Multiple choice common law

SOF- Sufficient Memo (UCC)

1) contains a writing sufficient to indicate a contract of sale between the parties 2) signed by the party to be charged or that party's authorized agent. 3) States Quantity * (look to see if you can calculate quantity; (E.g Sent check for $500 indicating $5 a per item is too high)

Every contract needs valuable consideration to support it

A contract is not enforceable, unless it has valuable consideration to support it. Past consideration, moral, donative, gratuitous promises are not valuable consideration.

If same situation but only one merchant (Formation additional terms)

A contract would include only the terms in which the parties agree on and any added terms by non merchant will be construed as mere proposals to the contract.

Contract formation

A offer of reward is an offer for performance (unilateral contract). If person does not deliver the (specified item) and offeror effectively gives notification of rejection of reward before complete performance. no contract is formed. Note rewards are unilateral contracts and can only be accepted by performance not promising to return item.

Offer

A party makes an offer if she demonstrates a willingness to enter into a bargain under reasonably certain and definite terms without the need for any further assent on her part.

offer- Rewards & communication to offeree (issue of whether offeree new or not)

A reward offer must be accepted by an offeree who knows of the offer. If offeree does not know and gives information leading up to, or item is returned, and then finds out after the fact and demands reward she will not succeed in getting reward. (policy reasons; know exception to rewards for information leading to arrest; don't have to know to get paid.) encourage willing and able citizens not discourage them from assisting.

Contract Formation-Counter Offer

A vaild contract is not formed when offeree no longer has the power to accept the original offer upon the making of a counter offer. (not vaild when counter offer given rather then acceptance).

Offer-Advertisement

Advertisments indicating first come first serve; list specified item, and states price and that it is the last one. The offer was a manifestation of intent to be bound. (Has to be very specific). It describes the subject matter (Specified item for sale) the price ($amount), and was directed to a specific group (first come first serve)

Parol evidence "fully integrated"

All terms are incorporated, A contract that was expressed in a writing, to which both parties assented to be a complete and accurate integration. Parol evidence does not allow any terms prior (before) to or contemporaneously (originate, during the same time) with, to vary or contradict the terms of the writing.

Consideration

If someone makes a promise in advance to a medical professional who is induced to take action on that promise of being compensated for his services. The physicians performance would give rise to a legal detriment upon which the Dr. did rely on.

If facts state an offer and acceptance but alcohol was involved

Answer choices that presume the offeror was not incapacitated. If a reasonable person would have found Offeror's statement to be an offer, whether or not he made it in jest (jokingly). A court will find a valid contract and offeree can seek specific performance if offeror understood the effects of his actions. Thus, offeree can sue for breach of specific performance

Express Warranty-affirmation of fact

Any affirmation of fact or promise, relating to the foods in which buyer could rely, creates an express warranty. If buyer had actual knowledge of product failing prior to her purchase of the product in question, she could not have relied on the express affirmations by companies brochure.

Contract formation-Additional/Different

Between merchants, additional or different terms become part of the contract automatically after a reasonable period of time unless (1) the offer expressly limits acceptance to the offer terms (2) the additional or different terms materially alter the contract (3) the original offeror notifies the offeree that he objects to the additional terms within a commercially reasonable period of time. note conduct by both parties which recognize the existence of a contract is sufficient to establish a contract.

Option contract

If an option contract is present a counter offer will not terminate that option for the time stated. In other words a counter offer does not terminate an option contract. Although a contract is formed, it is breached if seller sells before the deadline.

consideration-pre existing duty

If one owes the other money and says I need the money now so if you pay me 400 I will relieve the 200 and we will be square. However, Payment of the lesser sum is not consideration as the debt is undisputed. Thus, offeror promise to accept lesser sum as payment in full is not enforceable. Because payment of what is already owed is past consideration and oferee under prexisiting duty to pay original amount of debt.

Consideration- Bargained for exchange

If problem hints to moral or past consideration, there is no bargained for exchange. meaning the offeree encountered no legal detriment, thus would not be able to prevail. therefore would least likely recover under legal detriment theory.

Adhesion Contracts

If someone buys an item and get injured as a result of it failing within a reasonable period of time and buyer sues seller on an implied warranty theory. Seller claims fine print on back of contract disclaims warranty. Buyer will prevail against seller because this is an adhesion contract. Public policy finds adhesion contracts unenforceable, since they represent gross inequality of bargaining position.

Promissory estoppel

If someone enters into a bilateral contract, performs, then offer is revoked. They will succeed and recover because they already agreed to perform

Express Warranty- Sample or Model

Is the Item's performance sufficient to create a couse of action for buyer? An express warranty can be created by any sample or model which is made parth of the basis of the bargain. The demonstration that the buyer say would create an express warranty that the curling iron shall conform to the model used. Thus, facts that time took substantially more than demonstration would be a breach of warranty. note direct privity between the manufacturer and the ultimate buyer is not required for there to be a cause of action

Generally, Donative promises lack consideration and thus, are unenforceable, however, under modern law there is an exception where promisee can recover (executory gifts and gratuitous promises)=donative promises

Modern law holds that if a donative promise induces reliance by the promisee in a manner that the promisor should reasonably have expected, the promise will be legally enforceable. Promissory estoppel.

Acceptance/Rejection (mailbox rule)

Offeree mails acceptance, then next day calls to reject and offeror does not receive acceptance til next day. The contract is valid and offeror could enforce because Jim's act of mailing the signed contract was an effective acceptance. When the offeree dispatches an acceptance and changes his mind and dispatches a repudiation, when such rejection reaches the offeror first, there is, nevertheless a valid contract. Unless the offeror relies to his detriment (cause harm or damage) on the rejection. Note unless specified by mail only, either revocation can be done by phone or mail after acceptance but acceptance is valid to create a contract, unless the offeror relies to his harm on the rejection.

consideration- moral obligation

Saving lives- Medical professionals will get paid however, a regular person will not. If someone is screaming DR. please help, I will pay you later. Dr. Administers life saving skills. There is an agreement between the parties based on offer to pay later for help form Dr. (note better answers and language used)

Express Warranty

Seller makes an express warranty to buyer, when specific attributes of the product were made that turn out to be false. Seller directs customer to product and says this baby will go 30 hp and can pull 20 instead of ten.

Parol Evidence Rule- Mistake in integration

The Parol Evidence rule provides when a written contract is entered into between parties where the writing is intended to be the full and complete integration of theri agreement, evidence of prior or written terms will not be permitted for the purpose of changing or altering the written terms. However, there are exceptions to the rule: fraud, duress, mistake, illegality and lack of consideration. If writting mistakenly put in the wrong term instead of the right term (e.g price). Thus, parol evidence could be introduced to show the actual term (price) for contract because of the mistake. Parol evidence is admissible to correct a mistake in the contract. In the SOF- sale of interest in land must be in writing to be enforceable.

SOF

The SOF is the best defense for agreements not in writing. The SOF is applicable when agreements, by its terms cant be performed within one year of the making thereof.

Statute of frauds- oral agreements made after fully integrated writing

The SOF requires contracts be in writing: (1) For the transfer of an interest in land or, (2) which can not be completed within one year of the date of contracting. Hypo- Month to Month lease is final agreement. All oral agreements to purchase over 30 year intrest term for land after tenant has been there for a few years. Tennant subsequently makes 2k in repairs owner acknowledges oral agreements but receives tender and refuses to give deed. While tenant will argue that her payments and improvements are part performance of the contract, thereby taking it out of the statute of frauds, her actions are also consistent with her prior relationship with oliver, as a month to month tenant. Thus the actions and payment of tenant are consistent with her being a tenant (prior written agreement)

Statute of Frauds exception

The SoF requires a contract for the sale of land to be in writing. However, partial payments by Tennant takes the oral agreement outside the SOF. If the tenant prevails it will be because landlord received the 25k payment toward the purchase price.

Promissory estoppel third parties

To establish a promissory estoppel cause of action, a party must prove: 1. A promise is made that promisor should have reasonably expected to induce action or forbearance on the part of the promisee or a third party; 2. The promisee or third party actually took action or refrained from taking action in reliance on the promise; and 3. Injustice can only be avoided by enforcement of the promise. 4. The remedy granted for breach may be limited as justice requires.

Parol Evidence Rule

The parol evidence rule provides that when parties have placed their agreement into a writing, which they both agree and assent to as their full and complete integrated agreement, evidence of oral or written terms will not be admitted to change or vary the terms of the writing, However, where parties reduce their agreement to writing, without language that the writing is fully integrated, parol evidence is admissible to show there is a condition precedent to the legal effectiveness of the writing. Since the parties orally agreed that the sale would occur only upon condition, parol evidence of that condition precedent is admissible.

Mutual Assent

There must be an objective meeting of the minds between the parties in order to have a binding contract. If minds do not objectively meet, no contract is formed. (merchant test does the offeror deal in the goods of the kind or otherwise hold himself out as having knowledge or skill peculiar to the goods involved in the transaction?)

Offer- Meeting of the minds

There must be valid offer for there to be an objective meeting of the minds or acceptance. There is no legal effect on an exclamation (acknowledge by thank you) upon the offeror announcing he will do something nice for the person from past consideration since the offeror never made an offer of any kind. In order for there to be an offer there needs to be expressed qualifications imposed upon offeree for her to receive the gift.

consideration

Uncle promise is to pay for school before promisee even considered going back, in addition 2k for every 4.0 for working hard. cousin says I will pay if uncle does not. There is a bargain for exchange here and her academic hard work would constitute valid consideration note promissory estoppel is more appropriate if contract lacks consideration.

Acceptance-Unilateral If offer is for a unilateral contract; to form a valid contract acceptance can only be done by the doing of the act requested in the offer not a return promise.

When offer calls for acceptance by performance, the mailing of a letter to accept and promise to deliver by date has no legal effect. The mailbox rule only applies to bilateral contracts. (merely its an ineffective attempt to accept an offer). When offeree learns that offeror no longer needs (specified subject matter) from another source. That suffices as an indirect revocation. Thus, no contract formed since revocation happened before offeree tried to perform. Only the offeror has the power to terminate his offer but, In short, an offeree's power of acceptance is terminated when the offeror takes definite action inconsistent with an intention to enter into the proposed contract, and the offeree has reliable information to that effect. When oferee gets notice either indirectly or directly of offerors conduct that is inconsistent with intent. terminating the oferee's power of acceptance.

Unjust Enrichment

When saving lives, Dr. will recover from patient. It goes against public policy to allow a patient to be unjustly enriched. Since Dr. Performed services to patient for her injuries, she received a benefit.

Promise of irrevocability under common law

a firm offer applies only to an offer made by a merchant. the rule under common law is that a promise of irrevocability must be supported by additional consideration

Promissory Estoppel rule

a promisee may enforce a promise under the doctrine of promissory estoppel if all the following elements are met: 1) a promise 2) the promisor should have reasonably expected that the promisee would detrimentally rely on the promise. and 4) injustice can only be avoided by enforcement of the promise and enforcement may be limited as justice requires. if all elements met promise is binding

restitution-quasi contract

although contractor in hypo above will be in material breach, he may recover in quasi-contract. his recovery will be based on restitution. recover the cash benefit conferred in other, lee then others damage from the breach.

option contract and counter-offer exception

although the counter-offer, in an option contract, does not terminate the power to accept the offer, but if the optionor (person who gave the option) detrimentally relies upon the rejection, the power to accept terminates at the time of reliance. The time of reliance is normally the point the optionor sells to a third party.

Quasi contract

an obligation of one party to another imposed by law independently of an agreement between the parties. If someone agrees to a contact and performs then for some reason cancels and says he is unable to finish the job. If contractor wants to collect the money he spent to start the job his best recover method is a quasi contract.

revocation

an offeree's power of acceptance is terminated when the offeror takes definite action inconsistent with an intention to enter into the proposed contract, and the offeree has reliable information to that effect. When an offeree learns of offeror's prior (e.g purchase) definite action inconsistent with intention to enter in contract, from a third party, that operates as revocation of offer as offeree has notice of offeror's conduct that was inconsistent with offerors intent to subsequently still take action to offeree. Note- Only the offeror has the power to terminate his own offer.

Statute of frauds

can not raise SOF frauds for contracts for services that are not in writing, that by its terms can be completed within one year. If one sues the other for breach of contract, no defense if one refuses to perform or accept payment.

illusory promise

generally, an illusory promise arises where one party makes a promise in exchange for a promise that does not limit the other's future options. (i.e promisee made promise in exchange for promisor's promise).

Consideration- reasonable reliance Offeror will prevail in Promissory Estoppel (Section 90) if he did not reasonably foresee offeree's actions

if actions taken by promisee were unforeseeable then promise is not binding. PE fails. the promise which the promisor should reasonably expect to induce action or forbearance and which does induce such, is binding if injustice can only be avoided by enforcement of the promise but enforcement may be limited as justice requires.

Offer for Unilateral contract

look out for one promise made. A unilateral contract is one where an offer requires performance of an act as bargained-for consideration. The unilateral contract is performed by doing the required act.

Offer-identified offeree Private business encouraged participation for cash reward upon winning the competition. Revocation-detrimental reliance Offer constitutes unilateral contract Conditions and enforceability of promise revocation (death of oferee)

private posting, seeking to encourage participation in (specified subject matter) offers to any (specific group), who does complete ($). All participation must be received by this date. Wrote letter indicating that she accepted. never received but placed in her file. e.g law student read the notice placed by faculty on February 1st, and worked even harder on brief, increased hours spent on brief. sent acceptance; not read; but placed in file. On February 28th notice was removed and revocation put in its place. before original offer deadline submitted brief and won moot court competition. Private school refused to pay her. If the February 1st notice was placed on the private schools main bulletin board, the notice would constitute an offer, creating the power of acceptance. reason being the offer was an offer for an act ( a unilateral contract). The notice constituted contractual intent as the faculty was bargaining-by trying to encourage moot court participation. the offer could not be validly revoked as because the student detrimentally relied, prior to notice of revocation. Since Student increased her efforts in reliance of Private schools offer. Her intensified efforts would constitute sufficient part performance. The offer only constituted a unilateral contract, since the act of winning the competition would constitute the acceptance. (i.e one promise made) How will Student winning competition, affect the enforceability of private schools promise? It will act as a condition precedent to Private school performance, and thus make School promise enforceable. If Student dies on the way home subsequent to her submitting her brief that won. Upon winning the contract is still enforceable, by the executor of her estate.

Offer for Bilateral contract

requires an exchange of promises. If it is a unilateral contract that became bilateral, a bilateral requires that an agreement be made prior to the required performance. in a bilateral contract, each party's promise supplies consideration. Thus, If one party's promise does not subject him to legal detriment, it does not supply the requisite consideration, and the other party's promise is not enforceable.

Warranty-of fitness for a particular purpose

this warranty requires that the seller have reason to know of the particular use of goods contemplated by the buyer and the seller must also be aware that the buyer is relying on the sellers judgment.

Consideration- Promissory estoppel

when a contractor detrimentally relies on the bid of a subcontractor in making its own bid on a project, the subcontractor is estopped from denying that an option contract was created, to the extent necessary to avoid injustice, when the contractor was induced to rely on the subcontractor's bid. When Subcontractor failed to perform, contractor may enforce its right to obtain the amount of its loss, based on the reliance when subcontractor would not fulfill its obligation.