Ch.08: Putting it in Writing

Unilateral Contract is one in which

-one party performs an act in exchange for the other party's promise, are equally valid. -There is an offer on one side, and the other side accepts by taking the action requested. -an offer of a reward example: reward for catching a criminal or for returning a lost cat

In the U.S., what are the two primary sources of law that govern our contracts?

1. Common Law 2. Uniform Commercial Code (UCC)

In general, contracts are classified along 3 different dimensions: 1. 2. 3.

1. Explicitness =degree to which the agreement is manifest to those not party to it. 2. Mutuality =takes into account whether promises are given by two parties or only one. 3. Degree of Completion =considers whether the contract is yet to be performed or whether the obligations have been fully discharged by one or both parties.

Define: 1. Promisor 2. Promisee

1. One who makes a promise 2. One to whom a promise is made.

Define: 1. Transferor 2. Transferee

1. One who makes a transfer 2. One to whom a transfer is made.

Define: 1. Offeror 2. Offeree

1. One who makes an offer 2. One to whom an offer is made

Define: 1. Obligor 2. Obligee

1. One who makes and has an obligation 2. One to whom an obligation is made

UCC contains two sets of rules for contracts: 1. 2.

1. rules for everyone 2. rules for merchants

Contract

A legally enforceable agreement. -Agreements between two or more parties. -Generally, contracts are a form of private law, because the terms of the contract are binding on those parties but not on everyone.

The common law governs contracts for: A. services. B. real estate. C. employment. D. All of the above.

A. Services as well as contracts not otherwise governed by the UCC

Contracts law is a a. State law issue b. federal law issue

A. State law issue, each state can have different laws related to contracts.

Terms that conflict with each other will "fall out" of the contract and be replaced by UCC ____ _______, which can create the terms of the contract.

Gap Fillers. =are terms provided by the UCC, and they can be inserted into a contract when those terms are not definite. While prices, delivery dates, warranties, and other terms can be "filled in" by the UCC gap fillers, quantity cannot. QUANTITY, therefore, is an essential term that must be specified in the contract for it to be binding.

"I agree to buy your scooter for four hundred dollars, if I don't find one that I like more" is an example of what kind of promise?

Illusory Promise. -Does not constitute valid consideration because a condition is placed on the consideration. -In essence, you have what appears to be a promise to do something, but instead of being a promise, it is only an illusion of a promise.

If the offeror revokes an offer before the offeree accepts, then the power of acceptance has been withdrawn by that ________.

Revocation

The peculiar name- the Statute of Frauds-is derived from its early incarnation in ____________ __________, when a statute was passed by parliament to reduce or prevent fraud in property transactions and other important civil matters.

Seventeenth-century England

What happens when a legally enforceable promise is broken?

The injured party can seek damages. -In contracts, this usually means that the party who breaches the contract must pay the injured party an amount that would make the party whole again.

UCC embodies some elements of the Statute of Frauds, which requires certain types of contracts to be in __________ to be enforceable.

Writing. Specifically, it requires contracts to be in writing for goods priced at $500 or more and signed by the defendant, for those contracts to be enforceable.

A merchant is

a person who deals in goods or holds himself out as having special knowledge or skill regarding the practices or goods that are the subject of the transaction.

For the UCC, the primary issue is

whether the parties intended to enter into a binding agreement.

Implied Contract

(implied in fact) is one that is inferred from the actions of the parties. -When parties have not discussed terms, an implied contract exists if it is clear from the conduct of both parties that they have intended there be one.

An agreement consisting of a set of promises is called an ________ contract before any promises are carried out.

Executory Contract

About _____ of the states recognize common-law marriage, under which two people are deemed to be married if they live together with the intent to be married, regardless of their failure to have obtained a license or gone through a ceremony.

1/3 -Although there is no actual contract of marriage (no license), their behavior implies that the parties intended to be treated as if they were married.

What are the three elements of common-law contract formation? A. Introduction, legal, acceptance B. Offer, acceptance, consideration C. Offer, agreement, capacity D. Introduction, validity, consideration

B. Offer, acceptance, consideration. additionally, to be enforceable, the contract must be for a legal purpose and parties to the contract must have capacity to enter into the contract.

Discrepancies between terms that would be fatal in common-law contract formation is also known as:

Battle of the forms

The elements of common-law contract formation are __________. a. less stringent b. More casual C. More stringent

C. More stringent ...than the requirements for formation between merchants under the UCC.

If a _________ is made, then that would not be acceptance, because it is not a mirror image of the offer itself.

Counteroffer =rejection of the offer.

A contract that has been carried out fully by both parties is called an _____ _____

Executed contract.

Any contract with a minor is voidable by the minor under the ________________.

Infancy Doctrine

UCC's article 2 governs contracts between who?

Merchant and the sale of goods.

UCC article 2 governs the sale of goods, and includes things that are _____, but not ____ or _________.

Moveable but not money or securities. does not include land or houses.

The typical contract is one in which the parties make ______ ________.

Mutual Promises

A legal detriment is

is a detriment ( or burden or obligation) that is legally enforceable.

Express contract

is one in which the terms are spelled out directly. -The parties to an express contract, whether it is written or oral, are conscious that they are making an enforceable agreement.

In common-law contracts, the acceptance must be a ________ ________ of the offer to constitute valid acceptance.

mirror image. Meaning that the acceptance must be precisely the same as the offer.

The contract represents ________ _________ to a bargained-for exchange between parties.

mutual assent

An ______ gives power of acceptance to another party, and it includes the agreement's essential elements, which must be definite and certain.

offer

Non-complete Clause

prohibits a person from working in a similar capacity for a specific period of time and geographic area.

Bilateral Contract is a type of mutual promise that is

promise for a promise. Each is both a promisor and promisee, that is, each pledges to do something, and each is the recipient of such a pledge.