What is a Contract / What Law Applies

Question 1

3 “Types” of COntract

Answer 1

1. Express: formed by language, oral or written
2. Implied: formed by conduct
3. Quasi-contract: not a contract at all! This is the term used when an unenforceable contract results in unjust enrichment

Question 2

Bilateral Contract

Answer 2

An exchange of mutual promises, i.e., a promise for a promise. A bilateral contract can be accepted in any reasonable way.

Question 3

Unilateral Contract

Answer 3

The offeror requests performance rather than a promise.

The offeror-promisor promises to pay upon the completion of the requested act.

Only two situations this occurs:

1. When the offeror clearly indicates completion of performance is the only manner of acceptance and
2. There is an offer to the public, such as a reward offer

Question 4

Void Contract

Answer 4

One that is totally without any legal effect from the beginning; cannot be enforced by either party

Question 5

Voidable Contract

Answer 5

One that one or both parties may elect to avoid, such as by raising a defense

Question 6

Unenforceable Contract

Answer 6

One that is otherwise valid but is not enforceable due to a defense

Question 7

Common Law vs. Art. II Sale of Goods

Answer 7

Common law generally governs contracts, but Art. II covers contract involving the sale of goods!

Question 8

Goods Defined

Answer 8

All things movable at the time they are identified as the items to be sold under the contract

Question 9

Merchants vs. Nonmerchants

Answer 9

Art. II generally defines “merchant” as one who regularly deals in goods of the kind sold or who otherwise by their profession holds themselves out as having special knowledge or skills as to the practices or goods involved.

Question 10

What is contract involves both goods and nongoods?

Answer 10

Whichever aspect is more dominant governs