GBL EXAM 3 QUESTIONS WITH COMPLETE SOLUTIONS, GRADED A+
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Module
GBL
Institution
GBL
Ex: Customer brought a suit to a dry cleaner's for cleaning. Accidentally replaced two buttons and
charged customer for it. Although the customer received a benefit, he does not have to pay for this
service bc it was imposed on him, and thus he was not unjustly enriched under the circumstances. -...
GBL EXAM 3
Ex: Customer brought a suit to a dry cleaner's for cleaning. Accidentally replaced two buttons and
charged customer for it. Although the customer received a benefit, he does not have to pay for this
service bc it was imposed on him, and thus he was not unjustly enriched under the circumstances. -
Unjust Enrichment Rule:
Parties exchange oral or written promises that explicity state the terms of their agreement.
Ex: When a landlord and a tenant enter into an agreement to lease an apartment, that agreement (lease)
creates an express contract. - Express Contracts:
Judges often reference the Restatment of the Law of Contracts, which contains contract law principles
set out by legal scholars. - Common Law:
Widely used to enforce transactions between parties in private or commercial settings that may relate
to:
1. Real estate
2. Employment
3. Sale of goods
4. Financing
Evidenced either through oral or written agreements betwen two or more parties. - Contract Law:
Defined as an exchange of promises or an exchange of a promise for an act by two or more parties that
make a legal agreement enforceable in court.
"A promise or set of promises for the breach of which the law gives a remedy, or the performace of
which the law in some way recognizes a duty." - Contract:
Manifestation of intent to act or regrain from acting a defined manner presently or in the future. -
Promise:
,1. Provide stability and predictability, and often certainty, for parties involved in business transactions.
2. Law encourages people and businesses to enter into agreements for lawful purposes and establish
rights and obligations in contractual relationships.
3. Provides remedies for those who perform their obligations under a contract against those who fail to
perform their obligations. - Functions of Contracts:
1. Common Law
2. Uniform Commercial Code (UCC) - Sources of Contract Law:
Case law developed in state and federal courts through judicial opinions, generally governs contracts
dealing with services, real estate and personal property, employment, and insurance.
Statutory law, generally governs contracts that deal with the sale and lease of goods.
Modified general contract law by altering common law contract principles.
Article 2 provides contract law principles, which detail more liberal requirements to form and perform on
contracts than contract principles under common law. Also covers contracts dealing with electronic data
processing, licenses, and leases.
Generally adopted, except Louisiana, as whole or modified. - UCC:
Defined as the transfer of title to goods from buyer to seller for a value. - Sale:
Defined as tangible personal property, which includes property other than real property. - Goods:
Provides that a party's intention is judged by the objective facts as interpreted by a reasonable person,
rather than the parties' own subjective intentions.
Objectivity can be established by looking at:
1. Parties communications at the time of the contract
2. Parties' conduct
3. The circumstances surrounding the transaction.
,To determine whether a contact has been formed, the parties must manifest the element of intent to
enter into an agreement.
Intent is determined according to the objective theory of contracts and not by the personal or subjective
intent or belief of a party. - Objective Theory of Contracts:
Contracts are classified according to various characteristics, such as formation, content and legal effect.
General classifications of contracts are:
1. Express or Implied
2. Bilateral or unilateral
3. Executed or executory
4. Valid, void, voidable, or uneforceable
5. Quasi-contract
A contract may fit into more than one classification - Types of Classifications of Contracts:
Also called implied in fact contract
An agreement between the parties established by their conduct, rather than by written or oral words.
Requirements must be present for a court to recognize an implied contract:
1. Plaintiff provided some service or property
2. Plaintiff had an expectation to receive payment for the services or property
3. Defendant knew or should have known that the plaintiff expected payment
4. Defendant had an opportunity to reject the services or property but failed to do so. - Implied
Contracts:
Involves the exchange of promises between parties, meaning a promise for a promise.
Formed at the time the promises are exchanged.
Ex: Student offers to sell his used book and promises he will deliver the book when he receives payment.
Another student agrees to purchase the used book and promises to pay for the book upon delivery. This
is a bilateral contract. - Bilateral Contract:
, Involves the exchange of a promise for an act.
Formed when the act is performed.
Ex: Billy promises to pay $100 to anyone who gives him a ticket to a football game. His friend Stan gives
him a ticket. Billy and Stan have formed a unilateral agreement upon Stan's performance (delivery of the
ticket) and thus Billy is obligated to pay the $100. - Unilateral Contract:
A contract in which all parties have performed their obligations as defined or agreement in the contract.
Also called a completed contract, because all of the obligations under that contract have been
performed.
After full performance has occured, the contract is not active.
Ex: A car loan agreement is considered an executed contract when the last car payment under the loan
contract is made. - Executed Contract:
One in which some or all obligations under the contract have not been performed either by one or more
of the parties.
Ex: 3 months into an apartment lease of a 12-month term is considered an executory contract because
the landlord and the tenant still have obligations to complete, that is, the landlord to provide and
maintain the property and the tenant to pay rent. - Executory Contract:
When it meets all 6 requirements to form a binding contract. - Valid Contract:
Not a contract at all because at its formation its object is illegal, or has serious defects in its formation,
such as fraud or durress.
Does not impose any legal obligations on any of the parties.
Ex: Mark promises to pay Kevin $50 for a bag of cocaine. This contract is void because selling cocaine is
illegal. - Void Contract:
Contract that allows either or both parties to avoid any obligation under the contract or to ratify or
accept the contract, which means to make the contract valid.
Ex: Contracts where one of the parties is a minor are considered voidable, contracts entered under
fradulent conditions, duress, or undue influence are also voidable. - Voidable Contract:
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