Contracts Final

in a contract between a minor and an adult, who may void out the contract

minor

the type of mistakes that are subject to the excuse of mistake include

mistakes of fact at contract formation

the predominate purpose test relates to

mixed goods and services contract

a contract modification under the UCC

no additional consideration provided that the modification be made in good faith

generally, does an implied in law contract differ from a quasi contract?

no, the terms are generally treated synonymous

substantive unconscionability requires either

overly harsh allocation of risks or great price disparity

a buyer and seller enter into a contract for the sale of a privately owned island with the closing on August 1. seller has a duty to transfer title to island at closing. What type of duty is this?

preexisting contractual duty

services rendered by family members are

presumed to be gratuitous

a witness at a trial has a duty to tell the truth. What type of duty is this?

public duty of a private person

an on duty police officer has a city to service and protect the public at large. what type of duty is this?

public duty of a public official

landlord rented an apartment to tenant. with landlord's knowledge and consent, Tenant enters into a contract with Contractor to make improvements to the apartment at Tenant's own expense. However, Tenant does not pay Contractor and then leave the apartment before the lease expires. Landlord is able to please the apartment at a higher rent because of the improvements. If a court finds that Landlord owes Contractor for his services, what is the most likely theory of recovery?

quasi contract Contractor conferred a benefit on Landlord. This is proven by the fact that Landlord could charge higher rent. The Landlord had knowledge of and retained the benefit. Because Landlord is reaping the benefit of Contractor's labor and Contractor has not been paid, it would be unjust for Landlord to not pay Contractor for the services rendered under these facts.

as an exception to the SOF, PE

requires assessment of specific criteria not stated in restatement 90

assume that in applying the balancing test, a court holds that enforcing the public policy is more important than enforcing the contract. the court might...

rescind the contract or sever the offending portion

Fill in the blank with the answer that best reflects the promise rule. A promise occurs when a party manifests an intention ________ so made as to justify a promisee in understanding that a commitment has been made.

to either perform or not perform a specific action

T/F it is the offered who might reject the offer and the offeror who might revoke

true

T/F a contract that cannot be performed within one year are within the SOF

true

T/F. for MFO- there news not beed to be consideration for a from offer to exist under the rule

true

to be an offer there

may be an identified offered or offerees

hilda promises Gertrude to sew Gertrude's wedding dress. Which Legal label correctly identifies Gertrude? "or or "ee

"ee because she is the person to whole the promise is made

the primary policy function of consideration is to

- provide evidence that the parties intended to enter an enforceable bargain - caution the parties so that they are not making thoughtless promises - help the courts efficiently channel promises into legally enforceable and non-legally enforceable categories

how long is a MFO open for if no Time is stated?

3 months

A and B are contemplating entering into a contract. A knows that B has a certain interpretation of a provision of that contract. A has a different interpretation, and B is unaware of A's interpretation. both interpretations are reasonable. A and B enter the contract, but there is a dispute later over the interpretation of the provision mentioned above. if a court is applying restatement 201 whose interpretation will the court most likely follow?

Beatrice's

under bcc 2-207(2) if one party is a merchant then the different or additional terms become part of the contract unless one of the exceptions applies

FALSE- both parties must be merchants

A gratuitous promise always created a contractual duty, the breach of which result in a remedy

False

an adhesion contract is always unconscionable T/F

False

t/F a wedding dress would be considered a necessity

False

promissory estoppel is a legal principle rooted in the theory of freedom of contract

False- equity and fairness

in considering whether a non compete agreement is an unreasonable restraint on trade which factor do courts look at?

In considering whether a restraint is reasonable, courts take into account the following three factors: (1) legitimate interest of promisee, (2) hardship to promisor and (3) injury to the public.

hotel and contractor enter into an oral agreement where contractor would build a new wing for hotel in return for 1 mill. the contraction was of the nature that a builder working at a reasonable pace would take 18 months to complete. however it could be done in a year if the builder pays his guys overtime. if the contract within the statute?

No, because it is possible to complete the contract within a year, even if it is not probable

Painter offers to paint owner's house by November 1 for 5,000. owner makes a counteroffer to pay 4,000 for the painting of both owners house and barn by nov 1. painter rejected owner's counteroffer. owner then says that he accepts Painter's offer to paint his house by Nov 1 for 5,000. Which describes the legal relationship between the parties?

Painter has the POA of accepting the owners offer of 5,000 for nov 1

Sofia says to Rafael, "I assure you that I will not go to the dance with David." Rafael replies, "in that case I might go to the dance with you" Which describes the statements?

Sofia is a promise Rafael is not a promise

them primary focus of the consideration rule is to establish whether or not there was

a bargain between the parties

how is a conditional gift different from a gratuitous promise?

a conditional gift requires that some even occur in order for the promisee to receive the benefit of the gift

which of the following is a correct statement of when UCC 2-201(1) applies?

a contract for the sale of goods of 500 or over is subject to SOF

the legal value element of consideration requires

a detriment to the promisee or a benefit to the promisor

an executory gift is

a gift that has not been given

an "executory promise" is

a promise that has not yet been preformed

a misrepresentation is material if

a reasonable person would likely be induced and the maker knows that this specific recipient would likely be induced

painter and Madame enter into a contract governed by the common law where Painter will paint a life like painting of M for 2,000. Painter's skill is questionable, and M is honestly and justifiably not satisfied because she says the finished painting is not life like. Painter and M enter into a contract modification where M only has to pay Painter 1,200. The modification is....

a valid contract modification under common law principles this is a settlement of an honest dispute. the settlement is consideration for the modification note- this is CL bc painting is usually a service and not a good

in a unilateral contract the consideration for a promise is

actual performance

a requirement contract is a type of contact where the buyer agree to purchases

all of a particular good the buyer needs from one particular seller

how does UCC 2-207 differ from common law?

an acceptance with varrying or different terms may form a contract

Cindy is a classical singer who performs at summer music festivals throughout the country. Adam is a promoter who books acts for such festivals. Adam proposes that Cindy perform at a series of five festivals on specific dates during the summer but that Cindy's fee will be discussed later. Which describes Adam's proposal?

an attempted offer that fails for lack of certainty

a price quote is normally construed as

an invitation to deal

if UCC 2-207(3) applies, then the terms are those that the writings agree upon and

any supplementary terms that can be incorporated under the UCC

the for mental incapacity defense, incompetency must be determined

at contract formation

unconscionability must be determined

at the time of contract formation

why is past consideration usually unenforceable?

because the promise did not induce the detriment

A minor may disaffirm a contract under the minor incapacity defense when?

before reaching or within a reasonable time after reaching the age of majority

if a party proves economic duress, then the contract is

bondable by the party asserting the defense

unconscionability normally requires

both procedural and substantive unconscionability

what standard does a court use to determine whether a party had manifested assent to the terms of an offer?

by objective standard

the meaning of a party's manifestation of assent is judged

by the objective reasonable interpretation of his outward expression of sonnet and not by his subjective intent

substantive and procedural unconscionability

can be evaluated on a sliding scale

in proving the defense of undue influence, the elements of unfair persuasion and under susceptibility

can be measured on a sliding scale to allow for a greater degree of one element and lesser degree of another Undue influence may be proven even if there is a small amount of unfair persuasion so long as there is a great deal of undue susceptibility and the result is inequitable. The opposite is also true

an executed gift

cannot be taken back since the promise to give a gift has been fulfilled

one standard that courts consider in deciding whether an offer has been made is "whether the court can determine what a breach of contract is and what would be the appropriate remedy" which element of the offer rule does this standard relate to?

certain and definite terms

for the mental incapacity defense, the traditional rule for testing is

cognitive The majority rule is the cognitive test, which is whether the person involved had sufficient mental ability to understand in a reasonable manner the nature and consequences of the transaction.

between family members a promise to render services

creates a rebuttable presumption that the services are gratuitous

generally speaking, parties to an agreement

do not have a duty to disclose facts that might inhibit a party from entering an agreement unless an exception exists

this does/ does not fit the legal definition of a promise the meteorologist says to an audience " I promise that it will not rain this weekend"

does not

a moral obligation

does not normally create a legal obligation but may be relevant as an independent basis to prevent unfairness or unjust enrichment

a reciprocal promise exists when

each party's motive for making the promise is to induce the other party to make a promise

unconscionability is supported by the policy of

equity and fairness

a court may not limit the remedy under the PE theory and must award the full value of the promise that was made

false

courts will always enforce promises under the doctrine of PE even if there is not detriment to the promisee because of the moral principle that promises- once made- should be kept

false

if an option is granted but the optionee never pays the consideration then the optionee Never has the POA

false

in order to fit within the legal definition of a condition, the event must be within the control of one of the parties

false

the excuse of unilateral mistake does not require the basic assumption and material effect elements that are present in the mutual mistake excuse

false

the mirror image rule allows the offeree to form a common law contract even though the offer's acceptance has varying terms

false

to establish that PE exists, a party must prove that the promisee was unreasonable in taking action based on the promise.

false

if the performance of a contractual duty violates any statutory law, then the contract is

may be enforceable if the importance of enforcing the contract is grater than the importance of the public policy behind the law being violated

a threat is improper only if what is threatened is a crime or a tort

false A threat is improper if any one of the following is true: (a) what is threatened is a crime or a tort..., (b) what is threatened is a criminal prosecution, (c) .. the threat of the use of civil process and the threat is made in bad faith, (d) the threat is a breach of the duty of good faith and fair dealing under a contract with the recipient.

undue influence only requires that a party be induced into entering a contract by unfair persuasion and undue susceptibility

false To assert the defense of undue influence, the party must also show that there was an inequitable result.

quasi contracts are enforceable legal contracts with consideration

false Quasi-contracts are not legal contracts at all. Instead, courts imply a contract by law in order to achieve justice.

like other defenses to formation, a party asserting that the contract is void or voidable because of a public policy always has a claim for restitution

false A party does not alwayshave a claim for restitution. If a contract is voided by public policy, a party generally has no claim in restitution for performance that he has rendered. Restitution is available if (1) a disproportionate forfeiture would occur absent restitution, (2) one party is excusably ignorant of the public policy, (3) one party was not equally in the wrong as the other party, or (4) one party withdrew from performance before the improper purpose was achieved.

for duress, a legal remedy such as bringing a lawsuit, will always be considered a reasonable alternative

false Just because a party has the right to litigation does not mean that bringing a lawsuit is a reasonable alternative. If the alternative of litigation "would cause immediate and irreparable loss to one's economic or business interest," then a court may find that the party had no reasonable alternative.

a typical example of something that will statisfy the basic assumption element of the mistake excuse includes an assumption that market conditions will remain stable

false Restatement (Second) of Contracts § 152, Comment (b) explicitly provides that "[M]arket conditions and the financial situation of the parties are ordinarily not such assumptions, and, ... do not justify avoidance under the rules governing mistake."

the duty to disclose only arises when the parties are in a relationship of trust and confidence

false While parties in a relationship of trust and confidence have a heightened duty to disclose, the duty might arise in other situations as well, such as intentional concealment of a material fact not readily observable.

the primary policy behind the adequacy of consideration rule is

freedom of contract

in an option contract, the optionee

has the right but not the duty to enter into the underlying contract

according to the restatement, a fraudulent misrepresentation requires that the party knows or should have known the statement was false and

he made the statement with the intent to induce the recipient to enter into an agreement A non-fraudulent misrepresentation must also include materiality whereas a fraudulent misrepresentation need not be material. Some misrepresentations are intentional and therefore fall in the category of fraudulent misrepresentations while others are innocent misrepresentations and thus fall into the category of material misrepresentations.

requirements contracts are not illusory because

if the buyer purchases anything, it must be from the seller who is a party to the requirement contract

a person is deemed to be an officious intermeddler

if the interference in the affairs of others is not justified by the circumstances

the UCC gap fillers

imply reasonable terms when terms are missing from an agreement

an adhesion contract

is a take or leave it contract where only one party sets the terms

a misrepresentation would occur if a person

knowingly gives an opinion that is false

the doctrine of part performance is an exception to the SOF for

land sale and goods

for duress, the element of inducement is tested by the

subjective standard The subjective standard is the correct answer. Courts merely ask whether that particular person's will was actually overcome by the threat. To test for inducement, use a "but-for" test. Ask yourself if the following statement is true: But-for the improper threat, the victim would not have entered the contract. If the statement is true, then the inducement element is satisfied.

a party is induced by a misrepresentation if the decision to enter into an agreement was

substantially based on the misrepresentation

the part performance exception to the SOF for land sale is satisfied if the buyer reasonably relied on the contract by

taking possession and making valuable improvements

which of the following represents a correct usage of the verb "estop"?

the D should be estopped from asserting that the contract was without consideration As a legal principle, an estoppel prevents a defendant from asserting a legal theory because the defendant's actions are inconsistent with the legal theory.

intentional concealment of fact will void an agreement if

the concealment has a material effect and the non-disclosed facts were not readily observable to the other party

two parties enter a contract but stye have different interpretations of an important term of the contract. both interpretations are reasonable. neither party knows of the other party's interpretation. what will be the outcome?

the court may conclude that a contract never formed since there was no meeting of the minds

in granting restitution, the key concept that courts focus on is

the degree to which a party has been enriched and whether it would be unjust for that party to keep the benefit without paying for it

which of the following is an exception to a minor's incapacity defense?

the minor misrepresents his age, intentionally destroys goods, and purchased food bc he was hungry

to determine whether there was a bargained for exchange, courts loo at

the motives of both the promisor and the promisee

which of the following is the best statement of the law?

the offer does not have to be directed at the offered by name provided there is some way to identify the individual or group

buyer wants to purchase a house owned by seller. Seller makes an offer to buyer to sell the house for 500,000 on a specified date. However, buyer needs financing from his Bank if he is going to make the purchase and he is not ready to accept seller's offer. seller says to buyer "I promise to keep this offer open until Nov 1. I will not sell it to anyone else" buyer agrees. what is the legal relationship?

the offer is revokable before acceptance

Juan sent a signed email to Mary stating "I offer you a one year contract to work as a secretary in my architecture firm starting August 1 for a salary of 40,000 a year" Mary is the ____

the offeree

buyer sent seller an email offering to purchase seller's yacht for $1 million. Seller immediately accepts the offer by replying to the email. Seller is extremely excited because the yacht is actually worth 500,000. excited, he jumps up, slips, hits his head, and dies. buyer later learns the true value of the yacht and attempts to revoke his acceptance given the death of the offered. which is correct?

the parties have entered into an enforceable contract

in a case where a party is claiming the mental incapacity defense the law presumes that

the party asserting the defense is competent until that party proves incompetence

the condition results in a legal detriment to the promisee if

the promisee has waived a legal right in performing the condition

with a conditional gift, the occurrence of the event that comprises the condition means that

the promisor has manifested intent to commit to the act of giving the gift

parties are in preliminary negotiation if

the purported offeree knows that the purported offeror is not willing to enter into a bargain

what is the standard to determine if the mistake is material?

the resulting imbalance in the exchange must be so severe that the adversely affected party cannot fairly be required to perform

the POA is

the right of the offered to form the contract

in assessing whether a party bears the risk of the mistake, courts may determine a party should bear the risk because

the terms of the contract allocate risk to one of the parties one party was consciously ignorant of the mistake it is reasonable under the facts and circumstances for a court to do so

UCC 2-207(3) applies when

the writings do not establish the existence of a contract but the parties act in a manner that recognizes the existence of a contract

why do most advertisements fail to be offers?

there is no identified offeree

what is the result if a court finds that, in a breach of contract claim, the parties are in pari delicto?

there is no remedy for either party When granting restitution courts are furthering policy of equity and fairness. To grant restitution to parties who intentionally engaged in wrongful conduct would not further the goals of equity. Courts cite the principle of in pari delictoin order to refuse to grant any remedy (including restitution). In essence, the court refuses to adjudicate the dispute because of the wrongful action of both parties.

a contract modification is enforceable if the performance of the preexisting legal duty includes an additional or a different type of consideration provided that the change reflects more than a pretense of a bargain

true

a guaranty agreement is within the statute unless the guarantor stands to benefit from the agreement

true

an illusory promise is nota promise at all since the purported promisor is not committing to action or forbearance

true

in determining whether a party has manifested intent to make a promise, a court will start by considering the ordinary meaning of the words

true

one key distinction between promissory restitution and quasi contract is the existence of a promise made because of an action done in the past

true

the reasonable expectation element principally refers to whether the promisor could foresee that the promisee would take action or forbearance

true

in a conditional acceptance, the offered states that he agrees to enter into the agreement, but only of the offeror agrees to varying or additional terms

true- also known as a counteroffer

this may be okay to violate a law- parking laws

true- not serious

what other defense uses a sliding scale?

undue influence Undue influence uses a sliding scale approach in applying the elements of unfair persuasion and undue susceptibility.

which of the following is subject to the statute of frauds writing requirement?

unless promises to give D and J a three week vacation if they get married

a contract induced by physical duress is

void as a matter of public policy

in a conditional contract, the contract is formed

when the condition occurs

when will a court not enforce a promise because the consideration is inadequate?

when the consideration suggest a pretense of a bargain

when is a unilateral contract formed?

when the offered completed performance of the requested act

under the CL, the last shot doctrine provides that a contract is formed

when the original offeror performs under the contract In response to an offer, an offeree sends an acceptance that contains additional or different terms. The other party does not accept the new terms but performs as if the original offer was accepted. In such a scenario, the offeree is deemed to have sent a conditional acceptance, which the original offeror has accepted through performance. If a contract is formed in this fashion, then the offeree's additional or different terms are incorporated into the contract.

for the intoxication defense, a party would be considered incapacitated and able to void a contract

when they are unable to reasonably understand what they are doing

in balancing the importance of enforcing the contract against furthering the public policy, which factor does the court consider?

will voiding out the contract further the public policy? seriousness of any misconduct involved? how strong is the public policy?

does a minor have to pay for depreciation or for the use value.

yes if they willfully harmed the property

C wants to play a prank on his friend J. He knows that J wanted to purchase C's vintage car however C refused to sell it. Additionally C was sure that J did not have the money to purchase the car. One night while drinking, C taunts J and says that he is willing to sell the car for 30k- a price that is 25% above the FMV. J agrees and C puts their agreement in writing. C was surprised to find J on his doorstep with a check for 30k. C refuses and J sues for breach. what is the relationship? is there a contract?

yes, a contract exists and C is liable for breach. Objective meaning of what they did

does a contract form if the offered does not subjectively intend to accept an offer but by his words and actions objectively assents to all of the proposed terms?

yes, assent is determined by the objective meaning of a a party's outward manifestation and not by subjective means