convincing the judgment that is normally found in a confidential relationship or one that is susceptible to influence
a) The party was under the domination of the other party
b) The party exercising the influence must use unfair persuasion

Question 26

Illegality

Answer 26

Rendering unenforceable all or some part of an agreement on public policy grounds – focuses on the contract’s subject matter rather than the parties’ conduct, the freedom to contract is outweighed by moral values, economic interests, or protecting legislation or government institutions

Question 27

Incapacity

Answer 27

Contracts with minors or people with a mental infirmity are voidable

Question 28

Impossibility/impracticability

Answer 28

A contract that is impossible to enforce