Vocabulary

Question 1

Unilateral contract

Answer 1

An offer that expressly requires performance as the only possible method of acceptance.

Very rare.

Question 2

Bilateral contract

Answer 2

All offers other than unilateral contracts.

Almost every situation is bilateral.

Question 3

What is a contract?

Answer 3

An agreement that is legally enforceable.

Question 4

What is an offer?

Answer 4

A manifestation of commitment.

Question 5

Requirements contract

Answer 5

A commitment to buy from seller exclusively.

Question 6

Output Contract

Answer 6

Seller commits to sell exclusively to the buyer.

Question 7

Option

Answer 7

A paid for promise not to revok supported by consideration.

Exists under both Article 2 and at common law.

Question 8

Merchant

Answer 8

A person in a business of any kind.

Question 9

Counter offers

Answer 9

Function like rejection.

Question 10

Illusory promise

Answer 10

A promise that is not binding. It creates no actual detriment for the promisor. It cannot amount to consideration.

Question 11

Promissory estoppel

Answer 11

Estopping someone from claiming there was no contract when the person claiming estoppel has detrimentally relied on a promise but has not tendered consideration.

Question 12

Procedural unconsciounability

Answer 12

Something in the process that placed pressure on the parties and made the contract unconscionable.

Question 13

Substantive unconscionability

Answer 13

The harshness of the terms.

Question 14

Prol evidence

Answer 14

Words of both or one party before integration.

This includes all words that came before the writing. That is, it includes both written and spoken words.

Question 15

Integration

Answer 15

A written agreement that the court finds is the final agreement , that might trigger parol evidence.

Question 16

Partial integration

Answer 16

Written and final, but not complete

Question 17

Complete integration

Answer 17

Written and final and complete

Question 18

Merger clause

Answer 18

a contract clause that states that the written agreement is final.

It is persuasive but not conclusive on the finality of the agreement.

Question 19

Shipment contract

Answer 19

A contract whereby the seller gets the goods to a common carrier.

Question 20

Destination contract

Answer 20

Seller does not complete its delivery obligation until the goods arrive at the destination.

Question 21

Tender

Answer 21

Makes available

Question 22

Vertical privity is lacking when

Answer 22

D was not a party to the contract

Question 23

Horizontal privity exists with

Answer 23

Plaintiffs

Question 24

Common law performance

Answer 24

The parties have done what the contract requires them to do

Question 25

Installment contracts

Answer 25

These require (i) installment of the goods in separate lots (ii) to be separately accepted.

Question 26

Third party beneficiary

Answer 26

Not a party to the contract, but able to enforce contracts others made in her benefit.

Question 27

Promisor

Answer 27

The person making a promise that benefits a third party

Question 28

Promisee

Answer 28

The person who obtains the promise that benefits the third party

Question 29

Incidental beneficiary

Answer 29

Not intended to benefit from the third party, so can’t collect.

Question 30

Creditor beneficiaries

Answer 30

People owed something that intend to collect through a third party contract

Question 31

Donee beneficiary

Answer 31

Beneficiaries that collect through third party contracts gratuitously

Question 32

Assignor

Answer 32

Party to the contract who later transfers rights under the contract to another

Question 33

Assignee

Answer 33

Not a party to the contract. Able to enforce the contract because of the assignment.

Question 34

Obligor

Answer 34

Person who owes an obligation.

Question 35

Language of prohibition

Answer 35

Language that prohibits the assignment of a contract

Question 36

Language of invalidation

Answer 36

Language that invalidates an assigned contract

Question 37

Obligee

Answer 37

Person owed performance or an obligation.

Question 38

Novation

Answer 38

A novation is an agreement made between two contracting parties to allow for the substitution of a new party for an existing one. The original contracting party who is replaced by the new party with the novation is excused by the novation, and therefore the original party who is replaced gives up any rights it has against the other original party to the contract. Both original contracting parties must agree to the novation.