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What are the key aims of contract law?
What are the key aims of contract law?
The Uniform Commercial Code (UCC) applies to contracts involving the sale of services.
The Uniform Commercial Code (UCC) applies to contracts involving the sale of services.
False
A gift promise constitutes consideration in contract law.
A gift promise constitutes consideration in contract law.
False
Past benefits can be considered consideration in contract law.
Past benefits can be considered consideration in contract law.
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A donative promise is generally enforceable in contract law.
A donative promise is generally enforceable in contract law.
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Performing a pre-existing legal duty constitutes consideration in contract law.
Performing a pre-existing legal duty constitutes consideration in contract law.
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Contract modifications can be enforceable even if they violate the pre-existing duty rule, as long as they are fair and equitable.
Contract modifications can be enforceable even if they violate the pre-existing duty rule, as long as they are fair and equitable.
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Promissory estoppel is a legal doctrine that enforces promises without consideration when a party relies on that promise to their detriment.
Promissory estoppel is a legal doctrine that enforces promises without consideration when a party relies on that promise to their detriment.
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Promissory restitution is based solely on past unenforceable contracts.
Promissory restitution is based solely on past unenforceable contracts.
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Nonpromissory restitution can only be used as a last resort when there is NOT an enforceable contract or promise.
Nonpromissory restitution can only be used as a last resort when there is NOT an enforceable contract or promise.
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Nonpromissory restitution is often invoked when services are provided in emergency situations without the recipient's prior knowledge or consent.
Nonpromissory restitution is often invoked when services are provided in emergency situations without the recipient's prior knowledge or consent.
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For non-promissory restitution, the recipient's retention of a benefit without paying for it would be considered unjust.
For non-promissory restitution, the recipient's retention of a benefit without paying for it would be considered unjust.
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For non-promissory restitution, the provider must have had an expectation of payment for the benefit conferred.
For non-promissory restitution, the provider must have had an expectation of payment for the benefit conferred.
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For non-promissory restitution, the recipient must have had reason to know that the provider expected payment.
For non-promissory restitution, the recipient must have had reason to know that the provider expected payment.
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A contract must be sufficiently definite to determine the parties' intent to be bound and to provide a basis for remedy if breached.
A contract must be sufficiently definite to determine the parties' intent to be bound and to provide a basis for remedy if breached.
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Courts are generally willing to fill in gaps in contracts based on subjective standards.
Courts are generally willing to fill in gaps in contracts based on subjective standards.
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An offer in a contract must be definite enough to justify the offeree's belief that the offeror intends to be bound by the offeree's acceptance.
An offer in a contract must be definite enough to justify the offeree's belief that the offeror intends to be bound by the offeree's acceptance.
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Advertisements traditionally function as legally binding offers.
Advertisements traditionally function as legally binding offers.
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The offeror controls the manner of acceptance, meaning the offeree must follow the offeror's specified process.
The offeror controls the manner of acceptance, meaning the offeree must follow the offeror's specified process.
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In a bilateral contract, both parties are immediately bound once they exchange promises.
In a bilateral contract, both parties are immediately bound once they exchange promises.
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In a unilateral contract, the offeree's performance constitutes acceptance, and the offeror is bound only upon the completion of that performance.
In a unilateral contract, the offeree's performance constitutes acceptance, and the offeror is bound only upon the completion of that performance.
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Silence can never constitute acceptance.
Silence can never constitute acceptance.
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The Mirror Image Rule requires an acceptance to exactly mirror the offer's terms, without any modifications.
The Mirror Image Rule requires an acceptance to exactly mirror the offer's terms, without any modifications.
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The UCC expressly rejects the Mirror Image Rule.
The UCC expressly rejects the Mirror Image Rule.
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The UCC requires that a firm offer be in writing to be irrevocable.
The UCC requires that a firm offer be in writing to be irrevocable.
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Acceptance is generally effective upon dispatch.
Acceptance is generally effective upon dispatch.
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The Battle of the Forms occurs when there is a discrepancy between the terms of the offer and the acceptance.
The Battle of the Forms occurs when there is a discrepancy between the terms of the offer and the acceptance.
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An offeror can terminate an offer by revocation.
An offeror can terminate an offer by revocation.
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An offeror can indirectly revoke an offer by taking definite action inconsistent with the offer and communicating that action to the offeree.
An offeror can indirectly revoke an offer by taking definite action inconsistent with the offer and communicating that action to the offeree.
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An offeree's power of acceptance is terminated upon the death or incapacity of either the offeror or offeree.
An offeree's power of acceptance is terminated upon the death or incapacity of either the offeror or offeree.
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An offeree can always revoke an offer once the offeror has accepted.
An offeree can always revoke an offer once the offeror has accepted.
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A conditional acceptance constitutes a rejection and termination of the offer.
A conditional acceptance constitutes a rejection and termination of the offer.
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An option contract arises when the offeror promises to keep the offer open in exchange for consideration.
An option contract arises when the offeror promises to keep the offer open in exchange for consideration.
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The offeree's beginning of performance of an offer for a unilateral contract creates an option contract.
The offeree's beginning of performance of an offer for a unilateral contract creates an option contract.
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UCC § 2-205 applies to firm offers for the sale of services?
UCC § 2-205 applies to firm offers for the sale of services?
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An offer is not legally binding until it has been communicated to the offeree and the offeree has accepted.
An offer is not legally binding until it has been communicated to the offeree and the offeree has accepted.
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The offeree generally has the power to accept an offer even after the offer has been rejected or revoked.
The offeree generally has the power to accept an offer even after the offer has been rejected or revoked.
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A counteroffer is considered a form of rejection.
A counteroffer is considered a form of rejection.
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The Mirror Image Rule is a requirement for the formation of a contract under the UCC.
The Mirror Image Rule is a requirement for the formation of a contract under the UCC.
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Study Notes
Purpose of Contract Law
- Contract law governs promises, commitments to do or not do something.
- Key aims include fairness, predictability, security, and commercial reasonableness.
- Sources are statutory laws (e.g., Uniform Commercial Code, UCC) and common law, derived from judicial opinions and restatements.
Choosing the Right Law (UCC vs. Common Law)
- UCC governs contracts for the sale of goods (tangible, movable items); excludes services, money, securities, and real estate.
- Common law covers contracts for services, encompassing situations not explicitly defined by the UCC.
Predominant Factor Test
- Used to determine which law (UCC or common law) applies to hybrid contracts (involving both goods and services).
- Courts analyze factors like the language of the contract, the relative cost of goods and services, the primary purpose of the contract, and the nature of the seller's business.
Consideration
- Consideration is a crucial element for contract formation.
- It involves a bargain where each party promises or performs something in exchange for the other party's promise or performance.
- The benefit/detriment test examines if a party receives a benefit or incurs a detriment as a result of the bargain.
Past Benefits/Moral Obligations
- Past benefits or moral obligations generally do not count as consideration for a new contract.
- An action performed before a promise is made cannot serve as consideration.
Adequacy of Consideration
- Courts typically do not evaluate the relative value of exchanged items.
- The focus is on whether there is a bargain, not necessarily on whether the exchange is equal in value.
Conditional Donative (Gift) Promises
- Promises to make gifts are typically unenforceable.
- This is often true for family contexts, minor injuries or expenses.
- An exception involves promissory estoppel, where a person is induced to follow through due to another's promise to give something.
Illusory Promises
- Illusory promises do not represent a binding commitment.
- They do not create a legal obligation.
Pre-Existing Duty Rule
- Performance of a preexisting legal duty is not consideration for a new contract.
- This rule does not apply if the performance differs substantially from the existing duty, if there is a good faith doubt regarding the preexisting duty, or if the duty is owed to a third party.
Promissory Estoppel
- This doctrine allows a court to enforce a promise even without consideration if there's detrimental reliance on that promise by the promisor.
- It applies when the promise induced reasonable and foreseeable reliance.
Nonpromissory Restitution
- In situations with no contract or promise, restitution can imply a contract for an equitable remedy.
- Restitution occurs when one person benefits from another, but under specific circumstances and if it is unjust for the benefited person not to pay.
Acceptance of an Offer
- Acceptance must mirror the offer's terms for a valid contract to be formed.
- Silence or inaction rarely constitutes acceptance; there must be an explicit indication of assent.
Ways to Terminate the Power of Acceptance
- Lapse of time
- Death or incapacity of the offeror or offeree
- Rejection
- Counteroffer
- Revocation
- Option Contract limits the power to revoke the offer.
Mailbox Rule and Acceptance
- Acceptance in a contract is effective upon dispatch, not receipt.
- Applies to non-instantaneous modes of communication.
Battle of the Forms
- Modern rules (e.g., UCC) allow the acceptance of counteroffer forms, in cases with counter-offer forms, determining which terms govern is important.
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Description
This quiz covers the fundamental aspects of contract law, including its purpose, the differences between the Uniform Commercial Code (UCC) and common law, and the predominant factor test for hybrid contracts. Test your understanding of key concepts like consideration and the regulations governing various types of contracts.
