Podcast
Questions and Answers
Under which condition will courts enforce an oral contract that typically must be written by statute of fraud?
Under which condition will courts enforce an oral contract that typically must be written by statute of fraud?
A contract affected by undue influence is considered void.
A contract affected by undue influence is considered void.
False
What does a breach of contract refer to?
What does a breach of contract refer to?
What is the legal term for setting aside a contract due to misrepresentation?
What is the legal term for setting aside a contract due to misrepresentation?
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Bilateral contracts involve a mutual exchange of promises.
Bilateral contracts involve a mutual exchange of promises.
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A contract that involves criminal acts is deemed __________ and cannot be enforced.
A contract that involves criminal acts is deemed __________ and cannot be enforced.
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What is the primary legal principle governing contracts in the United States?
What is the primary legal principle governing contracts in the United States?
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Match the following terms with their descriptions:
Match the following terms with their descriptions:
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In a __________ contract, the parties express their promises explicitly.
In a __________ contract, the parties express their promises explicitly.
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Which of the following scenarios exemplifies fraud in a contract?
Which of the following scenarios exemplifies fraud in a contract?
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A contract alleging excessive interest rates is enforceable under usury laws.
A contract alleging excessive interest rates is enforceable under usury laws.
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Which of the following is a characteristic of a unilateral contract?
Which of the following is a characteristic of a unilateral contract?
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Match the type of contract with its description:
Match the type of contract with its description:
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What is an unconscionable contract?
What is an unconscionable contract?
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Implied-in-law contracts require an explicit agreement between the parties.
Implied-in-law contracts require an explicit agreement between the parties.
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What is one common source of contract law that governs commercial transactions?
What is one common source of contract law that governs commercial transactions?
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Which term describes a proposal from one party to another outlining the terms of an agreement?
Which term describes a proposal from one party to another outlining the terms of an agreement?
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A contract can be formed even if one party does not provide any consideration.
A contract can be formed even if one party does not provide any consideration.
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What is considered a valid method of acceptance when no specific method is stipulated in the offer?
What is considered a valid method of acceptance when no specific method is stipulated in the offer?
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The __________ rule states that an acceptance must match the terms of the original offer.
The __________ rule states that an acceptance must match the terms of the original offer.
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Under the Equal Credit Opportunity Act (ECOA), which of the following is unlawful?
Under the Equal Credit Opportunity Act (ECOA), which of the following is unlawful?
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Match the following elements of contract formation with their descriptions:
Match the following elements of contract formation with their descriptions:
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Counteroffers are considered valid forms of acceptance.
Counteroffers are considered valid forms of acceptance.
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What can debtors recover if a credit application is unlawfully rejected?
What can debtors recover if a credit application is unlawfully rejected?
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Study Notes
Contract Law
- A contract is a legally enforceable agreement between parties outlining their obligations and expectations.
- Breach of contract can result in legal consequences.
- Common law, UCC (Uniform Commercial Code), and e-commerce regulations are primary sources of contract law in the US.
Types of Contracts
- Bilateral: Both parties make promises.
- Example: Student promises to attend classes and university promises to provide education.
- Unilateral: One party gives a promise, the other fulfills an obligation.
- Example: Reward for finding a lost item.
- Express: Parties express their promises explicitly.
- Example: Real estate sales contract.
- Implied: Promises are inferred from the parties' actions.
- Example: Doctor's appointment.
Validity and Formation
- Valid: Contracts that meet all essential elements to be legally enforceable.
- Example: Student's contract with AUB.
- Void: Contracts with illegal elements that are unenforceable.
- Example: A promise to break the law (like murder).
- Voidable: Contracts that can be set aside by injured party (due to incapacity or fraud).
- Example: A contract with a minor or under duress.
- Formal: Requires specific legal procedures.
- Example: Real estate purchase (registration).
- Informal: No special procedures.
- Example: Friendly verbal agreement.
- Offer: Clear and definite proposal from one party to another.
- Example: Job offer email (must have essential parts to be valid).
- Acceptance: The offeree's agreement to the offer’s terms.
- Example: acceptance must mirror the offer's terms, according to mirror image rule.
- Consideration: Value exchanged between parties.
- Example: Cash for goods.
- Capacity: Legal ability to enter into a contract. Parties usually must be 18yrs of age and have mental capacity.
- Legality: Agreement is not in conflict with the law.
- Example: contract violating criminal law, is invalid.
Additional Contract Concepts
- Counteroffer: Rejection with a new offer proposing different terms.
- Consideration: Something of value exchanged between both parties (giving up something of value).
- Legal Capacity: The legal ability to enter into a contract (age, mental state).
- Legality: Contracts cannot be against the law.
- Statute of Frauds: Specific contracts (e.g. those in excess of a certain amount ) require a written agreement to be enforceable.
- Misrepresentation: False information about the contract, which is a legal invalidity for contract.
- Fraud: Intentional misrepresentation with the intent to deceive.
- Duress: Contract entered into due to coercion.
- Undue Influence: Contract influenced by close relationships or dominance (e.g. abusive relationship).
- Impossibility: Unforeseen circumstances prevent performance.
- Commercial Impracticability: Unexpected event makes contract performance extraordinarily difficult.
- Force Majeure: Unexpected events beyond party's control prevent performance (e.g. war).
Remedies for Non-Performance
- Compensatory Damages: Return the non-breaching party to their previous position.
- Incidental Damages: Costs directly related to the breach.
- Consequential Damages: Losses stemming from the breach.
- Liquidated Damages: Agreed-upon damages for breach in advance.
Third-Party Rights
- Third-Party Beneficiaries: Non-contracting parties who benefit.
- Assignment: Transfer of contractual rights.
- Delegation: Transfer of contractual duties.
Other Important Details
- Uniform Commercial Code (UCC): Governs sales contracts for goods.
- Equal Credit Opportunity Act (ECOA): Protects individuals from discrimination.
- Fair Credit Billing Act: Protects consumers regarding credit billing issues.
- Bankruptcy Abuse Prevention and Consumer Protection Act: Establishes rules for bankruptcy filings.
- Uniform Electronic Transactions Act (UETA): Recognizes electronic signatures,
- United Nations Convention on Contracts for the International Sale of Goods (CISG): Applies to international sales Contracts.
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Description
Explore the fundamentals of contract law, including types of contracts and their validity. This quiz covers important concepts such as bilateral and unilateral contracts, as well as express and implied agreements. Understand the key elements that make a contract legally enforceable.
