Contract Law Overview

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What must be true for a contract issue to be classified under 2-207?

The acceptance must be unconditional.

The contract must be executed in writing.

There must be a clear expression of mutual consent.

The terms of acceptance must differ from the terms of the offer. (correct)

Which condition is necessary for consideration to be valid in a contract?

The consideration must be adequate in value.

There needs to be a bargain for exchange. (correct)

Each party must agree to refund their contributions.

There must be a mutual mistake.

What is a primary reason courts do not consider the adequacy of consideration?

Adequacy does not affect the legality of a contract.

Adequacy is subjective and varies by individual assessment. (correct)

Courts focus solely on the intentions of the parties.

Consideration is only evaluated based on fairness.

In which scenario would the frustration of purpose defense likely be rejected?

When the primary purpose of the contract remains achievable despite difficulties. Signup and view all the answers

What constitutes procedural unconscionability?

The circumstances under which the contract was signed showed unfair advantage. Signup and view all the answers

Which of the following conditions must be present for a warranty disclaimer to be considered effective?

It must be conspicuous. Signup and view all the answers

What is the age of majority, after which individuals are considered to have capacity to enter into contracts?

18 Signup and view all the answers

Which type of duress renders a contract void from the beginning?

Physical duress. Signup and view all the answers

In cases of misrepresentation, what distinguishes fraudulent misrepresentation from other types?

It involves deception and intent to mislead. Signup and view all the answers

What legal outcome occurs when a party is adjudicated as mentally incompetent?

The contract is void from the beginning. Signup and view all the answers

What must be established to prove undue influence in a contract?

That the victim was pressured to act against their best interests. Signup and view all the answers

Which of the following is NOT a factor to consider when evaluating undue susceptibility in a contract?

Financial status of the victim. Signup and view all the answers

When can a party rescind a contract based on nondisclosure?

If the nondisclosure significantly affects a party's decision. Signup and view all the answers

What is required for economic duress to render a contract voidable?

Evidence of coercion through financial threats. Signup and view all the answers

Which of the following best describes the relationship between an expressed warranty and a warranty disclaimer?

The expressed warranty takes precedence over the disclaimer. Signup and view all the answers

Which of the following represents an exemption to the statute of frauds?

Contracts for specifically manufactured goods Signup and view all the answers

What must a signed writing do to satisfy the statute of frauds?

Contain the signatures of all parties involved Signup and view all the answers

Under the parol evidence rule, what can be introduced if a written contract is deemed partially integrated?

Consistent additional terms that supplement the agreement Signup and view all the answers

Which of the following legal concepts outlines the need for written contracts for certain agreements?

Statute of Frauds Signup and view all the answers

Which principle allows for introducing evidence of prior negotiations if a written agreement is fully integrated?

No principle allows it Signup and view all the answers

What illustrates a failing defense against the statute of frauds if a contract period is less than one year?

The contract must be documented in writing Signup and view all the answers

Which scenario would be an example of partial performance as an exception to the statute of frauds?

One party fulfills part of their obligations under an agreement Signup and view all the answers

In the context of the parol evidence rule, which of the following classifications would allow the introduction of course of performance evidence?

Partially integrated contracts Signup and view all the answers

When does a contract for the sale of goods fail under the statute of frauds?

If it fails to satisfy the writing requirement Signup and view all the answers

What is the primary purpose of the parol evidence rule in contract law?

To determine if a contract is fully or partially integrated Signup and view all the answers

Which of the following is NOT a step in determining the course of performance?

Evaluate the intent of the parties Signup and view all the answers

In the case of Sherrodd v. Morrison, which aspect of an oral agreement allows it to be admissible?

It must not contradict the written agreement Signup and view all the answers

What is a significant distinguishing factor between express warranties and implied warranties?

Express warranties arise from explicit seller statements Signup and view all the answers

Which case notably deals with the implied warranty of habitability in residential leases?

Javins v. First National Realty Corp Signup and view all the answers

What is the predominant purpose test used for?

To determine if UCC or common law applies to a contract Signup and view all the answers

Under UCC 2-313, which method does NOT create an express warranty?

A seller describes a product as the best in its category Signup and view all the answers

Which of the following best defines an implied warranty of merchantability?

The product is fit for the ordinary purposes for which such goods are used Signup and view all the answers

What does UCC 2-315 address regarding warranties?

Implied warranty of fitness for a particular purpose Signup and view all the answers

What does the course of dealing refer to in the context of contract law?

The actions of the parties in prior transactions Signup and view all the answers

What is necessary for a valid contract beyond mutual assent?

Consideration Signup and view all the answers

In the context of contract law, what does the term 'unilateral contract' refer to?

A promise made in return for an act Signup and view all the answers

What is meant by 'Inquiry Notice' in contract law?

Awareness of terms before agreeing to a contract Signup and view all the answers

Which of the following cases illustrates the principle of consideration?

Hamer v. Sidway Signup and view all the answers

According to UCC 2-207, what occurs in the 'battle of the forms'?

The acceptance of terms that do not match Signup and view all the answers

Which principle determines if a contract primarily involves the sale of goods or services under the UCC?

Predominant purpose test Signup and view all the answers

What is a key characteristic of a 'browserwrap' agreement as mentioned in the context of digital contracts?

Terms are accessible via a link at the bottom of the screen Signup and view all the answers

Study Notes

August 27, 2024

A contract requires two or more people
A contract must involve something to be done in the future, not the past or present
A contract needs consideration
Contract law is based on model rules, judicial opinions, and statutes (UCC for goods)

August 30, 2024

Uber's terms of service are accepted by creating an account
Inquiry notice means a reasonable user will know they're agreeing to terms
Contracts can be clickwrap or browserwrap

September 3rd

If a contract shows a joke, it's not a contract
Offers are explicit, unequivocal, and invite assent
Price is a material term, and a formal offer with a price is important-
An offer made in jest is not a valid offer
An acceptance must be done entirely, or it's a counteroffer
A unilateral contract is when an offeror's promise is exchanged for an offeree's act/action
A bilateral contract exchanges promises, requiring mutual assent and consideration

September 13th

The UCC governs sales of goods, common law governs services
Two elements needed for UCC application are goods and a sale
Contracts that involve goods are governed by Article 2 of the UCC

September 17th

Consideration is a bargain for exchange- a detriment to the promisee
A promise is not enforceable without consideration

September 20th

A reasonable person knows their clicking on agreement
King was reasonable because sent letter agreeing to Boston
A promise to donate does not always have a consideration

September 24th

Contracts are valid if the parties agree, or via conduct implying acceptance
If a contract has variant terms, then if one party is not a "merchant," they are treated as proposals.
If both parties are "merchants," then additional terms become a part of the contract, unless there's an objection

October 8th

Residential leases have implied warranties, but those are not always a consideration for contracts
Conditions in contracts can be implied if they're not expressly stated
Defenses to avoiding a contract exist for incapacity, fraud, and public policy
Age and mental condition are considerations for capacity

October 15th

Contracts can be voided due to duress and undue influence if they're unfair or coerced.
Duress is a threat influencing entering into a contract
Undue influence is persuading a vulnerable person unfairly
Misrepresentation is lying or failing to disclose crucial information.

October 22nd

Contract formation happens when an offer is accepted
If variant terms appear, contracts with non-merchants have terms as proposals; merchants have them as part of the agreement, unless objected to
Nondisclosure can be a defense if the other party relied on hidden information that wasn't disclosed
Contracts can be voided from unconscionability if they are excessively unfair

November 1st

Mutual mistake can invalidate a contract if both parties were mistaken.
Unilateral mistakes can invalidate contracts if not accepted by both parties, unless the other party knew.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

This quiz covers essential concepts of contract law, including the requirements for a valid contract, types of contracts, and the principles of acceptance and consideration. It also touches upon specific clauses in terms of service, such as those used by ride-sharing companies like Uber. Test your knowledge on these fundamental legal principles.