3. Contracts

Under common law, the parties to an illegal contract were considered to be pari delicto. A minor, unable to live at home, contracts to rent an apartment for one year at $600 monthly. After 3 months he disaffirms the contract. The reasonable value was only $500 monthly. Assuming no rent was paid, the minor must pay how much?

$1500 (rent for the time he lived there)

UCC statue of frauds refers to sale of goods $? or over must be in writing. Common law statue of frauds refers to sale of goods over $? or must be in writing

$5,000, $500

Sources of Law governing contracts: Article ? of the UCC, and C? law of contracts

(1) Article 2 of the Uniform Commercial Code (applies to sale of goods not services) (2) Common Law of Contracts

Amount of days a buyer has to object to a written confirmation

10 days

capacity of parties: infant is a person under what age?

18

UCC Article ? regulates contracts for the sale of g?

2, goods

what section of the statue of frauds deals with the sale of goods?

7th

Reliance Damages example: Tony promises to give Cornelius $10,000 to buy a car. In reliance on the promise, Cornelius spends $9,000 buying a car. Tony then reneges on the promise. In this case, because it was foreseeable that Cornelius would rely on the promise, the courts will award him reliance damages in the amount of $?, thereby putting him in the same position he would have been in had the promise never been made.

9,000

Expectation Damages: If the defendant paid the plaintiff $100 of a $1,000 debt, the loss in value is $?.

900

The following is an example of an a? p? A promises to give B either $1,000 or his car in exchange for B's car. This contract is enforceable because both alternatives embody valid consideration

Alternative promise

Robert and Jimmy enter into a contract in which Robert agrees to sell Jimmy his house for $1 million. The contract is oral. Robert conveys good title to the house to Jimmy. Jimmy tries to get out of the deal, arguing that the contract was oral and therefore, unenforceable under the Statute of Frauds. In this case, Jimmy will lose and will have to pay Robert the purchase price of the house. why?

Although the contract was oral and unenforceable under the Statute of Frauds, Robert's part performance, the conveyance of the title, made the contract enforceable.

A? gives some rights to a third party, whereas a n? transfers both rights and obligations to a third party.

Assignment, novation

A? is an express or implied promise or contract (not under seal) on which an action may be brought to recover damages N-? a pleading in which the defendant claims s/he did not undertake the promise or obligation

Assumpsit (he undertook or he promised), non-assumpsit

Under which of the following conditions may a party fail to perform under a contract and NOT be held liable for breach of contract a) After the other party has breached the contract b) if the subject of the contract is destroyed c)if performance has been made impossible (by the other party)

B (repudiation) and c (impossibility)

When A and B go into a store and A says to the storekeeper, "Sell B these goods; if he doesn't pay you, I will," the primary liability is on ? to pay for the goods. A's promise, on the other hand, is collateral or secondary to B's liability and so must be in w?. This is an example of a g?

B, writing, guarantee

the C? antitrust a? of 1914, enforced by the federal trade commission, focused on commodities (useful or valuable things) and seeks to prevent anti-competitive conduct - for instance, one person may not be the president of several companies. It prevented one bank from merging with another in Philadelphia which would have created a monopoly.

Clayton Anti-trust Act

C? means a favor or advantage granted or expected in return for something (hint: Quid-Pro-Quo)

Consideration

C? of r? is a judgment of court or recognizance

Contract of Record (although not really a contract because it is imposed by the court)

Tony knows that Cornelius has been saving to buy a car and, a week before Cornelius graduates from high school, Tony promises Cornelius that he will give him $10,000 as a graduation present. Immediately after Tony makes the promise, Cornelius, who already has $3,000 saved up, buys himself a new Toyota Matrix. A few days after graduation, Tony dies and his estate refuses to give Cornelius the $10,000 that Tony promised him. If Cornelius sues Tony's estate for the money, he will Win, because ?

Cornelius relied on Tony's promise specifically made for the purchase of a car. Reliance is viewed as consideration.

Employer told interviewee "I'm going to hire you go ahead and move to FL." Interviewee moved to FL but was not hired. FL is "at will" state meaning employees can be hired/fired without explanation. Why would the employer owe monies/damages to the interviewee?

Detrimental Reliance - interviewee relied, to h/his detriment, on the employer's promise

D?, Renunciation, or R? of a contract occurs where one party renounces (by words or conduct) his or her obligations under a contract

Disaffirmance, Repudiation

E? to mutuality of obligation rule is an o? contract, meaning, the seller agrees to sell all of his production of a specific product to the buyer.

Exception, output

E? damages - put the party in the position they would have been in if the contract had been fully/properly performed.

Expectation

E? damages can only be recovered if they can be calculated to a reasonable certainty. Where damages cannot be calculated to a reasonable certainty, the injured party will only be able to recover n? damages

Expectation, nominal

T/F If any part of a consideration in a contract is illegal, it may be removed and the contract remains valid

False

T/F One party of a contract performs and the other breaks the contract by a failure to perform. The failure of performance will discharge the performing party

False

T/F Personal service contracts are assignable.

False

T/F The fact that a contract turns out to be very difficult to perform and burdensome makes it void

False

T/F The following is an example of a mutual and concurrent condition: A agrees to sell B his land for $5,000 and B agrees to pay that sum on a certain date

False - it's conditional & dependent also called conditional and dependent (mutual and concurrent would be if B paid at the time he rec'd the title

T/F All contracts are assignable

False - parties may stipulate the contract is not assignable, and assignments of salaries by public officers, as well as pensions, are not assignable

Abdul made a one yr written contract with Sarah where he agreed to mow her lawn weekly for $150 per month. Sarah called Abdul and told him she wanted him to mow the lawn bi-weekly for $75 month. Abdul agreed, then changed his mind. T/F Abdul is bound to comply with the modified contract. why or why not?

False, they already had a binding contract with a set term, set amount, - there was no modification clause (allowing an amendment).

A f? offer is irrevocable, it's for the Sale of Goods & states a period of time it will remain open, requires nothing of value to be kept open (no consideration), but the offeror must be an active merchant and the offer may only be open for ? months

Firm Offer, 3

The Statue of F? describes which contracts have to be in writings to be enforceable. For a contract to be enforceable, it must satisify the statue.

Frauds

the Statue of ? requires a contract to be in writing

Frauds

A constitutionally guaranteed freedom that permits persons to freely enter into contractual arrangements is known as F? of C?

Freedom of contract

A constitutionally guaranteed freedom that permits persons to freely enter into contractual arrangements is known as F? of C? The Contract Clause appears in the United States Constitution, Article I, section 10

Freedom of contract

the H? C? act of 1679 was created to define and strengthen the writ of habeas corpus, which required a court to examine the lawfulness of a prisoner's detention and thus prevent u? or arbitrary i?.

Habeas Corpus, unlawful, imprisonment

is a contract to buy an article that has yet to be manufactured (will entail service) considered sale of goods and thus covered by statue of frauds if it is for a buyer? what about if it is for the public?

If made soley for the buyer, no - it's more a contract for work and labor If goods can be used by others/the public, yes it is considered to be a contract is for the sale of goods (and must be in writing)

a seaman was promised extra wages to remain on the ship. He remained on the ship but did not receive extra wages. Under what circumstance would it be legal to withhold the extra wages?

If the seaman's contract stated that he would remain on the ship, in which case the seaman was only performing his duty and so there is no consideration

What type of contract is this an example of: someone is eating dinner at a restaurant and chokes on his food. A doctor is seated at a table nearby and observes the person choking. The doctor rushes over to perform the Heimlich maneuver and saves the other customer's life. He later sends a medical bill for services rendered to the diner he saved. The customer is obligated to pay the doctor even though he had no intent to enter into an agreement with him because otherwise he would be unfairly enriched by the doctor's services

Implied in Law (also called quasi-contract)

A mechanic replaces the lug nuts on a customers car even though that was not something the customer had requested, but it the mechanic did not replace the lug nuts it would have put the driver in danger. The driver is therefore required to pay the mechanic. this is an I? in l? or q? c?.

Implied in law or quasi contract

Two types of expectation damages losses are I? (direct) costs and C? (indirect) costs

Incidental Costs, Consequential Costs[also called special damages]

Two types of expectation damages losses are I? costs and C? costs

Incidental Costs, Consequential Costs[also called special damages]

The I? D? allows minors to disaffirm or cancel most contracts they have entered into with adults. Doctrine based on public policy that reasons that minors should be protected from unscrupulous behavior of adults

Infancy Doctrine

The following defines an i? offer: An offeror commits to keep an offer open for a stated period (option contract). If the offer is withdrawn during this period, the offeror becomes liable for damages to the offeree for breach of contract.

Irrevocable offer

Robert and Jimmy enter an oral contract in which Robert agrees to sell Jimmy his house for $1 million. After they agree, and in anticipation of moving in, Jimmy has the house painted and has an addition built onto the house which he turns into a recording studio. Robert tries to get out of the deal by arguing that the contract was oral and, thus, invalid. In this case, Robert looses - he will have to convey title to Jimmy. why?

Jimmy's valuable improvement that he made on the land makes this otherwise unenforceable contract enforceable.

what is being described? a claimant may pursue an obligation against any one party as if they were jointly liable and it becomes the responsibility of the defendants to sort out their respective proportions of liability and payment.

Joint & several liability (or all sums)

One defendant may be sued for the full amount owed and it is then up to that defendant to pursue the other defendants for their contribution. What type of liability does this describe?

Joint AND several liability

Joint Liability and Joint and Several Liability - each member may be held liable for the judgment, debt, or obligation. The difference is that in ? each member must be named in the lawsuit

Joint Liability

Joint and Several Liability, or Joint Liability - one member of the group can be held responsible for the full amount due. However, in ?, ALL joint debtors or defendents must be named in the suit

Joint Liability

In ? liability, all members do not need to be named in the suit, they may be left to sort it out amongst themselves

Joint and Several Liability

Simon promises Kelly, a lounge singer, that he will sign her to a record deal if he ever starts his own record label. One year later, Simon starts his own label but refuses to sign Kelly. Kelly sues Simon. Simon argues that there was no mutuality in their agreement because Kelly never gave Simon a promise or an act in return for his promise. ? will probably Win the case:

Kelly. Conditional promises are exceptions to the mutuality of obligation rule - because mutuality does exist if the "something" occurs

l? parol evidence refers to ambiguity that is not obvious from reading the contract, it needs to be admitted to show that ambiguity exists

Latent

A contract is made for Joe to buy a house from Julie for $100,000 in 30 days. Joe puts down $10,000 on the house. A clause in the contract states that if Joe does not go through with the purchase, Julie may keep the $10,000 for her compensation (approximation for Julies loss to relist the house, start paying the mortgage again, etc). This is an example of a l? d? clause.

Liquidated damages

Exceptions to "No Consideration No Contract" (hint: L&A, compensation for v?, a?, g, c? subscription, p? to p?a time barred debt)

Love and affection, Compensation for voluntary services, Agency, Gift, Charitable subscription, Promise to pay time-barred debt

Sal contracted with Kate to be supplied with a 40 chairs, in quantities of 10, at specified dates. After receiving 20 chairs, Sal refused to pay for more. Was Kate still obligated to deliver chairs?

No

can performing a legal duty be consideration (such as a police officer collecting reward while on the job)

No

If Sarah agrees to watch a child for life, does this oral contract fall within a statue of frauds and must therefore be in writing?

No, because the child could die within one year.

If a specified performance constitutes acceptance but the performer does not have knowledge of the offer, is this a contract?

No, communication and KNOWLEDGE of the offer are necessary. The "performer" would have had to have knowledge during the bulk of the performance.

A owes B $1000 but offers to pay $750 and B accepts. Is this a release of the $250 difference (does it excuse A from paying the $250?)

No, it only releases the debt if it is clearly stated that the $750 payment settles the claim (because there is no consideration - A does not benefit from accepting less)

If A contracts B to cut wood and sell it would this have to be in writing according to Statue of Frauds?

No, once it's cut the tree is property not realty

If A pays $5 (consideration) for B to not sell his car to anyone else for a 24 hour period, and B agrees in writing with a seal - and delivers it to A - that he will not sell his car to anyone else within 24 hours, is B free to change his mind withing 24 hours? How could B have given her/himself the option to change his/her mind?

No, the seal and delivery of the promise in writing served as a consideration, thus both parties fulfilled consideration making this a contract not revocable for 24 hours -- by agreeing orally and not accepting the $5

A store owner waits two months before opening a package containing furniture she ordered. Upon opening the package she discovers the furniture is broken. Can the owner return the furniture?

No, too much time has passed

This an example of o? i? - Catastrophic weather caused the wedding hall to be destroyed. The catering party, therefore, cannot keep the contract terms.

Objective Impossibility

Two categories of ambiguity regarding parol evidence? P? and L? A ? ambiguity exists when the language of the will, though clear on its face, is susceptible to more than one meaning when applied to the extrinsic facts. ... In these cases, ? evidence is admissible to resolve the ambiguity.

Patent and Latent, latent, parol

A ? is a contract that is created by a court order, not by an agreement made by the parties to the contract.

Quasi contract

R? Damages are awarded to someone who has foreseeably relied on an ordinarily unenforceable promise.

Reliance Damages

r? is an exception to consideration. ie: * agreeing to accept less than what is due. In other words, a creditor can agree to give up a part of his claim and there need be no consideration for the contract to be valid. * agreeing to extend time for performance of a contract need not be supported by consideration.

Remission (the cancellation of a debt, charge, or penalty)

R? is an agreement to extend time for performance of a contract or accept part performance; [needs, does not need] to be supported by consideration.

Remission is a exception to no consideration no contract - does not need

R? of a contract means a refusal to perform the duty or obligation owed to the other party. [means the same as disaffirm]

Repudiation

R? may be defined as the unmaking(cancellation) of a contract to return the contract parties to the positions they occupied before the contract was made

Rescission

R?, Renounce, R?, Deny, and Cancellation all mean the same thing, the unmaking of a contract to return the contract parties to the positions they occupied before the contract was made

Rescission, Repudiate,

R? Damages awarded to a plaintiff when the defendant has been unjustly enriched at the plaintiff's expense

Restitution Damages

Bill of Rights 1689 and Act of S? limited the power of monarch(s) thus freeing individuals and the nation from arbitrary and excessive use of e? power

Settlement, executive

With [Several Liability, Joint liability, or Joint & Several Liability], each partner is liable only for his/her specified obligations, or his/her share.

Several Liability

is the following an example of Joint OR Several Liability? Partners are liable only for their respective obligations

Several Liability

An offer that is kept open for a period of time is called a s? offer or c? offer

Standing offer or continuing offer

T? b? debt is a debt that is not collectable because the statue of limitations has passed. But if payment of the debt is promised in writing and signed by the debtor, can the contract be enforceable?

Time barred debt. Yes, time barred debt is exception to "no consideration no contract" but must be made by the debtor not a third party.

T/F . Consideration may even take the form of some risk, loss, or responsibility suffered or undertaken by one party

True

T/F A contract may not impose liability on a third party. A may contract C to do work, but cannot conspire with C to get C to make B [the 3rd party] pay for it

True

T/F Aliens and convicts may sue/be sued and enter into contracts unless specified by state statue

True

T/F An agent is an example of a circumstance in which the rights and liabilities created by a contract may pass to a person(s) other than listed on the contract.

True

T/F Anyone under the age of 18 can only create a voidable contract

True

T/F Consideration is usually broken down into two parts, something of legally sufficient value and a bargained-for exchange.

True

T/F Consideration need NOT be adequate

True

T/F If Mike agrees to supply a grocery store with corn from his farm, but no corn grew because of a drought, Mike is excused from the contract

True

T/F If a consideration is separable from a contract, it may be frivolous, but the rest of the considerations are sufficient, the one consideration may be removed and the contract remains valid.

True

T/F If a minor misrepresents his/her age, the minor must place the adult in status quo if the contract is disaffirmed

True

T/F If one party commits a breach of contract, the other party maystill have to perform his/her part of the contract

True

T/F In Joint and Several Liability, and also in Joint Liability - one member of the group can be held responsible for the full amount due.

True

T/F In order for someone to avoid a contract on the grounds of intoxication, the intoxication must have been so great that s/he didn't comprehend the nature of the agreement

True

T/F Mary agreed to pay to Todd a certain sum of money "when I collect the money on the bond on which suit is pending." In reality, there was no such bond, and Mary was aware of that situation. The contract was held to be broken and Todd was permitted to recover. In other words, there is an action on the contract for the party who has acted in good faith and in ignorance of the impossibility.

True

T/F Neither the U.S. or any state may be sued without its consent

True

T/F Payment of personal services are assignable

True

T/F Statue of Frauds identifies the following must be in writing to be enforceable: interest in land, sales of goods over $500, contracts in consideration of marriage, suretyship contracts, ratification (which means making valid/accepting) of voidable contract

True

T/F The beneficiary of a life insurance policy may enforce the policy against the insurance company on the strength of being a third party beneficiary

True

T/F The promise to perform on an (already) existing contract is not a consideration

True

T/F Under the common law of England, a married woman were considered to be incapacitated (does not have mental competency to enter into a contract)

True

T/F When contracts are made for the benefit of many people, rather than any specific third party, any individual intended to benefit may enforce performance.

True

T/F Where all the terms have not been put in the document, parol evidence of the supplemental terms is admissible to complete the contract

True

T/F With the infancy doctrine, there is no mutuality because the "infant" is not legally bound to the contract, yet such a contract is enforceable.

True

T/F often a party is not automatically discharged from a contract because of nonperformance by the other party. Nonperformance doesn't necessarily discharge the contract, although a right of action may arise

True

T/F the promise to not press or bring suit to a claim may be a consideration

True

T/F when two persons agree to marry, a written contract is not required

True

T/F, for consideration to occur, both parties give up something, it can't just work to one parties advantage

True

T/F An agent may enter into a valid contract with no consideration

True (there is no legal requirement of consideration to support the relationship between principal and agent) ie: employer/employee, corporation/officer, lawyer/client

T/F Contracts of indefinite duration do not fall under the statute of frauds regardless of how long the performance actually takes.

True, must explicitly state more than one year (indefinite is not clear and could be less than one year)

T/F If A owes B, B may assign his claim to C,who may then sue A, as long as notice of the assignment has been given to A before he has paid B

True- assignment of contract

what type of contract involves a promise on one side only?

Unilateral (ie reward if dog is found...IF you do this you will get this)

A contract which one part may affirm or reject because it has a flaw is v? and is enforceable by [one party, both parties]

Voidable contract, one party

Are all of the following (valuable) considerations? money, work, performance, assets, promise to act, promise to abstain from an action

Yes

If a person makes an offer and changes his/her mind - but his offer was already accepted (without his knowledge) - can s/he still be bound to the contract?

Yes

Kim appoints Patty to sell her house giving Patty power of attorney. Patty makes contract with Kris to sell the house on behalf of Kim. Is the contract even though Patty did not receive commission?

Yes Agency is exception to "no consideration no contract" (commission would have been the consideration)

If Sarah agrees to accept the services of Joe for three years and Joe dies within one year the contract was not performed. Did this need to be in writing?

Yes because the services could not be performed within one year, a three year term was required.

Jack is supposed to support his infant. Instead, A supports the infant. Jack promises to pay A's expenses. Is this a valid contract?

Yes, Agreement to compensate for past voluntary service is exception to "no consideration no contract."

A finds B's purse and gives it to him. B promises to give A $50. Is this a valid contract?

Yes, Agreement to compensate for past voluntary service is exception to "no consideration no contract." The rule provides that an agreement without consideration is valid if it is a promise to compensate, wholly or in part, a person who has already voluntarily done something for the promisor, or something which the promisor was legally compellable to do

If A renounces his obligations, B is excused from performing his obligations and B [may/may not] sue A at once for the breach. He [does, does not] need to wait until the set performance time arrives.

[may, does not] because renunciation is total not partial

T/F An ad is an offer

`false - an ad is an invitation to negotiate (Geismar vs Abraham & Strauss)

promises may be a? (independent) or based on a contingency(dependent)

absolute

The following is an example of an a? clause or a? covenant: The buyer of a farm agrees to make 5 monthly payments of $15,000, totaling $75,000. The contract states that if a payment is missed, the following month the full amount will be due (ie regular $15,000 payment NOT acceptable) or buyer looses all monies paid thus far.

acceleration clause or acceleration covenant

T/F According to U.C.C. Section 2-201, any contract for the sale of goods for the price of $500 or more must be in writing. There are, however, certain exceptions to this rule in which an ORAL contract for the sale of goods of $500 or more will be enforced. example: (1) If the buyer receives and a? all the goods, the entire contract will become enforceable. If the buyer receives and accepts p? of the goods, the contract will become enforceable as to the goods that were accepted and received.

accepts, part

A? of G? makes a contract impossible because natural catastrophe.

act of god

business or organization established to provide a particular service

agency

a? - A person born outside the jurisdiction of the country where he lives and is not naturalized by the country he is currently residing in

alien

Ben promises that if Jerry baby sits Ben's kids, Ben will either paint Jerry's house or wash Jerry's car is an example of a? promise and [is/is not] considered a valid contract

alternative, is (exception to the mutuality of obligation rule]

an a? is an ideal solution if a contract already exists and the parties want to modify some element of it

ammendment

a? is to append or add (add a piece of land making it part of what the city owns)

annex

Contracts required by law, as well as express or implied contracts for necessities are/are not binding to an infant [under 18 yrs old] (example: requirement to appear in court or serve in militlary)

are

Conditional promises (IF something occurs, the other party will be obligated) are/are not valid contracts.

are - conditional promises are exceptions to the mutuality of obligation rule - because mutuality does exist if the "something" occurs

The U.C.C. establishes that, where parties enter an output or requirements contract, there is an implied promise that the party who is bound by the contract will remain in business. If a party to the contract goes out of business specifically to avoid their requirements under the contract they are in breach of the contract. However, if the party goes out of business for reasons that have nothing to do with the particular contract they made, they (are still, are not) in breach

are not

An a? of c? occurs when one party to an existing contract (the "assignor") hands off the contract's obligations and benefits to another party (the "assignee"). If it's not in writing, it's only an e? assignment

assignment of contract, equitable

a? is a promise that the defendant did not keep. g? assumpsit was to recover damages for implied contracts, where as e? a?, also known as s? a? has clear terms, such as to pay a sum of money or perform a specific act and the defendant breached the express contract

assumpsit, general express assumpsit, special assumpsit

B? court is a court of equity

bankruptcy

define implied contract or implied-in-fact contract

based on action and not fully (verbally) expressed

A offers to sell her car to B if she accepts within 24 hours. A has the right to change her mind within the 24 hours as long as its done before what ? , and it does not fall under the category of irrevocable offers

before the offer is accepted by party B

A ? contract is when two promises are exchanged, called c?

bilateral, consideration

A b? contract is when two promises are exchanged, called c?

bilateral, consideration

B? accepts knowledge of existence of a debt

bond

Contract with a minor which may not be avoided include, b? contracts, contracts for n?, and S? loans

business contracts, necessaries, students

In joint liability, once a creditor recovers the full amount from one of the partners, the creditor [can/can not] sue the other partners

can not

Under UCC Section 2-106(4), a party that ends a contract breached by the other party is said to have effected a c?. The canceling party retains the right to seek a remedy for breach of the whole contract or any unperformed obligation. The UCC distinguishes cancellation from t?, which occurs when either party exercises a lawful right to end the contract other than for b?.

cancellation, termination, breach

C? is the agreement to carry on another persons suit for part of the $$ to be recovered - goal to avoid frivolous litigation. Attorneys contingency fee is an example (attorney gets % of money awarded)

champerty

c? is something pledged as security for repayment of a loan, to be forfeited in the event of a default

collateral

This must occur at the same time as some other act or event. This is known as a condition c?, something that must occur simultaneously with another condition.

concurrent

A c? is a fact or event upon which the parties made the contract. Jack promsies to work 25 hrs for $10 an hour for Sam. There is a c? on Sam to pay Jack once the work is done.

condition, condition

Past consideration, moral consideration, gifts, & illusory promises are not enforceable because they lack c?

considerations

Rules of contract c? determine it's rights and obligations

construction

The goal of c? is that an agreement receives the c? that best serves the parties' intentions

construction, construction

According to the rules of c?, words are to be taken in their literal meaning. Also, an agreement should result in the parties' i?

construction, intention

an agreement or promise enforceable by law

contract

A c? is treated as a person and has the right to enter into contracts, as well as sue or be sued.

corporation

A material term can be left out of a contract and the contract is still valid. For instance, if neither party is given the right to determine those material terms, the c? will fill in the missing material terms

court

A offers to sell her pool table to B, simultaneously B offers to sell his pool table to A. This is an example of ? and there is/is not a contract

cross-offer, is not

Kinds of contracts that the Statue of Frauds requires to have some kind of writing includes: - agreements of executor/administrator of d? persons e? to pay debts from their personal funds - promise to pay d? of another, called collateral promise, involves 3rd party, example is co-signer for loan, promise must be to the creditor - taking on duty of office in consideration of m?, (meaning, to give something of value in return for marriage, or a prenuptial agreement) - sale or lease of l? (transfer of interest in land) - contracts that cannot (impossibility) to be performed within ? of making of the contract -sale of goods for value of ? or more

deceased, estate; debt, marriage, land, one year, $500

a real estate contract under seal is called a d?

deed

Statue of Frauds requires some kind of writing that satisfied the statue. Who must the writing be signed by [plaintiff/dependent]? ? Can initials substitute for full signature?

defendant (party to be charged), yes

del

del

Proof of a contract under seal occurs when it is signed, sealed, and d? One of the attesting witnesses may be called, or examination of his/her h?

delivered, handwriting

D? rule - The right to renounce a contract and thereby void any legal obligations resulting from the contract.

disaffirmance

opposite of ratification is d? and may be necessary to prevent an implied ratification

disaffirmance (disaffirm)

D? is the act of a minor rescinding a contract under the i? doctrine. This is the power of a minor to deny responsibility for a contract

disaffirmance, infancy

Adult or competent's duty of restitution occurs if the minor transferred property, money, or other valuable to the competent party before ?

disaffirming the contract

An infant [does, does not] have the option to ratify or repudiate a contract when he/she comes of age.

does note: A contract may become binding on a minor if they fail to repudiate it before 19 years of age

A says, "Let B have the goods; I will see that you are paid," A's promise is original, for there is no liability of B to which A's promise can be collateral. This original promise of A [does, does not] need to be in writing

does not, because the goods are collateral

d? of r? designed to restore the injured party or the party who suffered damages, to the position they were before the formation of the contract. ie: shoplifter must pay for the item s/he stole

dufy of restitution,

extortion or violence, general threats (except threat of civil prosecution), specific threats of unlawful imprisonment, threats to harm ones property, threats to humiliate and/or cause a scandal to a person or his/her family, all constitute what?

duress

a bond, deed, or other document in custody of a third party that takes effect when a condition has been fulfilled - e? (to constitute delivery it must be accepted, delivery makes the specialty operative)

escrow

what is the difference between an executed contract and an executory contract? (hint: performance)

executed - the contract is fully performed, executory - performance is incomplete

e? of the judgement occurs when a winning party acts on collecting a judgment

execution of the judgement

[executed, executory] contract falls within statue of frauds

executory (because executed contract has been completed

An e? condition is one stated or written out by the parties of the contract in explicit terms

express

E? conditions are created through the agreement of the parties.

express

define express contract

expressed in writing/words/conduct, each party understands it's meaning

T/F money (cash) is considered a necessity for an infant

false

T/F If a contract is unenforceable for any reason, the liquidation damages clause may still be enforced

false- the contract in its entirety will NOT be enforced

pari delicto, in equal f?

fault

f? exists when there is a consideration to delay something such as payment of a debt or performance

forbearance

what is being described? A delay in enforcing a legal right - it is a valid consideration - most often applied to a delay in collecting a debt, for example: A agrees to not sue B if C pay's B's debt

forbearance to sue

a f? contract requires a government seal such as a notary of public

formal

intentional misrepresentations and/or concealment of the facts

fraud

f? of purpose, also called commercial f?, occurs when unexpected circumstances undermine the purpose of the contract and the remaining duties to perform [are, are not] discharged, unless the language or circumstances [of the contract] indicate the contrary.

frustration, frustration, are

A surrender or cancellation of the note, although without a consideration, is an effective discharge if it's a g?

gift

nudum pactum is a naked agreement supported by what kind of consideration?

good

g? c? is formed on motives of generosity, moral obligation prudence(cautious), and natural duty & affection. G? c? makes the instrument (a deed of conveyance, &c,) good as between the parties; but a v? consideration makes the conveyance good against a subsequent purchaser

good consideration, good consideration, valuable

A material term can be left out of a contract and the contract is still valid. For instance, if one party has the power to either alter or modify the material terms in "g? f?". For instance, changing the price of something from $3.00 to $2.90 would be acceptable but not from $3.00 to $6.00

good faith

If a contract involves the sale of goods and services together, the Statute of Frauds will govern if the contract is primarily for the sale of g? and will not govern if the contract is primarily for the sale of s?.

goods, services

promise of g? or s? is a promise to pay for the debt of another

guaranty or suretyship

T/F Why would a tenant not be able to enforce a contract between the owner and a contractor for repairs or improvements?

he or she would only be an incidental beneficiary

Writs of covenant, writs of account, & writs of trespass are examples of the ? of contracts

history (some of the first writs to be issued) covenant - damages as a result of a breach of promise account - money is due trespass- committed against his person or property

Methods of discharge (end) of contract include: http://www.freeonlinenotes.net/discharge-of-contract/

http://www.freeonlinenotes.net/discharge-of-contract/

A home owner wishes to sell her home and hires a real estate agency but does not name the agency as exclusive. Meanwhile, the owner finds a buyer through other means. Under what conditions would the home owner be obligated to pay the real estate agency?

if the agency made substantial performance to find a buyer then home owner would be entitled to pay agent damages for breach of contract (if the owner failed to revoke the contract)

Contracts restraining the freedom or security of marriage are (legal/illegal). Contracts in C? of M? are contracts under which one party promises something of value to the other party on the condition that they become married, are (legal/illegal)

illegal, consideration of marriage, legal

An i? a? is where one has not made any formal promise to do an act or to pay a sum of money to another, but who is presumed from his conduct to have assumed an obligation to do the just and fair thing.

implied assumpit

A condition i? in f? isn't expressed in the agreement or the promise but is necessary to the performance of that which is expressed in the contract.

implied in fact

In this type of contract, both parties are aware even though a contract has not been made. For instance, ordering a meal implies you will receive it and have to pay for it.

implied in fact

Your neighbor hires you to mow his lawn every Friday for the entire summer. You mow your neighbor's lawn for the first three weekends of the summer and get paid on Saturday morning each time. The fourth Friday you mow the lawn and when you arrive at your neighbor's house on Saturday morning, your neighbor refuses to pay you. The law will infer that there is a contract between you and your neighbor, even though you never put anything in writing. This is an i?- in-f? contract.

implied in fact

if A agrees to manufacture goods in assorted sizes as ordered by the buyer, it's an implied condition that the buyer specify the sizes wanted - this is an example of condition ? in ?

implied in fact

[implied contracts] Conditions-i?-in law are supplied by the courts in the interests of justice such as to prevent unjust enrichment and allow for restitution. This refers to things not expressly mentioned but what can be implied/imputed by law from the nature of the transaction or the conduct of the parties to have been tacitly understood between them as a part of the agreement. note: two types of contracts are implied in f? or implied in law

implied in law, fact

An exception to the mutuality rule is an i? p?. This comes up in what is called "best effort" cases. For example, where one company agrees to market another company's product, the i? p? is that the company will use its best efforts to market the product.

implied promise

objective i? occurs when a the terms of the contract make it impossible to perform because of something that was unforeseeable and not through fault of the breaching party

impossibility

subjective i? occurs when one of the parties of the contract believes that a circumstance makes a contract promise impossible to perform

impossibility

a court of equity should not order specific performance of any building contract in a situation in which it would be i? to carry out such an order

impractical

Quid Pro Quo

in consideration, a favor or advantage granted or expected in return for something

Under common law, the parties to an illegal contract were considered to be in pari delicto, meaning ?

in equal fault

Expectation damages are damages awarded to compensate the loss of future i? caused by a breach of contract whereas ? damages are money damages awarded for the losses suffered due to reasonable reliance on the promise.

income, Reliance

combination of letters, documents, & papers is called i? by reference, for instance a memo refers to Sir but the accompanying envelope has the subjects name so this is acceptable.

incorporation

The i? d? allows minors to disaffirm or cancel most contracts they have entered into with adults

infancy doctrine

sales contracts, & purchase orders are i? contracts, whereas contracts under seal are f?

informal, formal

i? is a judicial order that restrains a person from beginning or continuing an action threatening or invading the legal right of another, or that compels a person to carry out a certain act, e.g., to make restitution to an injured party.

injunction

A contract where an employee agrees not to sue his employer for any injuries while employed would be [valid/invalid]

invalid. * If you were injured because of your employer's intentional conduct, you might be able to bring a personal injury lawsuit against your employer. *If your employer does not carry workers' compensation insurance, you might be able to sue your employer in civil court or collect money from a state fund

Generally, parol (verbal) & extrinsic (evidence that relates to a contract, but is not contained within the document itself , ie circumstances surrounding the negotiations of the contract) [is, is not] admissible to prove a written contract unless there is a? in the contract., fraud, m?, duress, or mistake.

is not, ambiguity, misrepresentation

Is this a valid contract enforceable by law? Ben tells Jerry that if Jerry watches Ben's kids, Ben will either paint Jerry's house, wash Jerry's car, or break into the local memorabilia shop and steal the Jackie Robinson baseball card that Jerry has always wanted. This [is, is not] a contract under which Jerry [can, can not] choose one of the options.

is, can as long as ONE of the options is valid consideration, the contract is enforceable.

Constitution requires each state to give full faith and credit to the laws of every other state, so if a contract is valid in one state, it [is/is not] valid in other states (unless injurious) but may not be enforced if the contract goes against morals or public policy. If a contract is invalid in one state, it [is/is not] invalid in every state.

is, is

Uniform Commercial Code regulates business dealings and transactions including the sale/transfer of personal property. UCC [is, is not] very liberal, essential terms [may, may not] be missing, etc. Different states have adopted different portions of the code.

is, may

If an oral contract falls under the statue of frauds it is [enforceable, unenforceable]?

it's unenforceable

without reserve means an item must ?

item must sell if there is a bid

Joint or Several Liability? Plaintiff must name all partners as defendants

joint

it protects victims from being under-compensated if one of the defendants cannot pay his or her share of proportionate liability.

joint and several liability

j? and s? l? are cases in which a party with a very minor part of the responsibility unfairly shoulders the burden of damages.

joint and several liability

Joint or Several Liability? A husband and wife take out a loan, the wife dies. The husband is held liable for the full amount of the loan;

joint liability

j? or decree gives the creditor remedies such as the right to collect on a lien

judgement

Joint & Several Liability [also called all sums] A claimant may pursue an obligation against any one party and it's up to the defendants to sort out their proportions of liability. How many of the defendants must be named on the lawsuit?

just one

In l? ambituigy, p? evidence, may be used to clear up proof of custom or usage.

latent, parol

Implied-in L? is when a duty to perform a contract is enforced against a person's will, where circumstances are such that without this remedy one party would be unfairly enriched by another party's action

law

If a breach of condition occurs before there is any performance,it's a breach in l?

limine (at the outset)

Promises may be independent or dependent. A dependent promise is subject to l?

limitation

L? for damages clause allows a monetary compensation if there is a breach in the contract. It's predetermined in the writing of the contract. In other words, this clause specifies a predetermined amount of money that must be paid as damages for failure to perform under a contract

liquidated for damages clause

Kmart runs an ad listing the sale price of a printer for $39 but refused to sell it for less than $89. The plaintiff sued kmart and (won/lost)

lost - an ad is not an offer but an invitation of negotiate

Adams v. Lindsell was the origin for what rule?

mailbox rule or postal rule

Exception to the statue of frauds (writing not required) Called leading object rule or m? p? rule is that suretyship does not need to be in writing if it benefits the surety (the promisor's promise to another for the debt of another is made mainly for the promisor's own economic gain). So this is enforceable without a writing

main purpose rule (exempts from the statute of frauds those oral promises made for the "main purpose" or "leading object" of receiving a consideration beneficial to the promisor).

M? is the intermingling of uninterested party to encourage a lawsuit - goal to avoid frivolous litigation

maintenance

Statue of Frauds applies in the following: 1) m? (this covers prenuptial agreements), 2) contracts that cannot be performed within ? (contracts of indefinite duration do not fall under the statute of frauds regardless of how long the performance actually takes), 3) Contracts for the transfer of an interest in l?. 4) Contracts by the executor of a will to pay a debt of the e? with his own money. 5) Contracts for the sale of goods totaling $? or more. 6) Contracts in which one party becomes a s?(acts as guarantor for another party's debt or other obligation)

marriage, one year,land,estate,$500, surety

M? breach is a contract law term which refers to a failure of performance under the contract which is significant enough to give the aggrieved party the right to sue for breach of contract

material

If a liquidated damages clause is referred to as a penalty in the contract wording, the court [may/may not] enforce it if it functions as a liquidated damages clause

may A liquidated damages clause specifies a predetermined amount of money that must be paid as damages for failure to perform under a contract.

A contract that is illegal when it's made {may, may not] be made legal by subsequent legislation. Nor may changes in the law make a contract illegal if it was legal when made.

may not

Ratification of disaffirmance (may/may not) be made on only part of the contract.

may not - must be of the entire contract (assume contract is not separable unless it is stated otherwise)

A check [may/may not] be signed in pencil, A check [may, may not] be signed with an x or other symbol, A check [may, may not] be signed with a name other than his or her own (signing for someone else)

may not, may not, may not

An individual employee [may, may not] enforce a contract between an employer and a labor union that promises certain privileges to the employees

may, because many people will benefit

this occurs when information is withheld - m?

misrepresentation

A m? of e? occurs when the parties formed untrue conclusions-had different interpretations and may make the contract voidable if used as a defense.

mistake of expression

a m? of i? occurs when parties formed untrue conclusions of the SUBJECT MATTER

mistake of intention

A mistake of l? occurs when a person knows the facts but is ignorant of the legal consequences

mistake of law (there are exceptions)

this type of mistake occurs when there was misrepresentation or deceit on the part of a third party...mistake on the n? of the t?

mistake on the nature of the transaction

If reality of consent (parties agree to the contracts terms) is lacking a contract is void. examples are mis?, mis?, f?, d? (threat of physical harm) u? i? (threat of emotional harm, ie threat of divorce)

mistakes, misrepresentation, fraud, duress and undue influence

Expectation damages: An injured party has an obligation to try to m? damages for the following: contracts for the sale of g?, e? contracts and, c? contracts

mitigate, goods, employment, construction

this kind of consideration is not enforceable and does not constitute a promise- m?

moral consideration

Person promises to pay for something he/she received out of gratitude, but doesn't pay. This is an example of what kind of consideration? Is it enforceable, meaning does the would-be recipient have legal ground to collect the money?

moral consideration - no [this is also example of past consideration]

Characteristics of an offer: 1) must be made to the offeree, 2) the communication must be complete, and 3) ?

must be intended seriously

Two sides of every purely bilateral contract, being the equivalent for each other, constitute prima facie, m? and c? performance and conditions. Most common conditions where this applies is the sale of property

mutual and concurrent

An important part of a contract is m?, which states that both parties should be bound or neither should be. However, this principle does not apply to unilateral contracts where there is only one party who is bound

mutuality (of obligation)

m? of o? means both parties are bound and [is, is not] required for a contract to be enforceable

mutuality of obligation, is

Exception to m? of ob? rule is an o? contract, meaning, the seller agrees to sell all of his production of a specific product to the buyer.

mutuality of obligation, output

Is an infant liable for money borrowed that is used for necessaries?

no

Is this an example of promissary estoppel? why or why not? An uncle promises in writing to give his nephew $5,000 check on his 18th b-day. The nephew contracted to buy an expensive camera. On the 18 bday the uncle was offended by his nephews drinking and tore up the $5,000 check.

no - because the uncle did not promise the $5,000 specifically for the camera. Also, except for charitable subscriptions, a promise to give a gift is not legally enforceable.

A write to B "we will send you a car load of potatoes in a week unless we hear from you." There have been no previous negotiations. Does silence constitute acceptance?

no - parties cannot stipulate the communication of acceptance by silence

Are advertisements and solicitations contracts?

no - unless they are worded in such a way to bind the advertiser (such as offering a reward)

If two neighbors are confused about their property line and they agree as to where the boundary is, does the statue of frauds requires this to be in writing?

no because there is no interest or land transferred

An agreement entered into by a husband with his wife,during quarrel and disagreement, whereby the husband promised to give some property to his wife. Is this an example of love and affection exception to "no consideration no contract?".

no it was not love and affection

Expectation damages can only be recovered if they can be calculated to a reasonable certainty. Where damages cannot be calculated to a reasonable certainty, the injured party will only be able to recover n? damages

nominal

If a mother passes her debts to a third party (her son) and the creditors agree to accept, it's called

novation

N? is the substitution of a new contract in place of an old one. A party can be replaced with a new party, or an obligation to perform can be replaced with a new obligation.

novation

A material term can be left out of a contract and the contract is still valid. For instance, if the term is to be based on an "o? measure" such as the market price of a something

objective

An agreement is made of what two things?

offer and acceptance

Elements that must be established for a contract to be legally binding: (1) o?; (2) a?; (3) c?; (4) mutuality of o [or agreement]?; (5) c? and c?; and, in certain circumstances, (6) a written instrument.

offer, acceptance, consideration, obligation, competency and capacity [note consideration - exchanging something of value, note: mutuality of obligation - both parties are obligated (there is no way out for either party)[

the 5 elements of a contract are, 1. o?, 2. a?, 3. c?, 4. m? of o?, 5. c & c?, written instrument (in some cases)

offer; acceptance; mutuality of obligation, competency and consideration; (5) competency and capacity; and, in certain circumstances

For an o? c? consideration not required and the contract is irrevocable. Also called a firm offer and used in securities, commodities, and r? e? transactions

option contract, real estate

An o? contact is irrevocable and requires something of value, usually money, to hold it open for a period of time

options contract

In an o? contract, consideration refers to the concept that the party with the option must give something of value to the party offering the option contract.

options contract,

Exception to mutuality rule [Mutuality of contract refers to the reciprocal understanding or agreement between parties] is an o? contract, in which the seller agrees to sell all of his production of a specific product to the buyer. For example: A contract in which Sunshine promises to sell all of the oranges it grows to Squeeze Me is enforceable because the parties to the contracts do, in fact, limit their options.

output

Exception to mutuality rule is an o? contract, in which the seller agrees to sell all of his production of a specific product to the buyer. For example: A contract in which Sunshine promises to sell all of the oranges it grows to Squeeze Me is enforceable because the parties to the contracts do, in fact, limit their options.

output

The p? e? rule prevents a written contract from being altered by any prior or future oral agreements [although there are many exceptions]

parol evidence rule

If an offer has been made through a mistake and is contrary to the intention of the parties, p? evidence may show that the real agreement of the parties was different. Courts of e? will rectify a mutual mistake in a deed or writing. They will make the document conform to the true intention of the parties

parol, equity

A p? a? of a contract occurs when the assignor of a contract is assigning a portion of his or her contractual right. This can only occur if the other involved party can perform that portion of the contractual obligation s? from the rest of the obligations and notice has been served.

partial assignment, separately

There are three methods to enforce a contract for the sale of goods. 1. 1. accept and receive a part of the goods; 2. give p? p?; 3. write a m? (the oral contract may be proved in any one of the above-mentioned methods)

partial payment, memo

p? ambiguity is obvious from reading the contract. l? ambiguity is susceptible to more than one meaning and in this instance extrinsic evidence (p? evidence) may be introduced to provide clarity

patent (obvious like a patent), latent

Ways to prove or enforce an oral contract regarding the sale of goods, accept and receive part of the goods, give part p?, or write a memorandum

payment

this type of bond is an acknowledgement of indebtedness accompanied by a condition and is called a penalty

penal bond

Sal contracted with Kate to be supplied with a 40 chairs, in quantities of 10, at specified dates. After there was a part performance of the contract, Sal notified Kate to deliver no more chairs. Kate brought an action for breach of contract and stated her readiness and willingness to perform the rest of the contract. The court held that where a contract was renounced by one party, the other need only show that he was willing to p? his part.

perform (so Kate won)

Goal of Statue of frauds is to prevent fraud and the temptation to commit p?

perjury

Corporate p?is the legal notion that a corporation, , has at least some of the legal rights and responsibilities enjoyed by natural persons (physical humans)

personhood

Sometimes a contract will require that a certain act or event occur before some other act or event. This form of condition is known as a condition p?

precedent

an act or event that must be performed by one party before any obligation arises on the other party is called a condition p?

precedent

P? remedy is when a court orders a party of a contract not to perform a remedy that would result in breach

preventative

p? f?: upon initial examination, sufficient corroborating evidence appears to exist to support a case R? ipsa loquitur means that the facts are so obvious a party does not need to explain anymore

prima facie, Res

fructus industriales is what? (these are goods covered by UCC)

products of the soil, such as grain, planted and cultivated by people (also pine trees, tomato plants, etc)

fructus naturales is what? (these are goods covered by UCC if sell does the severing, if buyer does severing, they involve interest in the land)

products that develop as a result of nature, such as trees and minerals

malum prohibitum are p? acts and malum in se are bad or immoral acts

prohibited

A unilateral contract is when the parties exchange a p? for an a?

promise, act

partial performance (makes contract irrevocable)

promissory estoppel

In order for a court to apply the doctrine of p? e?, four requirements must be met. 1. Promisor made a promise significant enough to cause the promisee to act on it. 2. Promisee r? upon the promise. 3. Promisee suffered a significant detriment. 4. Relief can only come in the form of the promisor fulfilling the promise

promissory estoppel, relied,

contracts in restraint of trade are contrary to p? p? and therefore illegal - the main point is that contracts cannot be detrimental to public interest

public policy

surrogate contracts (relate to pregnancy) are against p? p? in some states

public policy

q? c? - not a true contract, mutual assent is not necessary, and a court may impose an obligation without regard to the intent of the parties. For instance, the minor may be obligated only to pay REASONABLE VALUE of goods or services received NOT what contract stipulates

quasi contract

In Brooklyn Union Gas Co. v Diggs. Brooklyn Union Gas company discovered there was gas being consumed at an address that had no account and no meter. John Diggs was living at the address. The gas company sued and won on grounds of q? c? and u? e?

quasi contract, unjust enrichment

q? p? q? means something in return

quid pro quo

What term is being described: When a principal communicates to another, by words or actions, that he/she accepts/approves of the conduct of the other even where the agent lacked authority to legally bind the principal. it may be express or implied. r?

ratification

A contract is r? if the party who lacked capacity, upon gaining capacity, declares themselves to be bound

ratified

Minors are liable for the [contract price/reasonable value] of the necessaries life for which they contract even if the minor d? the contract

reasonable value, disaffirms

A contract to be performed as soon as possible, or when convenient, requires performance within a r? time. In computing time, where performance must take place within 10 days after a certain date, the date of the contract's execution is [included, excluded]?

reasonable, excluded

Expectation Damages: In the case, Hadley v. Baxendale, the court ruled that party is only liable for r? f? damages obvious at the time the contract was made. Because the courier wasn't aware that the mill (Hadley) would loose revenue if the shipment was delayed, the courier was not held liable for the lost revenue. {the lost revenue is considered special damages)

reasonably forseeable

Expectation Damages: In the case, Hadley v. Baxendale, the court ruled that party is only liable for r? f? damages obvious at the time the contract was made. Because the courier wasn't aware that the mill (Hadley) would loose revenue if the shipment was delayed, the courier was not held liable for the lost revenue. {the lost revenue is considered special damages) * defendant can only be held liable for losses that were foreseeable

reasonably forseeable

acknowledgement of indebtedness made before a court or authorized officer

recognizance

The purpose of r? is to seek relief after a breach of contract

redress

a r? discharges an obligation.

release

r? - money paid for a work or service, can be salary, commission, bonuses, etc.

remuneration

locus penitentiae is place to r?

repent

Exception to mutuality of obligation rule is a r?contract, meaning, the buyer agrees to buy all of what he needs of a certain product from the seller.

requirement

Exception to mutuality rule is a r? contract, in which the buyer agrees to buy all of what he needs of a certain product from the seller. For example: A contract in which Squeeze Me Juice Co promises to buy all of the oranges it needs from Sunshine Orange Groves is enforceable because the parties to the contracts do, in fact, limit their options.

requirement

Exception to mutuality of obligation rule is a r?contract, meaning, the buyer agrees to buy all of what he needs of a certain product from the seller.

requirement note: Mutuality of Obligation its the legal principle that provides that unless both parties to a contract are bound to perform, neither party is bound

The act of making up for damages

restitution

Minor's Duty of Restitution - most states provide that the minor must put the adult in status quo upon d? of the contract if the minor's intentional or grossly negligent conduct caused the loss of value to the adult's property.

restitution, disaffirmance

Minors duty of r?, if, upon disaffirmance, the minor was intentionally reckless or grossly negligent and this caused loss of value of the adult's p?, the minor owes a duty of restitution and must put the adult in s? q?

restitution, property, status quo

Minors duty of r? provides that the minor must place the adult in s? q? upon d? of the contract if the minors conduct was grossly negligent or minors conduct was the cause for the loss of value to the adults property, such as a car wreck.

restitution, status quo, disaffirmance

Minor duty of r? - a minor is obligated to return the goods or property he/she received from the adult in the condition they were in at the time of disaffirmance, even if the item has been lost, consumed, or destroyed - unless the minor misrepresented his/her age.

restoration

If a contract involves the sale of goods and services together, the Statute of Frauds will govern if the contract is primarily for the s? of g? and will not govern if the contract is primarily for the sale of s?. For example: Michael and Scottie enter an oral agreement in which Scottie agrees to pay Michael $600 and Michael agrees to give Scottie six basketball lessons and an official NBA basketball. This contract is not governed by the Statute of Frauds. Although Scottie is buying a basketball along with the lessons, the contract is primarily for the lessons

sale of goods, services

Indebitatus assumpsit - the defendant has failed to ?

satisify a debt

wills and mortgages are examples of contracts requiring what?

seal

If the agreement is good in part, that part will be enforced if it's s?

separable

With s? l?, each party is liable only for its own specified obligations. If the party is unable to satisfy his or her obligations, they do not pass to other parties.

several liability

also called proportionate liability

several liability

what is being described? Proportionate liability, where the parties are liable for only their respective obligations

several liablity

anti-trust law is also referred to as the s? antitrust act & forbids contracts, conspiracy, and combination (joining of corporations) that restrain t?. Also tries to eliminate monopolies or companies trying to monopolize which could potentially harm competition.

sherman, trade

A s?-w? a? is one whose terms are found inside a box in which the goods are packaged.

shrink-wrap agreement

elements of an informal contract: not s?, no s?, not on r?

signed - seal - record

Contracts can be informal, or s?, or formal, under s?

simple, seal

A s? bond acknowledges indebtedness without any condition or qualification

single

Right of s? is about the power of the U.S. and states to enter into contracts, often municipal law applies

sovereignty

contract under seal is also known as a s?

specialty (it derives it's validity from the presence of a seal)

careless or wasteful people incapable of preserving their property, s? may be put under guardianship and loose their right to make contracts

spendthrifts

minors who misrepresent their age must place the adult in s? q? if they disaffirm the contract

status quo

A memorandum that satisfies the statue of frauds must have the following: identification of the parties, the s? matter, and the consideration(which means the terms and conditions of the promises)

subject

Mistake on s? m? includes the identity of the parties and nature and qualities of what is being talked about

subject matter

Statue of Frauds requires that certain kinds of contracts be put in writing. Requirements: - identify the s? m? sufficiently - signed

subject matter

Restitution Damages example: Michelangelo promises to pay Picasso $5,000 if Picasso paints Michelangelo's house. Picasso begins the job and when he is a quarter of the way through the work, the house burns down. This contract is now unenforceable because the s? matter of the contract has been destroyed. The court (will award, will not award) Picasso restitution for the reasonable value of the work he did on the house before it was destroyed.

subject matter, will award

This an example of s? i?-Catastrophic weather has caused airline delays and half of the wedding attendees will not be able to make the reception. The bride wants to call off the catering company. this [does, does not] discharge the duty to perfrom]

subjective impossibility, does note: impossibility is an excuse that can be used by a seller as an excuse for non-performance when an unforeseen event occurs after the contract is made which makes performance impossible

Condition s? occurs after some other act or event.

subsequent

s? contract is when a cosigner is used

suretyship

The performance of a promise to do something or an offer to do or perform something is t? A t? document is an offer for supply or goods. The parameters of the work are the t?

tender, tender, tender

A makes an offer to B. Under what condition is A free to withdraw the offer before B accepts it?

that B is notified

If a person is insane but no adjudged insane, the contract is voidable by [the competent party, the insane party] only

the insane party

A t?-party b?, is a person who may have the right to sue on a contract, despite not having originally been an active party to the contract. This right, known as a ius quaesitum tertio, arises when the third party is the intended b?, not a mere incidental beneficiary.

third party beneficiary, beneficiary

This clause may mean that one party to the contract must perform its contractual obligations at a specific date and time - t? is of the e?

time is of the essence

If infant remains on property once he/she is no longer an infant, he/she may be held liable for rent that accrued prior to becoming an adult

true

T/F Conditional promises are valid even if the fulfillment or frustration of the specified condition is within the promisor's control.

true

T/F If Kathy borrows $50,000 from Jane, and the (written) contract states that it must be paid in full by Jan 1 or $500 a day will be due, the contract is valid because penalties are not the same as usuary laws

true

T/F If a term of a marriage agreement is found to be invalid, only the invalid part of the agreement will stop being in effect. The remainder of the agreement will continue to be valid and binding on the parties

true

T/F Insanity or mental disability may be a defense if it existed at the time the contract was made

true

T/F The U.C.C. establishes that if a buyer or seller goes out of business specifically to avoid their requirements under an output or requirements contract they are in breach of the contract.

true

T/F The mutuality of obligations rule has has so many well-defined exceptions as to render it almost entirely inefficacious (useless)

true

T/F The parol evidence rule is a principle that preserves the integrity of written documents or agreements by prohibiting the parties from attempting to alter the meaning of the written document through the use of prior and contemporaneous oral or written declarations that are not referenced in the document.

true

T/F When an infant acquires an interest in permanent property and entered into a contract with continuous rights, he/she may be bound unless he/she expressly disaffirms the entire contract

true

T/F executed and discharged are synonyms

true

capacity of parties: T/F In general, an infant's contracts are voidable

true

T/F the supreme court has ruled that a reasonable restraint of trade is legal

true - called trade regulations

T/F Exception to the statue of frauds (writing not required) is the Merchant confirmation rule. If one merchant sends a writing sufficient to satisfy the statute of frauds to another merchant and the receiving merchant has reason to know of the contents of the sent confirmation and does not object to the confirmation within 10 days, the confirmation is good

true - does not require signature

T/F On a memorandum a formal signature is not required (an acceptable signature may simply be a mark or printing intended to be the signature)

true [exception: if wording states "subscribed and sworn to me....]

Acceptance of an offer must be: on reliance of the offer, communicated to the offeror, and u?

unconditional

This occurs when one party has an advantage over another - u?

undue influence

actual u? i? if power was unbalanced at the signing of an contract

undue influence

some contracts are neither void or voidable but may simply be ? because of certain requirements not being met (such as the statue of limitations - being on the wrong form - should have been in writing, etc)

unenforceable

An insurance policy is an example of a (bilateral, unilateral contract)

unilateral

Ben promises to pay Jerry $20 if Jerry mows Ben's lawn. Ben makes it clear to Jerry that Ben is trading his promise of $20 for Jerry's actual mowing of the lawn and not just a promise to mow the lawn. This is a classic (bilateral, unilateral) contract because while Ben is bound by the contract to pay $20 if Jerry mows the lawn, Jerry is not bound by the agreement

unilateral

U? offers are made to the whole world, acceptable to anyone

unilateral

An insurance policy is an example of a (bilateral, unilateral contract)

unilateral (because only one party makes a promise)

Trade u? refers to the fact that certain trades use special words or customs so commonly that an expectation arises that it will be observed in a particular transaction. Words and practices take on specialized meanings in different areas of business.

usage

A u? contract is one which charges 25% interest in a state where the maximum allowable interest is less than that. Some states law is that neither the principal nor the interest may be recovered. Usury laws differ among states and sometimes do not apply to corporations.

usurious

U? laws are designed to prevent charging excessively high rates to people borrowing money. A contract that violates the provision is said to be u?

usury, usurious

v? consideration is legal consideration having economic value

valuable consideration

A contract to commit a crime would be classified as v?

void

If a court determines a contract is unconscionable, it can v? the entire contract or part of the contract, and/or m? the contract

void, modify

Contracts caused by coercion, undue influence, fraud, and misrepresentation are [void/voidable]

voidable

Insurance contracts, sale of stock ($) with no intention of delivery, and lotteries are examples of w?

wagers

when is a gift completed?

when it is accepted

A court [will, will not] enforce a liquidation clause if it is disproportionate to the anticipated loss, because in that case it is seen as a p?

will not, penalty

an offer may be accepted by w? or c?

words or conduct (conduct is implied acceptance)

Does a specialty contract/contract under seal need to be delivered to make it binding?

yes

If A induces B to break his contract with C, can A be sued and held liable for damages?

yes

If Cathy agrees to sell her car to Kelly at the end of the month, but then decides to sell her car to someone else, is Kelly discharged from the contract?

yes

If an offer is a joke but the offeree takes it seriously, could the offeror be held responsible if the offeree accepted it in good faith?

yes

can a promise be a consideration?

yes

Is this a valid contract enforceable by law? Ben tells Jerry that if Jerry watches Ben's kids, Ben will either paint Jerry's house, wash Jerry's car, or break into the local memorabilia shop and steal the Jackie Robinson baseball card that Jerry has always wanted. Under the terms of the contract, Jerry can choose which option he wants as repayment.

yes (as long as ONE of the options is valid consideration, the contract is enforceable.

Does the following constitute a breach for non-performance: The illness of an employee makes it necessary to obtain a substitute

yes (the employer would be discharged from further liability on the contract)

Two neighbors agree on where to create a creek between their property. Must this be in writing according to the statue of frauds?

yes, it involves a transfer of interest in the land

Michael and Scottie enter an oral agreement in which Scottie agrees to pay Michael $550 and Michael agrees to give Scottie a basketball, four tickets to a Wizards game, a jersey and a basketball lesson. Is this a valid contract governed by the Statute of Frauds?

yes; although there is a service involved in the contract, the contract is essentially for the sale of goods over $500.