What is a contract?

Question 1

Common Law vs. Article 2

Answer 1

• Generally, common law will apply.
• However, contracts involving the sale of goods, Article 2 applies

Question 2

What are goods?

Answer 2

Defined: Goods are all things moveable at the time they are indentified as teh goods to be sold under the contract.

Question 3

Definition of Merchant (Article 2)

Answer 3

Defined: A merchant is one who regularly deals in goods of the kind sold or who otherwise by his profession holds himself out as having special knowledge or skills as to the practices of the goods involved.

Question 4

Express Contract

Answer 4

Express contracts are formed by language, oral or written.

Question 5

Implied in Fact Contract

Answer 5

Contracts that are created by the parties’ conduct.

Question 6

Quasi-Contract

Answer 6

Rule: Quasi-Contracts are not actually contracts. Rather, they are constructed by courts to avoid unjust enrichment by permitting P to bring an action in restitution to recover the amount of the benefit conferred on the defendant.

Question 7

Bilateral Contracts

Answer 7

Defined: Traditional form of a contract consisting of the exchange of mutual promises in which each party is both a promisor and a promisee.

Question 8

Unilateral Contracts

Answer 8

Defined: A contract in which the offeror requests performance rather than a promise. Here, the offeror-promisor promises to pay upon the completion of the requested act by the promisee. Once the act is completed the contract is formed.

• Only occurs in two situations: (i) where completion of performance is the only manner of acceptance, or (ii) where there is an offer to the public (reward/contest/prize).

Question 9

Void Contract

Answer 9

Defined: A void contract is one that is totally without any legal effect from the beginning. It **cannot be enforced by either party. **

Question 10

Voidable Contract

Answer 10

Defined: A voidable contract is one that one or both parties may elect to void (e.g. by raising a defense that makes it voidable, such as infancy or mental illness).

Question 11

Unenforceable Contract

Answer 11

A contract that is otherwise valid but which may not be enforceable due to a defense extraneous to the contract formation, such as teh statute of limitation or statute of frauds.

Question 12

Elements to Creation of Contract

Answer 12

1. Was there mutual assent?
2. Was there consideration or some substitute for consideration?
3. Are there any defenses to creation of the contract?