ACCT 324 Exam 1
In a case where no actual damages resulted from the breach of contract, the court may award the plaintiff nominal damages of generally how much money?
$1-5
Recovery in quasi-contract may be obtained when
(1) a benefit is conferred by the plaintiff upon the defendant (2) the defendant has knowledge of the benefit that is being bestowed upon her (3) the defendant retains the benefit under circumstances in which it would be unjust to do so without payment.
What are the exceptions to using silence to show acceptance?
- Parties who have had previous dealings - when the offeree receives benefits of the offered services with reasonable opportunity to reject them and remains silent - parties agree that silence = acceptance
How can an offer be terminated?
- Revocation by the offeror - Rejection or counteroffer by the offeree - Death or incapacity of offeror - Illegality of subject matter - Failed condition or lapse of time
discharge by operation of law
-alteration of the contract -tolling of statute of limitations -bankruptcy -impossibility or impracticability
If money is not a sufficient remedy, a party may pursue an equitable remedy such as which 5 things?
1) an injunction 2) specific performance 3) rescission and restitution 4) reformation 5) a recovery based on quasi-contract.
What must an offer include?
1) the offer must demonstrate a serious intent by the offeror to be bound by the offer 2) the offer must contain reasonably definite and certain terms 3) the offer must be communicated to the offeree. Not all offers must be in writing.
What 2 questions do you ask sober?
1. Did you know drunk was drunk? 2. Did you take advantage of drunk? If either are true, drunk can disaffirm contract within a reasonable amount of time after becoming sober.
What are the 4 types of consideration?
1. a benefit to the promisee 2. a detriment to the promisor 3. a promise to do something 4. a promise to refrain from doing something
When seller is in breach by failing to delver goods, what options does the buyer have?
1. accept the nonconforming goods as is 2. reject the goods subject to the seller's curing the deficiencies in the goods
What are the 5 ways to discharge a contract?
1. by conditions 2. by performance 3. by material breach 4. by mutual agreement 5. by operation of law
What are the 3 requirements accord and satisfaction must meet to be enforceable?
1. debt is unliquidated 2. creditor agrees to accept as full payment less than it claims is owed 3. debtor pays the amount they have agreed on
What are the 3 main purposes of the statute of frauds?
1. ease contractual negotiations 2. prevent unreliable oral evidence 3. prevent parties from entering into contracts they don't agree with
What are the 4 ways to discharge by mutual agreement?
1. mutual recission 2. substituted contract 3. accord and satisfaction 4. novation
What 5 elements should be present for writing to consititute proper evidence under the statute of frauds?
1. name of the parties in the contract 2. subject matter of agreement 3. consideration given 4. all relevant terms 5. signiture of at least the party against whom action is brought
What are the exceptions to the perfect tender rule?
1. norms/past dealings 2. agreement 3. cure/correct problems 4. destroyed 5. nonconformity 6. unforeseen circumstances
Under the UCC, writing must clearly indicate what 2 things?
1. quantity 2. signature of party being used
Courts find disclosure to hav ethe same legal effect as false assertion if what 4 conditions occur?
1. relationship of trust between parties 2. failure to correct assertions of fact that are no longer true 3. statute requires disclosure 4. nondisclosure involves a dangerous defect
What do Sabbath laws prevent on Sundays?
1. sale of alcohol 2. entering into a contract
What are the 4 types of sales contracts?
1. simple delivery 2. Common-carrier 3. Goods-in-bailment 4. conditional sales
What are the exceptions to the parol evidence rule?
1. subsequently modified 2. condiditoned on orally agreed-on terms 3. not final bc part written/part oral 4. ambiguous terms 5. incomplete contracts 6. obvious typos 7. voidable or void contracts 8. evidence of prior dealings or usage of trade
What are obligations of sellers and buyers determined by?
1. terms 2. customs 3. rules from UCC
What 4 things should you consider before filing suit?
1. the likelihood of success 2. the desire or need to maintain an ongoing relationship with the potential defendant 3. the possibility of getting better or faster resolution through some form of alternative dispute resolution 4. the cost of litigation or some form of ADR as compared to the value of the likely remedy
A valid offer requires what 3 things?
1. the manifestation of the offeror's intent to be bound 2. definite and certain terms 3. communication to an offeree
What are the 3 exceptions to the preexisting duty rule?
1. unforeseen circumstances 2. additional work 3. UCC Article 2 (sale of goods)
What are the 2 options on dealing with destroyed goods?
1. void contract 2. ask seller for reduction in price and accept
Buyers and lessees can recover the goods identified in the contract if the seller or lessor becomes insolvent within _______________________________________________.
10 days after receiving the first payment due under the agreement
A nonbreaching seller can claim against a breaching buyer _______, whichever is less, as liquidated damages.
20% of the purchase or $500
exculpatory clause
A clause that releases a contractual party from liability in the event of monetary or physical injury, no matter who is at fault.
shipment contract
A contract in which the seller is required to ship the goods by common carrier and the title transfers to the buyer when it ships
discharge by performance
A contract terminates when both parties perform or tender performance of the acts they have promised.
Destination contract
A contract that requires the seller to deliver the goods either to the buyer's place of business or to another destination specified in the sales contract.
frustration of purpose
A court-created doctrine under which a party to a contract will be discharged from his or her duty to perform when the objective purpose for performance no longer exists (due to reasons beyond that party's control).
equal dignity rule
A rule requiring that contracts that would normally fall under the statute of frauds and need a writing if negotiated by the principal must be in writing even if negotiated by an agent.
What is a contract?
A set of legally enforcable promises
When a contract is partly legal and partly illegal if the legal part can be severed, what is it called?
A severable (divisible) contract (Still enforcable)
adhesion contract
A take-it-or-leave-it offer made by a party who holds most of the power in a bargaining session
A legally binding contract requires what 4 elements?
Agreement, consideration, contractual capacity, and legal object
gambling
Agreements in which parties pay consideration (money placed during bets) for the chance, or opportunity, to obtain an amount of money or property.
express contract
An agreement with all the important terms explicitly stated - orally or written
partial performance
An exception to the statute of frauds in which the performance of portions of an unwritten agreement by one or both parties can constitute proof that an oral contract exists between the parties.
If someone suffering from dementia has been appointed a guardian, which of the following is true regarding that person's ability to enter into a contract?
Any contract they enter will be void
When do we look at consideration?
At the time the agreement is made
Under the Uniform Commercial Code (UCC), which of the following statements is true of the remedies available to buyers and lessees when a seller or lessor breaches a sales contract?
Buyers or lessees are allowed to accept nonconforming goods and then seek monetary damages to give them the benefit of the bargain.
_______ performance occurs when all aspects of the parties' duties under the contract are carried out perfectly.
Complete
_______ are best described as foreseeable damages that result from special facts and circumstances arising outside a contract itself.
Consequential damages
Anticipatory Repudiation
Contracting party may decide not to complete the contract before the actual time of performance
punitive damages
Damages designed to punish defendant and deter him and others from engaging in similar behavior in the future
compensatory damages
Damages designed to put plaintiff in position he would have been in had the contract been fully performed
True or False: A quasi-contract is a valid contract.
False
True or False: Contracts that lack a legal object because they violate a statute or public policy are valid.
False
True or False: Courts tend to allow the intoxicated person to disaffirm the contract if disaffirmance occurs within one month after the person becomes sober.
False
True or False: If one merchant agrees to sell goods to another merchant, they are required to have a written contract.
False
True or False: Illusionary promise is consideration.
False
True or False: Past consideration is good consideration will form a contract
False
True or False: The court always considers adequacy of consideration.
False
True or False: UCC and common law of contracts are lawas that govern the same contracts.
False
True or Flase: Adjudicated insane or adjudicated intoxicated persons have capacity.
False
True or False: Common law requires the perfect tender rule
False Only the UCC
True or False: Silence can be used to form a contract.
False (generally)
True or False: A person who enters into a contract as a minor enters into a voidable contract by exercising their power of disaffirmance.
False (only use disaffirmance after turning 18)
Who has rights to the warranty?
Family memebers and guests, any reasonable or foreseeable user, anyone injured by the good
consequential (special) damages
Foreseeable damages that result from special facts and circumstances arising outside contract itself. These damages must be within contemplation of parties at time breach occurs
Covenants not to compete in conjunction with the sale of a business are generally enforceable if which of the following conditions are met?
If the covenant is resonable in regard to time and location
At what point does a sale of goods contract have to be in writing?
If the goods total more than $500
Main Purpose Rule
If the main purpose for incurring a secondary obligation is to obtain a personal benefit, the promise does not fall within the statute and does not have to be in writing
promissory estopppel (detrimental reliance)
If the offeree had reasonably relied on the offeror's promise to hold the offer open and had taken action on reliance on the offer, the courts would use the doctrine of promissory estoppel to prevent the offeror from revoking the offer.
What is the exception to a secondary promise having to be in writing?
If the person who makes the secondary promise does it to obtain a personal benefit
MYLEGS
Marriage, Year, Land, Executorship, Goods ($500+), Suretyship
______ occurs when a party to a contract unjustifiably fails to substantially perform his obligations under the contract.
Material breach
issues with capacity
Minors, Intoxicated people, Insane people (temporary issues)
monetary damages
Money claimed by or ordered paid to a party to compensate for injury or loss caused by the wrong of the opposite party.
Where is gambling legal?
Nevada, New Jersey, Louisiana
Do primary obligations have to be in writing?
No
Does a contract with misrepresentation have legal assent?
No
Does a mutual promise to marry require a written contract?
No
Does the mirror-image rule apply under the UCC?
No
If a contract can be possibly performed within one year, even if the possibility is highly unlikely, does it need to be in writing to be enforceable?
No
If we don't have consideration, can a contract be valid?
No
Is past consideration ever consideration?
No
Once a fully integrated arguement has been written, can oral vidence of any prior or comtemporaneous agreement be admitted in court to change the terms of the agreement?
No
Amy offers to paint Louis's house for $1,000. The offer stated that acceptance in person was required. Within a reasonable time, Louis e-mailed Amy his acceptance. Did Louis accept the offer?
No and therefore there is no contract. To accept this offer, he had to accept in person, as specified by the offer.
voidable contract
One or both parties have option to withdraw or enforce the contract
undue influence
One person takes advantage of another person's mental, emotional, or physical weakness
Accord and Satisfaction
Parties agree that one party will perform her or his duty differently from the performance specified in the original agreement; after the new duty is performed, the party's duty under the original contract becomes discharged.
What terms make it a valid offer?
Price, Quality, Quantity, Parties, Subject Matter
_______ occurs when one party makes a promise knowing the other party will rely on it, the other party does rely on it, and the only way to avoid injustice is to enforce the promise.
Promissory estoppel (detrimental reliance)
When the buyer in a sales contract is in breach, the UCC allows sellers to recover
Resale Price - Contract Price + Incidental Damages - Expenses Saved
What can a victim of negligent or fradulent misrepresentation do?
Rescind the contract or keep the contract and sue for damages
Ronald agrees that he owes a bank $10,000, as claimed by the bank. Ronald explains to the bank that he can only pay the bank $8,000 as full payment toward the money he owes. The bank agrees to accept $8,000 from him. The following month, Ronald receives his new bank statement claiming that he still owes the bank $2,000. What will happen if Ronald doesn't agree to pay the remaining $2,000?
The bank can sue Ronald for the balance it believes is owed. When a creditor agrees to accept less than what is owed, it is not binding. The debtor is still responsible for the remaining balance.
Who has the risk of loss with a shipment contract?
The buyer
For a capacity issue to be a void contract what must happen?
The party has to be ruled either adjudicated intoxicated or adjudicated insane
commercial reasonableness
The term that establishes certain duties of merchants under the UCC.
In a bilateral contract, if either party fails to perform, what can they do?
They can sue for breach.
When does transfer of title happen with goods-in-bailment contract?
Title passes when the document of title is endorsed or signed over to the buyer
What is the purpose of the parol evidence rule?
To prevent evidence that substantially contradicts the agreement in its written form
True or False: A promise to do something that you are already obligated to do is not valid consideration.
True
True or False: Common law requires a lesser standard of substantial performance.
True
True or False: Contracts without a legal object are not valid.
True
True or False: Courts must find an agreement, consideration, capacity, legal assent, and compliance with the statute of frauds to rule a contract is valid.
True
True or False: Courts tend to fairly liberally interpret behavior that appears to ratify the contract once the intoxicated person becomes sober.
True
True or False: Courts uphold modifications or limitations to remedies unless the remedies fail in their essential purpose.
True
True or False: For an unliquidated debt, once the debtor pays the amount agreed on by both the parties, the debt is fully discharged.
True
True or False: If implied conditions are met, the parties could be discharged from the contract.
True
True or False: If no method of communicating acceptance is specified in the offer, any reasonable means of acceptance are effective.
True
True or False: Intent to be bound by the contract is the overriding focus of the UCC in determining contract formation.
True
True or False: Legal assent is absent when mistake of fact occurs.
True
True or False: Parties to sales or lease contracts are allowed to modify of limit remedies.
True
True or False: Sabbath laws vary by state
True
True or False: The offeree is under no obligation to actually perform the act called for by the offeror in a unilateral contract.
True
True or False: The offeror can revoke the offer anytime before the performance .
True
True or False: The right to cure is nearly always applicable to nonconforming goods.
True
True or False: The right to inspect is seldom waived or held by courts to have been waived unless the buyer expressly waives the right.
True
True or False: Any kind of documentation is usually sufficient to satisfy the writing requirement of the statute of frauds.
True
True or False: Contracts for customized goods are enforceable even if it is not in writing.
True
True or False: For an agreement to be valid, both parties have to show outward manifestation by intent to be bound by communicating from one to the other that they accept these terms.
True
What does the UCC stand for?
Uniform Commercial Code
Which of the following conditions would terminate an offer, even if the offeree does not know of the terminating event?
When the offeror loses the legal capacity to enter into a contract.
Can writing under the UCC and statute of frauds consist of multiple documents if they reference one another?
Yes
Does a secondary promise have to be in writing generally?
Yes
If a person who suffers from a mental illness or defect yet still understands the nature of the contract and his or her obligations under the contract, will the contract be valid?
Yes
parol evidence rule
a common law rule that states that oral evidence of an agreement made prior to or contemporaneously with a written agreement is inadmissible when the parties intend the written agreement to be the complete and final version of their agreement
implied contract (implied-in-fact)
a contract that comes about from the actions of the parties
innocent misrepresentation
a false statement about a fact material to an agreement that the person who made the statement believed to be true; lacke scienter
warranty
a promise on the part of a seller with respect to certain characteristics of the good
legal assent
a promise the courts will require the parties to obey
Sections 2-716(1) and 2A-521(1) under the Uniform Commercial Code (UCC) allow nonbreaching buyers and lessees to seek the remedy of specific performance when
a remedy at law is inadequate or goods are unique
admission
a statement made in court, under oath, or at some stage during a legal proceeding in which a party against whom charges have been brought admits that an oral contract existed, even though the contract was required to be in writing
common-carrier delivery contract
a type of contract in which purchased goods are delivered to the buyer via an independent contractor
An agreement requires __________________________ and _____________________________.
a valid offer and acceptance
integrated contract
a written contract intended to be the complete and final representation of the parties' agreement
obligations
accept conforming goods, deliver conforming goods (with good faith)
satisfaction
actual performance of the new duty
What are the exceptions to the statute of frauds?
admission, partial performance, promissory estoppel, oral contracts for merchants selling to other merchants, contracts for customized goods
When does an express ratification occur?
after reaching the age of majority, a person states orally or in writing that he or she intends to be bound by the contract entered into as a minor
When does an implied ratification occur?
after reaching the age of majority, a person takes some action consistent with the intent to ratify the contract
prenuptial agreement
agreement between 2 parties before marriage that states the ownership rights each party enjoys in the other party's property
When a buyer breaches a sales or lease contract before the seller has delivered the goods, Sections 2-703(a) and 2A-523(1)(c) of the Uniform Commercial Code
allow sellers to withhold the delivery of goods
What is the mailbox rule?
an acceptance is valid when it is placed in the mailbox and revocation is effective only when received by the offeree
accord and satisfaction
an arrangement between contracting parties whereby one of the parties substitutes a different performance for his or her original duty under the contract
condition precedent
an event that must occur in order for a party's duty to arise
tender
an offer by a contracting party to perform and be ready, willing, and able to perform
injunction
an order either forcing a person to do something or prohibiting a person from doing something
Specific Performance
an order requiring that the breaching party fulfill the terms of the agreement
Equitable Remedies
any form of relief that does not involve a request for monetary damages
usage of trade
any practice that members of an industry expect to be part of their dealings
What is the purpose of the UCC article 2?
applies to contracts for the sale of goods
Implied conditions are those conditions which _______.
are not explicitly stated in the contract but are inferred from the nature and language of the contract
reasons for voidable
bad check, minors
Consideration can be anything, as long as it is the product of a(n) _______.
bargained-for-exchange Both parties must receive something of value.
A promise + a promise
bilateral contract
discharge by mutual agreement
both parties agree to discharge each other from the agreement
What are the 2 most important sources of contract law?
case law and the UCC
All contracts are governed by either ______________________________ or __________________________.
common law, the UCC
What are the most frequently awarded damages?
compensatory damages
substantial performance
completion of nearly all the terms of the agreement, an honest effort to complete all the terms, and no willful departure from the terms of the agreement
If a condition requires each party's performance to occur at the same time, then the contract contains a(n):
concurrent condition
implied conditions
conditions that are not explicitly stated but are inferred from the nature and language of the contract
fraudulent misrepresentation (fraud)
consciously false misrepresentation of a material fact intended to mislead the other party; intent to deceive
For a promise to be enforced by the courts, there must be
consideration
Suppose that Hannah agrees to purchase Rachel's computer for $500. Hannah's payment of $500 is the _______ that Rachel will receive for her car.
consideration
agreement + consideration =
contract
conditional contract
contract containing conditions affecting the performance obligations of the parties
executory contract
contract not fully performed on both sides
valid contract
contract that contains all the legal elements (can be enforced)
option contract
contract to hold an offer to make a contract open for a fixed period of time
Any offer accepted with different terms is a ________________________.
counter-offer
Under common law, what is it called if the offeree's acceptance with terms that are not identical to the offeror's terms?
counter-offer
Jason agrees to buy Sara's car for $10,000. However, Sara tells Jason that she will only sell the car to him if he pays $12,000. In this scenario, Sara makes a(n)
counteroffer
quasi-contract
court-imposed obligation to prevent unjust enrichment in the absence of a contract
primary obligation
debts entered into in an initial contract
Under common law, terms must be _____________________ and _________________.
definite, certain
scienter
deliberately or knowingly
discharge by material breach
discharges the non breaching party from his obligations under the contract. Occurs when a party unjustifiably fails to substantially perform his obligations under the contract.
A "severable" contract is also known as a _______ contract.
divisible
The essential element of undue influence is the existence of a ___________________________________ relationship
dominant-subserviant
mistake of fact
erroneous belief about the facts of the contract at the time the contract is concluded
express conditions
explicitly stated in the contract and are usually preceded by words such as conditioned on, if, provided that, or when
nondisclosure
failure to provide pertinent information about the projected contract
excecuted contracts
fully performed
Restatement (Second) of Contracts
general summary of the common law of contracts (not law itself)
When courts grant damages to a nonbreaching seller to recover the purchase price from the breaching buyer, the court is typically granting the seller the right to _______. When a seller sues a buyer for the breach of a sales contract to get the benefit of the bargain, and nothing more, courts typically
get the benefit of the bargain, grant damages to recover the purcahse price or lease payments due
In title transfer, good title transfers as
good title
types of titles
good, void, voidable
goods-in-bailment contract
goods in storage under control of third party
good faith
honesty in fact
Magnuson-Moss Act
if a seller decides to issue a written warranty for a consumer good, the seller must indicate whether the warranty is full or limited
Brian offers to sell Rachel his computer for $200. Rachel says that she will look at the computer in the morning, and if she likes it she will buy it for $200. At this point, Rachel has not committed to doing anything. This is an example of a(n)
illusionary promise Never a promise when contingent upon an "if" statement.
in pari delicto
in equal fault
When a contract is partly legal and partly illegal, if the legal part cannot be severed, what is it called?
indivisible contract (void and not enforced)
If damages are sought from a frauduletn misrepresentation, the defrauded party must have been ________________________ by the misrepresentation.
injured
The seller or lessor must provide the opportunity for __________________________.
inspection
subjective impossibility
it would be very difficult to carry out the contract
Where did common law originate from?
judicial decisions in England
What are 2 defenses to the enforcement of a contract?
lack of genuine assent and lack of proper form
Money damages are also known as _______ damages while remedies that result in nonmonetary damages are known as _______.
legal, equitable
duty to mitigate
limit damages you incur, try to save profits
A minor is said to have _______________________ contractual capacity.
limited
A(n) _______ damages clause in a contract is one that identifies a remedy before a breach occurs.
liquidated
Damages specified in the parties' contract are known as _______ damages.
liquidated
When there is no dispute over the amount of debt or existence of debt, it is referred to as a _______.
liquidated debt
encumbrance
loan with title for collateral
consequential
lost profit
Consequential damages include _______, as long as such damages are not too speculative.
lost profits
What is an offer?
manifestation of offeror's intent to be bound
entrustment
merchant can sell goods and transfer a good title to a 3rd party buyer (motorcycle in shop example)
The terms of an acceptance that reflect the terms of an offer are known as the _______ rule.
mirror-image
Negligent Misrepresentation
misrepresentation made without due care in ascertaining its truthfulness; renders agreement voidable
With breach of contract, the non breaching party must
mitigate damages
What is another name for legal remedies?
monetary damages
What type of damage will the court try to reward over the other?
monetary damages
Even if a party has the ability to disaffirm a contract, if the contract is for a ______________________, the party cannot completely disaffirm the contract.
necessary
nominal damages
no actual damage or financial loss results from a breach of contract and only a technical injury is involved
objective impossibility
not possible to lawfully carry out one's contractual obligations
When deciding whether an offeror intended to be bound by the offer, the courts use the _______ standard.
objective
Does objective or subjective impossibility discharge the parties' obligations under the contract?
objective impossibility
Duress
one party is forced into the agreement by the wrongful act of another; no free will for victim
Macon is planning to buy Kevin's car for $15,000. He gives Kevin $1,500 to keep the offer open for 30 days. Kevin will deduct the $1,500 from the price of the car if Macon purchases the car within the 30 days. If Macon does not buy the car during that time, Kevin will keep the $1,500 and may then offer the car to someone else. Which of the following contracts does this scenario best illustrate?
option contract
condition concurrent
parties are to perform their obligations for each other simultaneously
mutual rescission
parties mutually agree to discharge each other from the contract
substituted contract
parties mutually agree to discharge each other from the contract by substituting a new agreement
What do courts look at when deciding what parties intended by a contract?
parties' objective works and behaviors (objective not subjective)
implied warranties of quality
pass w/o objection, fair quality, fit for use, have even quality, adequately packaged, conform to promises on label
implied warranties of title
passage of good title, implied promise of no liens, judgements, infringement of trademarks,
Express warranties
physical nature, use, general or specific, material term, reliance of buyer on representations
What doesn't qualify as consideration?
pre-existing duty
course of dealing
previous transactions between the same parties
pre-existing duty
promise to do what one already has a legal duty to do does not constitute legally sufficient consideration
accord
promise to perform the new duty
What are the 2 exceptions to the common law rule requiring consideration?
promissory estoppel and contracts under seal
liquidated
put damages in writing
What is the only thing required by the UCC?
quantity
If an auction is with reserve, the auctioneer may __________________________ to sell the item if they are not ______________________________ by the size of the highest bid.
refuse, satisfied
What is acceptance?
representation of an offeree's intent to be bound by terms of offer through either performance or return promise
perfect tender rule
requirement that the seller deliver the goods in conformity with the contract, down to the last detail
tender of delivery
requirement that the seller or lessor have and hold conforming goods at the disposal of the buyer or lessee and give the buyer or lessee reasonable notification to enable him or her to take delivery
bilateral mistake
rescind contract
What can the mislead party do if there are inncocent misrepresentations in the contract?
rescind the contract (cannot sue)
A voidable contract can be ________________________.
rescinded
restitutuion
return of any property given up under the contract
conditional sales contract
sale-on-approval or sale-or-return
right to cure
second chance for a seller to make a proper tender of conforming goods
If a mistake is innocent, what can the victim do?
seek recission
sale-on-approval
seller allows the buyer to take possession of the goods before deciding whether to complete the contract by making the purchase
sale-or-return
seller and buyer agree that the buyer may return the goods at a later time
The remedy of _______ performance usually requires that the seller or lessor deliver the particular goods identified in the contract.
specific
The equitable remedy under common law of contracts requiring the seller to perform under the contract is called ____________________________.
specific performance
unilateral mistake
still binding (generally)
void
stolen goods, no rights, always void until they get back to original owner
When the obligations of a contract are terminated by a future event, that future event is referred to as a condition _______.
subsequent
recission
termination of a contract
mirror-image rule
terms of acceptance must be identical to terms of the offer
Nominal damages are primarily designed to signify
that the plaintiff has been wronged by the defendant
If a contract is for a sale of a good is it ruled by common law or the UCC?
the UCC
capacity
the ability to understand the obligations you undertake when making a promise, legal ability to enter into a binding agreement
concealment
the active hiding of the truth about a material fact
With a condition subsequent, the party has a duty to perform until
the future event occurs (if it does) that will discharge the party from the obligation
If an auction is without reserve, the auctioneer must accept ________________________.
the highest bid
course of performance
the history of dealings between the parties in the particular contract at issue
usury
the lending of money at an exorbitant rate of interest
novation
the original parties and a third party all agree that the third party will replace one of the original parties and that the original party will then be discharged
Restitution, as a primary equitable remedy for a breach of contract, is best described as
the return of any property given up under the contract
How does the court treat negligent misrepresentation?
the same as fraudulent misrepresentation
Who has the risk of loss for a destination contract?
the seller
When the buyer is in breach because they refused to accept conforming goods and then the goods are lost or damaged, who bears the risk of loss depends on what?
the type of contract that exists between the buyer and the seller
If a party to a contract asks for an additional amount of money and agrees to do more work than the contract requires, the result is that the promise
to do the extra work is consideration
assent
to express agreement
What is the goal of contract remedies?
to give the parties the benefit of the bargain
voidable
transformed into good title (by good faith purchaser for value),
simple delivery contract
type of contract in which purchased goods are transferred to the buyer from the seller either at the time of the sale or at some time later by the seller's delivery
The term _______ refers to the fact that the agreement in question is so unfair that it is void of conscience.
unconscionable
When a trusted dominant party exerts pressure on a non dominant party to enter into a contract that overwhelmingly benefits the dominant party, courts will liekly find that __________________________________ played a role in therby making the contract _________________________.
undue influence, voidable
Under the UCC, a court can refuse to enforce parts of a contract or lease that are ______________________ or ______________________________.
unfair, one-sided
a promise + a requested action
unilateral contract
In a(n) _______ debt, the parties either disagree about whether money is owed or dispute the amount.
unliquidated
When debt is __________________, the parties may enter into an accord and satisfaction.
unliquidated
misrepresentation
untruthful assertion by one of the parties about a material fact
Under the UCC, offers are ____________________ if terms are left open.
valid
If a minor affirms a contract after turning 18, the contract is ______________________ and __________________________.
valid, enforceable
consideration
value given by both parties, what each party gets in exchange for his or her promise under the contract
A contract entered into by a person who is adjudicated intoxicated is defined as a ______________________ contract.
void
If a person has been adjudicated insane and has a guardian appointed, any contract the person attempts to enter into is
void
When an agreement is deemed illegal, courts will label the contract
void
In title transfer, void title transfers as
void title
If assent is not genuine (or legal), the contract may be _______________________________.
voidable
Is duress void or voidable?
voidable
When one party is forced to enter a contract by the wrongful threat of another, the contract is _______________________________ by the innocent party due to duress.
voidable
Without legal assent a contract may be ____.
voidable
What type of contract does a minor enter into?
voidable contract
When is an acceptance valid?
when a manifestation of intent to be bound to the terms of the offer is communicated to the offerree
When are restitution and recission most frequently awarded?
when a situation has lack of genuine assent
secondary obligation
when a third party makes a collateral promise; needs to be written
When is a revocation effective?
when the offeree receives it
If nothing is stated to the contrary in the terms of an auction, the auction is presumed to be _______, which means that the seller is merely expressing intent to receive offers.
with reserve
Until when can a minor can walk away from the contract / disaffirm it?
within a reasonable time after turning 18
In an auction _______, the seller is treated as making an offer to accept the highest bid and therefore must accept it
without reserve
