BLaw-Contracts Questions and Answers
Functions of Contracts
1. Give ability to enter into agreements with others with the confidence that we may call on the law to enforce-type of private law
2. Facilitate the planning that is necessary in a modern industrialized society
Basical Elements ...
Functions of Contracts - answer 1. Give ability to enter into agreements with others
with the confidence that we may call on the law to enforce-type of private law
2. Facilitate the planning that is necessary in a modern industrialized society
Basical Elements of a Contract - answer 1. Offer
2. Acceptance/Rejection (Voluntary)
3. Consideration
4. Capacity
5. Legality
Unilateral Contract - answer contract where only one party makes a promise
ex frequent buyer cards
bilateral contract - answer contract where both parties exchange promises
Valid Contract - answer one that meets all legal requirements to contract;
enforceable in court
unenforceable contract - answer one that meets the basic legal requirements but
cannot be enforced due to some legal rule or statute
Voidable Contract - answer Contract in which one or more parties have the legal
right to cancel their obligations under the contract
ex: contract formed under fraud or duress
Important note: the injured party had the right to cancel, if they want to; they can choose
to have the contract enforced
Void Contract - answer agreements that create no legal obligations and for which no
remedy can be given
Express Contract - answer contract in which the terms are expressly stated orally or
in writing
Implied Contract - answer Where a contract is inferred by the demonstration of the
parties; when the surrounding facts and circumstances indicate that an agreement has
been in fact reached
Executed Contract - answer Contract in which all parties have fully performed their
contractual duties
, Executory Contract - answer Contract in which one or more of the parties has not
completed all of its contractual duties
UCC (Uniform Commercial Code) - answer All states adopted except LA
Uniform set of rules by which to govern commercial transactions
Body of rules that would realistically and fairly solve common problems occurring in
everyday business
Article 2: deals with sale of goods ONLY; goods=tangible, movable personal property
Holds merchants to a higher standard
Quasi-Contract - answer Deals with unjust enrichment; courts require the benefiting
party to pay the reasonable value of the benefits
obligation imposed to avoid injustice
Occurs when: one party confers a benefit on another who knowingly accepts it and
retains it under circumstances that made it unjust to do so
Remedy: Reasonable value of services
Promissory Estoppel - answer Deals with the foreseeable reliance by one party on a
promise made by another-protects reliance
Invovles a promise that the promisor should foresee its likely to induce reliance, reliance
on the promise by the promisee, and injustice as a result of that reliance
Remedy: Enforcement of Promise or recovery of reliance losses
Offer - answer First step of a contract
Offeror gives the offeree the power to bind them to a contract simply by accepting
Must have:
1. Present Intent to contract on part of offeror
2. Specificity or definiteness in terms
3. Must be communicated to offeree
Present Intent to Contract - answer Intent to enter the contract upon acceptance;
signifies this is not a joke or haggling
Objective Standard of Intent: what his words, acts, and circumstances signify to an
unbaised 3rd party
Specificity or Definiteness of Terms - answer Indicates intent to contract
Courts need specifics to determine breach and remedy
Specificity or Definiteness under Common Law - answer Has a higher standard than
UCC
Must have the basic elements of the contract
Specificity and Definiteness under UCC - answer Lower standard
meant to be quick and effective for businesses; furthering peoples justifiable
expectations; will favor contract liability where common law will find none-ie acting like a
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