Blaw Chapter 12
What are the 3 conditions required for a promissory estoppel?
I. One party makes a promise knowing the other party will rely on it. II. The other party does rely on the promise. III. The only way to avoid injustice is to enforce the promise.
A(n) __________ releases one of the contracting parties from all liability, regardless of who is at fault or what injury is suffered.
exculpatory clause
What is a contract that has not yet been fully performed?
executory contract
The terms of __________ contracts are all clearly set forth in either written or spoken words.
express
What is a promise formed by words?
express
What are the 2 major defenses to enforceability of a valid contract?
form voluntary consent
Suppose Markus offers to sell Zara his surfboard for $200. Zara responds, "I'll look at it on the weekend, and if I like it, I'll pay you." At this point, Zara has not committed to doing anything. The law considers this a(n) ________________.
illusory promise
What is a promise formed by the conduct of the parties?
implied
Under what circumstance could lack of genuine assent apply to a contract?
The offeror engages in fraud and misrepresentation in concern to the contract.
The mail-box rule is not applicable when there is ______________
instantaneous communication
What are the 2 elements of consideration?
legal value bargained for exchange
A person has _________ to enter into a contract if she suffers from a mental illness or deficiency that prevents her from understanding the nature and obligations of the transaction.
limited capacity
What rule states that an acceptance must match the terms of the offer exactly in order to be valid
mirror image rule
Todd leaves his babysitter, Zach, a voice mail message saying, "I need someone to watch little Joey and Hilary on Friday night. If you can babysit on such late notice, I'll pay you an extra $40 on top of your usual rate. If I don't hear from you by 5 p.m. tomorrow, I'll assume we have a deal." If Zach does not call back, has a contract been created?
no because silence can not be used to form a contract
Past consideration is the equivalent of what?
no consideration
When bargains are so oppressive that the court decides to relieve innocent parties of their duties, such bargains are deemed
unconscionable
What is a promise for an act?
unilateral
A door-to-door hearing aid salesman specifically targets elderly clients. When the clients ask questions about the contract, the salesman is not truthful with them entirely. The answers to their questions are usually found on the tiny, hard-to-read print on the very back of the long contract the clients must sign. The salesman knows that his clients have poor vision and hearing, and uses this to his advantage in his not-entirely-truthful sales techniques and with the tiny, hard-to-read contractual terms.
Procedural unconscionability
Suppose Xavier receives an offer to play on a minor-league hockey team a few states away from where he currently lives. He moves out of his apartment, turns down offers from other teams, and moves all his possessions to a new apartment close to the hockey arena. After moving there, Xavier is then told there is no position for him anymore! May he sue the hockey team?
Yes, this situation is a promissory estoppel.
What is a promise or agreement that can be enforced in court?
a contract
Carmen owns a 2009 Toyota Camry that has been driven 24,000 miles and, to his knowledge, has no mechanical problems. He offers to sell the car to his friend Jamie for $12,000. Jamie accepts Carmen's offer. Jamie and Carmen have
an express contract
In a(n) ______________ , the seller is treated as making an offer to accept the highest bid and therefore must accept it.
auction without reserve
What is a promise for a promise?
bilateral
For a court to enforce a promise, who must offer consideration?
both sides
What term does not require Internet users to assent to the terms before downloading certain software?
browse wrap terms
Heather is sixteen but looks much older. She goes into a jewelry store and buys a diamond bracelet with the money she has been saving for college. If Heather realizes a year later that it was unwise to spend the money on the bracelet, she
can return the bracelet and get her money back
Elliot enters into a contract to purchase JD's house, and then changes her mind. JD sues her for breach of contract. The lawsuit for a breach of contract will be governed by
common laws of contracts
For a promise to be enforced by the courts, there must be ___________.
consideration
What is something of value given in exchange for a promise called?
consideration
What are the four requirements for a valid contract?
consideration legality agreement contractual capacity
the courts may allow an exception to the preexisting duty rule when
contract performance involves unforeseen difficulties
What is a contractual promise to refrain from competing with another party for a certain period of time and within a certain region?
covenant not to compete
__________ are created by the courts to prevent one party from being unjustly enriched at the expense of another.
quasi contracts
What is a court-ordered correction of a written contract so that it reflects the true intentions of the party?
reformation
Bobby tells Alyssa (Shelley's agent) to tell Shelley he will sell his used Jeep to Shelley for $5,500 cash. Shelley's brothers, Kyle and Chris, overhear the offer. Who can accept Bobby's offer?
shelley and alyssa (on behalf of shelley)
Every state has a statute specifying what types of contracts must be in writing and we refer to such a statute as the
statute of frauds
What rule states that once an acceptance is sent or otherwise communicated to the offeror by an authorized means, the acceptance is effective.
the mailbox rule
In some states, courts consider the purpose of the licensing statute when determining the effect of the agreement. If a licensing statute is intended simply to generate revenue, then the contract of an unlicensed person is _________.
valid