Sources of Contract Law

Question 1

In hybrid cases, that involve both the sale of a good and a service, how do you determine the predominant purpose of the K?

Answer 1

3 factors:

1. The language of the K
2. Nature of the supplier’s business
3. Relative value of the good vs. service

Question 2

Majority rule for hybrid cases (involving sale of a good and a service)

Answer 2

Look at the predominant purpose of the K

Question 3

Minority rule for hybrid cases (involving sale of a good and service)

Answer 3

UCC applies to sale of the good, common law to the service.

Question 4

Majority rule for computer software and other electronic information

Answer 4

Treated as good governed by the UCC

Question 5

Implied-in-fact contractual obligations

Answer 5

Agreements formed by conduct rather than words.

Ex. Homeowner hires a plumber to fix a leak, but due to the urgency of the situation, doesn’t discuss price of the work. When work is complete, homeowner has an implied-in-fact obligation to pay the plumber the reasonable value of his work.

Question 6

Implied-in-law contractual obligations

Answer 6

One party bestows a benefit on another, and it’s unjust for the recipient to retain the benefits without paying. Quasi-contract, unjust enrichment.

Ex. a surgeon who performed emergency surgery on an unconscious patient creates an implied-in-law obligation to the patient; a merchant who mistakenly delivers goods to the wrong party.

Question 7

Quantum Meruit

Answer 7

The cause of action for an implied-in-fact K, brought to recover the reasonable value of the benefits provided. Applies in implied-in-law claims, as well.

Question 8

Are electronic signatures legally effective?

Answer 8

YES

Question 9

Are emails sufficient to satisfy the writing requirements of contract law?

Answer 9

YES

Question 10

Signed writing requirements

Answer 10

A number of rules in contract law require a signed writing in order to be legally enforceable. Ex. statute of frauds, firm offers.